PFE

popowich · 08-11-2008, 07:26 PM

I am mostly in funds and do not have many stocks. I recently purchased a little PFE because I am not exposed to the industry and like the dividend. I suppose I could have gone with JNJ or something similar too. Anyway, any glaring reason not to pick this as an anchor "safe" dividend stock? Thanks!

-Raymond

grumpy · 08-11-2008, 07:52 PM

With a thin drug pipeline and big revenue drugs reaching the end of patent protection it is debatable whether PFE can maintain the current dividend. If so, then probably not a bad investment at this point.

Grumpy

clifp · 08-12-2008, 04:32 AM

The $64 Billion dollar question with PFE is the massive loss of profit when Liptor goes of patent already priced into the stock? I don't have an informed opinion. But with $30 billion in cash and free cash flow of $15 billion vs dividend payments of $8 billion and shrinking share base it appears the dividend is safe for many years.

jimnjana · 08-12-2008, 10:54 AM

Quote:

Originally Posted by clifp

The $64 Billion dollar question with PFE is the massive loss of profit when Liptor goes of patent already priced into the stock? I don't have an informed opinion. But with $30 billion in cash and free cash flow of $15 billion vs dividend payments of $8 billion and shrinking share base it appears the dividend is safe for many years.

problem w/their cash is that it is euros not dollars, they cant use it in the us w/o paying hefty taxes. I'm long on PFE but it does have issues, over all its a gamble that they will manage portfolio of drugs in development and continue to make acquistions that will enhance future pipeline.

Jim

haha · 08-12-2008, 01:02 PM

Quote:

Originally Posted by jimnjana

I'm long on PFE but it does have issues, over all its a gamble that they will manage portfolio of drugs in development and continue to make acquistions that will enhance future pipeline.Jim

This is just the nature of drug companies. Their pipelines are not particularly transparent as often it is not known until very late in the trial sequence what is happening. And ofen not even then- look at all the drugs that have been very expensively pulled because of clinical reports of problems coming in well after they were on the market.

Even if the PFE dividend were reduced it may not effect the share price very much. Drugs are kind of a lottery.

Ha

08-11-2008, 07:26 PM	#1
popowich Recycles dryer sheets Join Date: Jun 2008 Location: Rochester, New York Posts: 67	PFE I am mostly in funds and do not have many stocks. I recently purchased a little PFE because I am not exposed to the industry and like the dividend. I suppose I could have gone with JNJ or something similar too. Anyway, any glaring reason not to pick this as an anchor "safe" dividend stock? Thanks! -Raymond

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08-11-2008, 07:52 PM	#2
grumpy Full time employment: Posting here. Join Date: Jul 2004 Posts: 988	With a thin drug pipeline and big revenue drugs reaching the end of patent protection it is debatable whether PFE can maintain the current dividend. If so, then probably not a bad investment at this point. Grumpy

08-12-2008, 04:32 AM	#3
clifp Thinks s/he gets paid by the post Join Date: Oct 2006 Posts: 2,338	The $64 Billion dollar question with PFE is the massive loss of profit when Liptor goes of patent already priced into the stock? I don't have an informed opinion. But with $30 billion in cash and free cash flow of $15 billion vs dividend payments of $8 billion and shrinking share base it appears the dividend is safe for many years.

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