To The Moon

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For passive income investors, $Novartis AG(NVS)$ , the Swiss pharmaceutical giant, is the perfect choice. It not only regularly increases its dividends but also avoids the risk of dividend cuts or suspensions.

Novartis boasts 13 blockbuster drugs (with annual sales exceeding $1 billion), seven of which have seen growth in sales year-on-year. Its top-selling product remains Entresto, a heart failure drug, with revenue increasing by 30% to $6 billion.

Meanwhile, Pluvicto, the first prostate cancer drug approved in the US in 2022, saw a staggering 262% year-on-year increase in sales to $980 million last year.

In 2023, Novartis' net sales grew 8% to $45.4 billion, and earnings per share rose 18% to $6.47. Last year, the company spun off its generics and biosimilars division, Sandoz, to focus on core innovative drug research and development.

In December, Novartis received approval for Fabhalta, a new treatment for PNH, with potential annual sales of up to $3.6 billion.

Thanks to this new drug and the expansion of multiple indications, Novartis' core business is expected to grow even faster this year. The company has a robust R&D pipeline with over 100 ongoing projects, which will drive long-term financial performance growth.

Novartis has increased its dividends for 27 consecutive years, and given its current revenue, earnings, and cash flow trends, this upward momentum is unlikely to change anytime soon.

Last year, Novartis' free cash flow grew 9% to $13.2 billion. The stock currently offers a dividend yield of 3.94%, far higher than the average 1.47% of the S&P 500 index, and its payout ratio is less than 62%, ensuring a high level of dividend safety.

In short, Novartis is a low-risk dividend stock that's perfect for long-term passive income investors.