Sanofi Boasts a Dividend Yield of 5.4%, Trades Below 9x Earnings, and Just Got an FDA Win. Are Income Investors Missing a Rare Opportunity?
The company has increased its dividend for 30 consecutive years.
Overview
For income investors, there's a solid stock that pays a handsome dividend and, due to a recent decline in its share price, is trading at a bargain-basement price. I'm talking about Sanofi (NASDAQ: SNY), the French multinational pharmaceutical that is focused on immunology, vaccines, and rare diseases.
The stock pays a $0.61 quarterly dividend, yielding about 5.4% (the annual dividend divided by the share price). That's a handsome yield by any measure. And when you factor in the impact of the company's stock buybacks, that yield rises to near 11%. And the company has raised its dividend for 30 consecutive years, making it a member of the European Dividend Aristocrats® (a registered trademark of Standard & Poor's Financial Services LLC).
Details
And yet, Sanofi's share price is down about 6.5% this year. Part of that is because the drugmaker canceled several major late-stage programs, raising valid investor concerns about its drug pipeline. Does that spell opportunity now for investors? Let's see.
Source
Originally published at www.fool.com.