In COVID we know there will be one big winner, one of the big pharma companies will invent something, have something on the shelf that can be adapted or find a method in which social distancing while being a good thing, will not be the normal thing to do. Many of us look forward to crowds again. Scott Clayton of TSI Network examined the big Pharma stocks for the long term, because there is more than one drug needed for the general public. There are many billion dollar drugs now and in the future. His criteria was:

TSI uses a point system to allow you to rank the companies, then do further analysis.

1 point for 5 years of continuous dividend payments, 2 points for greater than 5 years

2 points if the company has raised the payment in the past 5 years

1 point for management’s commitment to paying dividends

1 point for operating in non-cyclical industries

1 point for limited exposure to foreign currency rates and freedom from political interference

2 points for a strong balance sheet, including manageable debt and adequate cash

2 points for a long term record of positive earnings and cash flow sufficient to cover dividend payments

1 point for being an industry leader

Companies that have 10-12 points are the most secure; 7-9 above average; 4-6 points average and less than 4 below average.

Company Points Div Yield Mkt Cap 1 Year Total Recent Price

% ($ bil) Return

Pfizer 10 4.2 201.1 -16.6 35.92

Merck 10 3.0 207.6 -0.9 81.77

J&J 10 2.8 384.5 6.3 147.80

Eli Lilly 10 2.0 142.7 32.5 151.00

GlaxoSmithKline 9 4.7 105.1 5.7 42.41

Gilead Science 9 3.5 97.3 16.6 77.07

Amgen 9 2.8 132.3 29.4 227.12

Bristol-Myers Squibb 9 3.0 137.9 30.8 60.12

Novartis 9 2.3 202.4 -0.3 88.00

Linking to dividend paying stocks, big pharma stocks will be part of the solution to finding a method which people can enjoy entertainment with others. We will be able to go festivals, concerts, theater, sports, street festivals, and other good things. Each of the above stocks have billion dollar drugs and everyone will be helping when a cure or partial cure is found. You can also investigate ETFs which have are focused on health care, for it is expensive to own all the companies and gain a meaningful return, having said that health care should be part of your portfolio because that is where governments are spending the money.

There are more questions than answers, till the next time – to raising questions.