1 Magnificent Dividend Stock Down 57% to Buy and Hold Forever

By Brett Schafer – Mar 13, 2026 at 4:50AM ESTKey PointsPfizer has been hurt in recent years after the COVID-19 pandemic and recent drug pricing pressure.The stock now trades at a dividend yield of 6.5%. Despite continued pricing pressure, Pfizer stock looks cheap for investors today. The wash-out from the COVID-19 pandemic has been brutal for any pharmaceutical stock. Pfizer (PFE 1.65%) has been no exception. As a vaccine maker, Pfizer has faced headwinds to growth in the last few years. Now, the changing of the guard among United States regulators may prove to be even more challenging, which has scared investors away from the stock. However, Pfizer remains highly profitable and sports a dividend yield of 6.5%, one of its highest ever. Down 57% from all-time highs, is now a perfect time for dividend investors to buy this pharmaceutical giant? Image source: Getty Images. Pfizer has short-term headwinds, long-term opportunity Investors may have thought they were out of the woods as Pfizer lapped revenue lost from the COVID-19 vaccines. It had made a large acquisition of Seagen, a steady grower that develops targeted cancer treatments. But then, the U.S. government came knocking. Through new mandates, the United States wants to lower drug prices in its home market. This would change the dynamics for the industry, where drugs are generally much more expensive domestically, which fuels international price discounts. Most pharmaceutical giants have been hit by this news, with Pfizer factoring in a revenue decline in 2026. This is bringing down Pfizer's share price and may be distracting investors from the long-term opportunity for the business and pharmaceuticals as a whole. The company has many irons in the fire, including its recently acquired obesity drugmaker and the growth of the oncology portfolio from the Seagen acquisition. Sure, the company is facing some patent expirations over the next few years, but this is normal for the pharmaceutical industry, where reinvestment in research is required each year to keep the pipeline strong. The company spent over $10 billion on internal research in 2025. ExpandNYSE: PFEPfizerToday's Change(-1.65%) $-0.45Current Price$26.85Key Data PointsMarket Cap$153BDay's Range$26.64 - $27.2152wk Range$20.91 - $27.94Volume845KAvg Vol47MGross Margin66.23%Dividend Yield6.40% Time to buy Pfizer stock? Pfizer now trades at a forward price-to-earnings ratio (P/E) under 10 and a dividend yield of 6.5%. With positive free cash flow, Pfizer will likely be able to maintain this dividend payout while also paying down debt associated with the Seagen acquisition. The question for investors is whether Pfizer can sustain its dividend growth over the long term. Historically, the company has been able to do so as it expands its drug portfolio, both internally and through acquisitions. Despite headwinds from new U.S. government policies, I believe Pfizer can continue to do so if it expands its cancer drug portfolio and successfully enters the obesity drug market. Even if it keeps running in place, you will get a dividend yield of 6.5% in the interim. This looks like a good buying opportunity for dividend investors seeking safe assets to add to their portfolios.Read NextMay 15, 2021 •By Lou Whiteman3 Dividend Stocks to Buy and Hold for the Long TermSep 2, 2020 •By Zhiyuan SunBuy Alert: American Airlines Stock Is Headed HigherDec 16, 2019 •By Dan CaplingerStock Market News: Boeing Mulls Production Cuts; Pfizer Hikes Its DividendJun 8, 2018 •By Jason Hall3 Dividend Stocks Ideal for RetireesDec 27, 2017 •By Eric VolkmanThese 3 Stocks Just Raised Their DividendsJun 29, 2017 •By Neha Chamaria3 Value Stocks Perfect for RetirementAbout the AuthorBrett Schafer is a contributing Motley Fool stock market analyst covering consumer goods, financials, technology, and industrials. Brett is a self-taught investor and has hosted the Chit Chat Stocks podcast since 2018. He previously worked as a lab engineer for science laboratories. He holds a bachelor’s degree in mechanical engineering with minors in finance and mathematics from Washington State University. His lab work on Major League Baseball’s juiced ball problem was featured in The Wall Street Journal and other national outlets.TMFBrettSchaferX@CCM_BrettStocks MentionedPfizerNYSE: PFE$26.85(-1.65%)-$0.45*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.