12-13-2016, 02:40 PM
With the announced dividend raise to 32 cents per quarter, PFE's dividend is finally / officially back to the level it was when I bought the shares in 2008 -- $1.28 per year. That dividend cut bummed me out, but I figured it would recover, eventually. I paid $16.22 per share, which gave me an initial yield of 7.89 percent. With the latest raise, my yield on cost is back to that level -- 7.89 percent. Did it make sense to hold? I don't know. I may have done better in an index fund. My initial outlay in 2008 was $3264 for 200 shares. With reinvestment, I've now got about 240 shares worth about $7782.
More concerning however, is that PFE's earnings trajectory looks poor, and with this raise, the payout ratio is comfortably above 100 percent. If they can't turn things around, we may be looking at another dividend cut before too long.
Other thoughts?
More concerning however, is that PFE's earnings trajectory looks poor, and with this raise, the payout ratio is comfortably above 100 percent. If they can't turn things around, we may be looking at another dividend cut before too long.
Other thoughts?