Top U.K. (FTSE) Pharmaceuticals & Biotech Dividend Stocks

Top U.K. (FTSE) Pharmaceuticals & Biotech Dividend Stocks

UPDATED Nov 24, 2022

What are the best U.K. (FTSE) Pharmaceuticals & Biotech Dividend Stocks?

According to our Simply Wall St analysis these are the best U.K. Pharmaceuticals & Biotech dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.

Our criteria to find Top Dividend Companies

High Yield

  • Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
  • Yields vary between markets, so we focus on the top dividend payers in each market.

What do we look for?

  • Is the yield in the top 25% of the market's dividend payers.

Consistent Dividends

  • Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
  • If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.

What do we look for?

  • Has the dividend been stable over the last 10 years.
  • Has the dividend grown over the last 10 years.

Dividend Cover

  • Ideally the company doesn't pay out all of its earnings, neglecting future growth.
  • If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.

What do we look for?

  • Are dividends covered by earnings.
  • Are dividends forecast to be covered by earnings in the future.

Healthy Balance Sheet

  • Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.

What do we look for?

  • Does the company have a manageable level of debt.
  • Is the company able to cover its interest repayments.

2 companies meet this criteria in the U.K. market

Alliance Pharma plc operates as a pharmaceutical company in Europe, the Middle East, Africa, the Asia Pacific, China, and the Americas.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: APH's dividend (3.95%) is low compared to the top 25% of dividend payers in the UK market (5.67%).

  • Stable Dividend

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Rewards

  • Trading at 70.1% below our estimate of its fair value

  • Earnings are forecast to grow 23.71% per year

Risks

  • Highly volatile share price over the past 3 months

  • Profit margins (7.5%) are lower than last year (12.3%)

  • Large one-off items impacting financial results

View all Risks and Rewards

Bioventix PLC creates, manufactures, and supplies sheep monoclonal antibodies (SMAs) for diagnostic applications worldwide.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: BVXP's dividend (4.22%) is low compared to the top 25% of dividend payers in the UK market (5.67%).

  • Future Dividend Coverage

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Rewards

  • Trading at 2.7% below our estimate of its fair value

  • Earnings are forecast to grow 4.56% per year

  • Earnings grew by 14% over the past year

Risks

No risks detected for BVXP from our risks checks.

View all Risks and Rewards
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