We own shares in several health care investments. Some are true health care investments, and others (REITs) are playing in the health care field. Examples of the REITs include CTRE, MPW, and DOC. One of the first investments I made was Pfizer. Cindie came home from her workplace, a hospital, and suggested that I explore PFE because she heard about Viagra. Pfizer was one of the first stocks we bought.
Cindie and I own a combined total of 3,300 shares of PFE, so those shares are currently worth about $127,000. We hold shares in six of our Fidelity Investments accounts. Since 2016, we have received a total of $11,282 in dividends from PFE. This year, because of our increased investments in PFE, we expect to receive over $5,000 in dividend income.
Why Does PFE Qualify for the TOP TEN?
PFE is a good dividend growth story, and I like owning a heavy weighting in health care companies. There are many to choose from. In fact, FHLC (Fidelity Covington Trust – Fidelity MSCI Health Care Index ETF) has Pfizer as their number three investment as well. Our grandchildren have done well in their UTMA accounts with ETF FHLC. Of the top ten investments in FHLC, we own six of them. The following image from my iPhone shows our holdings, with Pfizer as the largest and ABBV as number two.
As a consumer of health care products and services, I see increasing needs as our population ages. Of course, pandemics also have a “positive” impact on the health care sector. Pharmaceuticals play an increasingly important role in our lives and our economy.
From a dividend growth perspective, PFE is adding value. I want to stay ahead of inflation and invest in companies that grow their dividend at least 5% each year, on average. PFE does that and sports a dividend payout ratio that makes sense. It is 42.08%.
In November of last year, Pfizer spun off of its off-patent drug division, Upjohn, which combined with Mylan to form a new entity named Viatris (VTRS). This included Viagra, Lipitor, Chantix, Lyrica and Celebrex. I sold my shares of VTRS, simply because I generally don’t like shares in a company that is a spin off of a parent.
ETN’s Sector, Industry, and Market Cap
Sector: Health Care
Market Cap: $216.8B
Headquarters: New York, NY
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic and pain under the Eliquis, Chantix/Champix, and Premarin family brands; biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands; and sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zithromax, Vfend, and Panzyga brands. The company also provides medicines and vaccines in various therapeutic areas, such as pneumococcal disease, meningococcal disease, tick-borne encephalitis, and COVID-19 under the Prevnar 13/Prevenar 13 (pediatric/adult), Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Pfizer-BioNTech COVID-19 vaccine brands; biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, and Eucrisa/Staquis brands; and amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands. In addition, the company is involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, and individual provider offices, as well as disease control and prevention centers. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Myovant Sciences Ltd.; Akcea Therapeutics, Inc; Merck KGaA; Valneva SE; BioNTech SE; and Syapse, Inc. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.