Personal Finance

Why Teva Pharmaceutical Industries Ltd Stock Is Great For a Dividend Portfolio

TEVA Dividend Chart

Finding great stocks for a dividend portfolio can sometimes be like trying to find a needle in a haystack.

TEVA Dividend Chart

TEVA Dividend data by YCharts

Teva's current yield of 2.6% places it above the S&P 500's current yield of 1.9%, and its payout ratio of 28% (based on Wall Street's projected EPS in 2014) leaves plenty of room for future dividend increases. Not to mention, Teva's producing more than $2 billion in free cash flow annually, which gives it the means to reinvest in its branded and generic pipeline as well as make earnings-accretive acquisitions as it sees fit. Couple this shareholder-first mentality with its growing generic and brand-drug prospects and you have what I believe is a prime candidate for any dividend portfolio.

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The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now .

The article Why Teva Pharmaceutical Industries Ltd Stock Is Great For a Dividend Portfolio originally appeared on Fool.com.

Sean Williamshas no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool recommends Procter & Gamble and Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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