The global pharmaceutical industry will generate more than $1.2 trillion in sales in 2026, according to Statista. The oncology segment alone is expected to generate $232 billion in sales this year. The pharma industry is expected to grow 4.7% annually, reaching $1.53 trillion by 2030.
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Not only are pharmaceutical stocks excellent defensive investments in an uncertain economy, some pharma stocks pay sizable dividends that can be a source of steady income and help offset the impact of inflation. Here are seven pharmaceutical stocks to buy with dividends of at least 2%, according to Argus:
| Stock | Dividend yield | Implied upside/downside |
| Johnson & Johnson (ticker: JNJ) | 2.5% | 0.1% |
| AbbVie Inc. (ABBV) | 3.1% | 13.6% |
| Merck & Co. (MRK) | 3.1% | 0.7% |
| Amgen Inc. (AMGN) | 3.0% | 10.6% |
| Gilead Sciences Inc. (GILD) | 2.6% | 10.1% |
| Sanofi (SNY) | 4.6% | 15.5% |
| GSK PLC (GSK) | 3.4% | -0.8% |
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in the pharmaceutical, medical device and consumer health care
products industries. Its key products include anti-inflammation drug Stelara, multiple myeloma and light chain amyloidosis drug Darzalex, and nasal spray depression treatment Spravato. Analyst David Toung says Johnson & Johnson has several positive catalysts ahead in 2026, including the approval of additional indications for its existing commercial drugs, as well as multiple new product launches. Toung says the separation of J&J’s orthopedics business into a standalone entity will improve its growth and margins. Argus has a “buy” rating and $210 price target for JNJ stock, which closed at $209.72 on Jan. 12.
Dividend yield: 2.5%
AbbVie Inc. (ABBV)
AbbVie is a global pharmaceutical company. Its key drugs include immunology drugs Humira, Skyrizi and Rinvoq for treating chronic inflammatory conditions, such as psoriatic arthritis, Crohn’s disease and ulcerative colitis. Analyst Jasper Hellweg says Skyrizi and Rinvoq have succeeded off-patent Humira as AbbVie’s primary growth drivers, but the company is also generating impressive growth throughout its neuroscience portfolio as well. Hellweg says Skyrizi and Rinvoq sales are expected to reach a combined $31 billion in 2027, providing a bright outlook for long-term AbbVie investors. Argus has a “buy” rating and $250 price target for AVVB stock, which closed at $220.04 on Jan. 12.
Dividend yield: 3.1%
Merck & Co. (MRK)
Merck is one of the world’s largest pharmaceutical companies, and its leading products include cancer drug Keytruda and HPV vaccine Gardasil. Hellweg says Merck has reported several positive portfolio developments as of late, including clinical advancements, regulatory approvals, and merger and acquisition activity. Given these positive developments, he says Merck’s stock is attractively valued based on its historical earnings multiples and its positive technical setup. In addition, Merck is working on new indications and combinations for Keytruda that could potentially extend its patent protection window far beyond 2028. Argus has a “buy” rating and $110 price target for MRK stock, which closed at $109.19 on Jan. 12.
Dividend yield: 3.1%
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Amgen Inc. (AMGN)
Amgen is one of the world’s largest biotechnology companies. Its leading commercial drugs include osteoporosis and hypercalcemia drug Prolia, cardiovascular and cholesterol drug Repatha, and plaque psoriasis, psoriatic arthritis and Behçet’s Disease drug Otezla. Hellweg says Amgen’s established commercial product portfolio is growing sales at an impressive clip, and its pipeline of potential future products is very impressive. Amgen has made positive announcements about treatments for several conditions in recent months, including Food and Drug Administration approvals for drugs targeting generalized myasthenia gravis and extensive stage small-cell lung cancer. Argus has a “buy” rating and $360 price target for AMGN stock, which closed at $325.54 on Jan. 12.
Dividend yield: 3%
Gilead Sciences Inc. (GILD)
Gilead Sciences is a biopharmaceutical company that develops treatments for HIV/AIDS, hepatitis C, liver disease, hematology/oncology and inflammation. Its leading drugs include HIV drugs Biktarvy, Descovy and Genvoya. Hellweg says Gilead’s business has clear positive momentum heading into 2026, including the recent approval of lenacapavir in Europe to reduce the risk of sexually acquired HIV and the announcement that Gilead subsidiary Kite Pharma has acquired Interius BioTherapeutics to complement its cell therapy business. He’s bullish on Gilead’s portfolio progress, regulatory success and attractive dividend. Argus has a “buy” rating and $135 price target for GILD stock, which closed at $122.60 on Jan. 12.
Dividend yield: 2.6%
Sanofi (SNY)
Sanofi is a French pharmaceutical company that specializes in atopic allergic disorders, oncology and rare diseases. Its leading drugs include Dupixent for treating atopic dermatitis, asthma and chronic rhinosinusitis with nasal polyps, and Sanofi’s influenza and COVID-19 vaccines. Sanofi also acquired Provention Bio in 2023, which added Tzield to Sanofi’s existing diabetes treatment portfolio. Hellweg says Dupixent sales have been strong and Sanofi is exploring other potential indications for the drug. He is also bullish on the outlook for Tzield in the U.S. given positive FDA feedback. Argus has a “buy” rating and $55 price target for SNY stock, which closed at $47.60 on Jan. 12.
Dividend yield: 4.6%
GSK PLC (GSK)
GSK, formerly GlaxoSmithKline, is one of the world’s largest pharma companies. Leading products include its shingles vaccine Shingrix, its respiratory drug Trelegy and the various treatments within its HIV portfolio. The company’s Specialty Medicine segment revenue grew 16% and accounted for about 40% of total revenue in the most recent quarter. That segment includes HIV, immune-inflammation, oncology and respiratory products. Hellweg says GSK has gotten good news from regulators about several products as of late, including treatments targeting multiple myeloma, shingles and pulmonary neuroendocrine carcinoma. Argus has a “buy” rating and $50 price target for GSK stock, which closed at $50.39 on Jan. 12.
Dividend yield: 3.4%
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Update 01/13/26: This story was previously published at an earlier date and has been updated with new information.