Current Analysis: Pfizer Inc.

Face Mask, Covid-19, Epidemic, Wuhan''S Virus

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Pfizer (PFE) is one of the world's largest pharmaceutical firms, with annual sales close to $50 billion (excluding COVID-19 product sales).

While it historically sold many types of healthcare products and chemicals, now prescription drugs and vaccines account for the majority of sales.

Top sellers include the pneumococcal vaccine Prevnar 13, the cancer drug Ibrance, and cardiovascular treatment Eliquis.

Pfizer sells these products globally, with international sales representing close to 50% of total sales. Within international sales, emerging markets are a major contributor.

The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Merck KGaA; and BioNTech SE.

Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

Three key data points gauge Pfizer or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.

PFE Price

Over the past year, Pfizer’s share price rose about 20.5% from $36.32 to $30.02 as of Wednesday’s market close.

If Pfizer shares trade in the range of $20.00 to $40.00 this next year, its recent $30.02 share price might rise to $32.10 by next year. Of course, Pfizer’s price could also drop about the same $2.08 estimated amount or more.

My $2.08 upside estimate is based on the median of one-year price targets estimated by 22 analysts tracking the stock.

PFE Dividend

Pfizer has paid Quarterly dividends since March 1986. The Q dividends generally increased annually until 2008 when they were cut in half only to rise again to the recent $0.41 dividend declared 4/26 for shareholders of record 5/11 and paid 6/9.

A forward-looking $1.68 annual dividend yields 5.6% at Wednesday’s closing share price.

PFE Returns

To put it all together, a $3.76 estimated gross gain per share for the next year shows up when adding Pfizer’s $1.68 annual dividend to the estimated price upside of $2.08.

A little under $1000 buys 33 shares at $30.02 per share.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might take $0.30 per share out of the $3.76 gross gain to reveal a net gain of $3.46 X 33 shares = $117.48 for about an 11.5% estimated net gain on the year.

Furthermore, the $56.00 annual dividend income from $1K invested is about 1.9 times greater than the $30.02 single share price. By these numbers, Pfizer Inc. may be an ideal dividend dog.

You might choose to pounce on Pfizer.  It is a 175-year-old dividend-paying NYC-based major drug company that has a 38-year track record paying quarterly dividends.

The exact track of Pfizer’s future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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