Pfizer, Inc. engages in the discovery, development, manufacture, and marketing of prescription medicines for humans and animals worldwide.
Future dividend increases in dividends in the rate of 17% annually will be harder to obtain however, unless the company finds new drugs that it could use to generate more revenues.
The company should continue as a going concern in the future however, given the fact that 50% of its sales come from abroad and its ability to cut costs.
In addition, because of PFE’s current strong cash flow position I believe that the company does have the ability to buy new drugs by acquiring other companies and grow its revenues. The fact that twelve out of eighteen analysts rate PFE as “hold”, which is Wall Street’s jargon for having a sell recommendation on the shares, could be a potential contrarian sentiment indicator.
In the end I would consider initiating a PFE long myself when the payout is less than 50%. Until then, this big pharma stock will only have place on my watch list.
Disclosure: I do not own shares of PFE