Organon Is A Dirt-Cheap Company With A 5.5% Starting Dividend

Dividends Forever
3 min readSep 16, 2024

Imagine a company that’s up almost 100% since December, and still trading at a rock-bottom valuation.

That’s Organon & Co. ($OGN).

Organon & Co. is an unloved healthcare spin-off stock with a focus on women’s health. And while the stock is up 84% since its December lows, Organon still trades at a “priced for death” valuation that’s well bellow the S&P 500 — or even Wall Street’s most hated sectors like oil and tobacco.

On top of this, Organon pays a 5.47% starting dividend. And, the company’s maintained this payout since going public in 2021.

Today’s article looks at what Organon does, why it’s so despised, and whether or not this could be a deep-value investment.

What Does Organon & Co. Do?

In 2021, pharmaceutical giant Merck combined its women’s health and biosimilars departments into a new business entity called Organon & Co.. Merck then spun Organon & Co. off into its own, independent business.

Interestingly, despite a CDC report stating that women are 33% more likely to go to the doctor than men, only 4% of all healthcare research focuses on women’s health. And, excluding a few highly speculative penny stocks, there are very few publicly traded companies that…

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