Pfizer (NYSE:PFE) The stock has struggled over the past year, losing about 28% of its value. In the meantime, dividend payments have continued to increase. This combination pushed the dividend yield to almost 6%.
Is this your chance for a generous dividend stream?
Earn $1,000 in Dividend Income With This Strategy
With the current dividend yield of 5.9%, you would need to invest around $17,000 in Pfizer stock to earn $1,000 in annual income. If you wanted to win $1,000 in monthly income, you will need to invest around $200,000.
Don’t have much to invest? Don’t worry. By starting with a smaller amount, you can gradually earn $1,000 in passive income. There are two paths to achieving this goal.
First, it’s possible that Pfizer stock has significant upside potential from here on out. The company’s COVID-19 vaccine, Comirnaty, saw sales fall faster than expected last quarter, weighing on overall results. Total sales, for example, fell 19% year-over-year. However, if we exclude revenues related to COVID-19, sales increase by 11%. This suggests that Pfizer’s core business remains strong despite a slowdown due to COVID-19. demand for vaccines. With a large pipeline of potential new products, it is possible that the market will overreact to near-term headwinds.
Second, Pfizer has a good chance of increasing its dividend further in the coming years. It already has 15 consecutive years of dividend increases under its belt. New product launches – such as its upcoming oncology treatment, Padcev, which could generate billions of dollars in new revenue – are expected to help further increase these payments over the long term.
In combination, long-term stock price appreciation and increased dividends could help a small initial investment grow into a sizable nest egg. It may take a little patience, but it is entirely possible to generate a $1,000 passive income stream using Pfizer stock.
Should you invest $1,000 in Pfizer right now?
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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool holds positions at and recommends Pfizer. The Motley Fool has a disclosure policy.
Want $1,000 in dividend income? Here’s how much you’ll need to invest in Pfizer stock was originally published by The Motley Fool
