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Why Pfizer's 4% Yield Is Your Best Covid-19 Vaccine Play

Published Thu, 13 Aug 2020 12:24:41 -0400 on Seeking Alpha

Seeking AlphaDividend Ideas | Healthcare Why Pfizer's 4% Yield Is Your Best Covid-19 Vaccine PlayAug. 13, 2020 12:24 PM ET|| About: Pfizer Inc. (PFE), Includes: ARCT, AZN, AZNCF, BNTX, DVAX, INO, JNJ, MRK, MRNA, MYL, NVAXby: Robert & Sam KovacsRobert & Sam Kovacs Long only, dividend investing, dividend growth investingSummaryI demonstrate why Pfizer is the best choice for dividend investors playing the Covid-19 vaccine theme.
The worries about a dividend decrease from the Upjohn spinoff are overblown.
What will be left will be a lean, high growth, biopharmaceutical company.
Written by Robert Kovacs
Introduction
Back in May, I wrote an article in which I suggested that “with or without a Covid-19 vaccine”, Pfizer (PFE) was a buy.
Since then the stock has dropped 15% and climbed back to the price it was a quarter ago. Pfizer is currently trading at $37.79 and yields 4.02%.
Source: Open Domain
Quite a lot can happen in 3 months. And quite a lot has happened. For one, Mylan (MYL) shareholders overwhelmingly approved the Upjohn-Mylan merger which is expected to close by the end of the year.
On the Covid-19 vaccine front –where Pfizer collaborates with BioNTech (BNTX), the vaccine which has entered phase 3 clinical trials is showing promise. A lot is expected from vaccine frontrunners such as Pfizer, Moderna (MRNA) & AstraZeneca (AZN).
Back in May, I believed making bets on Covid-19 programs was too early. Yet as time has passed, it has come obvious to me that not only Pfizer is a great pick with or without the vaccine, it is a frontrunner, and as likely as any of the other top candidates to have a winner. While we aren’t out of the woods yet, more positive news keeps coming. The least I can say is that I am cautiously optimistic about the whole thing.
Our MAD Scores give PFE a Dividend Strength score of 89 and a Stock Strength score of 69.

Source: mad-dividends.com
Before going through Pfizer’s... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
MERCK & CO 83.31   23.3 3.57 2.20 2.69
ASTRAZENECA 42.90   49.3 0.87 0.88 2.03

JOHNSON & JOHNSON - JNJ
JOHNSON & JOHNSON - JNJ  


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