Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. It also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Litfulo, Velsipity, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, Somavert, Ngenla, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Bosulif, Mektovi, Padcev, Adcetris, Talzenna, Tukysa, Elrexfio, Tivdak, Lorbrena, and Braftovi brands. In addition, the company involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Merck KGaA; and BioNTech SE. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

Pfizer, Inc.

Merck MRK will report its third-quarter 2025 earnings on Oct. 30, before market open. The Zacks Consensus Estimate for third-quarter sales and earnings is pegged at $17.06 billion and $2.36 per share, respectively. Earnings estimates for 2025 have declined from $8.94 to $8.92 per share over the past 30 days.
Image Source: Zacks Investment Research
Earnings Surprise History of Merck
The healthcare bellwether’s performance has been solid, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 3.92%, on average. In the last reported quarter, the company delivered an earnings surprise of 5.97%, as seen in the chart below.
Image Source: Zacks Investment Research
What Does Our Model Say for MRK?
Merck has an Earnings ESP of -0.09% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1, #2 (Buy) or #3 have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Shaping MRK’s Upcoming Results
After a weak sales performance in the first half, Merck expects to return to growth in the second half. It expects growth to be driven by oncology drugs, mainly Keytruda, Animal Health and new products, which are likely to have been partially offset by lower sales of Gardasil in China and Japan.
Performance of Merck’s Oncology Drugs
In oncology drugs, Keytruda sales are likely to have been driven by rapid uptake across earlier-stage indications globally, particularly early-stage non-small cell lung cancer. Continued strong momentum in metastatic indications is also expected to have boosted sales growth. The Zacks Consensus Estimate for Keytruda’s sales is $8.4 billion, while our estimate is $8.51 billion.
Higher alliance revenues from Lynparza, driven by increased demand, may have boosted oncology sales. Please note that Merck markets Lynparza in partnership with AstraZeneca AZN.
Merck has a profit-sharing deal with AstraZeneca to co-market Lynparza and Koselugo. AstraZeneca and Merck’s Lynparza is approved for four cancer types: ovarian, breast, prostate and pancreatic. Lynparza is also being evaluated in combination with Keytruda in late-stage studies for lung cancer indications.
Alliance revenues from Lenvima may have also boosted oncology sales.
Sales of the new drug Welireg are likely to have benefited from higher demand in the United States as well as early launch uptake in certain European markets.
MRK’s Vaccines, Animal Health Segment and Other Drugs
With regard to the HPV vaccine, Gardasil, ex-U.S. sales are expected to have been hurt by lower demand in China due to a significant decline in demand and elevated channel inventory. Sales are likely to have declined in Japan, too. The Zacks Consensus Estimate for Gardasil is $1.75 billion, while our estimate is $1.70 billion.
Sales of some other Merck vaccines, like Proquad, M-M-R II, Varivax, Rotateq and Pneumovax 23, declined in the second quarter, a trend likely to have continued in the third quarter.
In the hospital specialty portfolio, generic competition in certain ex-U.S. markets is likely to have hurt sales of neuromuscular blockade medicine — Bridion injection. However, higher demand and pricing are expected to have benefited U.S. sales. The Zacks Consensus Estimate for Bridion is $436.4 million, while our estimate is $422.0 million.
Lower demand in the United States and China, and generic competition in most international markets, mainly Europe and the Asia Pacific, are likely to have hurt sales of the diabetes franchise (Januvia/Janumet).
New pulmonary arterial hypertension (PAH) drug Winrevair is likely to have contributed to sales growth, with most sales coming from the U.S. market, as the company is steadily adding new patients. Another new vaccine, Capvaxive, is also off to an encouraging start in the United States, gaining from rising demand in the retail pharmacy channel.
The Zacks Consensus Estimate for Merck’s Pharmaceutical unit is $15.3 billion, while our estimate is $15.4 billion.
In the Animal Health franchise, growth in both companion animal and livestock products is likely to have contributed to sales. Sales will also benefit from the inclusion of sales from the newly acquired Elanco’s aqua portfolio. The Zacks Consensus Estimate, as well as our estimate for the Animal Health unit, is $1.56 billion.
EPS in the third quarter will include a one-time charge of $300 million related to a payment made to LaNova for the technology transfer for MK-2010
Nonetheless, a single quarter’s results are not important for long-term investors. Let's delve deeper to understand whether to buy, sell or hold Merck stock.
