3 High-Yield S&P 500 Dividend Stocks Down More Than 25% to Buy Now and Hold for at Least a Decade
How has Pfizer's dividend performance changed since 2009, and what are the future expectations for its dividend payouts?
Pfizer's Dividend Performance and Future Expectations
Pfizer's dividend performance has shown significant improvement since 2009. At that time, the company had to cut its dividend payout due to the acquisition of Wyeth. However, Pfizer quickly returned to its previous practice of annual dividend hikes. The company has consistently raised its dividend payout every year, making it a dependable choice for income-seeking investors.
As of now, Pfizer's dividend yield stands at an attractive 6.1%, making it one of the highest-yielding stocks in the healthcare sector. The company has a solid dividend cover, with a payout ratio of around 75% of earnings, which indicates that the dividend is well-funded and likely to continue4.
Looking ahead, there are several factors that suggest Pfizer's dividend payouts will continue to grow in the future:
- Management's commitment: Pfizer's management team remains committed to the dividend program. In the company's first-quarter conference call, CFO Frank D'Amelio stated that annual dividend increases were expected to continue "for the foreseeable future."
- Growing earnings: Wall Street analysts project that Pfizer's earnings will increase by an average of more than 11.5% annually over the next five years. This growth in earnings should support further dividend increases.
- Strong product lineup: Pfizer's lineup includes several products with strong sales growth, such as blood thinner Eliquis, transthyretin amyloid cardiomyopathy drug Vyndaqel, autoimmune disease drug Xeljanz, and prostate cancer drug Xtandi. These products, along with the company's pipeline candidates, are expected to drive growth in the coming years.
In conclusion, Pfizer's dividend performance has been consistently strong since 2009, and the company's future prospects for dividend payouts appear promising. With a solid dividend cover, a management team committed to increasing dividends, and strong earnings growth prospects, Pfizer is an attractive option for investors seeking a reliable, high-yielding dividend stock.
What are the projected earnings per share for Pfizer, and how do they compare to the current dividend commitment?
Pfizer's management expects adjusted earnings per share to land in a range between $2.15 and $2.35. This is more than it needs to meet a dividend commitment currently set at an annualized $1.68 per share.
What impact did the $14 billion acquisition of Karuna Therapeutics have on Bristol Myers Squibb's financial outlook?
The $14 billion acquisition of Karuna Therapeutics had a significant impact on Bristol Myers Squibb's financial outlook. The acquisition led to a one-time charge of about $12 billion, which contributed to the company slashing its adjusted earnings outlook to a range between $0.40 and $0.70 from the previous guidance of $7.10 to $7.40 per share. Despite the significant charge, the acquisition is expected to be accretive to Bristol Myers Squibb's revenue growth in the medium and long term. The deal is anticipated to enhance the company's growth through the late 2020s and into the next decade, as KarXT, Karuna's lead asset, is a potential first-in-class treatment for schizophrenia with multi-billion dollar sales potential across multiple indications1.