Pfizer's Profits Plunge 77%: Is the Dividend Still Safe?

Pfizer (NYSE: PFE) provides investors with an attractive dividend that currently yields 4.7%. To collect $1,000 in annual dividends at that rate, you would need to invest approximately $21,300. Compare that with the nearly $65,000 you would need to invest in the average S 500 stock, which yields around 1.5%, to generate the same payout, and it's easy to see why Pfizer can be an attractive income investment to buy and hold.

But in the company's recent earnings report, profits plunged as Pfizer's COVID-related revenue nosedived. Given the headwinds it's facing right now, is Pfizer stock a good option for dividend investors, or could the payout be in danger of being cut?

On Aug. 1, the healthcare giant unveiled its second-quarter earnings numbers, for the period which ended in June. In Q2, Pfizer's sales of $12.7 billion were down 54% year over year. The big reason for the drop was a decline in revenue for Comirnaty, its COVID-19 vaccine. At less than $1.5 billion, its sales were down 83%. And Paxlovid, its COVID pill, generated just $143 million in sales versus the $8.1 billion it brought in during the prior-year period.

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Source Fool.com