Pfizer (PFE) closed at $28.40 on October 12, returning almost 4% over six months versus 14% for the State Street SPDR S&P 500 ETF Trust and 21.25% for the Insider Monkey Billionaire Index, with a dividend yield near 6%. Trailing earnings of $0.77 per share produce a 226.32% payout ratio and a 36.73 trailing multiple, while a forward estimate of $2.90 gives a forward multiple of 9.76. The article says free cash flow is more than double net income and revenue grew last quarter, so the cash behind the dividend appears solid. However, net margin of 6.80% carries interest on $63.48 billion of debt, and the forward multiple only holds if earnings recover sharply, which the article suggests the 6% yield shows the market doubts. The article says net margin is the line to follow from here.
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