Many #dividend #investors think that this #stock is really hot right now, especially after falling 16% in value. We are value investors, after all, looking for a good buying opportunity. Today, I go through great detail (especially on the balance sheet) of this stock pick (Pfizer) and my other healthcare stocks too (AbbVie and Johnson & Johnson). Get ready for some serious dividend growth investing knowledge. INVESTING SPREADSHEET:
You can download my free Pfizer (PFE) dividend stock analysis here:
0:00 Intro and Video Overview
1:44 Pfizer (PFE), a dividend stock that I own
1:52 Please follow along at home
3:36 Fundamental value stock analysis starts here
3:59 Let's talk about Pfizer (PFE) at a high level
4:14 PFE dividend analysis (6.72% 5-year dividend CAGR)
5:02 Long term stock chart for PFE is fascinating! Stock is down comparing current price vs. 2000. Just goes to show the risk that is inherent with an investment in this industry.
5:58 The pharmaceutical industry requires a robust drug pipeline and the industry carries a lot of risk!
6:29 Is it risky investing in AbbVie (ABBV). Of course!
6:49 My allocation to pure play pharmaceuticals is low, due to the inherent risk in the industry. That said, I love them because they provide great dividend cash flow.
7:37 This stock is only down 16% from the high! I think a lot of investors are getting excited a little too early.
8:20 Let's look at current valuation of this stock. Forward 2019 PE ratio is 13.48. That actually is a reasonable PE ratio.
9:25 AbbVie (ABBV) is at a 7.68 forward PE. Johnson & Johnson (JNJ) is at a 15 forward PE.
10:30 Pharma PEs should be lower since this is a riskier industry. Difficult to compare PEs across industries.
11:53 Dividend yield is 3.71% and the payout ratio is a 50%. Great payout ratio!
13:35 What do I think about the Mylon deal?
14:45 Upjohn – What is it?
16:26 Mylon does NOT have a history of paying dividends.
18:15 I feel better about owing AbbVie (ABBV) vs. Mylon.
19:00 Let's talk about Pfizer (PFE) and GlaxoSmithKline, even more changes.
19:39 What is Pfizer doing here strategically? They are focusing on BioPharma.
20:16 PFE is acquiring Array BioPharmaceuticals for $11 billion.
21:33 What happened in Q2 with PFE.
24:20 My portfolio allocation for ABBV, PFE, and JNJ
25:00 Here's how I look at balance sheets. Let's look at shareholder's equity (also known as book value)
27:08 Book values are negative in the pharma industry (and more negative than you think). Why is that?
32:50 What about AbbVie's negative book value?
36:00 I'm not too strict on shareholder's equity. You may be different.
37:30 Investing in the stock market carries risk.
37:47 I bought PFE in 2012 for $21 per share. It's now at $38. 6.86% simple dividend yield on cost.
39:30 It's not a hot stock for me (yet)!
NOTE: I mention somewhere in the video I am reinvesting my PFE dividends. I'm actually not reinvesting my PFE dividends anymore. I'm using them to pay my bills!
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Here's my recent AbbVie (ABBV) 10-K stock analysis:
DISCLOSURE: I am long Pfizer (PFE), AbbVie (ABBV), Johnson & Johnson (JNJ), United Technologies (UTX), 3M (MMM), and Apple (AAPL). I own these stocks in my stock portfolio.
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