Updated 3/13/25
Pfizer has been part of the American corporate landscape for more than a century. Most people associate the name with breakthroughs in healthcare, especially after its leading role during the COVID-19 pandemic. But as the dust settles from those historic years, the company’s profile has changed. It’s no longer riding the wave of pandemic-fueled growth, and the spotlight has shifted to how it plans to evolve in the coming decade.
For dividend investors, that transformation opens a new chapter—one that deserves a closer look, especially given the generous yield Pfizer is offering right now.
Recent Events
It’s been a tough year for Pfizer shareholders. The stock is down around 4% over the past 12 months, lagging well behind the broader market. Most of that decline reflects a sharp drop in COVID-related revenues, which isn’t surprising, but it has taken a toll on earnings.
Despite that, Pfizer hasn’t slowed down. The company recently acquired Seagen, a $43 billion bet that pushes deeper into cancer treatment. This isn’t a short-term play—it’s about adding long-term growth potential as older drugs approach patent expiration. At the same time, Pfizer is trimming less strategic areas of its business and investing heavily in its pipeline.
The near-term noise might be distracting, but underneath, Pfizer is repositioning for its next act.
Key Dividend Metrics
📈 Forward Dividend Yield: 6.54%
💵 Annual Dividend: $1.72 per share
🔁 Payout Ratio: 119.15%
📉 5-Year Average Yield: 4.40%
📆 Ex-Dividend Date: January 24, 2025
📥 Dividend Payment Date: March 7, 2025
📊 Dividend Growth Streak: 14 years running
Dividend Overview
One look at Pfizer’s yield and it’s easy to understand the appeal. With the stock trading near multi-year lows, that 6.5% dividend stands tall in a low-yield world. But numbers alone don’t tell the full story.
Yes, the dividend is currently higher than what the company is earning per share. On the surface, a payout ratio over 100% would typically raise eyebrows. But Pfizer’s situation is a little different. The company still brings in strong cash flow—more than enough to cover the dividend, at least for now.
And it’s not just a temporary blip. Pfizer has been paying dividends consistently and growing them for over a decade. That kind of track record builds trust. Even in a year when earnings took a hit, the dividend remained intact.
Dividend Growth and Safety
Pfizer’s dividend isn’t just about size—it’s about stability. Over the last five years, the company has grown its dividend at an average pace of around 5%. It’s not explosive growth, but it keeps pace with inflation and shows commitment from management.
That said, the payout ratio is something investors need to watch closely. At over 119%, it signals that the dividend is outpacing earnings right now. But earnings aren’t the only piece of the puzzle. Cash flow still covers the dividend comfortably, and the company’s $20 billion in cash gives it a cushion.
If Pfizer can stabilize its earnings post-COVID, future dividend increases could resume at a steady clip. But even if the growth slows for a year or two, there’s no reason to expect a cut unless there’s a major operational setback.
Chart Analysis
Overall Market Cycle Position
Looking at the full-year chart for Pfizer (PFE), we can observe a classic shift from distribution into markdown territory. The stock made a local top around early October and has been in a clear downtrend since then. The failed attempts to reclaim the highs around late summer, followed by a steady decline, are characteristic of a markdown phase in the Wyckoff cycle.
The breakdown accelerated in November, where we saw sharp declines in both price and rising volume—often a sign of institutional unloading. That rapid descent broke through the 200-day moving average with no real effort to reclaim it afterward. The 50-day average has also rolled over and continues to trend below the 200-day, confirming downward momentum.
Current Phase
Right now, the price is hovering in what appears to be the latter half of the markdown phase. From December through March, we’re seeing what looks like an early attempt at a bottoming process. The stock has been trading sideways in a tight range between $25 and $27, which could be an early sign of an upcoming accumulation phase—but it hasn’t confirmed it yet.
There are no significant spikes in volume that would suggest heavy accumulation by institutions, and we haven’t seen a convincing push above the 50-day moving average. Each time price touches that line, it quickly retreats, showing the moving average is acting as resistance, not support.
