13 Best Dividend Stocks to Buy Under $50

2. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 80

Share Price as of the Close of December 20: $26.36

Pfizer Inc. (NYSE:PFE) is an American pharmaceutical industry company that specializes in a wide range of medications and vaccines. The company is attracting investor attention as management reaffirmed its annual revenue and earnings forecast from October and provided guidance for the upcoming year. Following the company’s latest guidance update, BMO Capital analyst Evan Seigerman maintained an Outperform rating and set a $36 per-share price target. If Pfizer’s stock hits Seigerman’s target, investors purchasing at current prices could see a potential 37% return on their investment in the coming year.

In the third quarter of 2024, Pfizer Inc. (NYSE:PFE) reported $17.7 billion in revenue, reflecting a strong 32% increase compared to the same period last year. Its Oncology portfolio performed robustly, with notable contributions from products such as Padcev, Xtandi, Lorbrena, and Braftovi/Mektovi. Additionally, the company effectively met the increased demand for Paxlovid during the recent spike in COVID-19 cases.

Pfizer Inc. (NYSE:PFE) continues to maintain strong financial stability, supported by a solid cash position. In the first nine months of 2024, the company returned $7.1 billion to shareholders in the form of dividends. On December 13, the company announced a 2.4% hike in its quarterly dividend to $0.43 per share. This marked the company’s 15th consecutive year of dividend growth, which makes PFE one of the best dividend stocks under $50. The stock supports a dividend yield of 6.43%, as of December 23.

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.”

According to Insider Monkey’s database, 80 hedge funds held stakes in Pfizer Inc. (NYSE:PFE) at the end of Q3 2024, down from 84 in the previous quarter. The collective value of these stakes is more than $3 billion. With nearly 17 million shares, Two Sigma Advisors was the company’s leading stakeholder in Q3.