PFE stock just got a boost in the Republican tax plan
When it comes to dividend stocks, mega-sized pharmaceutical
firm and Dow Jones component Pfizer Inc. (NYSE:PFE) has been one of the poster
children. With a market-beating 3.5% yield, great range of new drugs and decent
dividend growth since the recession, PFE stock has found its way into plenty of
income-seekers portfolios.
But the best is yet to come.
Thanks to the new GOP tax plan, PFE stock could be sending
more dividends and buybacks investors’ way. For investors in Pfizer, it’s
exactly the kind of news that help breaks the stock out of its doldrums and
push it ahead.
A Boost to PFE Stock Cash Flows
For the mega-pharmas like Pfizer, the story has long been
about generating cash flows. Big hit therapies and blockbuster drugs- like
PFE’s Viagra- have been huge at generating some copious amounts of cash flows
for their producers. It’s what really drives the biggest pharma firms.
It’s also why the so-called patent cliff has been a major
headache for PFE and its rivals. Without the cash generated by these blockbusters,
many investors fear that the major pharmaceutical firms won’t be able to pay
all those handsome dividends they’ve become accustomed to. And for the most
part, they are right.
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