The below table shows Pharma Stocks With High Dividend Yield based on the Highest Market Capitalization.
| Name | Market Cap (Cr) | Close Price (Rs) |
| Sun Pharmaceutical Industries Limited | 4,19,227.12 | 1,744.90 |
| Cipla Limited | 1,22,074.18 | 1,511.10 |
| Torrent Pharmaceuticals Limited | 1,09,890.8 | 3,254.60 |
| Dr Reddy’s Laboratories Limited | 96,711.14 | 1,177.40 |
| Lupin Limited | 88,231.87 | 2,009.20 |
| Zydus Lifesciences Limited | 83,471.02 | 845.35 |
| Aurobindo Pharma Limited | 67,882.14 | 1,201.20 |
| Abbott India Limited | 65,056.38 | 30,915.00 |
| Alkem Laboratories Limited | 59,080.89 | 5,000.40 |
| GlaxoSmithKline Pharmaceuticals Limited | 49,123.85 | 2,815.40 |
Table of Contents
What are Pharma Stocks?
Pharma stocks represent shares of companies in the pharmaceutical industry, which research, develop, produce, and market drugs for medical use. These stocks are part of a sector known for their high research and development costs, strict regulatory environments, and potential for significant profitability.
Investing in pharma stocks offers potential high returns due to the constant demand for medical innovations and treatments. The sector’s performance can be heavily influenced by patent laws, drug approvals, and overall healthcare policies.
However, pharma stocks can also be volatile. Market dynamics such as regulatory changes, patent expirations, and shifts in healthcare practices can significantly impact these stocks. Therefore, careful research and risk assessment are crucial.
Best Pharma Stocks With High Dividend Yield
The table below shows Best Pharma Stocks With High Dividend Yields based on 1 Year Return.
| Name | Close Price (Rs) | 1Y Return (%) |
| Astrazeneca Pharma India Limited | 8,727.50 | 66.43 |
| Laurus Labs Limited | 640.35 | 48.9 |
| GlaxoSmithKline Pharmaceuticals Limited | 2,815.40 | 44.38 |
| Glenmark Pharmaceuticals Limited | 1,368.80 | 31.7 |
| Ajanta Pharma Limited | 2,679.20 | 28.11 |
| Torrent Pharmaceuticals Limited | 3,254.60 | 25.57 |
| Lupin Limited | 2,009.20 | 25.29 |
| Abbott India Limited | 30,915.00 | 17.48 |
| Sun Pharmaceutical Industries Limited | 1,744.90 | 13.3 |
| Aurobindo Pharma Limited | 1,201.20 | 11.61 |
Top Pharma Stocks With High Dividend Yield
The table below shows Top Pharma Stocks With High Dividend Yield based on 1 Month Return.
| Name | Close Price (Rs) | 1M Return (%) |
| Emcure Pharmaceuticals Limited | 1,082.00 | 10.32 |
| Concord Biotech Limited | 1,712.30 | 4.23 |
| Laurus Labs Limited | 640.35 | 4.06 |
| Astrazeneca Pharma India Limited | 8,727.50 | 3.75 |
| GlaxoSmithKline Pharmaceuticals Limited | 2,815.40 | 1.81 |
| Ajanta Pharma Limited | 2,679.20 | 1.52 |
| Abbott India Limited | 30,915.00 | 1.45 |
| Alkem Laboratories Limited | 5,000.40 | 1.01 |
| Pfizer Limited | 4,191.40 | 0.99 |
| Torrent Pharmaceuticals Limited | 3,254.60 | 0.49 |
List Of Pharma Stocks With High Dividend Yield
The table below shows a List Of Pharma Stocks With High Dividend Yields based on the highest day Volume.
| Name | Close Price (Rs) | Daily Volume (Shares) |
| Glenmark Pharmaceuticals Limited | 1,368.80 | 2157594 |
| Dr Reddy’s Laboratories Limited | 1,177.40 | 1935409 |
| Zydus Lifesciences Limited | 845.35 | 1858355 |
| Laurus Labs Limited | 640.35 | 1663983 |
| Sun Pharmaceutical Industries Limited | 1,744.90 | 1523755 |
| Lupin Limited | 2,009.20 | 962429 |
| Aurobindo Pharma Limited | 1,201.20 | 649814 |
| Cipla Limited | 1,511.10 | 563156 |
| Gland Pharma Limited | 1,464.40 | 333088 |
| Emcure Pharmaceuticals Limited | 1,082.00 | 200238 |
High Dividend Pharma Stocks
The table below shows High Dividend Pharma Stocks based on the PE Ratio.
