TLDRs;

Pfizer stock rises as high dividend yield attracts income-focused investors.
Low valuation raises debate over hidden upside versus long-term risks.
Strong non-COVID portfolio offsets ongoing vaccine revenue declines.
Metsera acquisition reignites Pfizer’s obesity-drug ambitions for late-decade growth.

Pfizer Inc. (NYSE: PFE) is closing out 2025 with renewed investor interest as the stock’s combination of a high dividend yield and discounted valuation drives a new wave of debate across Wall Street.

While shares remain far below their pandemic-era highs, recent performance, improving fundamentals and bold strategic bets have pushed the conversation toward whether Pfizer represents a deep-value turnaround opportunity.

On Friday  PFE closed at $26.03, extending a third consecutive session of gains. The stock now trades just below its 52-week high of $27.69 and sits well above the April bottom of $20.92. With a market cap around $148 billion, a beta near 0.4–0.5, and one of the richest yields in big pharma, Pfizer has returned to the spotlight for income-focused investors seeking stability heading into 2026.

Pfizer Inc., PFE

Dividend Yield Draws Income Investors

One of Pfizer’s biggest attractions in 2025 is its ~6.6% dividend yield, an unusually high payout for a company of its size and financial strength.

Pfizer paid a quarterly dividend of $0.43 per share on December 1 and has now delivered 347 straight quarterly payments, underscoring its long-standing reputation as a reliable income stock.

However, the payout ratio remains near 100% of reported earnings, reflecting the lingering impact of post-COVID profitability pressure. Even with that issue, many investors see the dividend as secure thanks to Pfizer’s robust free-cash-flow profile and deep capital-allocation track record.

Low Valuation Sparks Renewed Debate

Much of the current bullish sentiment comes from Pfizer’s historically low valuation. On a forward basis, the stock trades at just 8–9x 2025 adjusted EPS, based on management’s updated guidance of $3.00–$3.15.

That multiple sits far below the broader market and even below many slower-growing pharmaceutical peers.

Analysts remain split on what this discount represents. For some, the multiple reflects overly pessimistic expectations following the collapse of COVID-related revenues. For others, it signals persistent structural challenges,  including declining vaccine demand, upcoming patent expiries and regulatory pressure on drug pricing , that could cap earnings growth for several years.

Non-COVID Strength Offsets Vaccine Weakness

Pfizer’s third-quarter earnings gave bulls reasons for optimism. The company reported $16.65 billion in revenue, down 6% year-over-year, but delivered a clear EPS beat with adjusted earnings of $0.87, above Wall Street’s $0.79 forecast.

Crucially, the split between the company’s growing and shrinking segments continues to define investor expectations.

Non-COVID products grew 4% operationally, driven by strong performances from Eliquis, Vyndaqel, and the migraine drug Nurtec. Meanwhile, COVID-related products remain a drag. Comirnaty sales fell 19% and Paxlovid revenue dropped more than 50%, reflecting the ongoing normalization of the pandemic era and the tightening of CDC vaccine eligibility guidelines.

Even so, Pfizer raised full-year EPS guidance for 2025, citing stronger core performance, cost controls and a more favorable tax outlook.

Looking Ahead into 2026

Analyst sentiment remains mixed. Most major coverage continues to rate Pfizer as a “Hold”, with price targets clustering around the $28–$29 range. That implies modest upside, but does not fully capture the value of the dividend or the optionality tied to obesity, oncology and long-term margin expansion.

As the company heads into 2026, the investment debate centers on two contrasting narratives. Is Pfizer a deeply undervalued dividend giant poised for a multi-year revival? or are its low multiples a warning of tougher years ahead as pricing reforms, patent cliffs and shrinking vaccine demand converge?

For now, the answer depends on how much faith investors place in Pfizer’s pipeline reinvention and its ability to transform a value-stock label into genuine long-term growth.

 

The post Pfizer (PFE) Stock; Rises on Strong Dividend Yield and Low Valuation Debate appeared first on CoinCentral.

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Filed under: News - @ December 7, 2025 12:24 pm