Is Pfizer dividends 7.5% too good to last? News ad

A dividend yield This exceeds 7.5% from the giant of the pharmaceutical sector, such as Pfizer Inc. NYSE: PFE Of course, it is striking, looking for investors’ income.

Such significant profitability often signals a mature, stable company, generously rewarding its shareholders. Nevertheless, a closer look shows a complex picture for the New York manufacturer of drugs.

In fact, this impressive payment is a safe flow of income, or the main fears are masked regarding the future company growth trajectory and financial stability Since he continues to develop in the rapidly transforming healthcare sector?

Pfizer unpacking 7.5% promise

Adherence Pfizer Return of capital to shareholders Obviously in its current annual dividend in the amount of $ 1.72 per share. This leads to quarterly payment in the amount of $ 0.43 per share. As of May 22, 2025, this payment leads to a dividend yield of 7.5%. For context, dividend profitability represents the annual payment of dividends as a percentage of the current price of the share, offering the measure of income income that the investor may expect.

Pfizer has a remarkable track record, increasing their dividends for 16 years in a row, a story that often attracts investors looking for reliable and growing income.

It is important to assess the reliability of dividends – this is an understanding of the company’s payment factors. A Dividend payment coefficient It measures a share of profit or cash flow paid to shareholders as dividends. Pfizer dividends consume approximately 47.69% of their cash flow. The payment coefficient below 100% based on cash flow, as a rule, suggests that the company generates sufficient money to cover its dividends, which is a positive sign of stability.

However, looking at his traction 12-month earnings, the payment coefficient is much higher than 124.64%. This figure indicates that, based on the recently reported profit, the company paid more dividends than it earned. This inequality emphasizes the importance of the future growth of income and cost management in maintaining dividends at current levels.

Revenue:

Recent financial indicators Pfizer show the displacement of income dynamics. In the first quarter of 2025, General income Decrease by 8% compared to last year to 13.7 billion dollars. The United States, primarily due to a sharp fall in Paxlovid sales by 75%, since the COVID-19 demand has normalized, which creates complex growth comparisons. In addition, Pfizer is faced with a significant long -term obstacle: the company is on the verge of an impending patent cliff.

Key drugs are expected, such as Eliquis (loss of exclusivity in April 2028), Prevnar, Ibrance and Tertandi (faced with competition in 2026-2027. Strong protective strategy To develop new income flows.

How Pfizer seeks to replenish its income engine

In response to these income pressure, Pfizer is actively engaged in a strategy concentrated on the rejuvenation of the pipeline, with obvious attention to oncology. The cornerstone of this strategy was 43 billion dollars Seagen in March 2023. This is the acquisition significantly based on the capabilities of Pfizer in the conjugates of antibody-levaric drugs, the promising class of cancer treatment, and the Seagen portfolio has introduced $ 3.4 billion Pfizer revenue in the 2024 financial year.Field

More recently, in May 2025, Pfizer entered into an exclusive global licensed agreement (with the exception of China) with 3SBIO, Inc. For SSGJ-707, research bispecyphy antibodies aimed at PD-1 and VEGF for several types of cancer. The transaction includes 1.25 billion dollars. The United States can cost up to $ 6 billion, emphasizing Pfizer’s commitment to find external innovation. By 2030, the company seeks to launch eight new cancer drugs.

Positive events in the cancer pipeline include the approval of the US Products and Medication Office (FDA) for Adcetris with large B-cell lymphoma and encouraging clinical data for PADCEV for a resort cancer. Talzenna also showed positive data on the general survival in the prostate cancer, although the FDA advisory group raised questions about its wider application.

In addition to oncology, the Abrysvo RSV vaccine observed advanced recommendations in Europe and the USA, which potentially increased its market coverage. However, the path of drug development is not without failures, as evidenced by the termination of the candidate from the oral GLP-1 Danuglipron in April 2025.

PLECTION PFIZER: Stable remuneration or profitability trap?

The current dividend yield Pfizer undoubtedly offers an excellent component of income for Investment portfoliosThe field of this payment is supported by the history of consistent growth and, importantly, by generating the cash flows of the company. However, this attractive crop exists in the context of significant operational and strategic problems. A decrease in income from COVID-19 products and an impending loss of exclusivity for several large drugs creates a significant obstacle to the future growth of the highest line.

No matter how it may seem, the company does not stand still; Aggressive measures are being taken to reduce costs, and significant investments are made to rejuvenate the pipeline, especially in the oncology sector with high potential. The success of these strategic fulfillment of the plan will be crucial for determining the ability of Pfizer to navigate in the upcoming patent and return to the path Sustainable income and revenue growthField

For investors, this decision depends on the balancing of the charm of the current high profitability against the uncertainty associated with the perennial transition of Pfizer. The long -term vitality of dividends at its current relative level will ultimately depend on the successful implementation of its Growth strategyField

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