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Until 2019, there were a lot of pharmaceutical companies that were trying to grab a share in the market and were considered one of the many. Then came 2020 and 2021. This is when pharmaceutical companies made their presence felt and Pfizer achieved its moment of stardom. It developed a vaccine for coronavirus in a short time and became the star pharmaceutical company everyone was looking up to.
In less than one year, the company had a vaccine that helped combat the virus and it was the first vaccine to be approved by the U.S. However, Pfizer is not just about its vaccine, a lot is working in favor of the company. It has plenty of products in the works for the coming years. If you are keen on investing in Pfizer stock, let’s take you through the process.
Pfizer is a publicly traded company and you can buy the stock from the stock market. The best way to purchase the stock is through any online brokerage account. There are various brokers in the industry that allow you to purchase and sell stocks. They have varying fees, commission, and account minimum. Check out the different platforms, compare them, and then make a call. Some brokers also allow the purchase of fractional shares so if you are worried about not having enough funds on hand, you can buy a part of the stock. Here are the three brokers worth considering before you commit.
Robinhood is an easy-to-use app ideal for beginners. Buying Pfizer stock is quick and easy with Robinhood. There are no fees to sign up and you enjoy robust features at a nominal monthly fee of $5. The monthly fee provides access to Morningstar research which will assist you with stock picking. You can purchase the fractional stock of shares with Robinhood. There is no commission on the trade and you get access to pre-market and after-hours trading. Open an account for free and begin your investment journey. There is no minimum balance requirement.
It takes 10 minutes to open a Webull account and you can claim two free stocks ranging from $2.50 to $250. However, you will have to make a minimum deposit of $100 in the account. Once you do that, you can get Pfizer stock for free. You also get 3-month trial access to Level 2 Market Data which will help make the right investment decisions. The trades are commission-free and you enjoy several benefits including powerful data analytics. Webull does not offer fractional shares and does not allow you to invest in mutual funds, ETFs, or bonds.
Pros and cons
Access to full extended hours trading
Does not offer fractional shares
Does not allow you to invest in bonds or mutual funds
A user-friendly platform that allows you to buy whole and fractional shares, Stash is a great online brokerage. You can open an account in less than 10 minutes and connect it to a source of funding. It also allows you to invest in ETFs and bonds. Stash offers three levels of plans to choose from. The first plan is basic and worth $1. Then there is a $3 plan and a $9 plan. The $3 plan will come with retirement accounts and the $9 plan comes with two custodial accounts. You also enjoy monthly market insight reports with the plan. Additionally, it comes with a debit card account and a life insurance policy worth $1,000.
Pfizer Inc. is a global pharmaceutical company headquartered in New York. It was founded in 1849 by Charles Erhart and Charles Pfizer. It ranks 77th on the Fortune 500 list.
It produces vaccines and medicines for oncology, immunology, endocrinology, neurology, and cardiology. It has many blockbuster products that each generate more than $1 billion in annual revenue. More than 50% of the company’s revenue comes from the United States.
With time, the company made several strong acquisitions that put it at the top of the pharmaceutical industry. It went public on June 22, 1942, for $24.75 a share.
It is traded on NYSE on the ticker PFE.
Pfizer price history
Pfizer has been making a lot of noise lately for its vaccine. If you did not get a chance to invest in Pfizer, you can take the opportunity now. The stock is trading around $39.73 today. The all-time high was $43. PFE stock has high growth potential and considering its drug pipeline, the stock looks cheap today. The company has announced a 2 for 1 stock split four times in the past. It was followed by a 3 for 1 stock split and in 2020, it announced 1054 for 1000 stock split.
If you had invested $1,000 in 1942 for $24.75 a share, you would have received 40 shares.
Considering the stock split, today you would have 2023 shares worth $43, amounting to $87,018. However, this does not include the passive income you would have earned in the form of cash dividends.
Pfizer dividend information
Pfizer is a dividend king and has consistently paid dividends to shareholders. It is one reason to buy and hold the stock for the long term. Its second-quarter dividend for 2021 will be the 330th consecutive dividend. The company has a dividend yield of 4%. It recently announced a cash dividend of $0.39 per share for Q1 2021.
Best features of Pfizer Stock
Dividend king. Pfizer is one stock that provides reliable dividends to the shareholders. For a stock that is trading around $39, a dividend of $1.51 per share is not bad. Pfizer has a dividend yield of 4% and a five-year dividend growth rate of 6%. It has paid $8.4 billion in dividends in 2020. The company’s second-quarter 2021 cash dividend will be the 330th consecutive quarterly dividend. Reason enough for income-oriented investors to hold on to the stock.
