Got $200? 2 to buy shares and hold them forever
Medicine is the cornerstone of health care. That’s true today, valued at $1.4 trillion and expected to grow 6.1% annually through 2030. A time investor can be considered.
You don’t even need a lot of money to get started. Pfizer (NYSE: PFE ) And Johnson and Johnson (NYSE:JNJ) They are industry stalwarts with long histories, generous dividends and strong growth prospects. Additionally, their convincing reviews make them a timely buy.
If you have $200 (or more) to invest in stocks, you might want to consider buying shares of each and holding them for the long term. Here’s why.
Pfizer’s rich history dates back to the mid-1800s. Although the company’s products have changed through innovation and integration, it is one of the leading pharmaceutical companies. Most recently, Pfizer predicted that its covid-19 vaccine (Comirnaty) and treatment (Paxlovide) will have combined sales of $56.7 billion by 2022. That business has been greatly reduced by the Covid-19 cases. Top- and bottom-line declines have pushed the stock to its lowest price level in a decade.
However, Pfizer is running ahead and reinventing itself, a key skill for any company that wants to stay afloat in the pharmaceutical industry. The company has It confirmed her future development Following the $43 billion acquisition of Seagen by 2023, the oncology pipeline includes the release of high-potential drugs. Revenue and earnings declined and started to grow again in 2024, setting the stage for a bright future. Analysts expect Pfizer to grow earnings by an average of 14% annually over the next three to five years.
Investors get stock in Pfizer, which proves it can evolve to stay relevant. It also offers a solidly supported 6.3% dividend today Payment ratio (57% of revenues). The stock could very well generate double-digit total investment returns going forward, especially for stocks with less than 10 times earnings estimates.
Johnson & Johnson is another old timer in healthcare, dating back to the late 1800s. Although it is a major pharmaceutical company, it is more diversified, with a medtech division that sells a wide range of medical devices and other products. In the year In August 2023, the company will sell its consumer products business as Kenvu. Johnson & Johnson’s dividend is its claim to fame among investors. It is the Dividend King with 62 consecutive annual dividend increases.
