Pfizer's (PFE) Breakthrough Medicines Power its Dividend Stability

Pfizer Inc. (NYSE:PFE) is included among the 11 Innovative Dividend Stocks to Buy Now.

The American multinational biotech firm developed a form of santonin used to treat intestinal worms, which gained rapid popularity thanks to its effectiveness. One of its founders, Erhart, drew on his background in candy-making to add an almond-toffee flavor, making the medicine easier to take. Around the same time, the company also started producing citric acid, a key ingredient in popular beverages like Coca-Cola. This product eventually became a core part of Pfizer’s business and played a major role in its growth over the following decades.

Pfizer Inc. (NYSE:PFE) has struggled in recent years, with its stock falling by over 28% in the past decade. Despite this underperformance, the future looks more promising due to a solid lineup of drugs in development. Many of the concerns surrounding the company seem to be already priced into its lower share value. Recently, Pfizer’s forward price-to-earnings ratio was 8.49, which is well below its five-year average of 10.2.

In addition to its innovation, Pfizer Inc. (NYSE:PFE) has always remained committed to its shareholder obligations. In the most recent quarter, it returned $2.4 billion to investors through dividends. Moreover, it has raised its payouts for 15 consecutive years. The company pays a quarterly dividend of $0.43 per share and has a dividend yield of 7.08%, as of July 28.

While we acknowledge the potential of PFE 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.