Is Pfizer's 6.9%-Yielding Dividend Still Safe?

Core Viewpoint - Pfizer is offering a high dividend yield of 6.9%, significantly above the S&P 500 average of 1.2%, yet this has not attracted investors, leading to a sluggish share price [1][2]. Financial Performance - Pfizer reported earnings per share of $0.62 in the third quarter, a decline of 20% from $0.78 in the same period last year [4]. - The company maintains a quarterly dividend of $0.43 per share, resulting in a payout ratio of just under 70%, which is considered healthy [4]. - Over the past 12 months, Pfizer generated $10.4 billion in free cash flow, exceeding the $9.7 billion paid out in dividends during the same period [6][7]. Investor Sentiment - Investors appear to have doubts about the sustainability of Pfizer's dividend and the company's future prospects, as indicated by the stock's performance [2][8]. - Despite strong financials supporting the current dividend payout, Pfizer's stock has declined nearly 6% this year and has lost close to half its value over the past three years [10].