Income seekers are spoilt for choice in the UK stock market - companies across the board, from miners to retailers, are paying out inflation beating yields, giving squeezed investors a viable return on cash.
This week we are focusing on pharmaceuticals and examining just how much healthcare pays. Using the Morningstar Equity QuickRank, readers can choose their favourite sector and rank the companies by dividend yield.
We reveal the top five yielding pharmaceutical companies and whether Morningstar research implies each is fairly, under- or over-valued. Where there is a Morningstar valuation and star rating, this is given (5 stars = undervalued; 1 star = overvalued). For smaller stocks, the valuation is based on Morningstar's soon-to-be-launched Quantitative Research, which will cover all listed UK stocks, right down to the AIM market.
1. AstraZeneca (AZN)
Yield: 5.47%
Morningstar analyst rating: 3 STARS
Morningstar fair value estimate: 3,500p
2. GlaxoSmithKline (GSK)
Yield: 4.79%
Morningstar analyst rating: 3 STARS
Morningstar fair value estimate: 1,777p
3. Animalcare Group (ANCR)
Yield: 2.98%
Morningstar quantitative rating: FAIRLY VALUED
4: CareTech Holdings (CTH)
Yield: 2.68%
Morningstar quantitative rating: FAIRLY VALUED
5. Alliance Pharma (APH)
Yield: 2.37%
Morningstar quantitative rating: FAIRLY VALUED