1. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 92
Dividend Yield as of February 24: 6.45%
Pfizer Inc. (NYSE:PFE) is a New York-based pharmaceutical company that mainly manufactures, markets, and sells related products worldwide. The company achieved notable progress in commercial execution throughout 2024, with strong performance across its product portfolio. It generated $3.4 billion in revenue from its legacy Seagen portfolio, alongside solid growth from key products like Vyndaqel, Eliquis, Xtandi, and Nurtec across multiple categories.
In addition, Pfizer Inc. (NYSE:PFE) reported a 12% operational revenue increase from its non-COVID products for the year, reinforcing its focus on execution. The company successfully met its $4 billion net cost savings target through its ongoing cost realignment program and has now raised its savings goal to approximately $4.5 billion by the end of 2025. As part of its Manufacturing Optimization Program, Pfizer aims to achieve $1.5 billion in net cost savings by 2027, with initial savings anticipated in the second half of 2025. The company remains optimistic about restoring its pre-pandemic operating margins in the coming years.
Pfizer Inc. (NYSE:PFE) currently pays a quarterly dividend of $0.43 per share, following a 2.4% increase in December 2024. This marks its 15th consecutive year of dividend growth, which makes it one of the best stocks to buy for passive income. The stock supports a dividend yield of 6.45%, as of February 24.
Overall Pfizer Inc. (NYSE:PFE) ranks first on our list of the best stocks to buy for passive income. 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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