The global pharmaceutical industry will generate about $1.2 trillion in sales in 2025, according to Statista. The oncology segment alone is expected to generate $217 billion in sales this year. The pharma industry is expected to grow 4.7% annually, reaching $1.5 trillion by 2029.
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Not only are pharmaceutical stocks excellent defensive investments in an uncertain economy, some pharma stocks pay sizable dividends that can be a source of steady income and help offset the impact of inflation. Here are seven pharmaceutical stocks to buy with dividend rates of at least 2%, according to Argus:
| Stock | Forward Dividend Yield* | Upside Potential* |
| Johnson & Johnson (ticker: JNJ) | 3.1% | 9.9% |
| AbbVie Inc. (ABBV) | 3.4% | 15.6% |
| Novo Nordisk A/S (NVO) | 3.2% | 25.5% |
| AstraZeneca PLC (AZN) | 2.9% | 16.9% |
| Merck & Co. (MRK) | 3.8% | 18.0% |
| Amgen Inc. (AMGN) | 3.1% | 1.1% |
| Gilead Sciences Inc. (GILD) | 2.8% | 3.2% |
*As of July 25 close.
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in the pharmaceutical, medical device and consumer health care products industries. Its key products include anti-inflammation drug Stelara, multiple myeloma and light chain amyloidosis drug Darzalex, and headache and oral blood cancer therapy Imbruvica. Analyst David Toung says Johnson & Johnson has successfully offset sales erosion of Stelara, which suggests the company should maintain earnings growth and continue to create value for investors. Toung says neuroscience and oncology drugs will be key growth catalysts, and Darzalex, Tremfya and Carvykti have been particularly impressive. Argus has a “buy” rating and $185 price target for JNJ stock, which closed at $168.30 on July 25.
Forward dividend yield: 3.1%
AbbVie Inc. (ABBV)
AbbVie is a global pharmaceutical company. Its key drugs include Humira for treating rheumatoid arthritis, psoriasis, Crohn’s disease and other conditions, and Skyrizi for treating plaque psoriasis, psoriatic arthritis, Crohn’s disease and ulcerative colitis. Analyst Jasper Hellweg says immunology drugs Skyrizi and Rinvoq have become the new growth drivers for AbbVie now that Humira’s exclusivity period has ended. AbbVie management has said the company expects Skyrizi and Rinvoq’s combined revenue will exceed $31 billion in 2027, suggesting the company has a bright future ahead. Argus has a “buy” rating and $220 price target for ABBV stock, which closed at $190.28 on July 25.
Forward dividend yield: 3.4%
Novo Nordisk A/S (NVO)
Novo Nordisk is a Denmark-based leader in insulin management and diabetes care. The company produces a range of other pharmaceutical products as well. Novo Nordisk’s top drugs include type 2 diabetes and obesity drug Ozempic and type 2 diabetes drug Rybelsus. Hellweg says Novo Nordisk’s GLP-1 diabetes and obesity drugs are its biggest growth source, and the company is focusing on new indications for existing drugs, as well as brand new hormone treatments. He says Novo already has several new GLP-1 formulations and combinations in late-stage trials. Argus has a “buy” rating and $90 price target for NVO stock, which closed at $71.70 on July 25.
Forward dividend yield: 3.2%
[SEE: 7 Best Monthly Dividend Stocks to Buy Now.]
AstraZeneca PLC (AZN)
AstraZeneca is one of the largest pure-play pharmaceutical companies in the world. Its leading commercial drugs include Tagrisso for lung cancer, Farxiga for type 2 diabetes and Soliris for paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome. Hellweg says AstraZeneca’s recent regulatory approvals, including treatments for lung cancer, lymphoma, breast cancer and chronic obstructive pulmonary disease, are evidence of the company’s positive momentum. AstraZeneca is also branching out from its core business, acquiring a biotech company that is developing novel in vivo cell therapies. Argus has a “buy” rating and $85 price target for AZN stock, which closed at $72.66 on July 25.
Forward dividend yield: 2.9%
Merck & Co. (MRK)
Merck is one of the world’s largest pharmaceutical companies, and its leading products include cancer drug Keytruda and HPV vaccine Gardasil. Hellweg says the looming 2028 patent expiration of Keytruda has weighed on investor sentiment, but the company’s subcutaneous formulation for Keytruda has performed well so far in clinical trials. If ultimately approved, the formulation could extend Merck’s window of opportunity for Keytruda. In addition, the recent regulatory approval of pneumococcal conjugate vaccine Capvaxive in Europe is a reminder that there’s more to Merck than just Keytruda. Argus has a “buy” rating and $100 price target for MRK stock, which closed at $84.71 on July 25.
Forward dividend yield: 3.8%
Amgen Inc. (AMGN)
Amgen is one of the world’s largest biotechnology companies. Its leading commercial drugs include osteoporosis and hypercalcemia drug Prolia, autoimmune disease drug Enbrel and osteoporosis, hypercalcemia and bone cancer drug Xgeva. Hellweg says Amgen’s portfolio of commercial products is generating impressive growth numbers, and its development pipeline has the potential to create significant value over time. The company’s latest major achievement is FDA approval for Uplizna to treat immunoglobulin G4-related disease in adults. Hellweg says new drug launches, acquired products and biosimilars will be bullish catalysts. Argus has a “buy” rating and $310 price target for AMGN stock, which closed at $306.58 on July 25.
Forward dividend yield: 3.1%
Gilead Sciences Inc. (GILD)
Gilead Sciences is a biopharmaceutical company that develops treatments for HIV/AIDS, hepatitis C, liver disease, hematology/oncology and inflammation. Its leading drugs include HIV drugs Biktarvy and Genvoya and antiviral medication Veklury. Hellweg says Gilead is a market leader in HIV and oncology treatments, and its recent regulatory approvals and pipeline development progress suggest the company is firing on all cylinders. For example, Gilead recently gained regulatory approval in Europe for seladelpar in combination with ursodeoxycholic acid for treating primary biliary cholangitis. Argus has a “buy” rating and $120 price target for GILD stock, which closed at $116.20 on July 25.
Forward dividend yield: 2.8%
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7 Best Pharmaceutical Stocks to Buy for Income originally appeared on usnews.com
Update 07/28/25: This story was published at an earlier date and has been updated with new information.