MRK’s Price Performance & Valuation
Merck’s shares have lost 11.5% so far this year against an increase of 5.7% for the industry. The stock has also underperformed the sector and the S&P 500, as seen in the chart below.
Merck Stock Underperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
From a valuation standpoint, Merck appears attractive relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 9.42 forward earnings, lower than 15.58 for the industry as well as its 5-year mean of 12.63.
MRK Stock Valuation
Image Source: Zacks Investment Research
Investment Thesis on MRK’s Stock
Merck boasts more than six blockbuster drugs in its portfolio, with Keytruda being the key top-line driver. Keytruda has played an instrumental role in driving Merck’s steady revenue growth in the past few years. Last month, the FDA approved a subcutaneous formulation of Keytruda, known as Keytruda Qlex, which can enhance patient convenience.
MRK’s phase III pipeline has almost tripled since 2021, supported by in-house pipeline progress as well as the addition of candidates through M&A deals. This has positioned Merck to launch around 20 new vaccines and drugs over the next few years, with many having blockbuster potential. These include Capvaxive and Winrevair, which have the potential to generate significant revenues over the long term. Both products are off to a strong start.
Merck acquired Verona Pharma this year, which added the latter’s chronic obstructive pulmonary disease or COPD drug, Ohtuvayre, to its portfolio. This addition strengthens Merck’s cardio-pulmonary pipeline and portfolio as the drug’s differentiated profile provides a significant edge over its competitors. Ohtuvayre's commercial launch is off to a solid start. Investors will look for updates on Ohtuvayre's sales numbers on the third-quarter conference call.
Though Keytruda may be Merck’s biggest strength and a solid reason to own the stock, it can also be argued that the company is excessively dependent on the drug, and it should look for ways to diversify its product lineup.
There are rising concerns about the firm’s ability to grow its non-oncology business ahead of the upcoming loss of exclusivity of Keytruda in 2028.
Also, competitive pressure might increase for Keytruda in the near future from dual PD-1/VEGF inhibitors like Summit Therapeutics’ SMMT ivonescimab that inhibit both the PD-1 pathway and the VEGF pathway at once. They are designed to overcome the limitations of single-target therapies like Keytruda. Pfizer PFE also recently acquiredexclusive global ex-China rights to develop, manufacture and commercialize SSGJ-707, a dual PD-1 and VEGF inhibitor, from China’s 3SBio
Merck’s second-largest product, Gardasil, is also seeing grim sales in China. Merck is also seeing weakness in the diabetes franchise and the generic erosion of some drugs.
Long-Term Investors Can Stay Invested in MRK Stock
Merck’s problems are numerous at present, including persistent challenges for Gardasil in China, potential competition for Keytruda, and rising competitive and generic pressure on some of its drugs. All these factors have raised doubts about Merck’s ability to navigate the Keytruda loss-of-exclusivity period successfully. Consistently declining estimates and price depreciation reflect analysts’ pessimistic outlook for the stock.
However, Merck has one of the world’s best-selling drugs in its portfolio, generating billions of dollars in revenues. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then.
No matter how the third-quarter results play out, we suggest that investors stay invested in MRK as the company expects to return to growth in the second half.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buy, Sell or Hold MRK Stock Ahead of Q3 Earnings? Things to Know

An updated edition of the Sept. 8, 2025, article.
The global cancer treatment market is entering a transformative phase, driven by rising cancer incidence and rapid scientific progress. According to the American Cancer Society, the United States alone is projected to report 2.04 million new cancer cases and over 618,000 deaths in 2025. An aging population and lifestyle-related risks are increasing global cancer prevalence, pushing healthcare systems toward higher oncology spending.
Meanwhile, innovation is transforming the way cancer is managed. Advances in immunotherapies, targeted drugs and personalized vaccines have expanded options well beyond traditional chemotherapy and radiation. Immune-based approaches — such as checkpoint inhibitors, CAR-T therapies, therapeutic vaccines and oncolytic viruses — train the body’s own defenses to fight tumors. Targeted therapies focus on specific genetic mutations, improving precision and reducing side effects, while personalized cancer vaccines represent a major step forward in precision oncology.
Emerging technologies like genomic sequencing, artificial intelligence (AI) and machine learning (ML) are accelerating biomarker discovery, refining patient selection, and improving early detection. Though a universal cure remains elusive, survival rates and the quality of life continue to improve across many cancer types, reflecting both scientific advances and earlier diagnosis.
