I shared a watchlist of stocks that caught my attention recently. After some thinking and discussion with my wife, I decided that Pfizer is looking the most attractive at the moment. Perhaps it’s not the best thing to say but I don’t think that people will stop buying medicine in the nearest future. Healthcare/drug manufacturing is not an easy industry to enter and I like the strong position of Pfizer in this field. Since I don’t own any drug manufacturers yet, it would diversify my portfolio nicely as well. So on the last day of May, I expanded my portfolio with some shares of Pfizer.
For those who are not familiar with the company, here is a short description from Yahoo Finance:
Pfizer Inc. discovers, develops, manufactures, and sells healthcare products worldwide. 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, including internal medicine, vaccines, oncology, inflammation and immunology, and rare diseases, as well as consumer healthcare, such as over-the-counter brands comprising dietary supplements, pain management, gastrointestinal, and respiratory and personal care. This segment offers products primarily under the Prevnar 13/Prevenar 13, Xeljanz, Eliquis, Lyrica, Enbrel, Ibrance, Xtandi, Advil, and Centrum brands. 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. It provides products under the Lipitor, Premarin family, Norvasc, Lyrica, Celebrex, Viagra, Inflectra/Remsima, Pristiq, Zyvox, Vfend, Revatio, Inspra, Medrol, Sulperazon, Fragmin, Tygacil, Nivestim, and Retacrit brand names. This segment also engages in the research and development, as well as contract manufacturing activities.
Here are some key indicators of the stock:
- Current price: $36.09
- P/E Ratio: 10.05
- Annualized Dividend: $1.36
- Current Yield: 3.81%
- Payout Ratio: 46.1%
- Raising dividends since: 2010 (8 years)
I purchased 27 shares of PFE @$36.05 for a total of $983.30 (including commissions). This will increase my annual income by $25.704 after taxes (27 * $1.36 – 30% tax). Unfortunately, I purchased it after their last ex-dividend date, so I will only receive their first dividend in September. Still, I am happy to boost dividends received in third month of the quarter, which was the weakest one in terms of dividend income.
What do you think about PFE? Do you have it in your portfolio? Would you have chosen something else to add to your portfolio? Don’t hesitate to leave a comment!