PFE stock is trading at a reasonable valuation, and is still worth owning despite dividend-cut rumors
For many years, income-oriented investors have counted on
healthcare giant Pfizer (NYSE:PFE) stock to provide reliable dividend
distributions.
In fact, it’s not unreasonable to say that this is among the
main benefits of holding PFE stock for the long term.
However, nothing in the markets is 100% reliable and some
folks have been talking about a Pfizer dividend cut.
Is there a dividend payout reduction coming? In light of an
important merger in the health-care sector, Pfizer’s stakeholders should know
what to expect.
As we’ll see, there’s no need to lose faith in the company
or the stock. Income and value investors alike should continue to rely on
Pfizer as a premier business that consistently rewards its loyal shareholders.
A Closer Look at PFE Stock
Speaking of value investing, PFE stock’s trailing 12-month
price-to-earnings ratio is currently 19.83.
That’s quite reasonable as it suggests that the stock’s
price is justified by the company’s profits.
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