15 Stocks to Invest in with Steady Dividends

Page 8 of 12

6. Pfizer Inc. (NYSE:PFE)

Upside Potential as of January 20: 20.01%

Pfizer Inc. (NYSE:PFE) is a global pharmaceutical company that mainly manufactures, markets, and sells related products worldwide. Leveraging its pandemic profits, the company acquired Seagen for $43 billion in late 2023 to strengthen its oncology pipeline. The company is likely to keep seeking acquisitions of promising pharmaceutical firms to further enhance its pipeline. This approach is proving effective, with management projecting earnings growth of 10% to 18% for 2025. Analysts anticipate the company’s earnings to grow by approximately 14% annually over the next three to five years.

Pfizer Inc. (NYSE:PFE) attracted significant investor attention in 2020 by being the first to launch a COVID-19 vaccine in the US, outpacing Moderna. Beyond its vaccine, the company’s diverse product lineup includes treatments for autoimmune conditions, cancer, migraines, and more. Analysts suggested that the company’s growth potential might be underestimated. It has heavily invested in research and development and made strategic acquisitions, enhancing its portfolio with key products such as the RSV vaccine Abrysvo, the migraine treatment Nurtec ODT, and cancer therapies Adcetris and Padcev.

In the third quarter of 2024, Pfizer Inc. (NYSE:PFE) reported revenue of $17.7 billion, reflecting a substantial 32% increase compared to the same period the previous year. The company effectively addressed the heightened 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) is a strong dividend payer as the company holds a 15-year streak of consistent dividend growth. The company currently pays a quarterly dividend of $0.43 per share and has a dividend yield of 6.5%, as of January 20.

As of the end of Q3 2024, 80 hedge funds in Insider Monkey’s database owned stakes in Pfizer Inc. (NYSE:PFE), compared with 84 in the previous quarter. The consolidated value of these stakes is over $3 billion.

Page 8 of 12