logo
#

Latest news with #Comirnaty

Better High-Yield Dividend Stock to Buy Now: Pfizer vs. Prologis
Better High-Yield Dividend Stock to Buy Now: Pfizer vs. Prologis

Yahoo

time5 days ago

  • Business
  • Yahoo

Better High-Yield Dividend Stock to Buy Now: Pfizer vs. Prologis

Super-high-yield stocks often deliver heaps of passive income early on, but they aren't famous for rapid payout raises. Pfizer offers a sky-high yield, but its payout has been rising slowly. Prologis offers a decent yield, and it's been raising its payout at an exciting pace. 10 stocks we like better than Prologis › Investors looking for sources of passive income to fuel their retirement dreams face a dilemma. Should you chase high yields from slow-growing businesses or invest in lower-yield providers with more predictable cash flows? Lately, Pfizer (NYSE: PFE) and Prologis (NYSE: PLD) have been perfect examples of the trade-off between attractive yields and dividend growth. Pfizer offers a sky-high yield that's climbing slowly. Prologis offers a much lower yield, but it's been raising its payout at a remarkable pace. Here's a closer look at both to help you decide which one fits your goals. Shares of Pfizer have fallen about 62% from their COVID-19 pandemic highs. The stock is way down, but the company has raised its payout every year since 2009. At its beaten-down price, this stock offers an eye-popping 7.3% dividend yield. Pfizer's COVID-19 vaccine, Comirnaty, and antiviral treatment, Paxlovid, drove adjusted earnings up to $6.58 per share in 2022. Sinking demand for COVID-19 vaccines and treatments reduced adjusted earnings to just $3.11 per share last year. In 2025, Pfizer expects a significant earnings contraction. At the midpoint of the guided range management provided this April, adjusted earnings are expected to fall by 6.8% this year. The $2.80 per share management expects at the low end of the guided range is more than enough to support a dividend payout currently set at an annualized $1.72 annually, but there could be further contractions ahead. Eliquis is a next-generation blood thinner that Pfizer markets in collaboration with Bristol Myers Squibb. It's currently responsible for 14% of Pfizer's total revenue and is likely to lose ground to generic competition in the lucrative U.S. market in 2028. Long before Eliquis loses ground to generic competition, the company's lead growth driver, Vyndaquel, could stumble. BridgeBio launched a competing treatment called Attruby in late 2024, and it's been exceeding expectations. Pfizer's facing patent cliffs, but it also has one of the most productive development pipelines in the industry. Last year alone, the Food and Drug Administration issued more than a dozen approvals to new Pfizer treatments and several that are already on the market. With plenty of new products to market, the drugmaker has a good chance to continue its payout-raising streak in the decade ahead. As more folks do their shopping online, demand for warehouses that can support e-commerce has soared. By anticipating the demand, Prologis has become the world's largest real estate investment trust (REIT) that everyday investors can buy shares of. Fear and uncertainty regarding the taxes businesses need to pay when importing goods to the U.S. have pressured the stock. It's down about 12% from a peak it set in March. At its beaten-down price, it offers a 3.7% yield. Prologis has been able to raise its dividend by 11.7% annually over the past five years. At this pace, investors who buy at recent prices could begin receiving a double-digit yield on cost in less than a decade. Amazon, Home Depot, and FedEx are Prologis' largest customers. These three tenants are responsible for only 8.2% of the rent payments Proligis receives every month. This high level of diversification is a big reason it can boast industry-leading credit ratings. With an A2 rating from Moody's and an A rating from S&P Global, the weighted average interest rate on Prologis' outstanding debts was just 3.1% at the end of March. Acquiring and developing properties is an important part of this REIT's business, but it also acts as a lender. With an enviable credit rating, it can produce a strong profit while offering rates that its smaller competitors can't match. For companies that own their warehouses, selling them to Prologis and leasing them back is often their lowest-cost source of capital. With the vast majority of the world's logistics real estate still owned by the companies that use it, Prologis could continue growing at a rapid pace for decades to come. Pfizer offers a yield that's almost twice as high as Prologis's, but the pharmaceutical giant has been raising its payout at less than half the pace of the logistics REIT. Pfizer might be a good option for folks near retirement age. For income-seeking investors, though, Prologis seems like the better dividend stock to buy now. Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Prologis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Cory Renauer has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Bristol Myers Squibb, FedEx, Home Depot, Moody's, Pfizer, Prologis, and S&P Global. The Motley Fool recommends BridgeBio Pharma and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy. Better High-Yield Dividend Stock to Buy Now: Pfizer vs. Prologis was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Here Are All 6 Stocks I've Bought Through 5 Months of 2025
Here Are All 6 Stocks I've Bought Through 5 Months of 2025

