1. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Dividend Yield as of September 16: 5.74%
Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical and biotech company that develops a wide range of medicines and vaccines. Despite the stock being down nearly 11% over the past year, analysts are hopeful about a potential rebound in its performance, which was significantly impacted after the pandemic. In the second quarter of 2024, the company’s revenue came in at $13.3 billion, which showed a 4.3% growth from the same period last year. In addition, a strong 14% increase in operational revenue from non-COVID products during the quarter highlighted the company’s ongoing commitment to effective commercial execution.
Parnassus Investments also mentioned various reasons to add Pfizer Inc. (NYSE:PFE) to income portfolios, despite its recent underperformance. Here is what the firm has to say about the company in its Q1 2024 investor letter:
“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.’s (NYSE:PFE) dividend also makes it an attractive investment opportunity for income investors. The company’s dividend growth streak currently spans over years and it has never missed a dividend in 85 consecutive years. Moreover, in the first six months of the year, the company returned $4.8 billion to shareholders through dividends. It pays a quarterly dividend of $0.42 per share. With a dividend yield of 5.74% as of September 16, PFE is one of the best stocks to buy for passive income.
Pfizer Inc. (NYSE:PFE) was also popular among elite money managers, as hedge fund positions in the company jumped to 84 in Q2 2024, from 77 in the preceding quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a total value of more than $3.6 billion.
Overall, Pfizer Inc. (NYSE:PFE) ranks first on our list. While we acknowledge the potential for PFE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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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Disclosure: None. This article is originally published at Insider Monkey.
