If you are looking for steady income along with long-term growth, then investing in high dividend yield pharma stocks can be a smart choice. The pharmaceutical sector in India is known for its stability and strong future potential.
Many pharma companies not only show consistent performance but also reward their investors with attractive dividends. In this article, we will look at some of the best high dividend yield pharma stocks that you can consider for investment in 2025.
To further diversify your investment portfolio, consider exploring defense stocks and railway stocks, which can provide unique opportunities in different sectors. Defense stocks are often seen as stable investments due to the consistent demand for national security, while railway stocks benefit from growing infrastructure and transportation needs. Additionally, investing in summer stocks, such as those related to tourism, air travel, and energy, can offer seasonal growth potential.
Overview of Contents
Best High Dividend Yield Pharma Stocks
| Share Name | 1-Year Return (%) |
|---|---|
| Astrazeneca Pharma India Limited | 66.43% |
| Laurus Labs Limited | 48.90% |
| GlaxoSmithKline Pharmaceuticals Ltd. | 44.38% |
| Glenmark Pharmaceuticals Limited | 31.70% |
| Ajanta Pharma Limited | 28.11% |
| Torrent Pharmaceuticals Limited | 25.57% |
| Lupin Limited | 25.29% |
| Abbott India Limited | 17.48% |
| Sun Pharmaceutical Industries Ltd. | 13.30% |
| Aurobindo Pharma Limited | 11.61% |
List Of Pharma Stocks With High Dividend Yield
| Company Name | Market Cap (Rs m) | Dividend Yield (%) | P/E Ratio (x) |
|---|---|---|---|
| PROCTER & GAMBLE HEALTH | 85,461 | 5.1% | 36.1 |
| NOVARTIS | 21,234 | 2.9% | 21.0 |
| DENIS CHEM LAB | 1,393 | 2.5% | 13.8 |
| ALEMBIC | 27,442 | 2.2% | 19.0 |
| PANCHSHEEL ORG | 1,933 | 2.2% | 14.1 |
| AJANTA PHARMA | 318,926 | 2.0% | 34.7 |
| SANOFI INDIA | 137,827 | 2.0% | 36.4 |
| GLENMARK LIFE SCIENCES | 143,905 | 1.9% | 32.6 |
| ADVANCED ENZYME TECH. | 32,278 | 1.8% | 24.1 |
| BDH INDUSTRIES | 1,548 | 1.7% | 15.9 |
| KOPRAN | 9,300 | 1.6% | 19.6 |
| SANDU PHARMA | 499 | 1.6% | 27.5 |
| JENBURKT PHARMACEUTICALS | 4,568 | 1.5% | 14.5 |
| ANUH PHARMA | 8,968 | 1.4% | 17.8 |
| ALBERT DAVID | 4,736 | 1.4% | 27.5 |
| GLAND PHARMA | 238,370 | 1.4% | 33.8 |
| ABBOTT INDIA | 647,331 | 1.3% | 48.5 |
| SMRUTHI ORGANICS | 1,345 | 1.3% | 37.7 |
| BAL PHARMA | 1,550 | 1.2% | 21.1 |
| ALEMBIC PHARMA | 178,302 | 1.2% | 30.7 |
| NATCO PHARMA | 149,091 | 1.1% | 8.0 |
| GSK PHARMA | 494,962 | 1.1% | 53.4 |
| INDRAPRASTHA MEDICAL | 38,127 | 1.1% | 25.2 |
🧪 Pharma Companies Overview
1. AstraZeneca Pharma India Limited
AstraZeneca has been the top gainer among major pharma stocks, delivering an impressive 1-year return of 66.43%, with the stock currently priced at ₹8,727.50. This performance reflects investor confidence in its robust portfolio of oncology, cardiovascular, and respiratory medicines. Backed by its global parent, the company has benefited from strong product launches, regulatory approvals, and a focus on innovation in specialty drugs.
2. Laurus Labs Limited
Laurus Labs has emerged as a high-growth mid-cap pharma company, with a 1-year return of 48.9% and a share price of ₹640.35. It is primarily involved in APIs, formulations, and biotech-based solutions. The company’s strong revenue growth, cost control measures, and increasing demand for its antiretroviral products have driven its stock price significantly higher in the last year.
3. GlaxoSmithKline Pharmaceuticals Limited (GSK)
GSK Pharma, a reputed MNC in India, has recorded a 1-year return of 44.38%, and is currently trading at ₹2,815.40. Known for legacy brands and a strong product pipeline, the company continues to attract long-term investors. GSK’s strategy of focusing on core therapeutic areas and enhancing operational efficiency has supported its consistent upward momentum.
