Current Dividend Yield: 3.7%
Performance So Far in 2012: +10%
I recently penned an article about the best stocks in pharma for dividends, and Pfizer (NYSE:PFE) was one of the top picks on my list. It outperformed the market nicely in 2011 with one of the best returns in the entire Dow Jones — 23% in gains, to be precise — and has a decent pipeline of future revenue
The balance sheet seems strong after first-quarter earnings, where, despite a small YOY drop in revenue, Pfizer saw a 25% increase in profits. And thanks in part to good numbers lately, PFE is now outperforming the broader Dow Jones Industrial Average so far in 2012.
Looking forward, the company has a decent research pipeline with some up-and-coming drugs that could rotate in to prop up revenues. There’s also some restructuring going on, including an IPO for its animal health business. Also, the company has $29 billion in cash on the books — so even even if revenue hits a hiccup or some of the moves now don’t immediately pay off, the cash is there to preserve this juicy dividend.