8 Best Dividend Leaders to Buy According to Wall Street Analysts

5. Pfizer Inc. (NYSE:PFE)

Upside Potential as of December 19: 22.4%

Pfizer Inc. (NYSE:PFE) is a New York-based pharmaceutical industry company that specializes in a wide range of medications and vaccines. The company gained significant attention during the pandemic for developing vaccines. However, this recent success, driven by its COVID-19 vaccine and treatment pill, has led some investors to perceive it as a stock that may have peaked. With a sharp decline in vaccine demand, concerns have arisen about potential changes in vaccine policy under the incoming Trump administration, further heightening investor uncertainty. The stock has fallen by over 13% in 2024 so far.

Despite concerns, Pfizer Inc. (NYSE:PFE) posted strong earnings in its latest quarter. The company generated $17.7 billion in revenue, marking a notable 32% increase compared to the same period last year. Its Oncology portfolio continued to perform well, with significant contributions from products like Padcev, Xtandi, Lorbrena, and Braftovi/Mektovi. In addition, the company successfully met the heightened demand for Paxlovid during the recent surge in COVID-19 cases.

Pfizer Inc. (NYSE:PFE) remains in strong financial health, as evidenced by its solid cash position. In the first nine months of 2024, the company returned $7.1 billion to shareholders through dividends. With a quarterly dividend of $0.42 per share, the stock offers an appealing dividend yield of 6.67% as of December 19. Known for its reliable payouts, the company has consistently increased its dividends for 14 years, making it one of the best dividend leaders on our list.

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.”

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 80 hedge funds held stakes in Pfizer Inc. (NYSE:PFE), compared with 84 in the previous quarter. These stakes are collectively valued at over $3 billion.