Should You Be Holding AstraZeneca PLC (LON:AZN)?

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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on AstraZeneca PLC (LON:AZN) due to its excellent fundamentals in more than one area. AZN is a company with a a great track record of dividend payments as well as a buoyant future outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on AstraZeneca here.

High growth potential average dividend payer

AZN is an attractive stock for growth-seeking investors, with an expected earnings growth of 28% in the upcoming year underlying the notable 36% return on equity over the next few years leading up to 2022.

LSE:AZN Past and Future Earnings, June 5th 2019
LSE:AZN Past and Future Earnings, June 5th 2019

AZN dishes out decent dividend payments over time, exceeding the low-risk savings rate, which is what investors expect when they take on the risk of investing in the stock market. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.

LSE:AZN Historical Dividend Yield, June 5th 2019
LSE:AZN Historical Dividend Yield, June 5th 2019

Next Steps:

For AstraZeneca, there are three pertinent factors you should look at:

  1. Historical Performance: What has AZN’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation: What is AZN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AZN is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AZN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.