The #4 dog of the dow for 2012 is Pfizer, (Ticker symbol PFE). Pfizer is a 166 billion dollar cap company, a bit larger than the last pharmaceutical business I covered, Merck. Pfizer is a very old company, even older than Merck, established back in 1849. However, Pfizer wasn’t added to the Dow until 2004.
Pfizer is probably most well known for their miracle drug for some men and marriages – Viagra. Pfizer is also well known just recently in 2009 for illegal marketing of four different drugs, Bextra, Geodon, Zyvox and Lyrica. This was the 4th time Pfizer was in trouble in the last 10 years for these practices. During 2009, PFE also cut their dividend in half based on many different issues with the company. It went from 32 cents a quarter to 16 cents a quarter. The stock fell as low as 12 dollars a share.
After 2009, PFE has come back from 12 dollars a share to just under 22 dollars a share today. The dividend has also been increased, though not back to levels in 2008. The current quarterly dividend is 22 cents a share. Its current dividend yield is 4.06%. The increase in dividend has boosted the stock from a 19 dollar a share stock to nearly 22 a share. Also the dark cloud over drug stocks has started to clear and the public has started to favor them once again.
PFE earnings were $2.23 a share for 2010, and are projected to be around $2.29 for 2011 and $2.30 for 2012. This equates to an average P/E ratio of about 17. Earnings projections for 2012 have continued to decrease over the past 90 days.
My unofficial estimate is that PFE has maxed out around $22 a share, and may actually lose value during the year. By the end of the year, being a Dog, it will gain a slight bit of value. However, there are better Dogs to buy. PFE will finish 2012 at around $23 a share.
Disclosure: I currently do not own any shares of PFE nor do I plan to purchase any in the next few days.
Go back to my original post for 2012 Dogs of the Dow. 2012 Dogs of the Dow
Dog of the Dow #4 Pfizer, was originally posted on January 31, 2012.