#8: Pfizer (PFE)
When big pharmaceutical companies are confronted with expiring patents on their blockbuster drugs, they have to do something to keep shareholders happy.
Cost-cutting is one way Pfizer (PFE) is making things right, but most investors probably feel better knowing it still throws off a 3% yield — and still has managed to outpace the S&P 500 this year by a couple percentage points.
Not bad for a dividend stock that increasingly looks like a bond in drag.
The long-term growth forecast stands at less than 3% a year for the next five years or so. Ordinarily, that would make the forward P/E of 14 look like a bit of a stretch, but between the dividend and $10 billion share repurchase program, new money looks to get its money’s worth.