Pfizer Inc. (NYSE:PFE) is one of the world’s largest
pharmaceutical firms with sales exceeding $50 billion. The company is currently
attractively valued at a blended P/E ratio of 13.3, offering a current dividend
yield of 4%. Pfizer is awarded an S&P credit rating of AA and possesses a
modest debt to capital ratio of 28%.
Prior to 2004, the company could have been described as a
fast-growing dividend paying stock. However, since 2004, operating earnings
growth has slowed considerably. Therefore, Pfizer was once a powerful total
return producer that has morphed into a high-yielding blue-chip dividend paying
stock offering only moderate growth potential and an above-average current
yield.
Consequently, I believe that Pfizer Inc. (NYSE:PFE) is best
suited for the prudent income-oriented investor seeking above-average current
yield and safety. Therefore, Pfizer might be especially interesting to the
retired investor looking for an above-average level of income in order to fund
their retirement needs. However, I also intend to demonstrate that capital
appreciation potential might also be surprisingly good going forward.
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