Long dividend histories add to their appeal

Article Excerpt

Both of these U.S. firms have a long history of rewarding investors with annual dividend increases. Notably, each is a leader in its industry, which further cuts your risk. PFIZER INC. $45 is a buy. The company (New York symbol PFE; Income-Growth Dividend Payer Portfolio, Manufacturing sector; Shares outstanding: 5.6 billion; Market cap: $252.0 billion; Dividend yield: 3.6%; Dividend Sustainability Rating: Highest; www.pfizer.com) is one of the world’s largest makers of prescription drugs. Its top-selling brands include Eliquis (stroke), Ibrance (breast cancer) and Prevnar (pneumonia). Pfizer has increased its dividend rate each year since 2011. The next increase will come in March 2023, when the quarterly payment rises 2.5%, to $0.41 a share from $0.40. The new annual rate of $1.64 yields a solid 3.6%. The company’s COVID-19 vaccine (called Comirnaty) probably generated $33.7 billion in revenue in 2022, while sales of its Paxlovid Covid treatment likely amounted to $22.1 billion. The total of $55.8 billion is equal to 56% of Pfizer’s projected 2022 total revenue of…