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Top 10 Dow Dividend Stocks for December

The best dividend stocks to round out 2014

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#8: Pfizer (PFE)

dividends-pfizer-stock-pfeDividend Yield: 3.4%
YTD Performance: +21%

Pfizer’s (PFE) patent for its best-selling Viagra pill is set to expire, and drug-maker Teva Pharmaceuticals (TEVA) has already jumped on board to sell its generic version of the drug beginning in 2017.

Viagra sales alone accounted for more than $2 billion in revenue in 2012, but the patent loss won’t be the end of the world for Pfizer. TEVA is on the hook to pay PFE patent royalties until the patent expires in 2020.

Not to mention, PFE is one of the world’s largest pharmaceutical companies, and it produces a variety of other exclusive drugs and consumer healthcare products. Investors should also feel better knowing it still pays a solid 3.4% yield, and that it has nearly matched the performance of the Dow Jones in 2013.

PFE’s long-term growth forecast comes in at about 3.2% a year for the next five years or so, and it carries a forward P/E of 13 and an annual dividend of $1.04. With the stock off about 5% in the last month, this looks like a nice entry point for new money.

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