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Why biotech don't pay dividends — yet

Nature Biotechnology volume 21, page 1283 (2003)Cite this article

An Erratum to this article was published on 01 December 2003

The US financial news of the year is the Senate's narrow vote in May to cut the tax on dividends. With dividends now taxable to individuals at a lower 15% rate, corporations that already pay taxes on their profits have a much weaker case for withholding cash. Investors in Japan, the United Kingdom and Sweden, for example, with higher dividend taxation, can only dream. And the same goes for biotech investors; of 366 companies that touch on the biotech and drugs universe and trade on US exchanges, only 23 pay a dividend. We wonder, where's our piece of the dividend pie?Footnote 1

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  1. * Nature Biotechnology does not guarantee the veracity, reliability, or completeness of any information provided on this page; it is not responsible for any errors or omissions or for any results obtained from the use of such information; it will not be liable for any loss, damage, or investment decision arising from a reader's reliance on the information provided.

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  1. Tom Jacobs
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Tom Jacobs, of the Internet site Motley Fool (), provides his angle on biotechnology investments. Read on and become “Foolishly” informed * . He can be contacted about biotechnology and investing at . Jacobs cannot give individual investment advice but welcomes any. Tom Jacobs owns shares of Meridian Bioscience.

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Jacobs, T. Why biotech don't pay dividends — yet. Nat Biotechnol 21, 1283 (2003). https://doi.org/10.1038/nbt1103-1283

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