Pharmaceutical companies are responding with aggressive investment. Global leaders — including Novartis, AstraZeneca, J&J, Pfizer PFE, AbbVie ABBV, Merck MRK, Bristol Myers Squibb and Eli Lilly LLY — are expanding their pipelines in antibody-drug conjugates (ADCs), bispecific antibodies, and next-generation immuno-oncology agents. Smaller biotech firms remain key sources of innovation, driving new collaborations, licensing deals and acquisitions as larger players seek novel assets with best-in-class potential.
Continued innovation, favorable reimbursement trends and expanding treatment options position the oncology segment as one of the most attractive and resilient areas for long-term investors.
With our thematic screens, you can easily spot stocks tied to trends shaping the future of investing. If the cancer space appeals to you and you’re looking to align your portfolio with this rising trend, now might be the time to consider stocks like Relay Therapeutics RLAY, Fate Therapeutics FATE and Verastem Oncology VSTM.
Explore 36 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.
3 Cancer Stocks in Focus
Relay Therapeutics is developing RLY-2608, its lead investigational candidate and a mutant-selective PI3Kα inhibitor, as a novel medicine for CDK4/6-experienced patients with PI3Kα mutations, where there is a large unmet medical need. In clinical studies, RLY-2608 has shown the potential benefit in improving both the tolerability profile and progression-free survival compared to standard-of-care drugs in this setting. Relay initiated a pivotal phase III study called ReDiscover-2 on RLY-260, in combination with AstraZeneca’s Faslodex for second-line PI3Kα-mutated, HR+/HER2- advanced breast cancer in the second quarter.
The company is also making progress in its development plans for investigational triplet combinations, which it believes can allow RLY-2608 to address patients in earlier settings.
Relay Therapeutics is also rapidly progressing with the development of other front-line breast cancer regimens while planning for the development of future oral endocrine therapy combinations.
Relay Therapeutics has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fate Therapeutics is focused on developing and manufacturing universal, off-the-shelf cell products using its proprietary induced pluripotent stem cell (iPSC) product platform. Its immuno-oncology pipeline includes iPSC-derived natural killer cells and T-cell product candidates.
Fate Therapeutics is co-developing FT825/ONO-8250, a multiplexed-engineered, iPSC-derived CAR T-cell product candidate, with ONO Pharmaceutical. It is conducting a phase I study to assess the safety, pharmacokinetics and activity of FT825/ONO-8250 in patients with advanced solid tumors.
To date, treatment with FT825/ONO-8250 has shown a favorable safety profile with no dose-limiting toxicities. Fate Therapeutics also has some next-generation iPSC-derived CAR T-cell programs in pre-clinical development. In July, the FDA allowed the company’s investigational new drug (IND) application to begin phase I clinical studies on FT836, its MICA/B-targeted CAR T-cell program. Fate has a Zacks Rank of 2.
Verastem Oncology’s novel combination regimen of avutometinib plus defactinib was approved by the FDA in early May for treating KRAS mutant recurrent low-grade serous ovarian cancer (LGSOC), a rare and distinct type of ovarian cancer. The approval was granted under the FDA’s accelerated approval pathway and is commercialized in the U.S. market as an oral combination co-pack with the two prescription products, known as “Avmapki Fakzynja Co-Pack.” The innovative combination therapy generated $2.1 million in sales in the first six weeks of launch.
Following the FDA approval, Avmapki Fakzynja Co-Pack is the first and only FDA-approved treatment for the LGSOC indication. Per Verastem Oncology, the combo sets a new standard of care for women with recurrent LGSOC with a KRAS mutation.
The company is also evaluating avutometinib plus defactinib in combination studies in first-line metastatic pancreatic cancer as well as non-small cell lung cancer in early to mid-stage studies. In May, VSTM reported strong overall response rates from a phase I/II study evaluating avutometinib plus defactinib in combination with chemotherapy for the first-line treatment of metastatic pancreatic ductal adenocarcinoma (PDAC). Based on the positive data, VSTM plans to initiate a registrational phase III study in front-line metastatic PDAC in 2026.
This Zacks Rank #2 company also recently announced positive preliminary data from an early-stage study for VS-7375, its KRAS G12D (ON/OFF) inhibitor in patients with KRAS G12D mutant solid tumors.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Cancer-Focused Stocks Showing Strong Pipeline Progress

CorMedix CRMD is expected to report its third-quarter 2025 earnings results soon. The Zacks Consensus Estimate for sales and earnings is pegged at $70 million and 48 cents per share, respectively.
