How To Buy AstraZeneca Stock & Add Pharma to Your Portfolio
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It is hard to imagine a world without pharmaceutical companies, and most of us have realized their importance only after the pandemic. AstraZeneca is one of the major pharmaceutical companies that successfully developed a Covid-19 vaccine. While Moderna and Pfizer may be grabbing headlines, those who had never heard of AstraZeneca are well aware now, and it is one of the best stocks of 2024.
With a strong global presence, the pharmaceutical company has made some big moves in the industry and generated massive revenue through the coronavirus vaccine. The company went public years back, and if you missed your chance to invest in AstraZeneca stock, here’s how you can buy it today. Let us take you through the three steps you must take.
Related: Best Biotech Stocks to Invest in
In this article
Step 1: Finding a broker that offers AstraZeneca stock
AstraZeneca PLC is a publicly traded biopharmaceutical company, and you can buy the stock from the stock market. The best way to invest in stocks is through a brokerage account. When it comes to brokerages, there are many options for you to choose from.
Different brokers in the industry offer different types of services and have varying commissions, fees, and account minimums. It is recommended that you compare the platforms and then commit to one. Not all brokers allow the purchase of fractional shares, so if you are keen on buying fractional shares, you must choose a brokerage that offers the service. Consider the three trading platforms you should compare before buying AZN stock.
Related: Best Brokerages for Beginners
Robinhood
You can easily purchase AstraZeneca stock with Robinhood. It is one of the easiest-to-use brokerages and is free to sign up. Robinhood comes with several features and has a monthly fee of $5. This fee will give access to Morningstar research to assist you with stock picking. The biggest advantage of Robinhood is the fractional shares you can buy, which also offers crypto stocks. Hence, you do not have to borrow many funds to buy stock. The stock purchase is commission-free, and you can engage in pre-market and after-hours trading. Robinhood has no minimum balance requirement.
Pros and cons
Pros
- Commission-free purchase
- No minimum deposit required
- Offers fractional shares
- Ideal for beginners
- Offers cryptocurrencies
Cons
- No bonds or mutual funds
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M1 Finance
M1 Finance is ideal for experienced investors. It allows you to customize the portfolio and create a diversified allocation in ETFs, stocks, and bonds. It is not an ideal platform if you do not want to hold the shares for the long term. It also does not support making financial decisions, so this might not be the right platform if you are a newbie. It offers individual accounts, joint taxable accounts, trusts, and retirement accounts. A minimum of $100 is required for taxable accounts and $500 for retirement accounts. It charges no commission on purchases. You can opt for a premium version by paying an annual fee of $36, getting a custodial account, and setting up auto trading. M1 Finance offers fractional shares.
Pros and cons
Pros
- Fractional shares
- Automatic rebalancing
- Stocks and EFTs available
Cons
- Not good for beginners
- $100 minimum for taxable accounts
Step 2: Research AstraZeneca shares
AstraZeneca is a British Swedish company headquartered in Cambridge, England. It has a portfolio of major diseases, including infection, inflammation, cardiovascular, oncology, neuroscience, gastrointestinal, and respiratory. The company is known for developing the COVID-19 vaccine.
It was founded in 1999 after the Swedish Astra and the British Zeneca merger. Over time, the company became the world’s largest pharma company and has made several acquisitions.
In 2013, the company announced a major corporate restructuring, which included closing the research and development activities at Loughborough in the UK and Cheshire, as well as in Sweden. It also invested $500 million in constructing research and development facilities in Cambridge, Maryland, and Gaithersburg.
AstraZeneca has a primary listing on the London Stock Exchange and a secondary listing on Nasdaq New York, Nasdaq OMX Stockholm, Bombay Stock Exchange, and the National Stock Exchange of India. It is listed with the ticker AZN, and its debut as a public company was made on April 6, 1999.
The IPO price was GBP 29.46, and the stock has never looked back. It was trading as low as $4.69 in 1993 and hit $10 in 1996. The stock is currently exchanging hands at $76.97.
AstraZeneca price history
You may have missed a chance to invest in the AstraZeneca IPO. It is the best opportunity to make the most of the company's growth. However, now is not too late either. If you had invested $1,000 in the IPO in 1993, you would have received 24 shares. The company split stock twice, in 1998 and 2015. After the stock split, you would have 146 shares worth $11,096 today. It is almost ten times the amount invested.
AstraZeneca dividend information
AstraZeneca has paid cash dividends semi-annually since 1999. Its dividend yield is 3.16%. If you had invested the dividends, they would have grown significantly. The company believes in sharing profits with shareholders and has a strong dividend history. Investors should continue to expect semi-annual dividend payouts in the coming years.