Volume Action
Volume has remained fairly steady but uninspiring over the past several months. There were a few larger volume bars in November and December, likely tied to earnings or institutional activity, but the lack of consistent high-volume up days tells us that big money isn’t stepping in aggressively yet.
The relative quiet on the volume front during the current sideways action suggests the market is still waiting for a catalyst. Without notable buying pressure, it’s hard to say the accumulation phase is fully underway.
Relative Strength Index (RSI)
The RSI has been stuck in neutral to slightly oversold territory. It has been slowly climbing from the November lows, but remains well below 70, indicating there’s no real bullish momentum yet. The indicator has moved off the bottom but hasn’t confirmed strength—it’s sitting in a zone where markets can drift sideways or break down again.
This slow RSI recovery lines up with what we’re seeing in the price action. The downtrend has cooled off, but confidence hasn’t returned.
Latest 5 Candles and Price Behavior
Zooming into the most recent five candles, there’s an interesting tug-of-war playing out. The candle wicks show selling pressure from above. Most closes are closer to the lows of the day rather than the highs, suggesting that any intraday strength is being sold into.
The last candle on March 12 shows an open at 25.93, a high of 25.97, but closing back down at 25.71. That small range, with a slight push down into the close, reflects short-term hesitation. Volume remains moderate—nothing out of the ordinary—but it confirms there’s no urgency on the buy side.
Overall, this behavior hints at mild distribution within a consolidation. It’s not panic selling, but buyers haven’t taken control either.
Analyst Ratings
Pfizer has been the subject of mixed analyst sentiment recently, as Wall Street continues to evaluate the company’s post-pandemic trajectory. The current consensus rating from analysts is leaning toward a moderate buy stance, with several firms maintaining their outlook while waiting for more clarity on growth drivers outside COVID-related revenues.
📍 Consensus Price Target: $31.25
📈 Current Price: $26.28
🎯 Implied Upside: +18.92%
🔼 Highest Target: $42.00
🔽 Lowest Target: $25.00
Some of the notable moves from analysts this quarter include:
🏦 Guggenheim reaffirmed its position on Pfizer in mid-March, reflecting confidence in the company’s broader pipeline and ongoing cost restructuring efforts.
🏛 UBS maintained its outlook in early February, signaling cautious optimism around Pfizer’s longer-term revenue diversification strategy.
🏢 Citigroup reiterated its view in late January, acknowledging near-term headwinds but pointing to potential catalysts from recent acquisitions and oncology developments.
While the stock briefly rallied on Pfizer’s latest earnings beat, shares pulled back quickly. Analysts noted that although the numbers surpassed expectations, investor skepticism remains around the sustainability of earnings without a COVID boost. The soft flu and COVID season also put a damper on near-term revenue confidence.
There’s also attention on how effectively Pfizer will integrate Seagen, manage its growing debt load, and bring new therapies to market. Until those pieces fall into place, many firms are holding their ratings steady rather than adjusting upward.
Overall, analysts are not writing off Pfizer—but they are waiting for stronger signs of execution before making more aggressive calls. For now, the consensus price target suggests there’s room to run, but conviction levels vary.
Earning Report Summary
Pfizer’s latest earnings update painted a picture of a company that’s still in the middle of transformation but showing signs of solid footing. The fourth quarter of 2024 came in better than many expected, with revenue climbing to $17.8 billion. That’s a healthy jump from the same period last year, mostly thanks to a few standout segments.
One of the key drivers was Paxlovid. After a rough comparison in the previous quarter due to earlier revenue reversals, it brought in $727 million this time. Comirnaty, the COVID vaccine, also added $3.4 billion to the mix. While that number was down about 38% from last year, it was in line with the gradual tapering off of pandemic-era demand.
A big boost came from the Seagen acquisition. This added around $915 million in revenue from its oncology portfolio, and that’s expected to become a more significant contributor going forward. Meanwhile, the Vyndaqel family of products had a strong showing as well, with demand increasing both in the U.S. and internationally. Sales were up 60% year-over-year, which points to more patients being diagnosed and starting treatment.
