1. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 80
Dividend Yield as of January 20: 6.54%
Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical industry company. It currently pays a quarterly dividend of $0.43 per share, having raised it by 2.4% in December 2024. This marked the company’s 15th consecutive year of dividend growth. The stock offers a dividend yield of 6.54%, as of January 20. The company has always remained committed to its shareholder value as it returned $7.1 billion to investors through dividends in the first nine months of 2024.
Pfizer Inc. (NYSE:PFE) gained traction among investors in 2020 as it was the first pharmaceutical company to introduce a COVID-19 vaccine in the US, ahead of Moderna. Beyond its vaccine, the company offers a diverse array of products, including treatments for autoimmune diseases, cancer, migraines, and more. Analysts believe Pfizer’s growth potential may be greater than commonly perceived. The company has made substantial investments in research and development, as well as several key acquisitions, leading to the addition of important products to its portfolio. These include the RSV vaccine Abrysvo, the migraine treatment Nurtec ODT, and cancer drugs Adcetris and Padcev.
In the third quarter of 2024, Pfizer Inc. (NYSE:PFE) achieved revenue of $17.7 billion, marking a significant 32% year-over-year increase. The company also successfully managed the surge in demand for Paxlovid amid the recent uptick in COVID-19 cases.
Parnassus Investments highlighted Pfizer Inc. (NYSE:PFE) in its Q1 2024 investor letter. Here is what the firm has to say:
“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 per Insider Monkey’s database of Q3 2024, 80 hedge funds held stakes in Pfizer Inc. (NYSE:PFE), compared with 84 in the previous quarter. These stakes have a consolidated value of over $3 billion.
Overall Pfizer Inc. (NYSE:PFE) ranks first on our list of the best dividend stocks with high yields. While we acknowledge the potential for PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PFE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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