Astrazeneca (NYSE:AZN)

AstraZeneca is a pharmaceutical group formed by the merger in April 1999 of the Swedish Astra AB and the British Zeneca PLC. The acquisition of Zeneca, previously belonging to the Imperial Chemical Industries Pharma group, by Astra was made possible by the success of omeprazole, indicated mainly in the treatment of gastric ulcers. AstraZeneca has approximately 63,000 employees worldwide, which are engaged in the research, development, manufacturing, sale of pharmaceutical products and in the provision of services for medical care. (Source Wikipedia)

The company offers a particularly generous long-term yield of 5.01%. Distributions have been increased for eight consecutive years and have grown at a very healthy annual rate of 11,83%. Despite these impressive figures, the distribution rate remains cautious at 44,60%. Volatility is below that of the market, but higher than that of our portfolio, at 16.01%.

The Price/Earnings ratio of just 9.10 is consistent with the high dividend yield. Despite outperforming the market since 1993, this ratio has never stopped falling since 1999.

A generous yield, good dividend growth, a prudent distribution ratio and an attractive valuation from an earnings perspective... Astrazeneca undeniably has interesting qualities for an investor looking for a investment that is both lucrative from an income perspective, while offering good prospects for long-term price growth and distributions.

However, given the volatility and especially the relative youth of the successive dividend increases, we currently consider the stock as a position to hold if it is already in the portfolio, but not not yet as a buying opportunityWe may err on the side of caution, but our strategy imposes certain safeguards that protect us not only against market risks, but also against our own emotions.