| Name | Close Price (Rs) | PE Ratio (%) |
| Glenmark Pharmaceuticals Limited | 1,368.80 | 6.59 |
| Dr Reddy’s Laboratories Limited | 1,177.40 | 18.23 |
| Zydus Lifesciences Limited | 845.35 | 19.02 |
| Aurobindo Pharma Limited | 1,201.20 | 20.31 |
| Cipla Limited | 1,511.10 | 24.77 |
| Alkem Laboratories Limited | 5,000.40 | 28.35 |
| Pfizer Limited | 4,191.40 | 31.54 |
| Lupin Limited | 2,009.20 | 32.99 |
| Gland Pharma Limited | 1,464.40 | 34.59 |
| Sun Pharmaceutical Industries Limited | 1,744.90 | 36.23 |
Who Should Invest In Pharma Stocks With High Dividend Yield?
Investors seeking steady income and those with a moderate risk tolerance might consider investing in pharma stocks with high dividend yields. These stocks can provide regular cash flows from dividends, appealing to those looking for income in addition to potential capital gains.
Such investments are suitable for investors who are particularly interested in the healthcare sector and are comfortable with the associated risks. These include regulatory risks, drug approval processes, and market competition which can affect stock prices and dividend payouts.
Moreover, these stocks are ideal for long-term investors who can weather volatility. Pharma companies can face fluctuating fortunes based on clinical trial results and changes in healthcare policies, requiring patience and a long-term perspective from investors.
How To Invest In The Pharma Stocks With High Dividend Yield?
To invest in pharma stocks with high dividend yields, start by identifying financially stable pharmaceutical companies using Alice Blue. Look for those with a history of consistent dividends and strong market positions. It’s important to assess their payout ratios to ensure the sustainability of dividends.
Next, diversify your investment across several pharma stocks to mitigate risks. This strategy helps balance potential losses if one company underperforms. Focus on companies that have demonstrated resilience and growth in the healthcare sector, enhancing portfolio stability.
Finally, regularly review and adjust your portfolio based on performance and market conditions. Keep track of developments in the pharmaceutical industry, including regulatory changes and new drug approvals, which can impact stock valuations and dividend payouts.
Performance Metrics Of Pharma Stocks With High Dividend Yield
Performance metrics of pharma stocks with high dividend yields typically include dividend yield, payout ratio, and earnings growth. These indicators help assess the financial health of the company and the sustainability of its dividends, crucial for long-term investment stability.
The dividend yield is a key metric; it shows the percentage of the stock price paid out in dividends annually. A stable or increasing dividend yield over time suggests a reliable income stream. However, excessively high yields might signal financial distress or a declining stock price.
The payout ratio, the percentage of earnings paid as dividends, is equally important. A sustainable payout ratio (generally below 75%) indicates that the company earns enough to cover its dividends without compromising its growth or financial health. This balance is vital for maintaining dividend payouts in the long run.
Benefits Of Investing In Pharma Stocks With High Dividend Yield
The main benefits of investing in pharma stocks with high dividend yield include regular income through dividends, potential for capital appreciation, and a hedge against inflation. These stocks can also diversify an investment portfolio, balancing growth stocks with steady income-producing assets.
- Steady Income Stream: Pharma stocks with high dividend yields provide regular dividend payouts, offering a consistent source of income. This is particularly appealing for investors seeking reliable cash flows, such as retirees or those looking for a steady income to supplement their earnings.
- Capital Appreciation Potential: While primarily known for dividends, pharma stocks also offer opportunities for capital growth. The ongoing demand for healthcare and continuous innovation can drive stock prices up, offering investors both yield and growth prospects.
- Inflation Hedge: High dividend yields can help offset the effects of inflation, preserving the purchasing power of an investor’s income. As costs rise, so can dividends if the companies remain profitable, providing an effective hedge against inflation.
- Portfolio Diversification: Adding pharma stocks with high dividends to an investment portfolio introduces sector diversity and reduces risk. Their performance is often less correlated with economic cycles, providing stability in volatile markets.
Challenges Of Investing In Pharma Stocks With High Dividend Yield
The main challenges of investing in pharma stocks with high dividend yield include potential dividend cuts if financial performance falters, risks of regulatory changes affecting profitability, and the possibility that high yields might signify underlying company issues, such as declining stock prices.
- Dividend Volatility: High dividend yields are attractive, but they can be at risk if the pharma company’s earnings fall. Economic downturns, regulatory changes, or failed drug developments can lead to reduced dividends, impacting investors who rely on this income.
- Regulatory Risks: Pharma companies are heavily regulated. Changes in healthcare laws, policy shifts, or stringent new regulations can significantly affect profitability and, consequently, dividend payouts. Staying compliant is costly and complex, adding a layer of uncertainty for investors.
