City File: Healthy yields

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HOW times change. A couple of years ago, few people cared about the dividend yield on drug stocks because of their superb growth potential.

But what with worldwide healthcare reform, problems at Fisons and Wellcome and a collapse in drug stock ratings, the yield on many healthcare companies is becoming attractive. Jonathan de Pass at BZW says the yields on Zeneca and Wellcome - 5.2 and 3.2 per cent - look pretty good and the shares could be worth buying.