10 Best January Dividend Stocks To Buy

2. Pfizer Inc. (NYSE:PFE)

Ex-Dividend Date: January 24

Pfizer Inc. (NYSE:PFE) is a multinational pharmaceutical industry company. It is garnering investor interest after management reaffirmed its annual revenue and earnings forecast from October and offered guidance for the upcoming year. In response to the updated guidance, BMO Capital analyst Evan Seigerman maintained an Outperform rating with a price target of $36 per share. If Pfizer’s stock reaches Seigerman’s target, investors buying at current prices could potentially see a 37% return over the next year. The stock is down by nearly 10% in the past 12 months.

In the third quarter of 2024, Pfizer Inc. (NYSE:PFE) reported revenue of $17.7 billion, marking a significant 32% increase from the same quarter the previous year. The company’s Oncology portfolio showed strong performance, driven by key products like Padcev, Xtandi, Lorbrena, and Braftovi/Mektovi. Pfizer also successfully addressed the heightened demand for Paxlovid during the recent surge in COVID-19 cases.

Pfizer Inc. (NYSE:PFE) remains financially stable, bolstered by a strong cash position. Over the first nine months of 2024, the company distributed $7.1 billion to shareholders through dividends. On December 13, the company announced a 2.4% increase in its quarterly dividend, raising it to $0.43 per share. This marks the 15th consecutive year of dividend growth for the company, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 6.47%, as recorded on January 5.

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 of the close of Q3 2024, 80 hedge funds tracked by Insider Monkey owned stakes in Pfizer Inc. (NYSE:PFE), compared with 84 in the previous quarter. These stakes are collectively worth over $3 billion in total. With nearly 17 million shares, Two Sigma Advisors was the company’s leading stakeholder in Q3.