2 Dividend Stocks Billionaires Are Buying: Should You?

Group 1: Pfizer - Pfizer's stock has underperformed recently despite its significant contributions to COVID-19 vaccines and treatments [2] - Billionaires such as John Overdeck and Ken Griffin have increased their holdings in Pfizer, with Two Sigma Investments adding 10.5 million shares and Citadel Advisors acquiring nearly 880,000 shares [2] - Pfizer's revenue and net income have declined as the COVID-19 related boost has diminished, but the company is expanding its product pipeline significantly [3] - The company has received seven new product approvals in the past year, indicating a rejuvenated pipeline that is expected to yield more than the previous one or two approvals per year [3] - Pfizer's acquisition of Seagen for $43 billion has enhanced its oncology capabilities, and it has consistently raised its dividends by 61.5% over the past decade, with a forward yield of 5.86% [4] Group 2: Merck - Merck has also attracted billionaire investors, with Citadel Advisors purchasing 1.26 million shares and Millennium Management acquiring 4.02 million shares [5] - Keytruda, Merck's leading cancer therapy, generated $6.9 billion in revenue, accounting for nearly 44% of total sales, which increased by 9% year over year to $15.8 billion [5][6] - Merck is developing a subcutaneous formulation of Keytruda to extend its market presence as the patent exclusivity will expire by 2028 [6] - The company has received a new approval for Winrevair, a treatment for pulmonary arterial hypertension, with peak sales projected to exceed $2 billion [7] - Merck has raised its dividends by 75% over the past decade, with a forward yield of over 2.45%, making it an attractive option for income-seeking investors [7]