Yahoo

time5 days ago

  • Business
  • Yahoo

Here Are All 6 Stocks I've Bought Through 5 Months of 2025

President Donald Trump's tariff-induced stock swoon rolled out the red carpet for investors to snag high-quality stocks at a discount. Buying stocks and holding those positions for multiple years is ingrained into my investment philosophy. High-yield dividend stocks, a deeply-discounted legal monopoly, a uniquely-positioned growth stock, and a handful of turnaround candidates were on my buy list through May. 10 stocks we like better than Pfizer › It's been a wild ride for the stock market through the first five months of 2025. As of mid-February, Wall Street's major stock indexes could do no wrong, with the benchmark S&P 500 vaulting to an all-time record-closing high. But over the next two months, tariff-related uncertainty pushed the Nasdaq Composite into its first bear market in three years, and weighed the S&P 500 down to near-bear market territory. Historically, double-digit percentage declines in the major stock indexes represent ideal opportunities for long-term investors to pounce. As of this writing on June 2, I hold 38 positions in my portfolio -- 37 stocks and one exchange-traded fund (ETF) -- and only four of these stakes have been held for less than a year. Buying and holding stocks for years is ingrained into my investment philosophy. With volatility begetting opportunity, here are all six stocks I've bought through the first five months of 2025. One of the new holdings I added to my portfolio this year is pharmaceutical titan Pfizer (NYSE: PFE). The two separate purchases I've made gave me a cost basis of $23.47 per share, which is a penny above where shares closed on June 2. What makes Pfizer so attractive is that it's been punished for its own success. After generating north of $56 billion in combined sales for its COVID-19 vaccine (Comirnaty) and oral therapy (Paxlovid) in 2022, combined sales tumbled to around $11 billion in 2024. But even if these sales fall again in 2025, Pfizer has, collectively, grown its net product revenue by more than 50% over four years. The shortsightedness of select investors is creating a significant buying opportunity for long-term-minded investors. Additionally, Pfizer's oncology segment can be a key growth driver in the years to come. It completed a $43 billion acquisition of cancer-drug developer Seagen in December 2023. This deal added more than $3 billion in immediate sales to Pfizer's oncology portfolio, as well as vastly expanded its pipeline. With Pfizer also targeting billions of dollars in annual cost-savings, a forward price-to-earnings (P/E) ratio of less than 8, coupled with a dividend yield of more than 7%, was too enticing to pass up. The stock I've unquestionably put the most money to work in this year is adtech company PubMatic (NASDAQ: PUBM). I've more than doubled my stake in the company since late February, with a cost basis from shares purchased this year of $9.29. PubMatic is perfectly positioned to take advantage of businesses shifting their ad dollars from print and billboards to digital channels, such as video, mobile, and connected TV (i.e., streaming content). PubMatic's cloud-based programmatic ad platform assists publishers in selling their digital display space. Aside from digital advertising offering sustained double-digit sales growth, PubMatic will benefit from its decision to build out its cloud infrastructure platform. Though it would have been easier to rely on a third party, taking the time to build out this critical infrastructure will now allow PubMatic to hang onto more of its revenue as it scales. This should lead to superior margins, relative to other sell-side providers. Furthermore, PubMatic is swimming with cash. It's been generating positive operating cash flow for a decade and has been aggressively repurchasing its own stock. When backing out its cash position, investors are paying less than $9 per share for a company fully capable of producing more than $1 in earnings per share in a thriving economy. Although the stock market is historically pricey, select value stocks can be found. Satellite-radio operator Sirius XM Holdings (NASDAQ: SIRI) certainly fits the bill. The one add I made to my existing Sirius XM stake came at $19.28 per share on April 4. The great thing about Sirius XM is that it's a legal monopoly. Even though it's still fighting for listeners with traditional radio companies, being the only licensed satellite-radio operator does afford the company some degree of subscription pricing power. Even more important, Sirius XM generates the bulk of its revenue differently than