#2 - Pfizer Inc. (NYSE:PFE)
Pfizer Inc. (NYSE: PFE) - Pfizer is another pharmaceutical stock that is a favorite of dividend investors. It offers an attractive dividend yield of around 3%, has a payout ratio of around 57%, and has paid out dividends for over 80 consecutive years. That’s consistency investors can count on. But does its past predict its future?
In the pharmaceutical business, first to market is the name of the game. Pfizer’s revenue has suffered a bit in recent years due to expiring patents that allowed competition, particularly with lower-priced generic equivalents. Those cost pressures are going away as new products are ready to hit the market. Their current pipeline includes 28 late-stage programs with several other drugs pending regulatory approval. Their cancer drug, Ibrance, is one of the fastest-growing drugs in the world and the company is also reporting strong sales from Eliquis, which is a drug they co-market with Bristol-Myers Squibb.
With new products on the horizon and our country’s continued reliance on prescription medication, there is a place for Big Pharma in a retirement portfolio. Pfizer’s stock has a P/E ratio just below 12 giving it a very attractive valuation relative to its stock price which, although it is right around its 52-week high is still very attractively priced in the mid-40’s.
About Pfizer
Pfizer Inc discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands.
Read More - Current Price
- $25.65
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $32.92 (28.4% Upside)
