2 hours ago
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Trey Thoelcke
Thu, March 26, 2026 astatine 6:55 AM CDT 5 min read
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Pfizer’s dividend information hinges connected escaped currency travel betterment successful 2026, arsenic the existent payout consumes much currency than the institution generates, a signifier that cannot persist without drafting connected reserves oregon accrued borrowing.
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Pfizer (NYSE: PFE) is 1 of the astir wide held dividend stocks among status investors. The banal presently yields 6.3%, good supra astir fixed-income alternatives. But a precocious output tin beryllium a informing sign, and close present Pfizer's payout mechanics merit a hard look.
| Annual Dividend | $1.72/share |
| Dividend Yield | 6.3% |
| Quarterly Dividend | $0.43/share |
| Consecutive Years of Increases | 16 years (2010–2026) |
| Most Recent Increase | $0.42 to $0.43 (2025) |
| Dividend Aristocrat Status | No (cut successful 2009) |
Pfizer paid $9.771 cardinal successful dividends successful FY2025 against escaped currency travel of conscionable $9.076 billion, meaning the dividend exceeded escaped currency travel by $695 million. When a institution pays retired much than it generates successful escaped cash, it indispensable gully connected reserves oregon get to money the dividend, an unsustainable signifier if it persists.
| Earnings Payout Ratio (Adjusted EPS) | $1.72 / $3.22 = 53.4% | Healthy |
| Earnings Payout Ratio (GAAP TTM EPS) | $1.72 / $1.36 = 126.5% | Concerning |
| FCF Payout Ratio | $9.771B / $9.076B = 107.7% | Red Flag |
| Operating CF Coverage | $11.705B OCF / $9.771B dividends = 1.20x | Weak |
The adjusted EPS payout ratio of 53% looks manageable, but adjusted figures exclude existent costs. On a GAAP basis, TTM diluted EPS is $1.36 against a $1.72 yearly dividend, putting the GAAP payout ratio supra 100%. This spread is mostly driven by $4.4 cardinal successful non-cash impairment charges successful Q4 2025. In 2023, the dividend exceeded FCF by $4.454 billion, a acold much terrible shortfall.
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| Total Debt | $67.4 billion | Elevated |
| Debt-to-Equity | 0.78x | Moderate |
| Cash connected Hand | $1.14 billion | Thin |
| Total Liquid Assets | $13.6 billion | Declining |
Total indebtedness roseate from $63.6 cardinal successful 2024 to $67.4 cardinal successful 2025, portion liquid assets fell from $20.5 cardinal to $13.6 billion. The indebtedness load reflects Pfizer's acquisition strategy, including the Seagen oncology deal. The equilibrium expanse is tighter contiguous than during the COVID-era windfall years.
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