S&P 500   4,509.18 (+0.51%)
DOW   35,382.92 (+0.35%)
QQQ   374.32 (+0.45%)
AAPL   148.40 (+1.26%)
MSFT   308.83 (+0.50%)
FB   338.82 (+1.04%)
GOOGL   2,859.39 (+0.13%)
TSLA   867.54 (-0.30%)
AMZN   3,442.48 (-0.12%)
NVDA   221.23 (-0.45%)
BABA   172.36 (+3.32%)
NIO   40.04 (+1.09%)
CGC   13.37 (+1.29%)
GE   104.27 (+0.14%)
AMD   115.23 (-1.03%)
MU   66.97 (-0.43%)
T   25.41 (+0.32%)
F   15.54 (-0.13%)
ACB   6.96 (+0.58%)
DIS   170.91 (-0.13%)
PFE   41.90 (+1.40%)
BA   215.86 (-0.52%)
AMC   43.17 (+0.33%)
S&P 500   4,509.18 (+0.51%)
DOW   35,382.92 (+0.35%)
QQQ   374.32 (+0.45%)
AAPL   148.40 (+1.26%)
MSFT   308.83 (+0.50%)
FB   338.82 (+1.04%)
GOOGL   2,859.39 (+0.13%)
TSLA   867.54 (-0.30%)
AMZN   3,442.48 (-0.12%)
NVDA   221.23 (-0.45%)
BABA   172.36 (+3.32%)
NIO   40.04 (+1.09%)
CGC   13.37 (+1.29%)
GE   104.27 (+0.14%)
AMD   115.23 (-1.03%)
MU   66.97 (-0.43%)
T   25.41 (+0.32%)
F   15.54 (-0.13%)
ACB   6.96 (+0.58%)
DIS   170.91 (-0.13%)
PFE   41.90 (+1.40%)
BA   215.86 (-0.52%)
AMC   43.17 (+0.33%)
S&P 500   4,509.18 (+0.51%)
DOW   35,382.92 (+0.35%)
QQQ   374.32 (+0.45%)
AAPL   148.40 (+1.26%)
MSFT   308.83 (+0.50%)
FB   338.82 (+1.04%)
GOOGL   2,859.39 (+0.13%)
TSLA   867.54 (-0.30%)
AMZN   3,442.48 (-0.12%)
NVDA   221.23 (-0.45%)
BABA   172.36 (+3.32%)
NIO   40.04 (+1.09%)
CGC   13.37 (+1.29%)
GE   104.27 (+0.14%)
AMD   115.23 (-1.03%)
MU   66.97 (-0.43%)
T   25.41 (+0.32%)
F   15.54 (-0.13%)
ACB   6.96 (+0.58%)
DIS   170.91 (-0.13%)
PFE   41.90 (+1.40%)
BA   215.86 (-0.52%)
AMC   43.17 (+0.33%)
S&P 500   4,509.18 (+0.51%)
DOW   35,382.92 (+0.35%)
QQQ   374.32 (+0.45%)
AAPL   148.40 (+1.26%)
MSFT   308.83 (+0.50%)
FB   338.82 (+1.04%)
GOOGL   2,859.39 (+0.13%)
TSLA   867.54 (-0.30%)
AMZN   3,442.48 (-0.12%)
NVDA   221.23 (-0.45%)
BABA   172.36 (+3.32%)
NIO   40.04 (+1.09%)
CGC   13.37 (+1.29%)
GE   104.27 (+0.14%)
AMD   115.23 (-1.03%)
MU   66.97 (-0.43%)
T   25.41 (+0.32%)
F   15.54 (-0.13%)
ACB   6.96 (+0.58%)
DIS   170.91 (-0.13%)
PFE   41.90 (+1.40%)
BA   215.86 (-0.52%)
AMC   43.17 (+0.33%)

Pfizer (NYSE:PFE) Stock: A Strong Option for Dividend Investors

Wednesday, September 23, 2020 | Sean Sechler
Pfizer (NYSE:PFE) Stock: A Strong Option for Dividend Investors

Finding a great dividend stock to hold in your portfolio over the long-term can be a challenge in today’s market. With many companies cutting their payouts or at risk of doing so shortly, the degree of difficulty for dividend investors has gone up thanks to the pandemic and its impact on corporate earnings. Buying a great dividend-paying stock means buying a company that offers a strong yield, a history of dividend growth, a solid balance sheet, and the potential for price appreciation.

