Is NYSE:PFE suited for dividend investing?

Our stock screener has spotted PFIZER INC (NYSE:PFE) as a good dividend stock with solid fundamentals. NYSE:PFE shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

A Closer Look at Dividend for NYSE:PFE

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:PFE has been awarded a 8 for its dividend quality:

• With a Yearly Dividend Yield of 4.99%, PFE is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 3.87, PFE pays a better dividend. On top of this PFE pays more dividend than 97.62% of the companies listed in the same industry.
• PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.64.
• PFE has been paying a dividend for at least 10 years, so it has a reliable track record.
• PFE has not decreased their dividend for at least 10 years, which is a reliable track record.

Assessing Health for NYSE:PFE

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:PFE has achieved a 5 out of 10:

• PFE has a Altman-Z score of 2.65. This is in the better half of the industry: PFE outperforms 73.33% of its industry peers.
• PFE has a better Debt to FCF ratio (6.13) than 84.76% of its industry peers.
• PFE has a Current Ratio of 2.12. This indicates that PFE is financially healthy and has no problem in meeting its short term obligations.

Profitability Assessment of NYSE:PFE

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:PFE has earned a 8 out of 10:

• PFE has a Return On Assets of 9.75%. This is amongst the best in the industry. PFE outperforms 90.95% of its industry peers.
• Looking at the Return On Equity, with a value of 21.68%, PFE belongs to the top of the industry, outperforming 91.90% of the companies in the same industry.
• PFE has a better Return On Invested Capital (11.96%) than 90.00% of its industry peers.
• The last Return On Invested Capital (11.96%) for PFE is well below the 3 year average (16.16%), which needs to be investigated, but indicates that PFE had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 27.55%, PFE belongs to the top of the industry, outperforming 94.76% of the companies in the same industry.
• PFE has a better Operating Margin (31.21%) than 95.71% of its industry peers.
• PFE's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 68.78%, PFE is in the better half of the industry, outperforming 73.81% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of PFE for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.