Is Viatris Inc. a contrarian dividend option for your portfolio?

Does going against market trends make you even more excited about investing? If so, you might consider drugmaker Viatris Inc. (NASDAQ: VTRS), which makes products that address diabetes, immunology, and oncology.

MarketBeat.com - MarketBeat

Viatris' portfolio includes a wide variety of recognized brands and brand name drugs, biosimilars and consumer products. Its products, such as EpiPen, Norvasc and Lipitor, deliver results.

Second quarter net sales totaled $4.1 billion, down 3% on an operating basis last year, but exceeded expectations in all segments. Otherwise, the company has encountered quite significant obstacles on the road since its inception.

Let's take a look at an overview of Viatris Inc. and the pros and cons of investing in the drugmaker. It can be a winner if you're a contrarian investment, but it might just be the right game for the right dividend investor.

Learn more: What are dividend stocks? Plus, examples of dividend stocks

About Viatris Inc.

Viatris Inc. develops drugs to address various therapeutic areas, including a wide range of non-communicable and infectious diseases such as:

Oncology Immunology Endocrinology Ophthalmology Dermatology Antibacterial Central nervous system agents Antihistamines/Asthmatics Cardiovascular Antiviral, antidiabetic, antifungal and proton pump inhibitor areas Diagnostic clinics Educational seminars Digital tools

Its product brands include the following:

Lyrical Lipitor Creon Influvac Wixela Inhub EpiPen auto-injector Fraxiparin Yupelri norvascan Viagra AMITIZA Lipacreon Effexor Celebrex Fulphile Ogivri Hulio Semglee

Viatris was created in 2020 by the association of Mylan and Upjohn, a siled division of Pfizer.

Advantages and disadvantages of investing in Viatris Inc.

Let's take a look at the pros and cons of investing in Viatris Inc. It is worth analyzing the pros and cons as well as the fundamentals of the business to help you determine if this investment will suit your needs.

Advantages

First, let's look at the potential benefits of investing in Viatris Inc.:

Free Cash Flow: Although the company has had a year of steady revenue and earnings growth, the company will likely continue to meet its financial obligations such as debt repayment and dividend payments. Free cash flow generated $719 million in the second quarter ($1.79 billion for the first half of the year), primarily from the company's GAAP net cash, including operating activities of $803 million in the quarter ($1.94 billion for the first half of the year). ) as well as the company's capital expenditures. Contrarian play possible: Contrarian investing means that you challenge existing market trends to generate profits. Although investors exited Viatris Inc., free cash flow, price-to-sales (P/S) ratio and other factors remained in positive territory. New product revenue: The company generated approximately $84 million in new product revenue in the second quarter from Semglee and is expected to reach approximately $600 million in new product revenue in 2022. Additionally, its generics, which include Diversified product forms like extended-release oral solids, injectables, transdermals, and topicals ended up performing better than expected due to demand in North America. Dividends: At 4.99%, the company's dividend yield is not to be overlooked. The company paid quarterly cash dividends of 12 cents per share on March 16, 2022 and June 16, 2022. The company's board of directors declared a quarterly dividend of 12 cents on August 4, payable September 16, 2022, to the shareholders of re...