Is Pfizer an Absurdly Cheap Dividend Stock, or Just a Value Trap?

Core Viewpoint - Pfizer is currently viewed as a high-yielding stock with a low valuation, but its stagnant performance raises concerns among investors about its investment potential [1]. Group 1: Value Trap Argument - Pfizer's stock trades at a price-to-earnings (P/E) multiple of 15, dropping to less than 9 based on future earnings expectations, indicating it is a cheap stock [4]. - Concerns about Pfizer's future growth are valid due to multiple patent cliffs on key drugs such as Eliquis, Vyndaqel, Ibrance, and Xtandi, which may lead to a revenue decline [5]. - The company's projected revenue for this year is between $59.5 billion and $62.5 billion, suggesting a potential decrease compared to 2025, and it has become effectively a no-growth company [7]. Group 2: Bargain Buy Argument - Pfizer's shares trade at less than 9 times future earnings, which may present a buying opportunity despite concerns over patent cliffs [9]. - The decline in Pfizer's stock price is not merely a market trend but may represent a rare chance to acquire shares of a leading healthcare company at a valuation not seen in over a decade [10].