Earnings estimate for 2025 has increased to $1.65 per share from $1.85 over the past 30 days, while that for 2026 has improved from $2.38 to $2.49.
CRMD Estimate Movement
Image Source: Zacks Investment Research
CRMD’s Earnings Surprise History
CorMedix has an excellent track record. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 34.85%. In the last reported quarter, the company’s earnings beat estimates by 40%.
Image Source: Zacks Investment Research
What Our Model Predicts for CRMD
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP for CorMedix is -9.38%. The company currently carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Factors Influencing CRMD’s Q3 Results
CorMedix’s third-quarter performance is expected to have been led by the strong momentum of its flagship therapy, DefenCath (Taurolidine + Heparin). Approved by the FDA in late 2023, DefenCath is the first and only antimicrobial catheter lock solution available in the United States, indicated to reduce catheter-related bloodstream infections (CRBSIs) in adult patients with kidney failure receiving chronic hemodialysis through a central venous catheter.
DefenCath continues to drive the company’s top line, with third-quarter 2025 revenues expected to reflect strong market adoption and robust year-over-year growth. Its growing uptake among large dialysis organizations and expansion into new dialysis centers are likely to have contributed to a majority of CorMedix’s quarterly revenues. The company’s success with DefenCath underscores the strength of its commercial execution and its ability to capture value in a market with limited direct competition.
The addition of Melinta’s assets, following the acquisition, has created meaningful near-term growth opportunities and incremental revenue contributions expected to be reflected in the upcoming earnings report.
CorMedix recently reported preliminary third-quarter 2025 results, with unaudited pro forma net revenues exceeding $125 million, including more than $85 million from DefenCath. Reflecting this momentum and early Melinta portfolio contributions, the company raised its full-year 2025 pro forma net revenue guidance to at least $375 million, up from the prior expected range of $325-$350 million. CorMedix also anticipates adjusted EBITDA of at least $70 million for the quarter, underscoring improved profitability.
As of Sept. 30, 2025, CRMD reported cash and short-term investments of about $56 million, with a projected year-end balance near $100 million. Operating expenses are likely to have increased during the quarter, reflecting higher staffing and clinical costs to support ongoing programs, as well as expanded marketing investments to sustain growth momentum.
CRMD’s Price Performance and Valuation
Shares of CorMedix have surged 36.4% so far this year compared with the industry’s 9.2% growth. The stock has also outperformed the sector and the S&P 500 index during the same time frame, as seen in the chart below.
CRMD Stock Price Movement
Image Source: Zacks Investment Research
From a valuation standpoint, CorMedix stock is expensive. Going by the price/book ratio, the company’s shares currently trade at 3.91 trailing 12-month book value per share, higher than 3.41 for the industry. The stock is also trading above its five-year mean of 3.54.
CRMD Stock Valuation
Image Source: Zacks Investment Research
Investment Thesis for CRMD
In the first half of 2025, DefenCath delivered $78.8 million in net revenues, reflecting a solid start to its commercial journey. The drug holds a unique market position as the only FDA-approved therapy for a niche condition, supported by patent protection through 2033. This exclusivity provides a long runway for revenue generation.
Looking ahead, sales are expected to build steadily as CorMedix expands its commercial footprint and strengthens its marketing infrastructure. Moreover, eligibility for reimbursement in the U.S. healthcare system enhances patient access and should serve as a strong catalyst for growth in the years ahead. CorMedix is also planning future potential label expansion of DefenCath into total parenteral nutrition (TPN). Subject to approval, CRMD expects the peak annual sales of DefenCath in the TPN indication to be in the range of $150-$200 million.
Beyond DefenCath, CorMedix is benefitting from its $300 million acquisition of Melinta Therapeutics, a strategic move aimed at broadening the company’s revenue base and strengthening its presence in hospital acute care and infectious disease markets. The deal added seven approved therapies, including Rezzayo, which is being evaluated in a phase III study for prophylaxis of invasive fungal infections — a potential $2 billion market opportunity with a possible data readout in 2026.
In 2025, CorMedix anticipates Melinta’s portfolio to generate $125 million to $135 million in revenues. The company has made notable progress in integrating Melinta and now expects to realize at least $30 million in annualized cost synergies by the end of the fourth quarter of 2025, with an additional $5-$15 million in targeted synergies anticipated in 2026.
