Is Pfizer Inc. (PFE) The Best Cheap Dividend Stock To Buy Right Now?

Vardah Gill

Sat, Mar 8, 2025, 11:19 AM 6 min read

We precocious published a database of 13 Best Cheap Dividend Stocks To Buy Right Now. In this article, we are going to instrumentality a look astatine wherever Pfizer Inc. (NYSE:PFE) stands against different champion inexpensive dividend stocks to bargain close now.

Value investing has remained a favored attack among investors for years, mostly popularized by Warren Buffett, who continues to absorption connected stocks helium believes are undervalued comparative to their existent worth. While maturation investing has dominated marketplace sentiment successful caller times, the semipermanent show of worth stocks remains solid.

Former professor-turned-investment manager Josef Lakonishok and worth investing specializer David Dreman powerfully advocated for a patient, semipermanent attack to investing, believing that steady, disciplined strategies often outperform rapid, high-growth ones. Their probe indicated that worth investing tends to outperform maturation strategies astir 70% of the time, careless of a company’s size. After analyzing companies crossed antithetic marketplace capitalizations, they recovered that, implicit agelong periods, worth stocks consistently generated mean yearly returns somewhat supra 7%, surpassing the show of maturation stocks.

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Much of the Russell Index’s gains this twelvemonth person been concentrated successful a fistful of mega-cap stocks, peculiarly the tech-heavy “Magnificent Seven.” These companies present marque up implicit 25% of the scale and were liable for astir 40% of its 21% full instrumentality successful the archetypal 3 quarters of 2024. However, marketplace dynamics person started to displacement successful caller months, with worth stocks gaining traction. In the 3rd quarter, the Russell Value Index surged 9.4%, importantly outpacing the 3.2% emergence successful the Russell Growth Index, according to a study from BlackRock.

The study highlighted respective cardinal drivers down this trend. Strong employment numbers, easing inflation, and the Federal Reserve’s determination to commencement cutting involvement rates person bolstered capitalist confidence, prompting a broader marketplace rally beyond the ascendant mega-cap stocks. Additionally, sectors that are much delicate to involvement rates—such arsenic financials, utilities, and existent property concern trusts (REITs)—have benefited from a lower-rate environment.

Analysts counsel investors against favoring a azygous concern strategy. JP Morgan noted that ample exertion companies are wide held some individually and wrong large indices. As a result, important marketplace fluctuations tin hap erstwhile developments—such arsenic the caller instauration of a Chinese ample connection exemplary successful precocious January—impact the sector. However, the steadfast does not urge actively betting against the ascendant tech giants that clasp the largest weightings successful the broader market.