Wednesday, December 16, 2020

Dividend Increase – Pfizer Inc. (PFE)


Friday, December 11 the Board of Directors of Pfizer Inc. announced a quarterly dividend increase of from $ 0.38 to $ 0.39 per share that’s payable March 5, 2020 to holders of record January 29, 2020. This represents a 2.63% increase over last quarterly dividend.


The transaction to combine Upjohn with Mylan to form Viatris Inc. closed on November 16, 2020. It is expected that Viatris will begin paying a quarterly dividend in the second quarter of 2021, at which time Pfizer’s quarterly dividend will be reduced such that the combined dividend dollar amount received by Pfizer shareholders, based upon the combination of continued Pfizer ownership and approximately 0.124079 shares of Viatris which were granted for each Pfizer share in the spin-off, will equate to Pfizer’s dividend amount in effect immediately prior to the initiation of the Viatris dividend.


“Our commitment to returning capital to shareholders is strong and the dividend increase reflects our continued confidence in the business and in our scientific pipeline,” stated Dr. Albert Bourla, Pfizer Chairman and CEO. “It also reinforces that our focus on creating meaningful value for patients benefits all our stakeholders.”


With current price $ 38.71 (yesterday's close), this raise brings their dividend yield to 4.03%.


Pfizer is a Dividend Contenders with a 10 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 5.9, 6.3, 6.7 and 6.1 (Dividend Champions.xls)



Since I own 250 shares of PFE, this will increase my portfolio's projected annual net dividend income by $ 7.45.


This increase raises my YOC to 5.08%.



Summary of 2020 Dividend Increases / Cuts



As you can see, some large dividend cuts will have the effect that full-year growth will be negative. The pandemic is nowhere near over and it is quite likely that more negative dividend announcements will come in the coming months.



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long PFE


Thanks for stopping by!


1 comment:

  1. Hawk -

    Absolutely loved the increase with how much has happened this year. I own shares of the new company, so looking forward to success from BOTH companies in 2021!