Pfizer Keeps Dividend at $0.43, Payout Near 60% Target

Pfizer kept its $0.43 quarterly dividend unchanged after reporting results for the first quarter of 2026. The company reported adjusted diluted EPS of $0.75 and GAAP diluted EPS of $0.47 for the quarter and cited the need to shore up the balance sheet while building a drug pipeline to replace lost COVID revenue and address upcoming patent expirations.

Using the company’s adjusted EPS, Pfizer’s $0.43 quarterly payment translates to an annual dividend of $1.72 and an annualized adjusted EPS of $3.00, implying a payout ratio near 57%. Using GAAP results, annualized EPS is $1.88 and the payout ratio is about 91%. The gap between adjusted and GAAP EPS reflects amortization of acquired intangibles and acquisition-related costs tied to the Seagen and Metsera deals.

Pfizer’s management has set a long-term dividend target of roughly 60% of adjusted diluted EPS and described 2026 as a transitional year aimed at returning the company to growth by 2029. The company has said keeping the payout aligned with adjusted earnings will support deleveraging and fund pipeline investments while it integrates recent acquisitions and pursues cost savings.

In a column, Kelly Green wrote that she expects the dividend to remain payable for the foreseeable future, adding, “I think we’ll be able to collect this dividend for many years to come.”

The same column reviewed income-focused investments. Municipal bond funds were cited with current yields roughly between 4.5% and 6%; the column noted federal tax exemption for muni interest does not guarantee exemption from state tax and some municipal funds can create exposure to the alternative minimum tax. Junk bond funds were identified with yields in the 6.5%–7.1% range.

Two mortgage real estate investment trusts, AGNC Investment and Annaly Capital Management, were described as mREITs that hold portfolios of agency mortgage-backed securities rather than physical real estate. Their returns depend on interest-rate spreads and prepayment behavior.

Gladstone Land (LAND) was placed on a watchlist. The farmland REIT pays $0.0467 monthly for a current yield near 5.8% and has shifted more leases from fixed rent to revenue-sharing crop participation. For the quarter, fixed base rents fell by $2.4 million while participation rents rose by $4.4 million, contributing to a 33% year-over-year increase in adjusted funds from operations. The company is pursuing alternative revenue for vacant land, including solar and water-rights leases, and has used share issuance in the past to reduce leverage.

The Virtus InfraCap U.S. Preferred Stock ETF (PFFA) was highlighted for a current yield near 9.75%, paying $0.1725 monthly. The fund’s top holdings include Oracle, Flagstone Bank, Energy Transfer and Global Net Lease Inc.; its expense ratio is 2.11% and the fund is actively managed.

Background: Pfizer faces a patent cliff for its blood thinner Eliquis and lower COVID-related revenues while integrating acquisitions and cutting costs. Management’s long-range goal remains a return to growth by 2029 and a dividend policy that targets roughly 60% of adjusted diluted EPS as the company stabilizes its balance sheet.