What do y'all think of PFE?

Question

Thinking of getting in for long-term play. Nice dividend and hasn't been at these levels since 1997.

Answer 1

Yes for the long-term.  It's been really beaten up lately somewhat more than it deserves.  The problem is that the stock market is all about perception, so if everyone thinks a stock is going to tank, then it will.  Everyone is worried about Pfizer's patents expiring in a few years (i.e Lipitor) and there is very little in their pipeline to suggest another breakthough drug of similar weight is on the way.  Thus it's quite possible for Pfizer's stock to continue to go down into the $17-18 level.  However, its balance sheet is in great shape so the dividend should be secure and they have plenty of cash to buy out other smaller drug companies with promising drugs.  If you can sit tight, it probably will work out in the long run but there are better investments other there.  I think Bristol-Myers-Squibb is a better option, if you're looking for a blue-chip drug company on the cheap (only about $22/share, 5% dividend, more promising drug pipeline).

Answer 2

I have some of it, but I'm not buying more, except thru the DRIP.  Too much stuff coming off-patent.  For a long-term investment, look at TRAMX, a relatively new mutual fund from TR Price.  Or FLATX.

Answer 3

As long as it is a long term play, I do like Pfizer.  They are, in my opinion, a great value at the current price and pay over a 6% dividend.  Big Pharma is a much hated industry right now, so long term is the play.  We keep hearing the pipelines for these big boys are running dry and with a democrat in the white house it could spell trouble for them, but the way I see it the market has already taken these factors into the price.  Yes it could still go down and probably will for a while, but the upside potential is worth the risk.  I hope that helps.

Answer 4

Great question!  The long, long term?  Yes I think they will do great when all the baby boomers become old and need their drugs.

For long term as in 5 years, I read that their patents will be expiring soon for some of their big drug earners.

I also check www.gurufocus.com to see if any of the best investors are buying into them and none of them are.  All of them have reduced their positions or sold out.

Since they are billionaires through investing, they probably know more than we do so I am more trusting of their judgement than mine.

Really, though, the dividend is what was attractive to me with a nice 6.60% yield but if you look at it closer, they brought in $1.10 a share and pay out $1.28.  Not a good thing especially with the patents expiring.

So I am buying into the banks.  They have messed up and had a huge price drop.  SO I am buying low, collecting nice dividends and waiting for this mess to blow over.  The idea is buy low, right?