Will Pfizer Slash Its >7% Yielding Dividend? I Wouldn't Rule It Out

(19min)

Summary

  • Pfizer's >7% dividend yield is attractive, but faces significant risk due to political, regulatory, and business headwinds impacting revenue and profitability.
  • Major threats include U.S. healthcare policy changes, looming patent expiries, misfiring M&A, heavy debt, and over-reliance on COVID vaccine revenues.
  • Management insists the dividend is safe barring a 'catastrophe,' but current challenges feel borderline catastrophic, making a cut plausible if pressures persist.
  • Despite undervaluation, I am reconsidering my position in Pfizer as mounting risks may soon outweigh the appeal of its high dividend yield.

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Investment Overview - How Safe Is Pfizer's >7% Yielding Dividend?

Pfizer (NYSE:PFE) is arguably the biggest victim of the radical new healthcare policies being brought about by the Trump administration, and in my view, this means that its dividend - currently yielding >7% per

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PFE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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