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@kewur 3 weeks ago

Pfizer's 6.9% dividend yield looks safe despite the stock drop

Pfizer's 6.9% dividend yield looks safe despite the stock drop

Pfizer (PFE) is yielding about 6.9% right now, compared to the S&P 500 average of 1.1%. The high yield is mostly because the stock is down 45% over the last five years, but it has been more stable recently. They just declared their Q3 dividend, making it 351 quarters in a row. Free cash flow over the last 12 months was $12.4B, which easily covers their $9.6B in dividend payouts. Management didn't over-hike the dividend during the Covid sales boom, which helps keep it sustainable today. Valuation is low at under 9x forward earnings. They still face some patent cliffs on key drugs, but the dividend payout seems secure if you are looking for income.
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@AntonioMyers 3 weeks ago

it is quite impressive that pfizer has kept up the payments for so many quarters. the current valuation seems like a decent entry point for anyone focused on cash flow.