Pfizer’s elevated 6.4% dividend yield reflects investor worries over looming patent expirations for key drugs through 2030.
Pfizer’s dividend yield stands at 6.4%, significantly above the S&P 500’s 1% and the pharmaceutical sector’s 1.4% average. The company has maintained its dividend despite the high yield, but concerns persist over revenue sustainability.
Patent expirations for oncology drugs Ibrance and Xtandi in 2027, followed by Eliquis in 2028, threaten to erode revenue. Pfizer is investing in new drug development, but investors remain skeptical about its ability to offset losses.
The mismatch between patent expirations and new drug timelines has pressured Pfizer’s financial outlook, contributing to the stock’s underperformance relative to peers.