Current Dividend Yield: 4%
Performance So Far in 2012: +1%
Pfizer (NYSE:PFE) outperformed the market nicely in 2011 with one of the best returns in the entire Dow Jones — 23% in gains, to be precise. But like so many high-fliers with high yield, Pfizer has hit a speed bump in 2012 as shares have lagged the strong rally on the rest of Wall Street.
Part of that is more than just sector rotation, too. Pfizer faces the same challenge that persists across all of Big Pharma — looming patent expirations, challenges from generic medications and the frantic race to lock up patients in emerging markets.
But the company has a decent research pipeline with some up-and-coming drugs that could rotate in to prop up revenues. Most importantly for dividend investors, the company has $29 billion in cash as of its last earnings report. Even if revenue hits a hiccup, as it did in fiscal 2011 when it slid from $67.8 billion to $67.4 billion, the cash is there to preserve this juicy dividend.