8 Best American Dividend Stocks To Buy Right Now

4. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 80

Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical and biotech company. Its recent success, driven by its COVID-19 vaccine and treatment pill, has left some investors viewing it as a stock past its prime. With demand for the vaccine declining sharply, concerns have emerged about possible shifts in vaccine policy under the incoming Trump administration, adding to investor apprehensions. Since the start of 2024, the stock has fallen by over 13%.

That said, Pfizer Inc. (NYSE:PFE) reported strong earnings in the most recent quarter. The company posted revenue of $17.7 billion, which showed a significant 32% growth from the same period last year. It sustained remarkable growth in its Oncology portfolio, with significant revenue contributions from products such as Padcev, Xtandi, Lorbrena, and Braftovi/Mektovi. Additionally, it successfully met increased demand for Paxlovid during the recent surge in COVID-19 cases.

In the first nine months of 2024, Pfizer Inc. (NYSE:PFE) returned $7.1 billion to shareholders through dividends. The company’s quarterly dividend comes in at $0.42 per share and has an attractive dividend yield of 6.51%, as of December 10. It is one of the best dividend stocks on our list as the company has been growing its payouts for 14 consecutive years.

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.”

As per Insider Monkey’s database of Q3 2024, 80 hedge funds held stakes in Pfizer Inc. (NYSE:PFE), compared with 84 in the previous quarter. The total value of these stakes is more than $3 billion. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q3.