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!
More Reading from MarketBeat Media Why Wall Street Gave Up on Pfizer—and Why That May Be a MistakeBy Jeffrey Neal Johnson. First Published: 12/31/2025. 
Quick Look - Pfizer trades at a historic discount compared to its peers while paying a dividend yield that significantly outperforms the broader market average.
- Strategic acquisitions have established a robust pipeline of next-generation cancer treatments, which are driving growth.
- Management has aggressively re-entered the weight-loss market with new assets, including one that offers a convenient monthly dosing schedule for patients.
The market of 2025 will be remembered for its extremes. While investors poured billions into technology sector giants and companies making weight-loss drugs, traditional pharmaceutical leaders were largely left behind. Nowhere is this more evident than with Pfizer Inc. (NYSE: PFE). Trading near multi-year lows around $25, the company finished the year as one of the most unloved assets in the S&P 500. To the casual observer, the pessimism seems justified: the company spent the past two years battling a perfect storm. Revenue from COVID-19 products evaporated faster than anticipated, several high-profile pipeline candidates failed in clinical trials, and activist investors launched a public campaign against management. While President Trump's official salary is $400,000 per year... his tax returns reveal he's been collecting up to $250,000 PER MONTH from one hidden source. Until recently, most Americans couldn't touch the type of investment that makes up this investment. But thanks to Executive Order 14330, that just changed. If you love investing in disruptive new companies... Discover how to invest in the fund Trump uses to collect this income >> But smart investing often requires stepping in where others will not. With the exit of activist investor Starboard Value in November 2025 and a realistic reset of financial guidance, the worst of the storm appears to have passed. The bad news is largely priced in, and Pfizer's stock price has likely found a floor. As we enter 2026, Pfizer presents a rare setup: a blue-chip company trading at distressed levels, paying a solid dividend, and quietly rebuilding its pipeline. The Mathematical Case: Why the Price Is Wrong For value investors, the case for Pfizer is straightforward. The market is pricing the company as if its earnings will permanently shrink, creating a wide disconnect between the share price and the company's cash-generating ability. A Historic Valuation Gap Pfizer currently trades at a forward price-to-earnings ratio (P/E) of roughly 8.6x. By comparison, the average pharmaceutical company trades in the 15x–20x range, and high-growth peers like Eli Lilly (NYSE: LLY) command significantly higher multiples. A valuation of 8.6x implies almost zero growth expectations — a low bar. Pfizer doesn't need a miracle to see its stock recover; it simply needs to demonstrate stability. Any positive earnings surprise could trigger multiple expansion as the market re-rates the company closer to industry norms. The Dividend Shield While investors wait for repricing, they are compensated to hold the stock: - Annual payout: $1.72 per share.
- Current yield: Approximately 6.9%.
That yield is roughly four times the S&P 500 average and provides a margin of safety. Even if the share price remains flat through 2026, a near-7% dividend return beats most savings accounts and many government bonds. Management has also initiated a $4 billion cost-saving program aimed at trimming administrative expenses and optimizing manufacturing to preserve the cash flow required to sustain the dividend. The New Foundation: Oncology Takes the Lead Critics argue Pfizer faces a growth gap left by the decline of its COVID business. To fill that hole, the company has pivoted aggressively toward oncology. The Guided-Missile Technology A key asset from Pfizer's 2023 Seagen acquisition is leadership in Antibody-Drug Conjugates (ADCs). Traditional chemotherapy is a broad blast that harms healthy and cancerous cells alike; ADCs act more like guided missiles, identifying cancer cells and delivering a toxic payload directly, sparing healthy tissue. This technology is already producing revenue. The Seagen portfolio contributed approximately $3.4 billion in 2024 and delivered about $2.75 billion in the first three quarters of 2024, driven by strong sales of Padcev for bladder cancer. Navigating the Bumps The path has not been entirely smooth. In December 2025 the company reported a safety signal related to Hympavzi during a trial extension that included a patient death. That development rattled the stock briefly, but it doesn't negate the broader thesis. Pfizer's oncology footprint is deep — more than 60 programs are in development — and the company has continued to strengthen the pipeline, most recently licensing a promising bispecific antibody from 3SBio. Catching Up: The Strategy for Weight Loss After an early-2025 setback when its internal oral candidate Danuglipron failed to progress, Pfizer repositioned itself rather than abandoning the lucrative weight-loss market. In late 2025 it bought its way back into contention with two strategic deals. The Injectable Strategy (Metsera) In November, Pfizer completed its acquisition of Metsera for about $7 billion, gaining ownership of MET-097i, a next-generation injectable candidate. Unlike current weekly injectables, this drug could potentially be administered monthly, offering a meaningful convenience advantage if approved. The Oral Strategy (YaoPharma) Recognizing that many patients prefer pills, Pfizer also licensed a small-molecule GLP-1 candidate from YaoPharma, giving it an oral approach to complement its injectable program. Why This Matters The market currently assigns little to no value to Pfizer's obesity pipeline, effectively writing the company off. That creates a free option: with expectations at rock bottom, any clinical or commercial progress from the Metsera or YaoPharma assets would be pure upside. Pfizer doesn't need to be first to market; it just needs to capture a meaningful slice of what could become a $100 billion market. The Risk/Reward Equation: 2026 Belongs to Value Pfizer enters 2026 as a company in transition with a fortified balance sheet. Management has set a revenue floor of about $61 billion for 2026, a realistic target that should reduce uncertainty for investors. At roughly $25 per share, downside risk is cushioned by a healthy dividend and a historically low valuation. The upside is compelling: continued oncology growth or positive results from the obesity programs could trigger a sharp re-rating. The unloved stocks of one year often become the standout performers the next. With the activist drama behind it and the balance sheet stabilized, Pfizer may have moved from a falling knife to a solid holding for value-oriented portfolios. For investors willing to look past the headlines, 2026 could be the year the sleeping giant wakes up.
| 
