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- Pfizer is one of the highest-yielding S&P 500 stocks.
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Passive income is a financial strategy known for generating revenue without the need for the earner’s continuous active effort. This makes it an attractive option for those looking to diversify their income streams or achieve financial independence.
According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade or business in which the individual does not materially participate. It can also include income from limited partnerships and other similar enterprises where the individual is not actively involved.
Those looking to buy solid, safe dividend stocks may consider pharmaceutical giant Pfizer. The stock looks like a great idea now as a solid passive income-generating machine. The shares have traded sideways for almost a year and look ready to break out and try to move toward 52-week highs. Dividend investors can also take advantage of this free report.
Pfizer
Pfizer is an American multinational pharmaceutical and biotechnology corporation headquartered at The Spiral in Manhattan.
This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has struggled over the past year as many are not getting boosters. Pfizer Inc. (NYSE: PFE | PFE Price Prediction) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It also pays a hefty 5.88% dividend, which has risen yearly for the past 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
- Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
- Pneumococcal disease, meningococcal disease, tick-borne encephalitis
COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands - Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Trading not far from its lowest split-adjusted level in thirteen years, the stock is an incredible bargain at current levels and pays a massive dividend. Pfizer reported revenues of $13.3 billion in the second quarter, representing 3% year-over-year operational growth, despite an expected decline in COVID revenues and a 14% year-over-year operational increase in revenues from the company’s non-COVID product portfolio.
The pharmaceutical giant raised full-year 2024 revenue guidance to $59.5 billion to $62.5 billion and lifted adjusted diluted EPS guidance to $2.45 to $2.65. Patient investors will receive one of the highest blue-chip dividends, and shares trade at a reasonable 9.88 times estimated 2025 earnings.
How many shares of Pfizer are needed to generate $1,500 in passive income?
Pfizer’s second quarter demonstrates substantial progress towards delivering on 2024 goals.
Investors looking to generate $1,500 per year in passive income by owning Pfizer shares, which pay $1.68 per share each year, would have to buy 895 shares of the stock at current trading prices. That would be approximately a $22,837 purchase, and as mentioned, with the stock looking to break out toward a 52-week high, there could be some excellent upside potential.
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