How much will Pfizer pay in dividends this year?
As one of the world’s largest pharmaceutical companies, Pfizer generates a lot of cash to share with investors.
COVID-19 vaccine and antiviral treatment released Pfizer (PFE 0.66%) Although it has gained popularity in recent years, that is not all the company sells. Our product lineup includes dozens of innovative medicines that benefit from patent-protected market exclusivity.
With patents on drugs that many patients can’t live without, Pfizer had no trouble distributing about $9.25 billion to shareholders last year in the form of dividends set at $0.41 per share.
Pfizer plans to pay higher dividends this year
Pfizer announced in December last year that it would increase its dividend by one penny to $0.42 per share. The company’s existing share repurchase authorizations amounted to $3.3 billion as of May 1, but the company does not expect to repurchase any shares this year.
With a slightly increased dividend and an undiminished share count, investors can expect Pfizer to distribute significantly more dividends this year. Pfizer, which has approximately 5.67 billion shares outstanding, plans to pay approximately $9.52 billion in dividends this year.
more to come
Investors don’t need the company to raise its dividend much to realize satisfactory profits. The stock offers a yield of 5.8% at recent prices.
A handful of high-profile billionaire investors have bought millions of dollars of Pfizer stock in the first three months of 2024, hoping for more dividend increases.
It’s easy to see why billionaires are flocking to Pfizer. Although overall sales decreased, excluding COVID-19-related products and currency exchange, sales in the first quarter increased by 11% compared to the same period last year. Now that the worst of its COVID-19 losses has occurred, Pfizer’s profits could soar in the coming years. Now, adding some stocks to your diversified portfolio seems like a smart move.
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has a position at Pfizer and recommends the company. The Motley Fool has a disclosure policy.
