💡Pharmaceutical giant with a tempting dividend!
Investing in dividend stocks can be profitable, especially if they are companies with high dividend yields. One such case is pharmaceutical giant Pfizer $PFE+0.4%, which is currently offering an enticing yield 5,7 %. However, this attractive value comes with a question, is this yield sustainable in the long term?
Pfizer
PFE🔍 Dividend yields are a great way to generate passive income, but it's important to check how the company can sustain these dividends. At Pfizer, the payout ratio is currently an incredible 436 %, which is well above the safe limit of around 75 %. This may signal potential problems and a potential dividend cut, which could lead to a further decline in the share price.
📉 The pharmaceutical industry, particularly Pfizer, is facing tough challenges. Revenue from pandemic products is down, and the company's stock has fallen by 50 % from their peak. On the other hand, this significant decline may present an attractive buying opportunity for investors with a long-term investment horizon.
💼 Pfizer has more than 100 of new drugs and its global presence is undeniable. With planned savings and new drugs that have the potential to generate billions in revenue, the company's financial health could improve and dividends could return to more sustainable levels.
Pfizer
PFEWhile the current payout ratio is a concern, the long-term commitment to dividends and revenue growth offers the potential for a positive turnaround.
What is your view on Pfizer's payout ratio and overall company operations?
I'm not going to do it, it's quite a big risk and a very uncertain future.
I'm in position and at a loss. I'm waiting for the position to go green and then sell.
I have a small position. The dividend is great, but the stock could easily go up😂
It might not be bad for a shorter trade, but I haven't bought yet.
The dividend isn't bad, but the stock isn't growing at all and keeps falling, which isn't good.
It's not for me. I don't really like this company, but that doesn't mean it's bad for everyone!