Global pharmaceutical sales are expected to exceed $1.2 trillion in 2026, according to Statista. Worldwide oncology sales alone are projected to be $232 billion this year. Experts estimate an aging baby boomer generation will help fuel 4.7% annual pharmaceutical revenue growth, and global pharma sales will reach $1.5 trillion by 2030.
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Pharmaceutical stocks can be excellent defensive investments during times of economic uncertainty, and many pharma stocks are also great sources of passive income thanks to their sizable dividend yields. Here are seven of the best pharmaceutical stocks to buy for income today, according to Argus Research analysts:
| Stock | Dividend yield | Implied upside* |
| Johnson & Johnson (ticker: JNJ) | 2.3% | 17% |
| AbbVie Inc. (ABBV) | 3.2% | 16% |
| Merck & Co. (MRK) | 2.8% | 6% |
| Amgen Inc. (AMGN) | 3.0% | 11% |
| Gilead Sciences Inc. (GILD) | 2.4% | 23% |
| Pfizer Inc. (PFE) | 6.6% | 35% |
| Zoetis Inc. (ZTS) | 2.6% | 72% |
*From May 22 closing price, according to Argus Research price targets.
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in the pharmaceutical and medical device 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 plenty of positive catalysts ahead in 2026 and beyond, including several major product candidates in its pharma and medical devices development pipelines. Toung says J&J has 28 product platforms in its portfolio that each account for more than $1 billion in annual revenue, emphasizing its status as a diversified health care powerhouse. Argus has a “buy” rating and $275 price target for JNJ stock, which closed at $234.34 on May 22.
Dividend yield: 2.3%
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 performed extremely well since their respective commercial launches and have established themselves as core growth drivers for AbbVie. Hellweg says the combination of Skyrizi and Rinvoq sales growth, coupled with the anticipated launch of additional drugs that also have blockbuster potential, is a winning recipe for AbbVie investors. Argus has a “buy” rating and $250 price target for ABBV stock, which closed at $215.70 on May 22.
Dividend yield: 3.2%
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 long been a global leader in the oncology market, but it also has a diversified pharma business that includes the vaccine, cardiometabolic, acute care, respiratory, virology, neuroscience, diabetes and animal health markets. He says this large, diversified product portfolio provides plenty of growth sources to help Merck offset the decline of its legacy drugs. Hellweg says Merck also has an attractive fundamental valuation. Argus has a “buy” rating and $130 price target for MRK stock, which closed at $122.41 on May 22.
Dividend yield: 2.8%
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 commercial products are generating impressive growth numbers, and its robust pipeline of potential future products suggests the stock has a bright future ahead. He is particularly optimistic about Amgen’s monthly injectable GLP-1 weight loss and diabetes drug candidate MariTide, which is currently in mid-phase clinical trials. Argus has a “buy” rating and $375 price target for AMGN stock, which closed at $339.30 on May 22.
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 is a well-established market leader in the oncology and HIV markets, and its recent pipeline updates on its next-generation pharma products suggest the company will soon be expanding its portfolio of blockbuster drugs. He says investors should closely monitor development updates on cancer drug domvanalimab and other pipeline assets that will likely be bullish catalysts. Argus has a “buy” rating and $165 price target for GILD stock, which closed at $134.36 on May 22.
Dividend yield: 2.4%
Pfizer Inc. (PFE)
Pfizer is one of the world’s largest pharma companies and has a diversified portfolio of drugs for treating a variety of conditions. Its top drugs include its Eliquis blood thinner, its Vyndaqel cardiomyopathy treatment and its Prevnar pneumococcal vaccine. Toung says Pfizer can navigate patent expirations and loss of exclusivity on core drugs without sacrificing revenue growth. In the first quarter of 2026, Pfizer reported 22% growth from recently launched or acquired products. In addition, Toung says Pfizer has plenty of financial flexibility to target additional acquisitions. Argus has a “buy” rating and $35 price target for PFE stock, which closed at $25.90 on May 22.
Dividend yield: 6.6%
Zoetis Inc. (ZTS)
Zoetis develops animal vaccines, medicines and diagnostics for veterinarians and livestock producers. Its leading products include parasiticide Simparica Trio, as well as canine dermatology drugs Apoquel and Cytopoint. Hellweg says the animal health industry has significant long-term growth potential, and Zoetis can capitalize on that opportunity given its leadership position. Hellweg has high hopes for the commercial launch of canine osteoarthritis drug izenivetmab in Europe and Canada. He says Zoetis’ diversified animal health drug portfolio also reduces the risk of a downturn in any given product or category. Argus has a “buy” rating and $140 price target for ZTS stock, which closed at $81.32 on May 22.
Dividend yield: 2.6%
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7 Best Pharmaceutical Stocks to Buy for Income originally appeared on usnews.com
Update 05/26/26: This story was previously published at an earlier date and has been updated with new information.