Thanks for joining DividendStocks.com, the daily newsletter built for dividend and income investors like you. We’re thrilled to have you on board and can’t wait to help you discover the best dividend opportunities out there. Before we can start sending your daily insights, please take a quick moment to confirm your subscription: Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Why wait? Let’s get your dividend journey started! Click Here to Start Discovering Top Income-Generating Stocks See you in your inbox soon, The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
This Week's Bonus News Pfizer Adds to Its Big Bet on Weight Loss DrugsAuthor: Jordan Chussler. Publication Date: 12/16/2025. 
What You Need to Know - The health care sector has led the S&P 500 over the three months, but Pfizer has lagged of late, slipping 5% since the start of October.
- As the Big Pharma company continues to struggle to replace COVID-19 vaccine revenue, it is heavily learning into the semaglutide and GLP-1 weight loss drug trend.
- Last week, the company signed a $2.1 billion licensing agreement with a Chinese pharma company to develop its early-stage weight loss pill.
Health care stocks have been on a run lately, leading the S&P 500's 11 sectors over the past three months with a gain of 11.55%. Unfortunately for some investors, that rally has not included all of the Big Pharma mainstays. Pfizer (NYSE: PFE), the maker of Chantix, Eliquis and Paxlovid, has seen its shares slide 5% since the start of October. By comparison, other mega-cap pharmaceutical companies such as Johnson & Johnson (NYSE: JNJ), Regeneron Pharmaceuticals (NASDAQ: REGN) and Eli Lilly (NYSE: LLY) are up roughly 14%, 24% and 25%, respectively, over the same period. And despite Pfizer making headlines on Nov. 13 after acquiring obesity biotech Metsera in a $10 billion deal, the stock has only managed a 0.23% gain since then. The nearly 177-year-old biopharma company is once again looking to expand its role in the weight loss drug market, with management and shareholders hoping that doing so can help it recover lost revenue amid waning demand for mRNA-based COVID-19 vaccines. Pfizer Looks to Gain Market Share After Enormous Deal With YaoPharma On Tuesday, Dec. 9, Pfizer struck a $2.1 billion licensing deal with China's YaoPharma to develop a GLP-1 weight loss pill that is in early-stage development. The drug is designed to work similarly to Wegovy, the game-changing weight loss injection from competitor Novo Nordisk (NYSE: NVO). News of a yet-to-be-approved pill may not move the stock immediately, but it underscores the company's commitment and momentum in the obesity-treatment market. Under the agreement, Pfizer will pay a $150 million fee upfront to YaoPharma's parent company, Shanghai Fosun Pharmaceutical, which has an $8.4 billion market cap. Additionally, Pfizer could pay YaoPharma up to $1.94 billion in development and regulatory milestone payments, plus royalties on sales if the drug reaches the market. Those milestone payments are contingent on YaoPharma successfully advancing the weight loss pill through phase one trials, after which Pfizer will assume responsibility for later-stage development. Pfizer also plans to conduct combination studies—currently in mid-stage development—using YaoPharma's pill together with Pfizer's own GIP receptor-targeting therapy, a strategy similar to Eli Lilly's combination approach with Zepbound and Mounjaro, which target both GLP-1 and GIP. Pfizer Is Positioning Itself for the Future of the Weight Loss Drug Market The deal highlights how aggressively Pfizer's executives are pursuing a long-term position in the GLP-1 and broader obesity-treatment market. Pfizer's leadership has shown it is willing to invest roughly $10.1 billion in the past month toward that goal as it eyes a rapidly growing industry. Forecasts from market analysis firm Grand View Research suggest the GLP-1 weight loss drug market could grow at a compound annual growth rate (CAGR) of 18.54% from 2025 to 2030, rising from under $14 billion this year to an estimated $48.84 billion by 2030. Grand View Research found that North America accounts for the largest revenue share, with more than 75% of the GLP-1 agonists market. While other obesity interventions exist—lifestyle modifications and bariatric surgery among them—GLP-1 drugs remain the preferred option for many physicians and patients. Patient Investors Can Enjoy PFE's Sizable Dividend Shareholders are hoping Pfizer's foray into the weight loss market will pay off after the stock has punished loyal investors with a loss of more than 31% over the past five years. Much of that decline stems from reduced COVID-vaccine sales, which drove revenue growth from more than 95% at the end of 2021 to a decline of over 41% by the end of 2023. Last year, Pfizer rebounded modestly, recording nearly a 7% increase in revenue. The stock's dividend has helped offset some investor concerns: Pfizer remains a strong dividend payer with a current yield of 6.65%—$1.72 per share annually. That payout has increased for 16 consecutive years, making the stock appealing to income investors despite its roughly 100% payout ratio. For investors focused on income and willing to take a speculative view on the near- and mid-term prospects of the prescription weight loss market, Pfizer can offer steady income while providing exposure to the growing GLP-1 industry. However, growth-focused investors may be less patient after additional years of lackluster performance. Analysts' average 12-month price target implies a little more than 10% potential upside from the stock's current price, and the consensus rating remains a Hold. Meanwhile, short interest has been steadily rising as the stock attracts Wall Street bears. Currently, about $3.58 billion worth of the float is shorted—nearly 84% more than PFE's short position at the end of January 2025.
|