Pfizer's 6.7% Yield Looks Scary -- but the Dividend Story Is Stronger Than It Seems
Key takeaways
- PFE ^GSPC The S&P 500 index (SNPINDEX: ^GSPC) has a tiny yield of 1.1%.
- When you boil it all down, the board of directors decides on a company s dividend policy.
- Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need.
PFE ^GSPC The S&P 500 index (SNPINDEX: ^GSPC) has a tiny yield of 1.1%. The average pharmaceutical company s yield is 1.7%. Those comparison points make Pfizer s (NYSE: PFE) 6.7% dividend yield look shockingly large. If you are a dividend investor, is it worth buying Pfizer, or is the risk of a dividend cut too great? The dividend is probably on stronger ground than you think.
When you boil it all down, the board of directors decides on a company s dividend policy. It is entirely up to this group. Obviously, they don t work in a vacuum. The board consults with a company s CEO and other top executives before making a dividend decision. So, what management says is often a good indication of what the board is thinking.
Will AI create the world s first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »