Now, I’m not one for pronouncements, for declaring things ‘buys’ and ‘holds’ with the breezy confidence of someone who’s actually, you know, right. But Pfizer (PFE 1.12%)… well, I’ve got a bit of a fondness for it. And not in a ‘blind faith’ sort of way, more a ‘sensible shoes and a reliable raincoat’ kind of fondness. I bought some, and barring a sudden and unforeseen fondness for competitive yak racing, I don’t much plan to sell. Here’s why, and, frankly, why you might consider it too.
Meet Pfizer
Pfizer. It’s a name that’s been around. Launched way back in 1849, which, if you think about it, is before most of the things we take for granted – reliable plumbing, indoor lighting, the internet – were even a twinkle in some inventor’s eye. It’s grown into a pharmaceutical behemoth, currently valued at around $154 billion, which is a sum so large it’s almost meaningless. Most of us probably became properly acquainted with Pfizer during the recent unpleasantness – the one involving microscopic things and a lot of hand sanitizer – thanks to its COVID-19 vaccine and the follow-up treatment, Paxlovid. Those were, undeniably, in demand. And generated, shall we say, a tidy sum.
Demand, as these things tend to do, has cooled. The stock hasn’t exactly soared into the stratosphere, averaging annual gains of 6.5% over the last 15 years. Though, the last three years have been a bit more… temperamental, with average annual losses of 8.8%. Year-to-date, as I write this, it’s up a respectable 10.4%. Which, in the grand scheme of things, isn’t bad. It’s not going to make you a yacht owner overnight, but it might cover the cost of a decent holiday. This relative sluggishness, though, is precisely what makes it interesting. It’s brought the price down to a level that, for a company of this size and stability, feels… reasonable. The forward-looking price-to-earnings (P/E) ratio is currently around 8.8, which is a bit below its five-year average of 9.8. In value investing terms, that’s a little flicker of potential.
Why Pfizer?
The main draw, for me at least, is the dividend. A solid, dependable 6.4% yield. Now, it’s not exactly growing at a breakneck pace – averaging around 3% annual increases over the last five years – but it’s consistently paid. They’ve been handing out dividends for a long time, too. The most recent quarterly payment was the 349th consecutive one! That’s 29 years of consistent payouts. Which, when you think about it, is a remarkably long time. Most things don’t last that long. Relationships, houseplants, even reasonably well-made shoes tend to give up the ghost long before then.
But Pfizer isn’t just about dividends, though a reliable income stream is never to be sniffed at. They have, naturally, some drugs facing patent expiration – a common challenge in the pharmaceutical world. But they’re not sitting still. They’ve been busy investing in new potential blockbusters, and even dipped their toes into the GLP-1 drug market, focusing on a once-monthly injection. Which, if you don’t know, is currently all the rage.
It’s true that Pfizer isn’t firing on all cylinders right now. Recent quarterly results showed revenue down 3% year-over-year. But, crucially, up 9% operationally when you exclude the COVID-19 vaccine and Paxlovid. Over the whole of 2025, they delivered 6% operational growth, again excluding those pandemic-related products. It’s a bit like stripping away the temporary boom to see what the underlying business looks like. And it looks… stable.
In 2025, they spent a hefty $10.4 billion on research and development. That’s a lot of test tubes and lab coats. They currently have 102 candidates in their pipeline, with 32 in the late-stage Phase 3 trials. It’s a gamble, of course – drug development is notoriously unpredictable. But it’s a necessary gamble if they want to remain a significant player in the years to come.
I don’t plan to sell my Pfizer shares anytime soon. I’m primarily in it for the dividend income. It’s not a ‘buy-it-and-forget-it’ kind of stock, though. Keep an eye on its developments, make sure it’s still promising. And remember, there are plenty of other good dividend stocks and dividend-focused ETFs out there. Diversification is always a good idea. After all, putting all your eggs in one basket is rarely a sensible strategy, unless you’re particularly fond of omelets.
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2026-03-02 20:22