terrestrial and online radio companies. Whereas the latter are heavily reliant on advertising, Sirius XM generates a little over three-quarters of its net sales from subscriptions. When recessions do occur, subscribers are far less likely to cancel their service than businesses are to meaningfully pare back their ad spending. On paper, this makes Sirius XM's operating cash flow far more predictable. Sirius XM's forward P/E of 7, when combined with a dividend yield that's currently above 5%, makes for a tantalizing buy. Semiconductor behemoth Intel (NASDAQ: INTC) is another long-term holding that I chose to add to during President Donald Trump's tariff-induced market swoon. The lone addition was made on April 8 at $18.56. My wager on Intel is that management can eventually turn around a business that was late to the artificial intelligence (AI) party. While Intel's graphics processing units (GPUs) haven't exactly flown off the shelves like Nvidia's hardware, AI is a massive enough addressable market that even latecomers with established brand names can thrive. Despite its GPU tardiness, Intel's central processing units (CPUs) continue to play a key role in high-compute data centers and traditional desktops/laptops. Even with Advanced Micro Devices chipping away at Intel's once monopoly like CPU market share, Intel remains the decisive leader. The robust cash flow generated from its CPU sales can help Intel redirect capital to higher-growth initiatives. While trading in the mid-$18s, Intel stock was also nearing its tangible book value and had fallen 19% below its listed book value, as of the most recent quarter. Though book value is just one of many valuation measures, I believe there are enough levers to pull and long-term catalysts for Intel stock to bounce back. Specialty drugmaker BioMarin Pharmaceutical (NASDAQ: BMRN) is another holding I've purchased for the first time in 2025. My lone purchase occurred on April 8 at a cost basis of $56.01. One of the variables that makes BioMarin such an attractive investment is its focus on ultrarare diseases. Though the clinical success rate in treating rare diseases can be dicey, positive clinical trials can lead to approved therapies that face little or no competition. What's more, insurers rarely push back on high list prices for rare-disease drugs that have no alternatives. BioMarin's shining star for the moment is Voxzogo, a drug used to treat achondroplasia, which is a common type of dwarfism. A combination of strong pricing power and label expansion opportunities should lead to Voxzogo eventually topping $1 billion in annual sales. Further, BioMarin is targeting $4 billion in annual sales by 2027, which would be up from $2.85 billion in reported sales for 2024. Given the exceptionally high margins associated with ultrarare-disease drugs, BioMarin's forward P/E of 10.6, and its projected low-double-digit sales growth rate, make its stock quite the bargain. Last but not least, I added to my existing position in edge cloud-computing company Fastly (NYSE: FSLY) during the Trump tariff tumble. The only addition came on April 4 at a cost of $5.08 per share. Similar to Intel, Fastly is a work in progress that isn't going to right itself overnight. The investment thesis here is that as businesses shift their data and that of their customers online and into the cloud, demand for rapid and secure content delivery network (CDN) services will only increase. Fastly aggressively expanded the capabilities of its CDN following the pandemic. Although not all of Fastly's key performance indicators (KPIs) have moved in the right direction, some of the most important KPIs suggest management is making the right moves. For instance, its revenue retention rate is locked in at 99% or higher, and its enterprise customer count, while a bit volatile, has been chopping its way higher. Perhaps the most exciting number in Fastly's latest quarter is its remaining performance obligation (i.e., its backlog), which surged above $300 million. Considering that Fastly is generating positive operating cash flow, the foundation for future profits has been laid. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Sean Williams has positions in BioMarin Pharmaceutical, Fastly, Intel, Pfizer, PubMatic, and Sirius XM. The Motley Fool has positions in and recommends Advanced Micro Devices, Fastly, Intel, Nvidia, Pfizer, and PubMatic. The Motley Fool recommends BioMarin Pharmaceutical and recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Here Are All 6 Stocks I've Bought Through 5 Months of 2025 was originally published by The Motley Fool Sign in to access your portfolio

