It may be the smallest company making the list of top names in the pharma dividends race, but PDL BioPharma (PDLI) boasts the biggest payout with a whopping yield of 7.4%.
PDL is a curious pharmaceutical name, different from the traditional players. Rather than develop its own drugs on hopes at least some of them will become blockbusters, the company buys approved or nearly-approved medicines that could be described as … important but not particularly earth-shattering. The aim is to own or control marketing rights to therapies that are easy — and profitable — to monetize, and then pass a significant part of that cash flow along to shareholders in the form of dividends.
For instance, cancer agent Avastin was actually developed by Genentech (now owned by Roche), but PDL has steadily improved its royalty revenue from the drug’s sales over the past eight years, reaching a whopping $32.2 million in the third quarter of 2013.
Avastin is just one eight drugs currently licensed to PDL BioPharma right now, and they each are strong revenue contributors. There’s no limit to how many more marketing licenses PDL could garner, however, which directly boosts its dividends.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities