"There's comfort involved with investing in a name that pays you every quarter (or month) in cash, regardless of what the share price ends up doing. And while pursuing higher yields via the likes of covered call ETFs can be a smart way to go for those who believe prospective market returns will be lower, I do think that sticking with the oversold higher-yielders can be a great way to land a magnificent dividend without capping one's upside."
"Pfizer ( NYSE:PFE) is a blue-chip biopharmaceutical firm that's been forgotten about by many investors who may have bailed on the name after COVID shot sales fell off a cliff. The stock goes for just 13.0 times trailing price-to-earnings (P/E), with a 7% dividend yield now that the initial wave of optimism surrounding the TrumpRX deal has faded away. Though it's really hard to tell how Pfizer's fortunes will change, I do think the oncology pipeline is worth watching."
Baby Boomers should reduce portfolio risk as stock valuations climb and consider rotating into defensive, high-dividend equities. Regular dividend payers provide income stability because they deliver cash payments regardless of share-price moves. Covered-call ETFs can raise yields but may limit upside, while oversold higher-yield stocks can offer large dividends without capping gains. Pfizer is a high-yield blue-chip trading near 13 P/E with a roughly 7% yield after COVID vaccine revenue declined. Pfizer's oncology pipeline could restore growth if late-stage drugs succeed, but patent cliffs and pipeline uncertainty demand patient, income-focused investors.
Read at 24/7 Wall St.
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