Top Stock to Buy #6 – Pfizer (PFE)
Pfizer (NYSE:PFE) is the world’s largest pharmaceutical company, producing a wide range of drugs. In October 2009, it acquired Wyeth. The blue chip has had a long history of earnings gains and dividend increases. The current dividend yield is 3.3%.
Recently, Pfizer announced plans to spin off its majority interest in animal-health company Zoetis (NYSE:ZTS) to current stockholders at $100 of PFE for $107.52 of ZTS shares, subject to SEC and stockholder approval. This is viewed as a positive step that will allow the company to focus on its core business.
Technically, PFE has been in a bull market since January 2012. The current bull channel’s resistance line was broken in April on high volume, but after several weeks, retreated back to its normal rate of advance. Support was recently enhanced by a CBR buy signal at $28.50 and a new MACD buy signal. The 12-month target for PFE is $35, which could provide investors with a total return of 24%.