Daily Stock Pick: Pfizer Inc (PFE)

A portfolio of stocks I've been building since September 3 is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the second of five healthcare sector stocks striving to join my Volio folio. This could be the twenty-second pick for Volio!

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.

My subject today is a large-cap drug manufacturer-major named, Pfizer Inc. Their trading ticker symbol is PFE. This one of several reports I've made on  Pfizer Inc. I last reported on Pfizer on July 2, 2019, for my Ivy Portfolio.

Pfizer is one of the world's largest pharmaceutical firms, with annual sales of over $50 billion.

Pfizer also spends a leading amount on research and development, close to $8 billion annually. While Pfizer historically sold many types of healthcare products and chemicals, now, prescription drugs and vaccines account for the majority of sales.

Top sellers include pneumococcal vaccine Prevnar 13, neuroscience drug Lyrica, cancer drug Ibrance, cardiovascular treatment Eliquis, and immunology drug Xeljanz.

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

The company has collaboration and/or co-promotion agreements with Bristol-Myers Squibb Company, Astellas Pharma US, Inc., and Oncolytics Biotech Inc.; licensing agreement with BionTech AG; strategic alliance with Verily Life Sciences LLC; and collaboration agreements with Merck & Co., Inc. and Eli Lilly & Company, Merck KGaA, Nektar Therapeutics, Syapse, Inc., eFFECTOR Therapeutics, Inc., and Insilico Medicine, Inc.

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

I use three key data points to gauge dividend-paying equities or funds like Pfizer Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

PFE Price

Pfizer's price per share closed at $40.25 yesterday. A year ago its price was $39.53. So, in the past nearly a year its market price grew by $0.72, or just over 1.8.%.

Assuming Pfizer's stock trades in the range of $36 to $46 this next year, its recent $40.25 price could rise by $3.75  to reach $44.00 by January 28, 2021, assuming upward price momentum continues.

PFE Dividends

Pfizer's latest declared quarterly dividend was $0.38, payable March 6. That $0.38 Q dividend generates an annual amount of $1.52 yielding 3.78% at yesterday's $40.25 share price.

PFE Gains?

Adding the $1.52 annual estimated dividend to my $3.75 estimate of Pfizer Inc price upside shows a $5.27 potential gross gain, per share, which will be reduced by any costs to trade those shares.

As for costs, if we put a little over $1,000.00 today in Pfizer Inc at its recent $40.25 price, would buy 25 shares of PFE.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.40 per share.

Subtract that $0.40 brokerage cost from the estimated $5.27 gross estimated gain per share leaves a net gain of $4.87 X 25 shares = $121.75 or a 12.15% net gain on a $1,006.00 investment.

Therefore, Pfizer Inc, whose trading ticker symbol is PFE shows a possible 12.15% net gain including a 3.78% dividend yield. It could be more, it could be less.   

The above speculation is based on past year performance. The actual results remain to be seen to learn if Pfizer Inc, is worth your time and money.

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 solicitation, ...

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