Best features of AstraZeneca stock
Impressive portfolio. There was a time when the company struggled with competition and patent issues, but it is firing on all cylinders today. The company has a strong oncology portfolio. It has three cancer blockbusters that have been showing a double-digit percentage growth. Besides oncology, the company also benefitted from acquiring Alexion Pharmaceuticals, a biotech company focusing on rare diseases. The therapies developed by Alexion rarely have competitors, and it has a very strong cash flow.
The company is working on some of the major areas of cancer medicine, and its top cancer drug, Tagrisso, saw a rise of 15% in sales in Q1 2024 compared to the previous year. It generated sales of $1.60 billion and is a crown jewel for the company. The sales of Tagrisso have been rising tremendously over the years and have doubled in the last few years.
AstraZeneca also has other cancer medicines that have seen a rise in sales. It also has a diabetes treatment drug, Farxiga, which raked $1.89 billion in Q1 2024. Although several diabetic treatments are available in the market, Farxiga is one of the top three drugs used.
Dividend aristocrat. In the first quarter of 2024, AstraZeneca had a market cap of $186.51 billion and revenue of $12.68 billion. It is an authorized vaccine manufacturer and has become a global leader in the healthcare sector. The company has strong growth prospects and is known for paying regular dividends. It has paid regular cash dividends since 1999. It is an ideal stock for those who enjoy passive income through dividends.
Robust pipeline of drugs. The company’s growth and success are not limited to the Covid vaccine bonanza. It has a concentrated revenue stream, with several drugs contributing. The company has a record of introducing breakthrough medicine that improves the quality of life. The FDA has given asthma treatment drugs a breakthrough therapy status. This will allow the company and its partner, Amgen, to develop the drug quickly. This drug, tezepelumab is injected and will help treat severe asthma.
The company has many new drugs that can boost revenue and growth prospects. It has a robust pipeline of drugs for lung cancer and ovarian cancer. The new drugs that will drive the company’s revenue higher include renal, cardiovascular, and metabolism drugs.
Step 3: Open a brokerage account & buy AstraZeneca shares
Now that you are ready to open an account and invest in AstraZeneca stock, you can start with Robinhood. Head to the Robinhood homepage and click on Sign Up.
Now click on “Claim your free stock now.” Once you click here, you need to provide your details, including your name, email, and password, to create an account. Click on continue.
Here, you will have to enter your citizenship status, birthdate, and social security number.
In the next step, answer a few questions about your experience in investing. Additionally, you will have to provide information about your employment and whether or not you are a family member or a 10% shareholder of a traded company.
Lastly, you need to set up and fund the account. You can immediately link the bank account and fund it or do it later. After you fund the account, you can make your share purchase.
The purchase orders can be placed in two ways: limit and market prices. In case of a limit price, you can set the price you want to buy or sell the stock. If the stock hits the limit you set, the transaction will be carried out. If not, the transaction will not take place. When you choose the market price, the purchase or sale will happen at a price prevailing in the stock exchange.
FAQs
How much were AstraZeneca shares when the company first went public?
AstraZeneca shares were priced at GBP 29.46 in the IPO in 1993.
How much does it cost to buy AstraZeneca shares today?
As on May 16, 2024, it costs $76.97 to buy AstraZeneca stock.
Does AstraZeneca pay dividends?
AstraZeneca pays cash dividends semi-annually.
What is the minimum number of AstraZeneca shares that I can buy?
You can buy AstraZeneca shares for as little as $1 in the form of fractional shares but it depends on the brokerage you choose.
The bottom line
When contemplating the purchase of AstraZeneca stock, whether it's a fractional share or a full share, it's essential to consider the company's fundamentals alongside the current share price and the number of shares you're considering. AstraZeneca, having progressed beyond its COVID-19 vaccine success, maintains its relevance through its robust oncology drug portfolio. This company segment is anticipated to see continued sales growth throughout 2024.
In making your decision, closely evaluate the stock price of AstraZeneca, as it provides insight into the company's market valuation at any given time. This analysis will help determine the appropriate number of shares to buy based on your investment goals and financial capacity. Additionally, AstraZeneca's record of consistent dividend payouts adds to its appeal as a secure investment option, particularly in times of market uncertainty. This stability and the potential for growth in its oncology sector make AstraZeneca an attractive stock for investors looking to balance risk and reward in their portfolio.
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Editor
Vandita Jadeja is a financial writer and editor at Joywallet. She loves to read and write about money and brings a decade of experience from the financial industry.
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