Is Pfizer Inc. (PFE) the Best Affordable Dividend Stock to Buy According to Hedge Funds?

Pfizer Inc. (PFE) has long been a favorite among income-oriented investors, thanks to its consistent dividend history and attractive yield. But is it the best affordable dividend stock to buy according to hedge funds? Let's examine the data and expert opinions to find out.

Pfizer has paid a dividend every year since 1901, with 14 consecutive years of dividend growth, qualifying it as a Dividend Contender. As of 2025, Pfizer's annual dividend is $1.72 per share, with a yield of 6.51%. This high yield is attractive to income-oriented investors and compares favorably to other dividend stocks in the healthcare sector.

However, Pfizer's dividend history and yield are not the only factors that make it an attractive affordable dividend stock. The company's strategic assets, economies of scale, and distribution network play a crucial role in its ability to maintain and grow its dividend, as well as in its long-term prospects.

Pfizer's patent-protected drugs, such as Prevnar 13, Ibrance, and Eliquis, generate substantial cash flow, enabling the company to return significant cash to shareholders in the form of dividends. Additionally, Pfizer's global salesforce and extensive distribution network allow it to achieve economies of scale, reducing costs and increasing efficiency. This enables the company to maintain a competitive edge and generate higher profits, which can be used to fund R&D efforts and dividend payments.

Moreover, Pfizer's venture capital arm, Pfizer Ventures, invests in potentially transformative therapeutics and platform technologies, further enhancing the company's long-term prospects. This active approach to investing in innovation helps Pfizer maintain its competitive position and generate substantial cash flow, which can be used to fund dividend payments.

However, it is essential to consider the potential risks associated with Pfizer's dividend policy. The company's stock price can be volatile, and its revenue is heavily dependent on a few key drugs. Additionally, patent expirations and regulatory risks could impact Pfizer's earnings and dividend payouts.

In conclusion, Pfizer Inc. (PFE) is an attractive affordable dividend stock according to hedge funds, thanks to its consistent dividend history, high yield, and strong fundamentals. However, investors should be aware of the potential risks associated with the company's dividend policy and consider the broader market conditions when making investment decisions. As always, it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.