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How to earn $500 a month from this stock? 

Ivan Zhelev

Pfizer’s (NASDAQ: PFE) stock continued its 11-month decline in November after its third-quarter sales missed expectations amid waning demand for Covid products.

In the recent Q3 report, the company reported a 41% operational decline in sales and losses that missed some expectations. As its Covid-19 gains evaporate, the company wants a chunk of the growing weight loss drug market, which it believes could eventually grow to $90 billion.

The data on Pfizer’s experimental obesity pill, ‘danuglipron,’ will be crucial in determining how competitive the company can be against the space’s dominant players Eli Lilly (NASDAQ: LLY) and Novo Nordisk (NYSE: NVO)

Pfizer has indicated that danuglipron demonstrated effectiveness in weight loss among patients with Type 2 diabetes, comparable to Novo Nordisk’s Ozempic, according to a report from Reuters,

How much does one need to invest to make 500 from Pfizer?

Pfizer’s current stock price of $29.26 reflects a significant decline of approximately 75% from its year-to-date high of $51.1. Despite this decrease, the stock presents an appealing opportunity for investors due to its high annual dividend yield of 5.44%.

Pfizer year to date price performance. Source: Finbold

To leverage this attractive dividend yield, investors can calculate the required investment for their desired annual income from dividends. 

Finbold calculated that to earn $500 per month or $6,000 annually from dividends alone, an investment of around $111,524, equivalent to 3.707 shares, would be necessary. 

For a more modest goal of $100 per month or $1,200 annually, an investment of $22,304, corresponding to 741 shares, would be required.

The calculation involves dividing the desired annual income by the dividend yield. In this case, for the $6,000 target, it would be $6,000 divided by 0.054 (dividend yield) equals $111,524.

Similarly, for the $1,200 target, the calculation is $1,200 divided by 0.054, resulting in $22,304. 

However, the dividend yield is subject to change based on fluctuations in both dividend payments and stock prices over time. 

Wall Street’s forecast for Pfizer

Projections from 13 analysts on TipRanks over the previous quarter indicate a 12-month average price target of $39.91 for PFE.

This suggests a potential upside of almost a 35% price increase from the current value of $29.26, leading to an overarching ‘Moderate Buy’ recommendation. Based on the last three months’ rating, Pfizer has received 5 ‘Buy’ ratings, 8 ‘Hold’ ratings, and notably 0 ‘Sell’ ratings.

CVS Wall Street analyst 12-month prediction. Source: TipRanks

The highest price target for the stock is $75, over a 100% increase from the current price. Meanwhile, the lowest price target is $34, still above the current price of $29.26. 

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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