10 Best Dividend-Paying Stocks Under $50

3. Pfizer Inc. (NYSE:PFE)

Upside Potential as of August 16: 19.54%

Share Price as of the close of August 16: $28.3

Pfizer Inc. (NYSE:PFE) is a New York-based multinational pharmaceutical and biotech company. The company saw significant gains during the pandemic, primarily due to its vaccine revenues, with an increase of nearly 60% from June 2020 to June 2022. However, it has struggled to maintain that momentum since then, experiencing a 22.8% decline over the past year. On a positive note, recent earnings reports indicate that the company is showing signs of a growth rebound. In the second quarter of 2024, the company reported revenues of $13.3 billion, up 4.3% from the same period last year. Its strong 14% increase in operational revenue from non-COVID products during the second quarter also highlighted its ongoing commitment to effective commercial execution.

Though Pfizer Inc. (NYSE:PFE) has fallen significantly over the last year, Parnassus Investments highlighted reasons to add the stock to income portfolios. Here is what the firm has to say about PFE 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.”

Pfizer Inc. (NYSE:PFE) holds a strong dividend history as the company has never missed a dividend in 85 consecutive years. In addition, it has raised its payouts every year for the last 14 years, which makes PFE one of the best dividend stocks under $50. In the first six months of the year, the company returned $4.8 billion to shareholders through dividends. Currently, it offers a quarterly dividend of $0.42 per share and has a dividend yield of 5.94%, as of August 16.

Pfizer Inc. (NYSE:PFE) was a popular buy among elite funds at the end of Q2 2024, as hedge fund positions in the company grew to 84, from 77 in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a total value of over $3.6 billion.