Pros: Looking at their financials, they seem to be a cash cow. Cash flow from operations is nearly 18 billion, with a market cap of about 190 billion and almost no net debt. The dividend has been raised every year for the last 35 years outside of one. Cap ex is very low, so current free cash flow is 8% of market cap, so I am confident the dividend will continue to grow. Drugs aren't going away anytime soon.
Cons: Dividend yield is only 3.2%. Dividend was cut in half back in 2009 during the financial downturn. CFO has not really grown much over the last decade.
So what is your opinion on buying into a business where growth may not be stellar, but current cash generation is great.
Can someone tell me why M* says the payout ratio for the current year is 58% when their dividend payout was .96 on earnings of 3.19. This is an error I assume.
http://financials.morningstar.com/ratios/r.html?t=PFE
Cons: Dividend yield is only 3.2%. Dividend was cut in half back in 2009 during the financial downturn. CFO has not really grown much over the last decade.
So what is your opinion on buying into a business where growth may not be stellar, but current cash generation is great.
Can someone tell me why M* says the payout ratio for the current year is 58% when their dividend payout was .96 on earnings of 3.19. This is an error I assume.
http://financials.morningstar.com/ratios/r.html?t=PFE