A large U.S. health-care player, Pfizer Inc. (NYSE:PFE) is often looked to as a growth play. However, given the strength of the company’s balance sheet and its underlying growth profile, I view this company as a pretty solid dividend play for income-oriented investors right now.
Indeed, the company’s 4.5% dividend yield is one I view as an extremely safe and growing yield that investors can rely upon over the long-term for income. For those nearing or entering retirement, this is a company I would recommend considering as a core portfolio holding in an income-oriented retirement fund.
Pfizer has not only maintained its dividend, but raised it consistently (albeit by small amounts) in recent years. The size and scale of this company, its drug pipeline and long-term growth prospects, and its balance sheet strength are aspects I think investors ought to focus on.
In the near-term, I see a number of potential tailwinds playing out as well. If vaccines are needed on an annual basis, we could see more momentum as investors look for companies that are able to profit off of the chaos we find ourselves in right now.
It appears there may be too much optimism baked into the market right now. I thought this stock was cheap before it announced its vaccine, so I view this line of business as cream on top of an already excellent product portfolio.
Accordingly, for dividend investors, this is a company I’d recommend researching right now.
Invest wisely, my friends.
