Get T & RPRX for Just $100!
Now, with just 100 bucks, you can snag shares of $AT&T Inc(T)$ and $Royalty Pharma plc(RPRX)$ . If you've got the cash to spare and don’t have bills to worry about, sinking it into these stocks for the long haul is almost a surefire way to keep that passive income ticking upward.
1. $AT&T Inc(T)$
AT&T is a no-brainer dividend stock worth grabbing for $100. With the recent price, this telecom giant yields a meaty 5.1%. They trimmed their dividend in 2022 and haven’t bumped it up again yet, but a return to those yearly high payouts feels just around the corner.
Just this September 30, AT&T announced a deal to offload the remainder of their DirecTV shares to private equity firm TPG for $7.6 billion. Besides, a new fixed wireless service running off AT&T’s 5G network pushed a 7% year-over-year increase in consumer broadband sales in Q2.
No one’s expecting AT&T’s massive telecom business to sprint ahead quickly, but owning one of only three nationwide 5G networks gives it a rather cushy spot in the U.S. telecommunications oligopoly. Profitability and steady growth are more likely than not.
2. $Royalty Pharma plc(RPRX)$
Royalty Pharma is a specialty finance company, holding stakes in dozens of different medications. Since it began handing out dividends in 2020, the company’s divvy has grown by 40%.
One of the drugs Royalty Pharma has a stake in is Cobenfy, a new schizophrenia treatment launched by Bristol-Myers Squibb. At its peak, Royalty Pharma expects to pull in about $100 million annually in royalties from Cobenfy.
Cobenfy is one of eight potential blockbuster drugs in Royalty Pharma’s late-stage development pipeline that could launch by 2028. The potential peak annual royalty income from these eight drugs could exceed $1.25 billion.
With a forward P/E ratio of 7.2, Royalty Pharma’s stock might seem aptly valued for a business in decline, but this specialty finance firm is likely to see its revenues and profits grow by double-digit percentages annually over the next few years. The gap between this valuation and its business trajectory is huge, making it a hot buy according to analysts.
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