While CorMedix currently holds a first-mover advantage in the United States with DefenCath, competition risks remain due to the presence of larger players already active in the heparin market. Companies, such as Pfizer PFE and Amphastar Pharmaceuticals AMPH, alongside B. Braun, Baxter, and Fresenius Kabi, market various heparin-based products across multiple indications. With their scale, financial strength, and established manufacturing networks, these firms could potentially expand into CRBSI-specific applications, challenging CRMD’s market exclusivity and growth trajectory.
Pfizer, which markets Heparin Sodium Injection for a broad range of clinical uses — including dialysis, surgery, and thrombosis management — could leverage its global reach and clinical expertise to enter the CRBSI prevention space. Similarly, Amphastar Pharmaceuticals, which produces Enoxaparin and controls its full supply chain from API manufacturing to finished product, has the operational efficiency and technical depth to pursue similar market opportunities. Should Pfizer or Amphastar Pharmaceuticals expand their anticoagulant portfolios toward catheter-related infection prevention, CorMedix could face meaningful competitive pressure in its core therapeutic niche.
Invest in CRMD Stock
CorMedix’s strong preliminary third-quarter performance underscores the continued success of DefenCath, its flagship and only FDA-approved antimicrobial catheter lock solution for preventing bloodstream infections in dialysis patients. With more than $85 million in third-quarter revenues from DefenCath alone and total unaudited pro forma net revenues exceeding $125 million, the company’s commercial momentum remains robust. The expanded adoption among dialysis organizations and new site launches have propelled top-line growth, while Melinta’s integration has begun to contribute meaningfully to revenues. Reflecting this strength, CorMedix upped its financial guidance for 2025.
Looking ahead, CorMedix’s investment case remains compelling, backed by DefenCath’s market exclusivity through 2033, reimbursement support, and potential label expansion into TPN. The Melinta acquisition also positions CorMedix for diversified, sustainable growth, adding a portfolio of marketed anti-infective therapies and a late-stage asset, Rezzayo, with significant upside potential in a $2 billion addressable market. While competitive risks from larger heparin producers like Pfizer and Amphastar Pharmaceuticals remain, CorMedix’s first-mover advantage, solid balance sheet, and growing profitability make the stock an attractive long-term buy for investors seeking exposure to a high-margin, defensible niche in the infectious disease market.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should Investors Buy CorMedix Stock Ahead of Q3 Earnings Report?

Key Points
Pfizer currently has a 7% yield, and the company is making important business moves.
Bristol Myers Squibb has a 5.6% yield and has been building its drug pipeline with acquisitions.
Merck has a 3.7% yield and a lot of leeway to protect its dividend.
The S&P 500 index was recently offering a tiny dividend yield of 1.2%. You can get as much as 7% from some of the world's largest drugmakers. But sometimes, a high yield is a sign of risk.
What does the risk-return profile look like for iconic pharmaceutical giants Pfizer (NYSE: PFE), Bristol Myers Squibb (NYSE: BMY), and Merck (NYSE: MRK)? Working from highest yield to lowest, here's a quick look.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
1. Pfizer has a 7% yield and is making big moves
Pfizer has increased its dividend annually for 15 years. The current dividend yield is roughly 7%, which is well above the market's yield and the 1.1% yield of the average pharmaceutical company. The big worry among investors with Pfizer is likely the trailing-12-month dividend payout ratio of 90% -- that and the fact that Pfizer cut its dividend when it acquired Wyeth in 2009 for $68 billion.
That's important because Pfizer recently announced plans to acquire Metsera for $4.9 billion (plus potential earnouts) to bolster its drug pipeline. It's a smaller deal than Wyeth was. But even if all of the earnouts are triggered (adding another $22.50 to the upfront price of $47.50 per share), the high dividend payout ratio here increases the risk that the board resets the dividend lower.
The Metsera deal does show that Pfizer is doing what it needs to do to ensure it survives and thrives over the long term. Still, it's probably best to look at Pfizer as a value or turnaround play rather than a high-yield stock. On the valuation front, its price-to-sales (P/S), price-to-earnings (P/E), and price-to-book (P/B) ratios are all below their five-year averages. If the dividend holds, it will be icing on the cake.
2. Bristol Myers Squibb yields 5.6% and it's buy, buy, buying
One of the issues Pfizer is trying to avoid is a patent cliff, which is when older drugs lose patent protection, making revenue fall. The hope is that new drugs can be brought to market before that happens (or at least shortly thereafter). All major drugmakers have to deal with this, including 5.6%-yielding Bristol Myers Squibb. Although the company has 19 years of annual dividend increases behind it, its payout ratio is an even higher 99% right now.
