Is Pfizer A Great Dividend Stock?
Companies have a limited number of choices when deciding what to do with the money they earn. For mature businesses with relatively predictable earnings, a portion of those earnings are often returned to shareholders in the form of dividends. Defining a great dividend stock is personal. For some, it means a low current yield but plenty of room to raise the payout in the future. For others, it might mean a stock that pays them a substantial yield now with a low probability of being cut, regardless of how much it may grow in the years ahead.
There are a few metrics that can help identify these attributes and determine if the stock deserves a place in your portfolio. They tell us what to expect in the near term and whether a company might disappoint investors who count on those dividends in the future. For Pfizer (NYSE: PFE), the dividend yield, growth rate, and payout ratio all support the same conclusion.
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Source Fool.com