Pharmac Urged To Widen Access To Covid Vaccines
Pharmac Urged To Widen Access To Covid Vaccines

Scoop

time5 days ago

  • Health
  • Scoop

Pharmac Urged To Widen Access To Covid Vaccines

Aotearoa Covid Action (ACA) is calling on Pharmac to reconsider its proposal to award principal supply of Covid-19 vaccines exclusively to Pfizer's Comirnaty, citing concerns over limited access and equity. The group has urged its members and others to support Pharmac maintaining and widening vaccine access to all who want them before the public consultation closes today at 5:00 PM. Pharmac's current proposal would fund only the Comirnaty vaccine, with alternative brands available solely through its Exceptional Circumstances framework. ACA believes this creates an exclusionary barrier that may prevent some people from getting vaccinated or boosted at all. 'If the goal is for as many Kiwis as possible to be vaccinated and boosted, they must feel engaged and empowered. Having a few options does this. Comirnaty is an mRNA vaccine. It is contraindicated for some, and some simply prefer a different, protein-based vaccine such as Novavax. Pharmac should accommodate these needs and preferences instead of promoting a one-size-fits-all model,' says Julia Schiller, a spokesperson for ACA. In its own submission on the proposal, ACA also suggests Pharmac widen the pool of New Zealanders eligible for Covid vaccinations and boosters, noting for example that regular boosters are unavailable to the nearly 2 million Kiwis under the age of 30 and that children under five cannot ordinarily receive any vaccination at all. 'Pharmac itself has acknowledged that protection wanes significantly over time, so it's odd that they are not looking to widen eligibility for boosters. Many of our under-30s would have last had a booster years ago,' said Schiller. The organisation points out that recent New Zealand research identified an 'urgent need to revise New Zealand's eligibility criteria [and] make vaccines available and accessible to younger age groups'. 'The more we learn, the more we see that Covid infections present a potential risk to all the body's organs and systems. Data suggests Long Covid is a real consequence of at least 10% of infections. We simply must do more to protect our tamariki and rangitahi and their teachers, both for their own health and to reduce spread of infections from schools to families to the greater community. We need a diversified and accessible vaccination strategy,' said Schiller. Widening vaccine availability aligns with the third demand of ACA's ongoing petition campaign, which advocates for more accessible vaccinations and boosters, among other measures to slow the transmission of airborne diseases. 'Winter has arrived and with it, a jump in cases of influenza and Covid, in particular the new variant NB.1.8.1,' Schiller added. The World Health Organisation has designated NB.1.8.1 a variant under monitoring. As of 29 May, it accounted for 21.6% of Aotearoa's current Covid cases, according to ESR's wastewater monitoring. 'Pharmac must ensure that a choice of vaccines is not only available but also easily accessible to all, regardless of location or circumstance. Pharmac approved five different formulations of the flu vaccine this year so it seems reasonable to ask they offer a choice of at least two different Covid vaccines.' Aotearoa Covid Action encourages individuals and organizations to email their feedback on the proposal to vaccines@ For more information on Aotearoa Covid Action's stance and to support their petition, visit Aotearoa Covid Action's Website and Clean Air in Schools Petition.