For the full year, Pfizer posted $63.6 billion in revenue, up 7% from 2023. If you strip out COVID-related products like Comirnaty and Paxlovid, the company’s revenue actually grew 12%—a pretty decent number when you consider the broader challenges in the industry.
On the earnings front, reported EPS came in at $1.41, while adjusted EPS was $3.11. That adjusted figure is up 69% from last year, which suggests Pfizer’s core business is holding up better than some might think.
There’s also been a real focus on cost-cutting. Pfizer said it’s already realized $4 billion in savings as part of its restructuring efforts and is on track to reach $4.5 billion by the end of 2025. That’s a big deal in terms of supporting future margins and offsetting some of the revenue declines from its pandemic high.
Looking ahead to 2025, the company is guiding for revenue between $61 and $64 billion, with adjusted EPS in the $2.80 to $3.00 range. It’s not flashy, but it’s a steady outlook that gives investors something to work with.
All in all, the quarter wasn’t about explosive growth—it was about showing the market that Pfizer can adapt and still deliver in a post-COVID world.
Financial Health and Stability
Looking under the hood, Pfizer still has a sturdy financial foundation, though it’s carrying more weight after its recent acquisition.
The company now holds about $67 billion in total debt, which is significantly higher than pre-pandemic levels. Its debt-to-equity ratio has climbed, sitting around 76%. That’s not a red flag, but it does mean the company will need to be mindful of interest expenses, especially if rates stay elevated.
On the flip side, Pfizer has over $20 billion in cash and generates more than $12 billion in operating cash flow annually. The current ratio of 1.17 indicates it can meet its short-term obligations, and the business continues to pump out billions in EBITDA each year.
In short, Pfizer isn’t under financial strain—it’s just balancing more moving pieces than it used to.
Valuation and Stock Performance
Pfizer’s current valuation paints a picture of investor skepticism. The forward P/E is under 9, a steep discount compared to the broader healthcare sector. At a time when many pharma names are trading at rich premiums, Pfizer’s stock looks unloved.
The price-to-book ratio is 1.69, and enterprise value to EBITDA is just over 10. These numbers don’t scream “growth stock,” but they also don’t reflect a business in decline. What you’re seeing here is a market that’s unsure how quickly Pfizer can bounce back from the COVID revenue drop.
The stock has bounced around its 52-week low lately, and its 200-day moving average is trending lower. For long-term dividend investors, that’s not necessarily a bad thing. A lower share price means a higher yield and more income for every dollar invested.
Risks and Considerations
No investment is without risk, and Pfizer has a few that are worth keeping in mind.
First, the obvious one—COVID-related revenues are fading fast. That tailwind is now in the rearview mirror, and replacing that lost income will take time.
Second, the Seagen deal, while strategic, adds debt and integration risk. Pfizer is betting heavily on oncology, and while the upside could be big, the path isn’t guaranteed.
And then there’s the broader pharmaceutical landscape. Drug pricing reform, competition, and regulatory hurdles are all part of the equation. These are standard risks in the industry, but they’re more pressing now that Pfizer is in rebuild mode.
Finally, the high payout ratio is a concern if earnings don’t recover. While current cash flow supports the dividend, that buffer could shrink if revenue doesn’t stabilize.
Final Thoughts
Pfizer is in transition. The days of outsized pandemic profits are over, and the company is now focused on building a more diversified and durable future. For income investors, that pivot comes with both opportunity and risk.
The dividend, yielding over 6%, is undeniably attractive. It’s well-supported by cash flow today, though future hikes may be slower until earnings catch up. What matters most is how well Pfizer executes its next phase—delivering growth from acquisitions, keeping costs in check, and navigating a competitive market.
This isn’t a flashy growth story. It’s a dividend play, plain and simple. And for those looking to add steady income from a household name that’s still investing in its future, Pfizer might be worth keeping on the radar.
No stock is perfect, but some stories are worth following closely. Pfizer, right now, happens to be one of them.