Dividend.com: Schering Sheared

Schering Gets Plowed

Schering-Plough(SGP Quote) is getting socked this afternoon, after the company released disappointing data on cholesterol drug Vytorin. The drug, co-developed with Merck(MRK Quote), apparently doesn't lower the risk of major heart valve problems and the need for related surgical procedures.

The company reported two more problems with the drug as well. Studies showed a failure in reducing atherosclerotic disease, in which plaque builds up and blocks an artery. Also, cancer patients taking Vytorin were more likely to have "serious" heart events. However, the study did involve a small number of people, and such results could have been more coincidental.

For investors in Merck, we are not changing our recommendation off our "Recommended" list, based on this information. As for Schering-Plough, we have not been a fan of the stock and do not currently recommend the shares. Schering-Plough pays a dividend yield of 1.21%, based on Friday's close of $21.44. The company seems to be constantly stuck in "turnaround mode," and there are other names in the pharmaceutical sector we like much better. Albemarle - No Earnings Spark to Put Out

Albemarle's(ALB Quote) revenue rise of 10% in its latest quarterly results was slightly below what analysts had expected. Sales of polymer additives and fine chemicals businesses made up a good portion of earnings.

Management believes demand for its refinery catalysts should continue to increase as regulations mandate cleaner fuels. The increasing percentage of sour crudes being processed by refiners should also fuel demand.

Albemarle cites margin compression due to the rampant input-cost inflation as the main issue going forward. This issue is a recurring theme with many industrial companies these days. For investors, despite a "steady as it goes" result, we are currently not excited with this stock, and is not a recommended "buy" at this time.