With Merck agreeing to buy Verona for about $10 billion. We know that Merck has been shopping around, that they have that patent cliff coming up and it seems like they've found their answer here. It does.I think what we're seeing, you know, as you mentioned, Merck's patent cliff is that they currently make the best selling drug in the world in the form of KEYTRUDA, a medicine for many, many types of cancer. It will soon lose its exclusivity and Merck will have a roughly $30 billion, $40 billion hole to plug ...

When it comes to your hard-earned money, you have a lot of choices about where to spend it. If your physician prescribes a new branded drug, though, you and your insurance company have few options.Patent-protected exclusivity is the reason pharmaceutical stocks are known for delivering reliably growing dividend payments. Unfortunately, some of Pfizer's (PFE 1.08%) most important patents are expiring soon.Shares of Pfizer have been beaten down about 60% from their previous peak in 2021. The price is way down ...

Group 1: Pfizer - Pfizer's stock has decreased by approximately 62% from its pandemic highs, yet it offers a high dividend yield of 7.3% [4] - The company's adjusted earnings per share fell from $6.58 in 2022 to $3.11 last year due to declining demand for COVID-19 vaccines and treatments [4][5] - Pfizer anticipates a 6.8% decline in adjusted earnings for the current year, with a projected low of $2.80 per share, which is sufficient to support its annual dividend of $1.72 [5] - The drug Eliquis, which accounts for 14% of Pfizer's revenue, is expected to face competition from generics starting in 2028 [6] - Despite facing patent cliffs, Pfizer has a strong development pipeline, with over a dozen FDA approvals last year, indicating potential for continued dividend growth [7] Group 2: Prologis - Prologis has capitalized on the surge in e-commerce demand, becoming the largest real estate investment trust (REIT) available to everyday investors [8] - The stock has declined by about 12% from its March peak, currently offering a 3.7% yield [8] - Prologis has increased its dividend by 11.7% annually over the past five years, suggesting potential for double-digit yield on cost for investors in less than a decade [9] - Major customers include Amazon, Home Depot, and FedEx, but these tenants only account for 8.2% of total rent payments, showcasing strong diversification [9] - Prologis holds an A2 rating from Moody's and an A rating from S&P Global, with a low average interest rate of 3.1% on its debts [10] - The company can offer competitive rates to smaller competitors and is positioned for continued growth by acquiring and leasing back logistics real estate [11] Group 3: Investment Comparison - Pfizer offers a nearly double yield compared to Prologis, but its dividend growth rate is less than half that of Prologis [12] - For investors nearing retirement, Pfizer may be appealing, while Prologis is suggested as a better option for income-seeking investors [12]

Core Viewpoint - Pfizer's high dividend yield of 7.5% attracts income-seeking investors, but underlying concerns about future growth and financial stability exist due to revenue declines and patent expirations [1][2][13]. Dividend Overview - Pfizer currently pays an annual dividend of $1.72 per share, translating to a quarterly payment of $0.43 per share, resulting in a dividend yield of 7.5% as of May 22, 2025 [2][3]. - The company has a strong track record of increasing dividends for 16 consecutive years, appealing to investors seeking reliable income [4]. Financial Metrics - Pfizer's annualized 3-year dividend growth stands at 2.50%, with a dividend payout ratio of 124.64% based on trailing earnings, indicating that dividends exceed earnings [4][6]. - The dividend payout consumes approximately 47.69% of its cash flow, suggesting a more sustainable dividend based on cash generation [5]. Revenue Challenges - In Q1 2025, Pfizer's total revenues decreased by 8% year-over-year to $13.7 billion, primarily due to a 75% drop in Paxlovid sales as COVID-19 demand normalized [7]. - The company faces a significant revenue loss of $17-$18 billion annually between 2026 and 2028 due to the impending loss of exclusivity for key drugs like Eliquis and Prevnar [8]. Strategic Initiatives - Pfizer is pursuing a strategy focused on pipeline rejuvenation, particularly in oncology, highlighted by the $43 billion acquisition of Seagen in March 2023, which contributed $3.4 billion to revenue in FY 2024 [9]. - The company has entered a licensing agreement with 3SBio, Inc. for SSGJ-707, with an upfront payment of $1.25 billion, potentially worth up to $6 billion, aiming to launch eight new cancer medicines by 2030 [10]. Pipeline Developments - Positive developments in the oncology pipeline include FDA approval for Adcetris in large B-cell lymphoma and promising clinical data for Padcev in urothelial cancer [11]. - The Abrysvo RSV vaccine has seen expanded recommendations, potentially increasing market reach, although setbacks occurred with the discontinuation of the oral GLP-1 candidate danuglipron [12]. Investment Outlook - Pfizer's stock forecast indicates a 12-month price target of $29.17, representing a 25.08% upside, with a Moderate Buy rating based on 15 analyst ratings [13]. - The current high dividend yield is attractive, but the company faces significant operational challenges and uncertainties regarding future revenue growth [14][15].