Merger with Mylan. Pfizer’s generic drug business Upjohn has completed the merger with Mylan and the company that resulted from the merger is Viatris. Pfizer expects revenue growth of 6% over the coming five years after the spin-off of Upjohn. It is only good news for the investors. Pfizer will receive $12 billion for the transaction and the company plans to pay out the debt with this money. Low debt is a great sign for investors. Viatris will continue with its dividend in the future and shareholders who hang onto Viatris stock will receive a combined dividend from both companies. It acquired Ampylx Pharmaceuticals in April, which will help enhance the anti-infective drugs pipeline. Ampylx Pharmaceuticals is engaged in the development of therapies for life-threatening diseases that infect individuals with a compromised immune system. The company has been making the right acquisitions since 2000 and each merger has only increased the strength and capacity of the pharmaceutical giant.
Stable fundamentals. Pfizer has had a great year when it comes to revenue. Its first-quarter results for 2021 had a revenue of $14.58 billion and adjusted earnings of 93 cents per share. Even without the covid vaccine, the revenue of the company grew 8%. The company could manage to generate high revenue due to the ability to produce the vaccine in large quantities and take on new government supply contracts.
Major drugs in the pipeline. Pfizer has cancer medicines under progress and has about 275 clinical trials underway in areas of rare diseases, inflammation and oncology. It recently entered into an agreement with Celcuity in a licensing deal for the treatment of breast cancer. With this agreement, Celcuity will enjoy the rights to their breast cancer drug and the company will receive $300 million in royalty on sales and $10 million upfront.
Oncology success. Pfizer is known for its oncology drugs that generate massive revenue annually. The pipeline shows that the company is heavily targeted towards new therapies. By the end of 2025, the company could have 14 oncology approvals. Oncology is one of the core segments for the company that brings in more than $5 billion in revenue and Pfizer expects $6 billion in incremental revenue from oncology programs in 2027.
Vaccine success. Pfizer will always be associated with the coronavirus vaccine. The company saw a revenue of $83 billion in 2019 and 2020 from the vaccine. It expects revenue of $61 billion in 2021. As the demand for the vaccine continues to grow across lesser developed countries, Pfizer will continue to rake in money. It has signed a contract with the EU for 1.8 million covid vaccines in 2022 and 2023. It has already signed contracts to deliver 1.6 billion doses in 2021 and beyond 2021 with the government of Israel and Canada. The pandemic cannot be dealt with fully by 2022 and without more vaccines being approved or discovered, Pfizer will remain one of the top choices. It has received the first authorization in the EU for the covid vaccine in adolescents. Further, the company is looking for vaccine approval for children aged between 5 to 11.
Step 3: Open a brokerage account & buy Pfizer shares
Now that you are ready to invest in Pfizer shares, it is time to open a brokerage account. You can get into investing in the stock market with Webull. Once you open the account and deposit $100, you will get to pick two stocks of your choice and this is where you can buy PFE stock right away. Let’s go through the process in detail.
Head to the Webull website and click on Sign up. Provide your email ID and password here. You will receive a verification code and once you verify, you will be able to set up the account.
Now click on Open account and provide details like your name, birthdate, address, social security number, nationality, and employment. Additionally, you will have to answer some security questions before you start to trade. At the next step, you pick the type of account you want to open and the broker will verify the information and approve it.
The process will not take more than 10 minutes and you can simply fund the account to start investing. Link your bank account or transfer funds to the account and purchase Pfizer stock.
How much were Pfizer shares when the company first went public?
Pfizer shares were priced at $24.75 in the IPO in 1942.
How much does it cost to buy Pfizer shares today?
As of closing July 2, 2021, it costs $39.73 to buy Pfizer shares.
Does Pfizer pay dividends?
Pfizer is a dividend king and has consistently paid dividends to the shareholders.
What is the minimum number of Pfizer shares that I can buy?
You can purchase fractional shares of Pfizer for as little as $1. You must choose a brokerage that allows the purchase of fractional shares.
The bottom Line
Pfizer is one of the top pharmaceutical companies to invest in. If you are looking for a dividend aristocrat, Pfizer is the best choice. It is a growth stock that will continue to give. It is a stable stock that has benefitted from the coronavirus vaccine. But the impressive pipeline of drugs will also generate high sales and revenue in the coming years. Pfizer is an ideal stock for those who want to buy and hold for the long term.
Before you start to buy or sell Pfizer stock, you must decide the number of stocks you want and the stock price you want to pay for them. You need to accept the market volatility and keep in mind that the stock price could rise one day and fall another. When you place an order, you can choose to buy the stock at market price, which is the price prevailing at the time of placing an order. Alternatively, you can set a limit price. The limit price is the price you set for the execution of the order. If the stock reaches the limit price, the order will be executed or it will expire.
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