Top Dividend Stocks #8: Pfizer (PFE)
Dividend Yield: 3.31%
YTD Performance: +2.71%
52-Week Return: +18.35%
In our last installment of the top Dow dividend stocks, Pfizer (PFE) took the No. 5 spot. At the time, the stock was trading under $30. But after a 5% run higher for the stock, PFE’s yield has fallen a bit. With the shares now trading back around $31.50, the dividend yield stands at a still-respectable 3.3%.
The move higher came after Pfizer beat earnings estimates for the third straight quarter. EPS were 56 cents, which was an increase of 22% over the same period a year ago. Although revenues declined during the quarter, the $13.6 billion reading managed to beat estimates.
Despite the loss of exclusivity rights for a number of its best-selling products, including the cholesterol drug Lipitor and its flagship Viagra pill, PFE is projecting sales to be between $49.2 billion and $51.2 billion in 2014.
The company’s share buyback program contributed in part to the positive results. PFE repurchased $16.3 billion of its own shares in 2013, and announced that it plans to make $5 billion of additional repurchases this year as well. Although Pfizer has lagged some of its sector peers and other dividend stocks lately, it continues to exhibit strong growth prospects, and owners of the stock will also enjoy a $1.04 annual payout going forward.