- Value Traps: Sometimes a high dividend yield is a warning sign rather than an opportunity, indicating that the company might be struggling and the stock price may continue to fall. It’s crucial to differentiate between genuinely profitable companies and those merely attempting to maintain investor interest with high dividends.
Introduction to Pharma Stocks With High Dividend Yield
Sun Pharmaceutical Industries Ltd
The Market Cap of Sun Pharmaceutical Industries Limited is ₹4,19,227.12 crore. The stock’s 1-month return is -0.36%, while its 1-year return is 13.3%. It is currently 12.35% away from its 52-week high.
Sun Pharmaceutical Industries Ltd is one of the largest pharmaceutical companies in India and globally. It focuses on the development, manufacturing, and marketing of branded and generic medicines in various therapeutic areas, including oncology, cardiology, and neurology.
Founded in 1983 by Dilip Shanghvi, Sun Pharma has grown through strategic acquisitions and organic growth. The company is recognised for its innovation and leadership in the global pharmaceutical industry, offering a wide range of products and solutions to healthcare needs.
Cipla Ltd
The Market Cap of Cipla Limited is ₹1,22,074.18 crore. The stock’s 1-month return is 0.17%, while its 1-year return is 11.53%. It is currently 12.64% away from its 52-week high.
Cipla Ltd is a multinational pharmaceutical company that develops and manufactures a broad range of healthcare products, including generic medicines, over-the-counter products, and active pharmaceutical ingredients. It is known for its contributions to treating chronic diseases such as asthma and HIV.
Founded in 1935 by Dr. Khwaja Abdul Hamied, Cipla has grown into a global player in the pharmaceutical sector. The company has built a strong reputation for providing affordable healthcare solutions, with a focus on high-quality generic drugs and innovative therapies.
Torrent Pharmaceuticals Ltd
The Market Cap of Torrent Pharmaceuticals Limited is ₹1,09,890.8 crore. The stock’s 1-month return is 0.49%, while its 1-year return is 25.57%. It is currently 10.33% away from its 52-week high.
Torrent Pharmaceuticals Ltd is a leading Indian pharmaceutical company with a strong presence in both domestic and international markets. The company specialises in the manufacturing of branded generic medicines across various therapeutic categories, including cardiovascular and central nervous system treatments.
Established in 1959, Torrent Pharmaceuticals is part of the Torrent Group. Over the years, the company has expanded its footprint globally, focusing on high-value therapeutic areas, and has earned a reputation for its research-driven approach to product development and innovation.
Dr Reddy’s Laboratories Ltd
The Market Cap of Dr Reddy’s Laboratories Limited is ₹96,711.14 crore. The stock’s 1-month return is -1.74%, while its 1-year return is -2.15%. It is currently 20.73% away from its 52-week high.
Dr Reddy’s Laboratories Ltd is a leading global pharmaceutical company offering a wide range of generic medicines, active pharmaceutical ingredients, and over-the-counter products. It is recognised for its focus on research and development in various therapeutic segments like oncology and neurology.
Founded in 1984 by Dr. Kallam Anji Reddy, the company quickly established itself as a key player in the pharmaceutical industry. Dr Reddy’s Laboratories has grown globally through innovation, making significant strides in both generic drug development and complex drug delivery technologies.
Lupin Ltd
The Market Cap of Lupin Limited is ₹88,231.87 crore. The stock’s 1-month return is -7.16%, while its 1-year return is 25.29%. It is currently 19.59% away from its 52-week high.
Lupin Ltd is a global pharmaceutical company with a strong focus on developing high-quality generic medicines, biosimilars, and active pharmaceutical ingredients. The company specialises in therapeutic areas such as cardiology, diabetes, and respiratory disorders.
Founded in 1968 by Desh Bandhu Gupta, Lupin has emerged as one of India’s leading pharmaceutical exporters. The company has expanded its global footprint, focusing on providing accessible and affordable healthcare solutions in both emerging and developed markets.
Zydus Lifesciences Ltd
The Market Cap of Zydus Lifesciences Limited is ₹83,471.02 crore. The stock’s 1-month return is -9.59%, while its 1-year return is -11.92%. It is currently 56.66% away from its 52-week high.
Zydus Lifesciences Ltd (formerly Cadila Healthcare) is a leading pharmaceutical company in India that focuses on developing high-quality generic medicines, biosimilars, and vaccines. The company has a diversified product portfolio in therapeutic areas such as oncology, cardiovascular, and diabetes.
