Is Zoetis (ZTS) a Unique Dividend Play in the Pharma Space for 2025?

Zoetis Inc. (NYSE:ZTS) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025.

Zoetis Inc. (NYSE:ZTS) stands out as a top player in the animal health sector, offering a wide range of products for both livestock and pets. The company has built a strong reputation for innovation in the field. Recent product approvals like Solensia, introduced in 2022 for treating osteoarthritis pain in cats, and Librela, launched in 2023 for dogs, are already boosting sales. More such product launches are expected to contribute to its future growth.

Zoetis Inc. (NYSE:ZTS) reported solid performance in the first quarter of 2025, supported by strong demand for its innovative product lineup and commitment to meeting customer needs. The company attributed its 9% organic operational revenue growth to the continued dedication and agility of its workforce. Its revenue came in at $2.22 billion, which beat analysts’ estimates by $27.09 million.

Zoetis Inc. (NYSE:ZTS) is a strong dividend payer, having raised its payouts for 14 consecutive years. The company is expected to raise its dividends further because of its low payout ratio of nearly 30%. In the past five years, it has raised its payouts at an annual average rate of over 20%. Currently, it offers a quarterly dividend of $0.50 per share and has a dividend yield of 1.33%, as of July 17.

While we acknowledge the potential of ZTS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.