4. Glenmark Pharmaceuticals Limited
Glenmark has delivered a solid 31.7% return over the past year, with its stock priced at ₹1,368.80. The company has benefitted from its presence in both generics and specialty segments, including dermatology and oncology. Glenmark’s strategic demerger of its API business (Glenmark Life Sciences) and focus on global markets have boosted investor sentiment.
5. Ajanta Pharma Limited
Ajanta Pharma is known for its branded generics business across India and emerging markets. With a stock price of ₹2,679.20 and a 1-year return of 28.11%, the company has gained from consistent margin performance and strong demand in therapeutic areas like cardiology and dermatology. Its strong distribution network and focused product pipeline are key growth drivers.
6. Torrent Pharmaceuticals Limited
Torrent Pharma has posted a 25.57% return in the past year, trading currently at ₹3,254.60. It has a strong portfolio in cardiovascular, central nervous system, and gastrointestinal segments. The company’s improving operational metrics, strategic acquisitions, and presence in both domestic and international markets make it a solid bet for investors looking for stability and growth.
7. Lupin Limited
Lupin has delivered a 1-year return of 25.29%, with a current stock price of ₹2,009.20. One of the largest pharma companies in India, Lupin has gained traction from its U.S. generics business and its recent product launches. The company’s focus on respiratory, cardiovascular, and anti-diabetic drugs continues to support its performance.
8. Abbott India Limited
Abbott India, a premium MNC pharma stock, has seen a 1-year return of 17.48%, with the stock trading at a steep ₹30,915.00. Its strong brand recall, leadership in several therapeutic areas, and consistent dividend payouts make it a favorite among institutional and long-term investors. Despite being a low-volatility stock, its steady return profile highlights its reliability.
9. Sun Pharmaceutical Industries Limited
India’s largest pharma company by market cap, Sun Pharma, has posted a 13.3% return over the past year, and its shares are currently priced at ₹1,744.90. The company’s specialty business in the U.S., consistent domestic performance, and R&D pipeline strength have supported this modest yet stable growth. Sun Pharma continues to be a defensive stock in most portfolios.
10. Aurobindo Pharma Limited
Aurobindo has returned 11.61% over the last year, with a current stock price of ₹1,201.20. Known for its diversified product base in generics and APIs, the company has benefited from cost efficiencies and stable U.S. business operations. Its steady performance reflects a turnaround in key markets and favorable regulatory outcomes.
The Benefits of Investing in High Dividend Yield Pharma Stocks
Investing in pharma stocks with high dividend yields offers several advantages. These stocks provide regular dividend payouts, which can be a reliable source of income, especially for investors who seek steady cash flow, such as retirees or those looking to supplement their earnings. Apart from the income, these stocks also offer potential for capital appreciation.
The continuous demand for healthcare products and ongoing innovations in the industry can drive the stock prices up, giving investors both regular dividends and growth opportunities. Moreover, high dividend yields can act as a hedge against inflation.
As inflation rises, companies with strong profitability may increase their dividends, helping preserve the purchasing power of the investor’s income. Lastly, adding pharma stocks with high dividends to an investment portfolio brings in sector diversity, which reduces overall risk. These stocks tend to perform well even during economic downturns, offering stability and helping balance out the risks associated with more volatile sectors.
Who Should Invest in Pharma Stocks with High Dividend Yields?
Pharma stocks with high dividend yields are suitable for investors seeking steady income and moderate risk. They provide regular dividends, making them attractive for those looking for reliable cash flow alongside potential capital gains. These stocks are ideal for investors interested in the healthcare sector, willing to handle risks such as regulatory issues, drug approvals, and market competition. They also work well for long-term investors who can withstand the sector’s occasional volatility.
FAQs
What are pharma stocks with high dividend yields?
These are shares of pharmaceutical companies that offer higher-than-average dividend payouts to shareholders.
Why invest in pharma stocks with high dividend yields?
They provide regular income, potential for capital growth, and act as a hedge against inflation, offering a balanced investment.
Who should invest in these stocks?
Investors seeking steady income, with moderate risk tolerance and an interest in the healthcare sector.
What risks come with investing in pharma stocks?
Risks include regulatory challenges, market competition, and fluctuating drug approval processes.
How do these stocks protect against inflation?
High dividend yields help maintain income levels, potentially increasing over time, offsetting inflation.
Can pharma stocks offer capital growth?
Yes, they can appreciate in value due to demand for healthcare products and sector innovations.
How should I approach investing in pharma stocks?
Investors should research companies thoroughly and take a long-term perspective due to sector volatility.