I love this 5.85% highyielding dividend stock for 2024. I'm now actively accumulating shares and see deep value.
#dividend #stock #investing

Timestamps:
0:00 INTRODUCTION
0:09 I am buying this deep discount value stock, Pfizer (PFE).
0:17 Check out the pinned comment for a link to my Patreon.
0:29 5.85% starting dividend yield (qualified).
0:54 This stock reminds me of AbbVie (ABBV), another dividend stock I own.
1:18 This stock also reminds me of IBM (IBM), another dividend stock I own.
1:39 KEY: A turnaround can sometimes take longer than one thinks.
2:05 This is Pfizer's turnaround moment.
3:39 MAIN VIDEO
4:10 PFIZER (PFE) DIVIDEND STOCK STATS
4:26 It’s down 38.6% from the 52week high.
4:38 2023 Forward PE is 18.5.
4:47 2024 Forward PE is 12.65 (which is compelling).
5:02 Dividend yield is 5.85% (qualified dividend).
5:21 Payout ratio is above 100% for 2023, but dips to 74% in 2024. I believe the dividend is sustainable, as of now.
5:46 KEY: When I look at turnaround plays, I'm just buying for the dividend and the sustainability of the dividend.
6:29 QUESTION: Can they continue to pay the dividend and perhaps increase it over time?
7:00 They increase the dividend, on average, by 3% per year.
7:10 This is a $162.05 billion market cap company.
7:22 You have to go back to 2014 to see similar prices.
8:26 Revenue is growing vs. prepandemic. Earnings are not really growing since prepandemic (as of now).
9:19 It's trading at 2014 prices. Earnings in 2023 will not even meet 2018 earnings. But, 2024 earnings will exceed 2018 earnings.
9:50 Earnings are bad right now.
10:10 KEY: They will be facing a series of patent cliffs. This is accelerating their challenges.
11:10 I think they spent too much money (too much overhead) during the pandemic.
11:27 Cost Realignment: They will save $3.5 billion through the end of 2024.
12:40 KEY: This company needs to make up for their slowing sales and earnings. They acquired Seagen.
13:20 KEY: The acquisitions are not adding a lot of value right now. It takes time.
14:52 Wall Street is not adding much value to the pipeline, until they see it come to fruition.
15:38 I'm not buying PFE for capital gains.
16:17 I'm looking at this as an "Income Factory Lite" stock.
17:08 PFE represents 0.77% of my portfolio. I have some runway to increase this position, while still keeping it ancillary.
17:28 Healthcare is only 11.6% of my portfolio.
17:38 I'm seeing value at JNJ too, with its PE of 14.9.
17:52 MY 2024 INVESTING STRATEGY
18:36 Realty Income (O) is now my number 7 largest position.
19:51 I plan to add to JNJ, as well, a yieldoncost longterm investment.
21;24 KEY: I'm looking at this from a pure number standpoint.
21:37 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Pfizer (PFE), AbbVie (ABBV), IBM (IBM), Altria (MO), Johnson & Johnson (JNJ), Realty Income (O), and Raytheon Technologies (RTX). I own these stocks in my personal dividend stock portfolio.

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