bryanz

Pfizer: Best U.S. Large-Cap Idea for 2009 - RBC

"Pfizer's stronger than it's been in fiver years?"
Those Canadians are funny English speakers.

PFE looked really attractive at $15... I think it still looks pretty good from an income perspective... my concern is growth.

A Contrarian Look at Pfizer

PFE does seem like a good potential candidate for a covered call strategy.

$128 annual in divs per 100 shares + ~$45 per call option on those Dec 22.50s (minus expenses of course). 100sh PFE costs $2025, figure $64 in divs for the rest of the year + $45 for the call...
$110/2025 = 5.4% gain in 6 months or almost 11% annualized, which would hopefully neutralize any further downside in PFE.

My concern is that the P/E is still relatively high for a really large company with flat/declining revenue.