WBA, KHC & GILD - Top 3 Dividend Yielders in NASDAQ 100
So far this year, $NASDAQ 100(NDX)$ has been up whopping 13.5%. And among the top dividend payers, three stocks stand out with yields ranging from 4.6% to 6.5%. Looking for high dividends? These three might be just for you!
1. $Walgreens Boots Alliance(WBA)$
The healthcare stock, WBA, hasn't been this affordable for a long time. Its market value has shrunk by nearly 70% in the past five years. Last November, management slashed dividends by half, but due to the struggling stock price, the yield is now hovering around 6.5%.
Walgreens and other pharmacies are facing reimbursement pressure. They make most of their profits from reimbursements from pharmacy benefit managers (PBMs), but here's the catch: the PBM market is now highly consolidated. Just three PBMs control around 80% of the market share. They use their market power to negotiate lower reimbursement rates, which directly impacts Walgreens' profits.
But with a forward P/E ratio of just 5, if you're willing to wait it out, there's a lot of upside potential once the market thinks the stock's downtrend is over.
2. $The Kraft Heinz Company(KHC)$
From 2017 to 2020, KHC stock price tanked 70% due to increased competition and pricing pressure from new market entrants for its branded products. And the recent above-normal inflation has also put a damper on Kraft Heinz's stock.
With all these headwinds, Kraft Heinz's stock price has only risen about 20% in the past five years, while the NASDAQ Composite has soared over 120% during the same period. But with dividends factored in, Kraft Heinz's outlook brightens up.
Since 2019, the company has been paying a quarterly dividend of $0.40 per share. Based on the current stock price, that gives you a yield of 4.6%.
3. $Gilead Sciences(GILD)$
GILD stock has also been struggling this year, losing almost a quarter of its value, pushing the dividend yield to 4.9%. And just a few quarters ago, the dividend was increased from $0.75 to $0.77 per share.
Gilead has a promising portfolio of next-generation drugs for treating HIV, breast cancer, B-cell lymphoma, and more. While its current drug portfolio is performing well, generating sales of $6.7 billion last quarter, up 5% year-over-year, pharmaceutical companies often experience cyclical ups and downs due to uncertainty in their potential new product pipelines.
However, Gilead's business is highly diversified, and its research team is on target. Plus, Gilead's currently marketed drugs provide ample cash flow for developing new candidates. If you're looking for a high dividend yield with long-term growth potential, Gilead is a solid bet.
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