One stock that fits the bill at this time is Pfizer Inc (NYSE:PFE). It’s one of the world’s leading pharmaceutical companies that could end up becoming a great long-term pick for dividend investors. With volatility on the rise again and continued concerns over economic recovery, adding a steady source of income to your portfolio with a reliable dividend stock makes a lot of sense. Let’s take a deeper look at why Pfizer stock is an attractive option at this time.

Robust Pipeline

A pharmaceutical company’s future growth is directly related to what drugs the company is working to bring to market. Pfizer has decades of experience in successfully developing and manufacturing pharmaceuticals and biotech drugs. Its robust pipeline of new drugs has a lot of profit potential that many investors are overlooking. The company recently brought to market a drug called Vyndaqel, which helps to treat a rare cardiovascular disease. This drug has significant growth potential as only 15% of patients are diagnosed in the US and there wasn’t medicine available to treat this rare disease before Vyndaqel. Other exciting new drugs that could be approved in the next few years include immunology drug Abrocitinib, cancer drug Lorbrena, and other rare disease drugs.

The company is aiming to bring up to 25 new drugs to the market by the year 2025. Pfizer also has tons of patent-protected drugs in its portfolio with pricing power. These patented drugs provide the company with time to develop new drugs before generic competitors can replicate Pfizer’s drugs and sell them for less. The bottom line here is that Pfizer has the size, financial resources, and research power to continue bringing new and potentially game-changing drugs to market for years to come.

COVID Vaccine

Another reason why Pfizer is a strong stock for investors is the fact that the company is working hard on a COVID-19 vaccine. Pfizer partnered up with BioNTech (NASDAQ:BNTX) to create a vaccine that is moving through the regulatory approval stages quickly. The company announced that its vaccine candidate is in a Phase 2/3 trial which could progress to a filing for regulatory approval soon. This is big news for both the world and for the company.

If Pfizer’s COVID-19 vaccine has success in the Phase 2/3 trial, the company will seek regulatory approval by October 2020. Pfizer’s goal is to supply up to 100 million doses worldwide by the end of 2020. The company already has an agreement with the U.S. government and will receive $1.95 billion for the first 100 million doses. While investors shouldn’t expect a massive boost to long-term cash flows from the vaccine thanks to competitive pricing, the fact that the company is one of the leading candidates to successfully create a COVID-19 vaccine is encouraging for both the company’s public image and top-line growth.

High-Yield and Strong Balance Sheet

Whenever you are assessing a dividend stock, it’s important to look into the dividend yield that the stock offers as well as the overall financial strength of the company. Pfizer is a stock that offers a 4.2% dividend yield and has a strong balance sheet with over $1.8 billion in Cash & Equivalents as of the last earnings report. That means investors should be able to rely on the current payout for years to come. The yield saw a nice boost when the company exited the Dow Jones Industrial Average earlier in September and saw its shares sink, offering investors an intriguing entry point.

Since Pfizer has so many key products and patented drugs like Lipitor, Prevnar 13, and Viagra in its portfolio, dividend investors can rely on strong cash flows to back up the payouts. The company has a strong history of paying dividends and recently declared its 327th consecutive quarterly dividend for Q3 2020. That type of consistency is what dividend investors love to see and a big reason why Pfizer is a solid pick.

Should you invest $1,000 in Pfizer right now?

Before you consider Pfizer, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Pfizer wasn't on the list.

While Pfizer currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Pfizer (PFE)3.0$41.90+1.4%3.72%17.98Hold$44.00
Compare These Stocks  Add These Stocks to My Watchlist 

Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.