Pharmaceutical giant Pfizer (NYSE:PFE) is a stock that’s in the news not because it’s one of the steadiest dividend payers on the planet, but because shareholders want even more bang for their buck. What’s interesting is that in its latest quarter, Pfizer beat Street estimates on both the top and bottom lines, but it’s still trying to figure out how to make up for lost Lipitor revenues. One of its best-selling products, Lipitor is now out of its patent protection and has generic competition.
What Pfizer is doing to balance the scales is lots of cost-cutting and looking to sell segments that don’t necessarily fit the core business, like its animal health division Zoetis, which will be spun off entirely. Health care is a hot industry with lots of upside potential, so look for Pfizer to work on that 22 cents per share dividend, which now yields well in excess of 3%. It’s a nice little bargain for $25 per share.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he was long AAPL, XOM, JNJ, MSFT, GE, and INTC.