Is Pfizer dividend safe? (2024)

Is Pfizer dividend safe?

Key Points. Pfizer's stock is paying a dividend that yields more than four times the S&P 500 average. It had a tough 2023, but if not for asset impairment charges, results would have looked far better. Management has a plan to grow its top line and offset revenue declines as key drugs lose patent protection.

Some of the best dividend stocks that have raised their dividends for decades and have strong balance sheets include The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG). In this article, we will further take a look at reliable dividend stocks.

Pfizer (PFE 0.55%) isn't exactly a hot stock right now. Since its massive run-up during the pandemic's height, built on hopes for its coronavirus vaccine, new sources of growth haven't led to equally outsized windfalls.

(NYSE: PFE) today announced that its board of directors declared an increase in the quarterly cash dividend on the company's common stock to $0.42 for the first-quarter 2024 dividend, payable March 1, 2024, to holders of the Common Stock of record at the close of business on January 26, 2024.

9 In other words, dividends are not guaranteed and are subject to macroeconomic and company-specific risks. Another downside to dividend-paying stocks is that companies that pay dividends are not usually high-growth leaders.

Is PFE a Buy, Sell or Hold? Pfizer has a conensus rating of Moderate Buy which is based on 7 buy ratings, 10 hold ratings and 0 sell ratings.

Pfizer stock has received a consensus rating of hold. The average rating score is A2 and is based on 28 buy ratings, 38 hold ratings, and 0 sell ratings.

Pfizer Stock Forecast

The 16 analysts with 12-month price forecasts for Pfizer stock have an average target of 36.88, with a low estimate of 27 and a high estimate of 50. The average target predicts an increase of 45.20% from the current stock price of 25.40.

Why is Pfizer stock cheap?

Pfizer reported a record $100 billion in annual revenue in 2022 due to the development of Comirnaty and Paxlovid. COVID treatments no longer boost sales, causing the stock to trade near a ten-year low. Pfizer faces patent expirations and a drop in sales of COVID products but has strong pipeline and growth drivers.

We estimate Pfizer's Valuation to be $29 per share, close to its current levels of $28. Our forecast is based on a 13x P/E multiple for PFE and expected earnings of $2.14 on a per-share and adjusted basis for the full year 2024.

(NYSE: PFE) today announced that its board of directors declared a $0.42 second-quarter 2024 dividend on the company's common stock, payable June 14, 2024, to holders of the Common Stock of record at the close of business on May 10, 2024.

To generate $5,000 per month in dividends, you would need a portfolio value of approximately $1 million invested in stocks with an average dividend yield of 5%. For example, Johnson & Johnson stock currently yields 2.7% annually. $1 million invested would generate about $27,000 per year or $2,250 per month.

The Bottom Line

By investing in quality dividend stocks with rising payouts, both young and old investors can benefit from the stocks' compounding, and historically inflation-beating, distribution growth. All it takes is a little planning, and then investors can live off their dividend payment streams.

In the end, both Coca-Cola and PepsiCo are solid dividend stocks with strong brands and loyal customer bases. The key is to choose the one that best aligns with your investment goals and risk tolerance.

Microsoft (NASDAQ: MSFT), Coca-Cola (NYSE: KO), Procter & Gamble (NYSE: PG), Chevron (NYSE: CVX), Home Depot (NYSE: HD), JPMorgan Chase (NYSE: JPM), and United Parcel Service (NYSE: UPS) represent their industries well and are all top dividend stocks you can count on for decades to come.

Some of the best dividend stocks include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV) with impressive track records of dividend growth and strong balance sheets. In this article, we will further take a look at some of the best dividend stocks of all time.

What are the top 3 dividend stocks?

The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and Colgate-Palmolive Company (NYSE:CL) are some of the best dividend growers to generate regular income as these companies have raised their payouts for decades.

They're paid out of the earnings and profits of the corporation. Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.

The bearish argument against buying Pfizer is factually correct in the sense that examining backward-looking financial metrics shows the company's current performance as being dramatically overshadowed by its performance from 2020 to mid-2022. It will take a long time for that situation to change.

So if you are looking for a stable dividend stock with a high yield and modest growth potential, you might want to consider buying Pfizer in 2024. However, if you are looking for a stock capable of consistently beating the broader market, you might want to look elsewhere.

The low valuation could make it an underrated investment

Pfizer's stock is trading within just a few dollars of its 52-week low. Based on analyst estimates, it's also changing hands a fairly modest 13 times its expected future profits. By comparison, the average healthcare stock trades at a multiple of 19.