Two pharmaceutical investments are highlighting potential growth driven by artificial intelligence (AI). Becton, Dickinson & Co. (BDX) is eyeing a unique $4 billion deal with Waters Corporation (WAT) that aims to enhance its product offerings, with BDX shareholders expected to hold 39.2% of the new venture. This merger could unlock a combined market of $40 billion and facilitate a projected 5% to 7% annual growth rate. BDX currently offers a 2.8% dividend yield, supported by a healthy 45% payout ratio of free cash flow.
Additionally, BlackRock Health Sciences Fund (BME) boasts a strong monthly payout of 7.8%. This closed-end fund is diversified across major medical-device makers and trades at an 8% discount to net asset value. Experts indicate that as AI streamlines drug development, BME’s dividend could rise, compelling investor interest and driving share prices higher.
Overall, investment in these stocks could be timely, positioning investors to benefit from advancements in the pharmaceutical sector enhanced by AI technologies.