Founded in 1952 by Shri Ramanbhai Patel, Zydus Lifesciences has grown to become a significant player in the global healthcare industry. The company has invested in cutting-edge research and technology, making strides in biotechnology, research-based medicines, and global partnerships.
Aurobindo Pharma Ltd
The Market Cap of Aurobindo Pharma Limited is ₹67,882.14 crore. The stock’s 1-month return is -1.44%, while its 1-year return is 11.61%. It is currently 32.53% away from its 52-week high.
Aurobindo Pharma Ltd is a global pharmaceutical company known for its expertise in manufacturing generic medicines, active pharmaceutical ingredients, and speciality products. The company has a wide product range in various therapeutic categories, including anti-retrovirals, antibiotics, and oncology.
Founded in 1986, Aurobindo Pharma has expanded its presence across more than 150 countries. The company’s success is built on its robust manufacturing capabilities, cutting-edge research, and a commitment to providing affordable healthcare solutions to people around the world.
Abbott India Ltd
The Market Cap of Abbott India Limited is ₹65,056.38 crore. The stock’s 1-month return is 1.45%, while its 1-year return is 17.48%. It is currently 3.18% away from its 52-week high.
Abbott India Ltd is a subsidiary of the global healthcare company Abbott Laboratories, offering a wide range of medical devices, diagnostic tools, nutritional products, and generic medicines. The company focuses on improving healthcare outcomes for patients across diverse therapeutic areas.
Abbott India, established in 1944, has become a trusted name in the healthcare sector. It leverages Abbott Laboratories’ global expertise to provide high-quality products and solutions in areas like diabetes, cardiovascular health, and diagnostics.
Alkem Laboratories Ltd
The Market Cap of Alkem Laboratories Limited is ₹59,080.89 crore. The stock’s 1-month return is 1.01%, while its 1-year return is 5.37%. It is currently 28.79% away from its 52-week high.
Alkem Laboratories Ltd is a leading pharmaceutical company in India that develops and manufactures generic medicines, over-the-counter products, and active pharmaceutical ingredients. The company’s therapeutic focus includes areas like oncology, cardiology, and anti-infectives.
Established in 1973, Alkem Laboratories has grown to become one of India’s largest pharmaceutical companies. The company is known for its research-driven approach and robust manufacturing capabilities, delivering high-quality products that meet global health standards.
GlaxoSmithKline Pharmaceuticals Ltd
The Market Cap of GlaxoSmithKline Pharmaceuticals Limited is ₹49,123.85 crore. The stock’s 1-month return is 1.81%, while its 1-year return is 44.38%. It is currently 9.68% away from its 52-week high.
GlaxoSmithKline Pharmaceuticals, a subsidiary of GSK, is a leading player in the pharmaceutical industry, focusing on vaccines, respiratory medicines, and speciality treatments. The company leverages advanced research to deliver innovative healthcare solutions.
With a legacy of trust and scientific excellence, GSK Pharmaceuticals continues to expand its offerings in India. It emphasises preventive healthcare, breakthrough medicines, and sustainable solutions to enhance patient well-being and public health.
Pharma Stocks With High Dividend – FAQs
Best Pharma Stocks With High Dividend Yield #1: Sun Pharmaceutical Industries Ltd
Best Pharma Stocks With High Dividend Yield #2: Cipla Ltd
Best Pharma Stocks With High Dividend Yield #3: Torrent Pharmaceuticals Ltd
Best Pharma Stocks With High Dividend Yield #4: Dr Reddy’s Laboratories Ltd
Best Pharma Stocks With High Dividend Yield #5: Lupin Limited
The Top Best Pharma Stocks With High Dividend Yield based on market capitalization.
The top pharma stocks with high dividend yield include Glenmark Pharmaceuticals Ltd, Laurus Labs Ltd, Astrazeneca Pharma India Ltd, Ajanta Pharma Ltd, and Lupin Ltd. These companies offer attractive dividend yields to investors seeking stable returns in the pharmaceutical sector.
Yes, you can invest in pharma stocks with high dividend yields, but it’s important to assess their financial stability and growth prospects. High yields can be attractive, but ensure they are sustainable and not masking underlying financial issues. Thorough research and due diligence are essential before investing.
Investing in pharma stocks with high dividend yields can be beneficial for generating regular income. However, it’s crucial to evaluate the sustainability of dividends and the overall health of the company. High yields may sometimes indicate financial stress or limited growth potential, so careful analysis is advised.
To invest in pharma stocks with high dividend yield, begin by researching companies with solid financial backgrounds and consistent dividend payouts using Alice Blue. Evaluate their payout ratios to confirm the sustainability of the dividends. Diversify your investments across various pharmaceutical firms and periodically reassess your portfolio.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
