In 2023, a year when the market has heavily favored technology stocks, drugmakers like Pfizer (NYSE:PFE) seem to have been left behind. However, if PFE stock is trading at a low price and Pfizer rewards its loyal shareholders with substantial dividend distributions, then value-focused investors should be buyers, not sellers.
Not only that, but I would contend that the time to invest in Pfizer is right now. If you wait too long, you’ll miss out on Pfizer’s next dividend payout as well as the share-price rebound which, I believe, is right around the corner.
An Important Date for PFE Stock Buyers
Since PFE stock has declined recently, Pfizer’s forward annual dividend yield has increased to a very healthy 4.92%. That’s substantially higher than the sector average dividend yield of around 1.5%.
Pfizer’s next quarterly dividend distribution will be 41 cents per share, payable on Dec. 4. However, you’ll definitely want to own some Pfizer shares by Nov. 10 in order to qualify for the dividend payment.
Actually, I recommend buying PFE stock before that day, since there’s a rare value-investing opportunity here. Believe it or not, Pfizer’s trailing 12-month price-to-earnings (P/E) ratio has fallen to 8.81x.
The market is treating Pfizer as if the company is in deep financial trouble, but of course that’s not the case. The company is profitable and, even after the share-price of 2023, still has a market capitalization of $187 billion.
Pfizer: It’s Not All About Covid-19 Vaccines
This year, the conversation surrounding Pfizer often has often involved the resurgence of Covid-19. Pfizer itself has been part of that conversation, as Pfizer CFO David Denton expects that 24% of the U.S. population, which equates to roughly 82 million people, will receive Covid-19 shots this year.
Pfizer will undoubtedly generate revenue from its Covid-19 vaccine shots. However, Pfizer’s growth story isn’t limited to Covid-19 vaccines. Suffice it to say, the company has a robust product pipeline to boost Pfizer’s bottom line.
Just to provide an example via Reuters, the Centers for Disease Control and Prevention (backed Pfizer’s respiratory syncytial virus (RSV) vaccine for women in the middle of the third trimester of pregnancy” in order to “protect their babies from severe illness.” CDC Director Mandy Cohen considers this to be “another new tool we can use this fall and winter to help protect lives.”) recently “
Moreover, the European Commission (granted marketing authorization for Pfizer’s drug LITFULO for people 12 years of age or older with severe alopecia areata. That’s a disease that can cause severe hair loss. Hence, LITFULO could offer some alopecia areata sufferers the hope of hair regrowth.) has
Buy PFE Stock Before the Window of Opportunity Closes
Pfizer has gone out of favor on Wall Street in 2023. Yet, the year isn’t over yet and a share-price recovery is still possible. After all, Pfizer is still a pharmaceutical giant with Covid-19 vaccines and other high-confidence products.
Besides, Pfizer is trading at an enticingly low valuation multiple. As I see it, there’s a window of opportunity here that won’t last too much longer.
In addition, if you wait too long then you’ll miss out on Pfizer’s next dividend payout. Therefore, I encourage you to take a closer look at PFE stock and consider buying at least a few shares.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.