Dow Dividend Stocks #5: Pfizer (PFE)
Pfizer (PFE) has traded fractionally lower so far in 2014, as investors begin to show their disillusionment about the loss of potential revenue from once-exclusive drugs that have gone generic. Its flagship Viagra pill accounted for more than $2 billion in revenue in 2012, but the patent loss (in some European countries) won’t be the end of the world for Pfizer.
PFE is one of the world’s largest pharmaceutical companies and one of the best dividend stocks out there. It produces a variety of other exclusive drugs and consumer healthcare products. Investors should also feel better knowing that PFE stock now pays a decent 3.3% yield, and that it came within five percentage points of matching the performance of the Dow Jones in 2013.
Better yet, the company recently increased its quarterly dividend from 24 cents to 26 cents, an increase of more than 8%. And if you get in before the Feb. 5 ex-div date, you’ll be able to collect that payout in early March. PFE’s 2014 growth forecast comes in at a little more than 5%, and it carries a forward P/E ratio of 12.1 making this a nice bargain for new money.