1 Ultra-High-Yield Dividend Stock Down 57% to Buy Hand Over Fist

Core Viewpoint - Pfizer's stock has significantly declined, presenting a potential buying opportunity despite underlying challenges [2][3][7] Company Challenges - Pfizer's stock decline is primarily due to rapidly decreasing sales of COVID-19 products, compounded by vaccine skepticism and reduced pandemic concerns [3] - The company faced setbacks with product withdrawals, including the sickle cell disease therapy Oxbryta and the oral obesity drug danuglipron due to safety concerns [4] - Patent expirations for key drugs, such as Inlyta, Xeljanz, and Eliquis, are imminent, which could impact revenue [5] - Potential regulatory challenges from the Trump administration, including tariffs and international reference pricing, add to the uncertainty [6][12] Market Sentiment - Despite the challenges, there is a level of optimism among analysts, with 8 out of 25 rating Pfizer as a buy or strong buy, and an average 12-month price target indicating a 28% upside potential [7] - Pfizer's reliance on COVID-19 product sales has decreased, with these products accounting for less than 7.7% of total revenue in Q1 2025 [8] Growth Prospects - Pfizer is exploring patent term extensions and has several promising products in its pipeline that could offset revenue losses from expiring patents [9] - The company is actively seeking business development opportunities, including licensing agreements and potential acquisitions to enhance its product offerings [11] Financial Metrics - Pfizer's shares are trading at over 8 times forward earnings, with a low price-to-earnings-to-growth (PEG) ratio of 0.6, indicating attractive valuation relative to growth prospects [14] - The forward dividend yield stands at 7.47%, and despite a high payout ratio of 122.5%, Pfizer has sufficient free cash flow and anticipates $7.2 billion in cost savings by 2027 [15] Conclusion - Overall, Pfizer is positioned to navigate its challenges effectively, with a low stock price and high dividend yield suggesting solid total return potential [16][17]