Terrible News for Pfizer Stock Investors
Terrible News for Pfizer Stock Investors

Yahoo

time01-06-2025

  • Business
  • Yahoo

Terrible News for Pfizer Stock Investors

While it no longer generates the sales it once did, Pfizer's coronavirus lineup remains critical to its results. However, recent regulatory changes in the U.S. should make this franchise somewhat less lucrative. Even so, Pfizer's hopes of a comeback lie elsewhere, especially in its improving oncology unit. 10 stocks we like better than Pfizer › The past three years have been challenging for Pfizer (NYSE: PFE). Revenue and earnings have moved in the wrong direction, as has the company's share price. The stock is down by 56% since 2022. Although Pfizer has made some efforts to turn things around, they have been insufficient. And recent regulatory developments in the U.S. somewhat complicate things for the drugmaker. Here's what investors need to know. Pfizer's poor performance since 2022 is largely due to its coronavirus portfolio. After producing record revenue thanks to its work in this area, once the pandemic started receding, sales from Comirnaty, its COVID-19 vaccine, and Paxlovid, its therapy for the disease, started dropping off a cliff. However, Pfizer's coronavirus franchise has remained critical to its overall financial results. In 2024, the company's combined revenue from Paxlovid and Comirnaty was $11.1 billion. Pfizer's total top line came in at $63.6 billion, increasing 7% compared to the year-ago period. When excluding contributions from its coronavirus products, Pfizer's revenue grew more quickly -- by 12% year over year. The company's sales were down compared to 2023 but still accounted for about 17.5% of its top line. That's a meaningful amount. Pfizer would be in a lot more trouble without Paxlovid and Comirnaty. Here's the problem: Recent regulatory changes in the U.S. will make it more challenging for Pfizer to consistently generate solid revenue from Comirnaty. The U.S. Food and Drug Administration (FDA) has decided that instead of recommending COVID-19 vaccines for healthy adults and children above a certain age, it will do so only for seniors aged 65 and older and those with certain medical conditions that put them at risk of severe disease outcomes. The agency is requiring additional clinical trials before it can recommend annual booster shots for healthy adults. Healthy children and pregnant women are also no longer on the list of those who should take the vaccine. These changes will take effect in the fall, peak vaccination season for COVID-19. In other words, the U.S. coronavirus vaccine market just became smaller. What does this mean for investors? Pfizer's coronavirus franchise might weaken somewhat as a result of these changes, but perhaps not significantly. The FDA's guidance is largely irrelevant to Paxlovid. We could even speculate that lower vaccination rates may actually lead to higher infection rates and more prescriptions for the medicine. Although Comirnaty's U.S. sales will be affected, the company reported just $2.004 billion in revenue from the U.S. coronavirus vaccine market last year, which accounts for about 37% of the total revenue Comirnaty generated. The U.S. market is the single most important for Pfizer. Overall, these new developments won't have a significant impact on its financial results. Even so, Pfizer continues to encounter headwinds, and this is yet another one. It might not be a big deal in a vacuum, but given Pfizer's trajectory since 2022, it's not exactly what investors want to see. Truth be told: Pfizer needs every single dollar it can collect in sales. Even slightly lower revenue than it expects from any medicine or vaccine is terrible news for a company whose midpoint revenue guidance of $62.5 billion for the year implies a slight decrease compared to 2024. In light of all this, it's fair for investors to look at the company's performance over the past few years and wonder whether it can bounce back. If it does, it will unlikely be because of its work in the coronavirus vaccine market. Pfizer has made significant strides in recent years to strengthen its pipeline. One of its latest moves was to expand its already robust portfolio of oncology candidates with the licensing of a promising cancer medicine, called SSGJ-707, originally developed by China-based 3S Bio. Pfizer dished out an upfront payment of $1.25 billion for this mid-stage asset, with potential milestone payments of up to $4.8 billion on top of royalties. Pfizer's comeback story will almost certainly include at least one, if not several, significant regulatory wins in oncology. Given its massive pipeline in the field and vast experience in developing drugs in this area, the drugmaker should be well-positioned to achieve this goal. Pfizer is working on numerous therapies in other fields as well and is enhancing its business in various ways. The healthcare company has decreased expenses and costs and plans to continue doing so until 2027. In my view, thanks to its equally massive success in the coronavirus market earlier this decade, we have yet to see the results of the massive investments Pfizer made in its pipeline, It's not time to give up on the stock just yet, even with the recent regulatory changes in the U.S. Pfizer could still generate excellent returns for patient investors. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy. Terrible News for Pfizer Stock Investors was originally published by The Motley Fool Sign in to access your portfolio

Down 63%, Should You Buy the Dip on Pfizer?
Down 63%, Should You Buy the Dip on Pfizer?

