Is Pfizer Inc. (PFE) the Best High-Yield Dividend Stock for 2025 and Beyond?

We recently published a list of the 15 Best High-Yield Dividend Stocks for 2025 and Beyond. In this article, we are going to take a look at where Pfizer Inc. (NYSE:PFE) stands against other best high-yield dividend stocks.

Over the years, dividend-paying stocks have become increasingly popular as investors lean toward income-focused investment strategies. Many conservative investors have committed hundreds of billions of dollars across numerous funds based on the belief that companies with a consistent track record of raising dividends tend to deliver the strongest long-term market performance.

According to Ed Clissold of Ned Davis Research, over 80% of companies in the broader market currently pay dividends, and 324 of them have either initiated or increased their payouts over the past year. Interestingly, it was earlier research by Clissold’s firm that helped spark the widespread interest in dividend-growing stocks. That study, based on an older return calculation method that has since been widely replicated, highlighted the strong performance of companies that regularly increased their dividends.

However, as the firm has updated its methods to align with changes in the industry, the findings suggest that while dividend growers have performed well, focusing on high-yielding dividend stocks may be even more rewarding. This yield-based strategy has outperformed dividend growers in both rising and falling markets since 1973. Financial advisers suggest that investors start by examining a stock’s dividend yield, which is determined by dividing the annual dividend by the stock’s current price. This figure indicates the income an investor earns for every dollar put into the stock.

However, high dividend yield tends to come with higher volatility and more frequent portfolio turnover. It isn’t always a positive sign. It can sometimes signal trouble, especially if it’s driven by a drop in the stock’s price. In these situations, there’s a risk that the company may reduce its dividend payments—something that often happens during periods of financial strain. Advisers emphasize the need to go beyond surface-level metrics and examine a company’s core financials to assess its overall stability and strength. Jason Alonzo, managing director at Harbor Capital Advisors, made the following comment about investing in dividend stocks:

“Make sure the company has a strong balance sheet and its prospects for earnings-per-share growth are strong, so the company is well-positioned to maintain dividend payments in the future even if there is a recession.”

While the debate between dividend growth and high yield continues, analysts emphasize that dividend-paying stocks are not all created equal. Stocks that offer a solid yield along with steady dividend increases often reflect strong fundamentals, as they suggest the company can reward shareholders while still investing in future growth. The dividend payout ratio plays a critical role in assessing a company’s flexibility with its dividend policy. Firms that use nearly all of their earnings to cover dividends—or barely earn enough to sustain them—might face challenges, especially when under competitive pressure, due to limited cash flow for operational support.

Our Methodology:

For this article, we used a screener to identify dividend companies with above-average dividend yields. From there, we picked companies that have raised their payouts for at least 10 consecutive years, which shows their long-term growth. Finally, we picked 15 stocks with the highest dividend yields, as of May 9, and ranked them accordingly.

At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Pfizer Inc. (NYSE:PFE)

Dividend Yield as of May 9: 7.72%

Pfizer Inc. (NYSE:PFE) is a multinational pharmaceutical and biotech company that offers a wide range of related products and services to its consumers. The company has been increasing its focus on oncology, notably through its $43 billion acquisition of Seagen, which is designed to enhance its cancer treatment portfolio. The company aims for significant growth in this area over the next five years, with a goal of doubling the number of patients it serves by 2030. In addition, Pfizer plans to introduce at least three cancer drugs, each expected to generate over $1 billion in annual revenue. This approach is already proving successful, as oncology revenue grew by 25% in 2024.

Pfizer Inc. (NYSE:PFE) reported mixed earnings in the first quarter of 2025. The company posted revenue of $13.7 billion, which fell by 7.8% from the same period last year. The revenue missed analysts’ estimates by $335 million. However, its EPS of $0.92 beat the consensus by $0.25. The company’s net income for the quarter came in at $2.9 billion, down 5% on a YoY basis.

Pfizer Inc. (NYSE:PFE) remained committed to its shareholder obligation, returning $2.4 billion to investors through dividends during the quarter. It is one of the best dividend stocks as the company holds a 15-year track record of dividend growth. The company offers a quarterly dividend of $0.43 per share for a dividend yield of 7.72%, as of May 9.

Overall, PFE ranks 1st on our list of the best high yield dividend stocks. While we acknowledge the potential of PFE as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PFE but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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Disclosure: None. This article is originally published at Insider Monkey.