Pfizer, a well-known healthcare giant, is currently offering a dividend yield of about 5.9%. This relatively high yield is partly due to a struggling share price, which has dropped about 13% over the past five years. This has raised concerns among investors about the company’s long-term prospects.
Pfizer is transitioning away from COVID-19-related revenue and is facing multiple patent expirations. However, the company is investing heavily in growth opportunities, including a promising anti-obesity treatment that could enter a market valued at over $100 billion by the decade’s end. Pfizer has significant growth potential with more than 110 programs in its pipeline.
The company’s future looks promising despite recent underwhelming quarters linked to asset impairment charges. Today, investing $23,000 in Pfizer could yield approximately $1,360 in annual dividends. BCE, a leading Canadian telecom company, offers stability and solid dividend income.
From 2020 to 2023, BCE’s revenue steadily increased from 22.9 billion Canadian dollars (about $16.9 billion) to 24.7 billion Canadian dollars.
High-yield dividend opportunities
While the company might not offer fast growth, its low volatility makes it attractive for risk-averse investors.
In a high-interest-rate environment, telecom stocks may not be as enticing, but their appeal can grow as rates fall. BCE’s robust 8.5% dividend yield means investing $23,000 in the stock could generate around $1,950 in annual dividend income. Western Union remains a trusted international brand despite the growing array of consumer payment options.
The company excels in digital transactions, boasting a 13% growth rate in branded digital transactions in its most recent quarter, compared to a 4% rise in overall consumer money transfers. Western Union projects solid operating margins of around 20% this year, with expected earnings per share of at least $1.62—sufficient to cover its annual dividend payments of $0.94. At a modest share price of less than $12, the stock currently offers an 8% yield.
A $23,000 investment in Western Union could generate about $1,840 in annual dividends. A diversified investment of $69,000 across these three stocks—Pfizer, BCE, and Western Union—could yield approximately $5,150 in annual dividends. This strategy provides substantial dividend income and diversifies risk across different sectors.
While these companies offer promising dividend yields, always conduct your own research and consider seeking advice from a financial professional before making investment decisions.
