Pfizer: Steady dividend and a possible spinoff

Article Excerpt

PFIZER INC. $36 (New York symbol PFE; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 6.0 billion; Market cap: $216.0 billion; Dividend yield: 3.8%; Dividend Sustainability Rating: Highest; www. pfizer.com) is one of the world’s leading prescription drugmakers. Its top-selling brands include Lyrica (epilepsy), Celebrex (arthritis pain), Prevnar (pneumonia) and Enbrel (rheumatoid arthritis). The company is currently studying options for its Consumer Healthcare business. It makes over-the-counter medications and supplements, including Advil (pain relief), Centrum (vitamins) and Robitussin (cough syrup). In 2017, those products accounted for 7% of Pfizer’s overall revenue. Depending on the results of the review, the company may opt to sell all or part of that business or spin it off. It expects to complete the process by the end of 2018. Seven years of rising dividends Starting with the March 2018 payment, Pfizer will increase its quarterly dividend by 6.3%, to $0.34 a share from $0.32. The new annual rate of $1.36 yields 3.8%. Pfizer has now increased the…