Daily Stock Pick: Pfizer
A portfolio of stocks I've been building since September 3, 2019, named Volio, 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 first of five healthcare sector stocks poised to join my Volio folio this week. This could be my thirty-seventh pick for Volio!
The healthcare sector includes 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; healthcare facilities; medical care; medical devices; medical distribution; medical supplies.
My subject today is a drug manufacturer - a major named, Pfizer Inc. Its trading ticker symbol is PFE. This is my second report for this portfolio on Pfizer Inc. Most recently I reported on them on January 28th.
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 also has numerous collaboration and/or co-promotion agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; licensing agreement with Akcea Therapeutics, Inc; a strategic alliance with Verily Life Sciences LLC; collaboration agreement with Merck KGaA; clinical trial collaboration and supply agreement with IDEAYA Biosciences, Inc.; material transfer and collaboration agreement with BioNTech SE to co-develop a COVID-19 vaccine; clinical supply collaboration Jiangsu Alphamab Biopharmaceuticals Co., Ltd; and collaboration with Valneva SE to develop and commercialize Valneva's Lyme disease vaccine candidate VLA15.
Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.
I use three key data points to gauge dividend 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 $37.22 on Friday. A year ago their price was $40.72. Market price dropped $3.50 or just about 8.6% in the past year.
Assuming Pfizer's stock trades in the range of $25 to $50 this next year, its recent $37.22 price might rise by $2.78 to reach $40.00 by May 11, 2021.
PFE Dividends
Pfizer's most recent declared quarterly dividend was $0.38 payable June 5th. That $0.38 Q dividend equates to $1.52 annually and yields 4.08% at Friday's $37.22 share price.
PFE Gains?
Adding the $1.52 annual estimated dividend to my $2.78 optimistic estimate of Pfizer's price upside shows a $4.30 potential gross gain, per share, reduced by any costs to trade those shares.
A little over $1,000.00 invested today in Pfizer Inc shares at their $37.22 price, buys 27 shares of PFE stock.
A $10 broker fee paid half at purchase and half at sale could cost about $0.37 per share.
Subtract that $0.37 brokerage cost from my estimated $4.30 gross gain per share results in a net gain of $3.93 X 27 shares = $106.11 for a 12.2% net gain on a $988.00 investment.
Pfizer Inc shows a possible 10.5% net gain including a 4.08% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Pfizer Inc is worth it.
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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