Three Dividend-paying Biopharmaceutical Investments to Purchase During the Pandemic

Three dividend-paying biopharmaceutical investments to purchase during the pandemic provide investors with a chance to profit from two exchange-traded funds (ETFs) and a stock that probably is less well-known than the names of companies that combined to create it. The three biopharmaceutical investments to purchase are part of an industry that generally is well-financed and aims to treat health problems through biological solutions.

iShares Biotechnology (IBB) is designed to track the NASDAQ Biotechnology Index. So, it holds only stocks listed on the NASDAQ that are classified as either biotechnology or pharmaceutical companies, Carlson said. IBB tends to be the more volatile of the two funds and, over some periods, its returns can be substantially higher or lower than alternatives, Carlson cautioned. The other ETF Carlson recommended is SPDR S&P Biotech (XBI). That fund aims to track the S&P Biotechnology Select Industry Index. That biotech index is derived from a U.S. total market composite, so it is not limited to S&P 500 stocks. Dublin, Ireland-based Jazz Pharmaceuticals (NASDAQ:JAZZ) received a $223 price objective (PO) and a buy recommendation from BoA Global Research, based on a valuation of 10.5x enterprise value (EV)/earnings before interest, taxes, depreciation and amortization (EBITDA) projected in 2022.

Source: Dividend Investor

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