10 Best Affordable Dividend Stocks to Buy According to Hedge Funds

8. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 92

Forward P/E Ratio as of February 26: 9.07

Pfizer Inc. (NYSE:PFE) ranks eighth on our list of the best dividend stocks. The pharmaceutical company mainly manufactures, markets, and sells related products worldwide. The company is prioritizing its oncology pipeline as a key driver of future growth, with plans to introduce several blockbuster drugs by 2030. To strengthen its portfolio, the company is expected to continue seeking acquisitions of promising pharmaceutical firms. A significant portion of its pandemic-related earnings was used to acquire Seagen, a biotech company specializing in oncology, for $43 billion.

Additionally, Pfizer Inc. (NYSE:PFE) reported a 12% operational revenue increase from its non-COVID products over the past year, highlighting its strategic focus on execution. The company successfully reached its $4 billion net cost savings target through an ongoing cost realignment program and has now raised its goal to approximately $4.5 billion by the end of 2025. Under its Manufacturing Optimization Program, Pfizer aims to achieve $1.5 billion in net cost savings by 2027, with initial savings expected in the latter half of 2025. The company remains confident in its ability to restore pre-pandemic operating margins in the years ahead.

Pfizer Inc. (NYSE:PFE) currently offers a quarterly dividend of $0.43 per share, following a 2.4% increase in December 2024, marking its 15th consecutive year of dividend growth. With a dividend yield of 6.51%, as of February 26, PFE is a good investment option for income investors.