Pfizer discovers, makes, and sells prescription medicines and vaccines for patients, doctors, and governments worldwide, with large businesses in vaccines, cancer, heart disease, and rare diseases. In 2020, its COVID-19 shot, developed with German partner BioNTech, became the first COVID-19 vaccine authorized in the United States. Its scientists find drug candidates and run clinical trials to prove they are safe and effective, and Pfizer then manufactures approved products in its own plants, earning most of its money from patented drugs before cheaper generic copies arrive. Pfizer was founded in 1849 as a chemicals business in Brooklyn and is based in New York City.
Company Size
10,001+
Company Stage
IPO
Headquarters
New York City, New York
Founded
1849
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High dividend yields can hide weak payouts, and a four-step test helps separate real income from traps. It checks earnings with one-offs stripped out, full-year free cash flow against dividends, management's explanation, and whether debt funds the gap. Ford yields 4.99% and shows a trailing EPS of -$1.88, caused by $4.2B in one-time charges. Its debt-to-equity of 4.66 leaves the $0.60 dividend exposed to a downturn. Pfizer yields 6.03%, but its free cash flow yield is 5.60%. Clorox's roughly $405M of free cash flow fell short of about $601M in dividends. Whirlpool fails every step. It cut its quarterly dividend from $1.75 to $0.90 in 2025, paid no common dividend in the second quarter of 2026, and its shares are down 59.48% since the end of 2025. 3M and Dow pass, with payouts now covered by cash.
Four blue chip companies, UPS, Pfizer, Kraft Heinz, and Ford, may struggle to sustain their dividends, according to an analysis of their earnings, cash flow, and debt. UPS yields 7.02% and pays out about 121% of its GAAP earnings. Pfizer yields 6.10%, with a GAAP payout ratio of about 226%; its 2025 free cash flow of $9.076 billion fell short of $9.771 billion in dividends. Kraft Heinz yields 6.82%, but its trailing GAAP earnings per share are −$2.88 after $7.4 billion in impairments. Ford yields 4.98% after an $8.162 billion loss in 2025, and its debt-to-equity ratio is 4.66. All four companies say their payouts are safe, and each points to adjusted earnings guidance that covers the dividend.
The FDA has approved Pfizer's TUKYSA (tucatinib) in combination with trastuzumab and pertuzumab for front-line maintenance treatment of adults with HER2-positive metastatic breast cancer. This chemotherapy-free option expands TUKYSA's use to an earlier disease stage. The approval follows Phase 3 HER2CLIMB-05 trial results showing median progression-free survival of 24.9 months versus 16.3 months with placebo—8.6 additional months without disease progression. The treatment reduced risk of progression or death by 35.9%. Most common adverse events included diarrhoea, musculoskeletal pain, hepatotoxicity, nausea, fatigue, rash, and vomiting. One fatal case of drug-induced liver injury occurred. TUKYSA was previously approved for second-line HER2-positive metastatic breast cancer treatment in 2020. HER2 is overexpressed in 15-20% of breast cancers.
Warren Buffett's favourite valuation metric, the ratio of total market capitalisation to GDP, has reached 235.8%, well above the 200% level he warned constitutes "playing with fire". The indicator sits near its record high from September 2026. Despite elevated overall market valuations, three stocks remain attractively priced. Enterprise Products Partners trades at 11.9 times forward earnings whilst offering a 6% distribution yield, benefiting from increased natural gas demand from AI data centres. JPMorgan Chase trades at 13.5 times forward earnings and could benefit from rising interest rates. Pfizer trades at just 9.7 times forward earnings with a 6.3% dividend yield, though it faces patent cliff challenges through 2028.
Vaxcyte announced its 31-valent pneumococcal vaccine, VAX-31, met all primary endpoints in a Phase 3 trial with 4,047 participants. The vaccine matched Pfizer's Prevnar 20 on all 20 shared serotypes and Merck's Capvaxive on 17 of 19 shared serotypes. Pfizer's Prevnar franchise generated $6.49 billion in 2025, representing roughly 10% of the company's $62.58 billion total revenue. The franchise grew just 1% last year, with Pfizer citing lower US market share. Merck's Capvaxive brought in $759 million in 2025, about 1% of its revenue. Pfizer trades at 9.87x forward earnings whilst Merck trades at 16.36x. Vaxcyte plans to file for approval in the first half of 2028. The company expects results from two additional trials in the first half of 2027.