12 Most Reliable Dividend Stocks To Buy According to Hedge Funds

7. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 80

An American multinational pharmaceutical industry company, Pfizer Inc. (NYSE:PFE) was the first drugmaker to launch a COVID-19 vaccine in the US, ahead of Moderna. In addition to its vaccine, the large pharmaceutical company offers a wide range of other products, including treatments for autoimmune diseases, cancer, migraines, and more. According to analysts, the company’s growth potential might be stronger than many realize. The company has made significant investments in internal research and development, along with several important acquisitions. These efforts have brought notable additions to Pfizer’s portfolio, such as 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) reported revenue of $17.7 billion, a notable 32% increase compared to the same quarter last year. The company also effectively met the increased demand for Paxlovid during the recent rise 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.”

Pfizer Inc. (NYSE:PFE) declared a 2.4% increase in its quarterly dividend on December 13, 2024. This was the company’s 15th consecutive year of dividend growth, which makes PFE one of the best dividend stocks on our list. The company now pays a quarterly dividend of $0.43 per share and has a dividend yield of 6.44%, as of January 12. This strong dividend history comes from its solid cash position. In the first nine months of 2024, the company distributed $7.1 billion through dividends.

As per Insider Monkey’s database of Q3 2024, 80 hedge funds tracked by Insider Monkey held investments in Pfizer Inc. (NYSE:PFE), compared with 84 in the previous quarter. The collective value of these stakes is more than $3 billion.