Yahoo

time24-05-2025

  • Business
  • Yahoo

Down 63%, Should You Buy the Dip on Pfizer?

Pfizer's woes range from a failed weight loss drug to tariffs and political uncertainty. Yet, Pfizer maintains a strong financial foundation and a promising pipeline. The stock's valuation is so low that even modest success could jumpstart the shares. 10 stocks we like better than Pfizer › It's been a tough go for Pfizer (NYSE: PFE). Shares of the pharmaceutical giant are down over 60% from their highs, a multi-year slide since pandemic-related sales peaked a few years ago. But that's not all. Now, new challenges are putting pressure on the stock. Stocks aren't always on sale just because their prices went down, but Pfizer's storied history and 7.3% dividend yield make it worth checking under the hood to see if the company has what it takes to get back on track. So, that's precisely what this Fool did. Here is why Pfizer can't seem to get off the mat and whether it's worth buying the dip on today. I won't rehash Pfizer's pandemic journey too much. The company developed and sold a vaccine (Comirnaty) and an antiviral drug (Paxlovid) that made billions of dollars during COVID-19. Then, as those sales dried up, the company's top and bottom lines shrank, taking Pfizer's stock price down, too. But that's old news. More recently, Pfizer has endured a barrage of additional bad news. The company ceased development of Danuglipron, an experimental weight loss pill after it potentially caused a liver injury in a patient. That was supposed to be Pfizer's entrance into one of healthcare's fastest-growing markets. The political headaches are stacking up, too. New Secretary of Health and Human Services Robert F. Kennedy Jr. has been a vocal critic of the pharmaceutical industry and is no friend of Pfizer's. Earlier this month, President Trump issued an executive order to lower drug prices in the United States. Then, you have potential tariff policies that could make it harder for Pfizer to strategize how it develops and manufactures its drugs. Lastly, Pfizer is anticipating a $1 billion revenue hit in 2025 due to Medicare changes stemming from the Biden Administration's Inflation Reduction Act. Phew. It's a mouthful, but these problems seem more like paper cuts than fatal wounds. Danuglipron's failure hurts, but Pfizer still has a healthy pipeline that will heavily focus on oncology over the coming years. Then there is the political noise, which investors shouldn't rush to panic over. For example, President Trump's executive order on drug prices lacked a clear framework for what drugs might be susceptible to pricing pressure or how exactly the government would force drug companies to comply. Acknowledging risks is fair, but try not to overreact to them. Pfizer has a solid financial foundation. The company's credit is investment-grade, and its dividend payout ratio is only 61% of the bottom end of management's 2025 earnings guidance. Pfizer is also beginning a cost-savings program that it anticipates will save it $7.7 billion by the end of 2027. So, that juicy 7.3% dividend yield is likely not a warning sign of a looming cut. It seems the market may be assuming the worst. Pfizer trades at less than 8 times its 2025 earnings guidance, which practically values the stock like it's on death's door. For reference, the S&P 500's price-to-earnings ratio is 28. You can see below how the market's expectations for Pfizer's long-term growth have plunged since October: The great thing about setting a low bar is that it's easy to step over. With Pfizer's 7.3% dividend, investors only need low-single-digit earnings growth to generate 10% annualized investment returns. Barring Pfizer utterly imploding, that could be a lowball scenario. Simply meeting 5% growth estimates with no change in Pfizer's dirt-cheap valuation would produce over 12% annually -- boom, Pfizer could be a market-beating stock. The S&P 500 averages 10% returns historically, and its high valuation could drag on the market's future performance. If Pfizer's growth winds up higher, near where analysts thought it could be last fall, then you might see the stock's valuation rise, which would only turbocharge returns. There are no guarantees, of course. That's why you diversify and own many stocks. That said, Pfizer stands out in a broader stock market that doesn't seem to have many potential home runs right now. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy. Down 63%, Should You Buy the Dip on Pfizer? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store