Pfizer Innovates, & Collaborates For Health

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the healthcare sector. 

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; devices; distribution; supplies.

Today I'm reviewing a large-cap US drug manufacturer - major. Its name is Pfizer Inc. Its trading ticker symbol is PFE.  

Pfizer Inc is a biopharmaceutical company that discovers, develops, manufactures, and markets healthcare products including medicines, and vaccines as well as many consumer healthcare products. It operates in two segments, Pfizer Innovative Health (IH) and Pfizer Essential Health (EH).

The IH segment focuses on the development and commercialization of medicines and vaccines, and consumer healthcare products in various therapeutic areas.

The EH segment offers products that would lose or have lost marketing patent protection; branded generic products; generic sterile injectable products; biosimilars; and anti-infectives.

This segment also engages in the research and development, as well as contract manufacturing activities.

Pfizer Inc. has collaboration and/or co-promotion agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.;Merck KGaA; and Neofluidics, LLC. 

It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, and individual provider offices, as well as centers for disease control and prevention. 

Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

I use three key data points to gauge the value of any dividend equity or fund like Pfizer Inc. (PFE): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

PFE Price

Pfizer's price was $36.51 per share at Friday's market close. A year ago its price was $34.04 for a gain of $2.47 per share in the past year.  

Assuming Pfizer's price will continue to trade in the range of $32.00 to $40.00 next year, its price could grow another $2.47 from $36.51 to $38.98 by June 25, 2019. 

PFE Dividends

Pfizer's most recently declared quarterly dividend was $0.34 per share paid June 1. That $0.34 quarterly dividend equates to an estimated annual payout of $1.36 per share for 2018-19 which yields 3.73% at yesterday's $36.51 closing stock price.  

Gains For PFE?

Pfizer's $2.47 estimated year over year price gain plus an anticipated dividend of$1.36 makes a projected gross annual gain of $3.83 per share, which will be reduced by the costs to trade those shares.  

A little over $1,000.00 invested today at the $36.51 price buys 27 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.37 per share.

Taking that $0.37 brokerage cost out of the estimated $3.83 gross gain per share leaves a net gain of $3.46 X 27 shares = $93.42 or a 9.48% potential net gain on a $985.77 investment.

Therefore, Pfizer Inc. (whose ticker symbol is PFE), now shows a possible 9.48% net gain including a 3.73% dividend yield. 

Twenty-two analysts cover this stock:

Seven say "buy" PFE.

Four say PFE shares will "outperform".

Nine say "hold" PFE.

Two say "sell" PFE.

Their twenty-two analyst consensus recommendation is 2.36 or "outperform" and their price target is$40 or $1.02 over my $38.98 year over year target.

Y Charts rates PFE "attractive" for an overall "Y" rating. Y Charts also shows "good" for a Value score of 9 out of ten points. And YCharts ranks PFE "strong" with 9 out of 10possible Fundamental points. Y Charts Historic Valuation score for PFE is 28.84% undervalued at a $51.30 historic valuation.

You could look at all those numbers like this: Pfizer Inc. (PFE ) has made money, is making money, and could net a 9.5% to 12% netgain next year including a 3.73% annual dividend yield paid out quarterly. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Pfizer Inc. (PFE) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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