5 Vaccine Distribution Investment Opportunities

5 Vaccine Distribution Investment Opportunities

By: Stacey Nickens

This past month, Moderna and Pfizer (in partnership with BioNTech) released promising vaccine results. Pfizer and BioNTech said their candidate was 90% effective, and Moderna said their vaccine was 94.5% effective. The companies have since applied for emergency use authorization for their respective vaccines.

With vaccine distribution potentially around the corner, you may consider investment opportunities in companies tapped to support the COVID vaccination distribution process.

One such investment opportunity is in Corning Inc. (GLW). Corning produces glass vials that prevent particulate contamination during the storage and distribution of vaccines. Corning received $204 million from the U.S. government earlier this year in order to increase their production of glass vials for an eventual COVID vaccine. Beyond vaccine distribution, Corning also has significant growth opportunities from its hold on the smartphone cover glass market as well as its production of fiber for 5G buildouts. Income-oriented investors should take note that Corning offers a current annual dividend yield of 3.46%.

Next, Becton, Dickinson, & Co. (BDX) is the world’s largest manufacturer of injection devices. While the company’s surgical and vascular sales were hurt by the pandemic, increased pandemic-related demand for their other products helped BDX recoup much of its lost revenue. BDX also a current dividend yield of 1.30%, and as of the date of this article’s publication, BDX stock was selling at a discount.

Another opportunity can be found in Thermo Fisher Scientific Inc. (TMO), which produces high-quality vaccine refrigerators. Pfizer’s vaccine candidate will need to be stored at -94 degrees Fahrenheit, meaning many transportation vehicles and storage facilities will need to be outfitted with special refrigeration devices. During the pandemic, Thermo Fisher also benefited from offering their own COVID test. Their size and scale allowed them to provide supplies and respond to need efficiently, and by continuing to maintain its reputation as a reliable supplier, Thermo Fisher will likely show health and strength following the pandemic.

Finally, you could look into investment opportunities with FedEx (FDX) and UPS (UPS). The shipping services are benefiting from the stay-at-home economy, and both have been tapped to assist with COVID vaccine distribution. As is the case with many of the companies on this list, FedEx and UPS also offer annual dividends. FedEx has a current annual dividend yield of 0.88%, and UPS has a current annual dividend yield of 2.56%.

Disclosures: Past performance is not a guarantee or a reliable indicator of future performance. All securities carry a unique set of risks subject to a variety of factors. There is no guarantee that these investment strategies will work under all market conditions or that they are are suitable for all investors. This material has been distributed solely for informational purposes and should not be considered as individual investment advice or recommendation. Individuals should consult their investment professional prior to making an investment decision.
Source: Morningstar.com
By Categories: BlogPublished On: December 7th, 2020