COVID-19's Impact In 2020, Pfizer generated $42 billion in sales. This year, that number is expected to shoot higher to $62 billion. Of that $20 billion increase, $15 billion will come from the company's COVID-19 vaccine. The following year, that figure is forecast to drop to $4 billion. Then, it'll decline to $1 billion in 2023. So this year, the vaccine will have a profound effect on Pfizer's financials, though it will have a lesser impact the following years. But Pfizer had no problem affording its dividend even before this windfall from the vaccine. Regardless of what happens with this particular vaccine going forward, Pfizer should have no problem paying and raising its dividend in the near and intermediate future. Considering the company's solid payout ratio, rising cash flow and decadelong history of raising its payout to shareholders, Pfizer's dividend is safe regardless of the extra revenue from the vaccine. Dividend Safety Rating: A If you have a stock whose dividend safety you'd like me to analyze, leave the ticker in the comments section. Good investing, Marc P.S. Pfizer has a solid yield... but it's not my favorite healthcare stock right now. In fact, I've got my eye on a big emerging trend that's set to change the future of medicine. I want you to have the chance to profit from it. Click here and join me in Lightning Trend Trader, and I'll show you how. |
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