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Pfizer’s Dividend Growth Trend and Analysts’ Recommendations

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Dividend overview

In June, Pfizer (PFE) announced a dividend of $0.34 for the third quarter on the company’s common stock. Pfizer paid a cash dividend of $0.34 on September 4 to its shareholders of record on August 3.

Pfizer delivered a dividend yield of 3.11% in the third quarter. Pfizer’s dividend has grown gradually over the years. Pfizer’s dividend was $0.28 in the third quarter of 2015, which grew to $0.34 in the third quarter of 2018. In the third quarter of 2017, Pfizer announced a dividend of $0.32. Wall Street analysts expect Pfizer’s November dividend to be ~$0.33 and for its quarterly dividend for 2019 to be $0.36.

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Stock performance

On September 26, Pfizer stock closed at $43.68. which is an ~0.25% decline from the previous day’s close of $43.79. Pfizer’s stock price rose from $36.38 when the market opened on January 2 to $43.68 on September 26, which represents 20.0% year-to-date growth.

On September 24, Pfizer hit its 52-week high of $44.45 which is 34% growth from its 52-week low of $33.20 on February 9.

Financials in a nutshell

Wall Street analysts expect Pfizer report net revenues of $13.6 billion in the third quarter, which represents ~3.22% YoY (year-over-year) growth. Pfizer expects its net revenues for fiscal 2018 to be $53.0–$55.0 billion, which represents ~3.2% YoY growth.

In the second quarter, Pfizer reported net income and diluted EPS of $3.87 billion and $0.65, respectively. This compared to net income and diluted EPS of $3.1 billion and $0.51 in the second quarter of 2017, respectively, reflecting ~26.0% and 28.0% YoY growth.

After the second quarter, Pfizer updated its adjusted EPS guidance for fiscal 2018. Pfizer raised its adjusted diluted EPS guidance from $2.90–$3.00 to $2.95–$3.05. Pfizer comprises ~6.06% of the iShares Core High Dividend ETF’s (HDV) portfolio.

Analysts’ recommendations

Of the 19 analysts tracking Pfizer in September, one recommended a “strong buy” while nine analysts recommended a “buy.” Seven analysts recommended a “hold,” and two analysts recommended a “strong sell” for Pfizer.

On September 26, Pfizer had a consensus 12-month target price of $42.39, which represents an ~2.95% decline over the next 12 months.

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