If you ask me for a reason I'd buy Pfizer (PFE 1.56%) stock and never sell it, I certainly have one -- because I've already bought into Pfizer, and I have no plans to sell it. Here's a look at why I invested in Pfizer, and why you might want to, as well.
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Meet Pfizer
As you probably know, Pfizer is a giant among pharmaceutical stocks, recently sporting a market value of $154 billion. It's been around since before the Civil War, as it was launched in 1849 in Brooklyn. The company became more of a household word in 2020, once it debuted a COVID-19 vaccine, followed by its COVID-19 treatment, Paxlovid.
Those were in great demand at the beginning of the pandemic, and generated gobs of money for Pfizer. Demand has waned, though, and the stock has stopped soaring. It has averaged annual gains of 6.5% over the past 15 years, and average annual losses of 8.8% over the past three years. It's up 10.4% year to date as I write this.
This sluggish stock performance has helped make Pfizer attractively priced right now, with a recent forward-looking price-to-earnings (P/E) ratio of 8.8, below the five-year average of 9.8.
NYSE: PFE
Key Data Points
Why Pfizer?
The main attraction for me with Pfizer was -- and is -- its dividend. That payout was recently yielding a fat 6.4%. The dividend hasn't been growing at a fast clip -- it's averaged about 3% annual increases over the past five years -- but it's been paid steadily. The most recent quarterly dividend payment is the 349th consecutive one! (That's 29 years' worth.)
But, of course, there's more to like about Pfizer. Yes, it has some major drugs facing the expiration of their patent protection. But the company has been busy working on new potential strong sellers and even blockbusters. It has even invested in a GLP-1 drug company that's focused on a once-monthly injection.
It's true that Pfizer isn't exactly firing on all cylinders right now, but that's why long-term believers can snap up shares at an attractive price -- while enjoying a generous dividend. The company's recently reported fourth-quarter results featured revenue down 3% year over year -- but up 9% operationally when the COVID-19 vaccine and Paxlovid's results are excluded. Over all of 2025, it delivered 6% operational growth, excluding its COVID-19 offerings.
In 2025, the company spent $10.4 billion on research and development, which is promising, as it works on new drugs. It recently boasted 102 candidates in its pipeline, 32 of which are in the late-stage Phase 3.
I don't plan to sell my shares of Pfizer, as I'm mostly in it for the dividend income, but it's not a buy-it-and-forget-it kind of stock. If you buy, keep an eye on its developments, to make sure it's still promising. Remember, too, that there are plenty of other great dividend stocks and dividend-focused ETFs to consider as well.
