Wondering how well you'd have done if you'd invested in pharmaceutical giant Pfizer (PFE 0.06%) three years ago and hung on? Well, I'm afraid the answer isn't pretty: If you'd investing $1,000 in Pfizer on Aug. 8, 2022, hung on and reinvested dividends, that sum would have been worth $585 on Aug. 8, 2025. Ouch!
For some context, during those same three years, the S&P 500 index of 500 of America's biggest companies averaged gains of roughly 17% per year, turning $1,000 into $1,615.
Here's some good news, though: Stock investors need to look forward much more than backward. Trailing returns are in the past. What matters most for current Pfizer investors and would-be Pfizer investors is how the company will perform from here on. And Pfizer's future is looking promising.
Image source: Getty Images.
Some investors have been disappointed in Pfizer when they've compared recent results to those from the past. But those past years were exceptional boom years thanks to Pfizer's COVID-19 vaccine and Paxlovid COVID-19 treatment. Those were in great demand, but demand has fallen. Others worry because some of Pfizer's big sellers, such as Eliquis, Ibrance, Inlyta, Xeljanz, Xtandi, and Vyndaqel, are coming off patent protection in the next few years. Pfizer has been planning for that, and investing in its pipeline, which features more than 100 active programs -- many of which are in oncology. Pfizer has also been getting additional approvals for its drugs, and it has been cutting its costs in an effort to boost profitability.
Finally, Pfizer is a dividend-paying stock, with a whopping recent dividend yield of 7%. So as you invest in Pfizer and wait for its investments to pay off, you'll be rewarded.
