Summary
- Pfizer is a Dividend Challenger that has raised its dividend each year since 2010 and was actually a Dividend Aristocrat before a dividend cut during the Great Recession.
- Despite the risks that accompany a pharma stock such as Pfizer, the company appears well-positioned to capitalize on its strong drug pipeline in the years ahead.
- Pfizer is currently trading at a 4% discount to fair value, making it a buy for income investors looking for a safe, growing dividend profile.
- The above factors make it likely that Pfizer will deliver market-beating annual total returns of 10.2-11.2% over the next 5-10 years.
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As a dividend growth investor, I'm constantly combing the market for investment opportunities that I believe offer an attractive blend of current dividend yield, dividend safety, and dividend growth over the long term.
One such industry that is capable of offering this unique blend of the above trifecta is the pharma industry.
