Is NYSE:PFE a Good Fit for Dividend Investing?

Our stock screener has singled out PFIZER INC (NYSE:PFE) as a promising choice for dividend investors. NYSE:PFE not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Evaluating Dividend: NYSE:PFE

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:PFE was assigned a score of 8 for dividend:

• With a Yearly Dividend Yield of 5.11%, PFE is a good candidate for dividend investing.
• PFE's Dividend Yield is rather good when compared to the industry average which is at 3.90. PFE pays more dividend than 97.62% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.68, PFE pays a better dividend.
• PFE has been paying a dividend for at least 10 years, so it has a reliable track record.
• PFE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

How We Gauge Health for NYSE:PFE

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:PFE scores a 5 out of 10:

• With a decent Altman-Z score value of 2.68, PFE is doing good in the industry, outperforming 72.38% of the companies in the same industry.
• PFE has a Debt to FCF ratio of 6.13. This is amongst the best in the industry. PFE outperforms 84.76% of its industry peers.
• PFE has a Current Ratio of 2.12. This indicates that PFE is financially healthy and has no problem in meeting its short term obligations.

Profitability Analysis for NYSE:PFE

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:PFE scores a 8 out of 10:

• PFE's Return On Assets of 9.75% is amongst the best of the industry. PFE outperforms 90.95% of its industry peers.
• PFE has a Return On Equity of 21.68%. This is amongst the best in the industry. PFE outperforms 91.90% of its industry peers.
• The Return On Invested Capital of PFE (11.96%) is better than 90.00% of its industry peers.
• The last Return On Invested Capital (11.96%) for PFE is well below the 3 year average (16.16%), which needs to be investigated, but indicates that PFE had better years and this may not be a problem.
• The Profit Margin of PFE (27.55%) is better than 94.76% of its industry peers.
• PFE's Operating Margin of 31.21% is amongst the best of the industry. PFE outperforms 95.71% of its industry peers.
• PFE's Operating Margin has improved in the last couple of years.
• PFE has a Gross Margin of 68.78%. This is in the better half of the industry: PFE outperforms 74.29% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of PFE contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.