OGN - Is This Healthcare Stock's 10% Yield a Steal of a Deal or Too Good to Be True?
2023-11-21 09:53:36 ET
A dividend yield can tell you a lot about a payout. Not only does it tell you how much you could be collecting in dividend income, but it can give you an indication of investor sentiment, and whether the stock struggles or is doing well. An excessively high yield, for example, can be a sign that investors are concerned about the stock, because a rising yield is often associated with a falling stock price.
Drug manufacturer Organon (NYSE: OGN) currently pays a yield of nearly 10%, which is a high payout by any standard; the S&P 500 index average is less than 1.6%. Are investors making a mistake in selling shares of this stock, and could the yield be safer than it looks, or is this a dividend that is too dangerous for investors to rely on?
Organon spun off from healthcare company Merck in June 2021. It offered Merck a way to focus more on growth and innovation. Organon is a slower-growing business with dozens of products, many of which are aimed at women's health.
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Is This Healthcare Stock's 10% Yield a Steal of a Deal or Too Good to Be True?