Smaller Pharma Issuing Dividends, Really?

Large pharmaceutical companies sharing their cash flow with investors through dividends makes a lot of sense. Honestly, there isn't much reason to own Eli Lilly (NYSE: LLY ) , GlaxoSmithKline (NYSE: GSK), and AstraZeneca (NYSE: AZN) except for their oversized dividends. But smaller specialty pharma issuing dividends? I really don't get it.

Earlier this year Questcor Pharmaceuticals (NASDAQ: QCOR ) initiated a quarterly dividend that it's handing out a little early. And this week Spectrum Pharmaceuticals (NASDAQ: SPPI ) said it's issuing a $0.15-per-share special dividend. Really, guys? You can't find any better use for the cash?

Source: Motley Fool

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