Pfizer (NYSE: PFE) is offering dividend investors a huge 6.9% yield.
To put that into perspective, the S&P 500 index (SNPINDEX: ^GSPC) has a tiny 1% yield right now, and the average pharmaceutical stock’s yield is 1.6%
Dividend lovers will clearly find Pfizer’s yield attractive. However, that lofty yield is also a sign that this pharmaceutical company is deeply out of favor on Wall Street. If you have a long-term investment approach that allows you to practice what I call time arbitrage, you may want to consider buying this high-yield drugmaker.
What’s wrong with Pfizer? Pfizer’s stock price is rough 60% below its late 2021 high. In fact, the share price is lower today than it was prior to the coronavirus pandemic.