10 Best Beaten Down Dividend Stocks to Invest in Now

5. Pfizer Inc. (NYSE:PFE)

3-year high-to-low share price decrease as of August 30: 51.7%

An American multinational pharmaceutical and biotech company, Pfizer Inc. (NYSE:PFE) ranks fifth on our list of the best beaten down dividend stocks. The stock is down by 18% in the past 12 months. The company’s recent performance has been closely tied to the success of its coronavirus vaccine, Comirnaty. In 2022, the vaccine helped generate over $100 billion in revenue, the highest in the company’s history. However, the demand for the vaccine hasn’t materialized after the pandemic years. Comirnaty sales in the second quarter of 2024 were only $195 million, a sharp 87% decline from the previous year, with no signs of a rebound expected.

According to analysts, if this specific factor is overlooked, Pfizer Inc. (NYSE:PFE) still has a strong potential for success, as reflected in its quarterly earnings. In the second quarter of 2024, the company reported $13.3 billion in revenue, a 4.3% increase compared to the same period last year. In addition, a robust 14% rise in operational revenue from non-COVID products during the second quarter demonstrated the company’s continued focus on effective commercial execution. Parnassus Investments also mentioned various reasons to add PFE to income portfolios, despite its recent underperformance. Here is what the firm has to say about the company in its Q1 2024 investor letter:

“During the quarter, we added new positions in Pfizer Inc. (NYSE:PFE), NICE and Charter Communications. We purchased Pfizer to capture the potential upside from any turnaround following the COVID-induced boom-bust cycle of the last few years. Pfizer’s stock price sank by more than 40% in 2023 as COVID-19 vaccine revenues rolled off, providing an attractive entry point for us. The company completed its acquisition of Seagen, which should strengthen Pfizer’s pipeline in antibody-drug conjugates (ADC). Pfizer also offers an attractive dividend yield.”

As mentioned in this investor letter, Pfizer Inc. (NYSE:PFE)’s dividend makes it an attractive investment among shareholders. The company has never missed a dividend in 85 years and maintains a 14-year track record of consistent dividend growth. It also remained committed to its shareholder obligation, returning $4.8 billion to investors through dividends in the first six months of 2024. Its quarterly dividend currently comes in at $0.42 per share for a dividend yield of 5.79%, as of August 30.

Pfizer Inc. (NYSE:PFE) was also popular among elite money managers, as hedge fund positions in the company jumped to 84 in Q2 2024, from 77 in the preceding quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a total value of more than $3.6 billion. Among these hedge funds, Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q2.