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Investing in dividend stocks involves more than just chasing high returns. Companies offering attractive yields are only viable investments if they can maintain their payouts.
Recent market trends have demonstrated that even high-income stocks with impressive yields, such as Walgreens Boots Alliance and Medical Properties Trust, can cut dividends.
Pfizer (NYSE:PFE) is a resilient choice. Despite recent challenges, long-term investors should remain confident. Here’s why.
Pfizer could be your choice, but why?
Pfizer is a major player in the pharmaceutical and biotechnology industry based at The Spiral in Manhattan, New York. Founded in 1849 by German entrepreneur Charles Pfizer and his cousin Charles F. Erhart, the company has a rich history of innovation.
Pfizer is committed to prioritizing health and wellness, aiming to responsibly drive global advancements.
It’s easy to misinterpret Pfizer’s current financial results. In the first quarter, the company reported revenue of $14.9 billion, a 20% decline from a year earlier and a 33% decline in adjusted earnings per share, down to 0 $.82 compared to the first quarter of 2023.
However, the outstanding performances in 2021 and 2022 have set a high benchmark. Excluding its COVID-19 portfolio, Pfizer income has increased by a solid 11% year over year.
Pfizer’s Long-Term Outlook and Dividend Stability
Although the COVID-19 market is still unpredictable, Pfizer’s revenue is expected to increase once it stabilizes with the launch of its new products. Pfizer has excellent long-term prospects; it’s not just “pandemic stock.”
Over the past 10 years, Pfizer has increased its dividends by 61.54%, providing a forward dividend yield of 5.87%. However, the company’s 182.5% cash payout ratio may be more sustainable, likely due to recent acquisitions.
Chief Financial Officer Dave Denton said during the first quarter earnings conference call: “Our strategy is to maintain and grow our dividend over time, reinvest in our business at an appropriate level of financial performance and proceed to valuable share buybacks after having deleveraged our balance sheet. “.
The latest from Pfizer dividend increase underlines its commitment to shareholders. The company’s dividend program will likely remain strong as revenues and net income recover, providing long-term benefits to those who reinvest dividends.
Are you looking for a higher yielding opportunity?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to achieve massive returns, but not through dividend stocks… Some private market real estate investments give retail investors the opportunity to capitalize on these high yield markets. opportunities and Benzinga identified some of the most attractive options to consider.
For example, Base Camp Alpine Notes offers a target APY of 9% with a term of just three months, making it a powerful short-term cash management tool with incredible flexibility. EquityMultiple has issued 61 series of Alpine Notes and has met all payment and financing obligations with no missed or late interest payments. With a low minimum investment of just $1,000, Basecamp Alpine Notes makes it easier than ever to start building a high-yield portfolio.
Don’t miss this opportunity to take advantage of high yield investments while rates are high. Check out Benzinga’s favorite high-yield deals.
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