Pfizer's Stock Has Been a Dud Over the Past 5 Years, but Is It Still Worth Buying for Its 6.9% Yield?
The stock's yield is more than six times the S&P 500 average.
Overview
Stocks that don't generate strong returns can still make good dividend investments. As long as their payouts are sustainable and the businesses are in solid shape, they can be appealing options for income investors to consider. A problem arises, however, when a stock's losses are so significant that they crush the dividend income it might generate.
Pfizer (NYSE: PFE) is a stock that might appeal to investors for its high yield. At around 6.9%, its yield is far higher than the S&P 500 average of 1.1%. The bad news is that payout is as high as it is because the stock has tanked 45% over the past five years. However, the good news is that for the past few years, it's been a bit more stable; since 2025, it's down 6%. Not great, but also not disastrous.
Details
With a bit more stability of late and a low valuation, could the beaten-down healthcare stock be worth buying for its dividend?
Source
Originally published at www.fool.com.