But BMS has been particularly active on the acquisition front. In 2024 it bought oncology-focused Mirati Therapeutics and RayzeBio; it also added neurology-focused Karuna Therapeutics to the fold. Basically, the company has bulked up its drug pipeline, and that should help carry it through upcoming patent losses (which start next year), even though the exact timing of new products may not line up as perfectly as hoped.
From a valuation perspective, only the price-to-sales ratio is below its five-year average. The P/E isn't overly useful because recent losses mean there's no five-year average. And the P/B ratio is above the longer-term average. As with Pfizer there's some risk of a dividend cut here, but unlike Pfizer, Bristol Myers Squibb doesn't have a dividend cut in its history over the past three decades. If history is any guide, the dividend is more likely to be held steady for a spell than it is to be cut.
3. Merck has a 3.7% yield and a reasonable payout ratio
Merck is dealing with the same basic issues as both Pfizer and Bristol Myers Squibb -- they're all drug companies, after all. But there's an important difference. Merck's 3.7% yield is lower and a reflection of a more attractive risk-reward profile. Specifically, Merck's dividend payout ratio is fairly reasonable at around 50%. There's a lot more room for adversity here.
On the valuation front, Merck's P/S, P/E, and P/B ratios are all below their five-year averages. To be fair, 2029 and 2030 are likely to see patent cliffs, but Merck has a solid pipeline that should start to kick in pretty quickly thereafter. And it has some opportunities to protect its most important patent, Keytruda, for a little longer, using international patents and different delivery methods. So the hit could be less of a concern than it seems. The lower yield here is an indication that the risk-reward profile is not nearly as worrisome.
All three will survive, but the investment risks are different
It is highly unlikely that Pfizer, Bristol Myers Squibb, or Merck will suddenly go out of business. The worst-case scenario for dividend investors in each case is likely a dividend cut. But if you're trying to live off of your dividend income, that could be a pretty big risk.
Pfizer, with the highest yield, comes with the most risk given its dividend history. Bristol Myers Squibb falls in the middle. With Merck it looks like there's little to no risk of a cut, but you'll also have to accept a fairly low yield compared to the other two drug stocks. In the end, that might be the best option for risk-averse dividend investors looking for a discounted drug stock.
Should you invest $1,000 in Pfizer right now?
Before you buy stock in Pfizer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb, Merck, and Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Dividend-Paying Drug Stocks to Buy at a Discount

Key Points
Anti-obesity drugs are being considered for a range of addictive behaviors.
Pfizer just acquired a next-generation, clinical-stage maker of obesity treatments.
What's the hottest trend in the pharmaceutical industry right now?
You could make a strong argument that it's the expansion of so-called GLP-1 medications. These miracle drugs effectively promote weight loss (in addition to treating diabetes), but there's growing evidence that they can also tame cravings for alcohol and narcotics, and even mitigate behaviors like sex addiction and gambling.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Right now, the major manufacturers of GLP-1 drugs are Novo Nordisk (NYSE: NVO), which makes Wegovy, and Eli Lilly (NYSE: LLY), which manufactures Zepbound. These are already blockbuster drugs, and they're bound to get even bigger. Demand for and sales of the weight loss drugs are only expected to accelerate, and the size of the anti-obesity drug market is forecast to hit $100 billion within five years.
A third major player
But a third major pharma player is emerging in the GLP-1 space.
That would be Pfizer (NYSE: PFE), which is now getting into the weight loss market. In September, it announced that it would acquire Metsera, a next-generation, clinical-stage biopharmaceutical company that's developing several obesity treatments. The price of the acquisition is $4.9 billion.
One of Metsera's drug candidates, MET-233i, can be taken less frequently than the Novo Nordisk and Lilly drugs, and has proven highly effective -- it helped patients in one study to lose 8.4% of their body weight in 36 days.
These weight loss drugs are big, and rapidly getting bigger. An investment in Pfizer today could pay off in a major way as this trend continues.
Should you invest $1,000 in Pfizer right now?
Before you buy stock in Pfizer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Matthew Benjamin has positions in Novo Nordisk. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

What Is 1 of the Best Pharmaceutical Stocks to Buy Now?

Key Points
Pfizer's stock has been trading at low levels for a while.
Diminished growth and concerns about the future have investors thinking twice about the stock.
The company did show signs of progress in its previous quarterly report.
One struggling pharma stock that could use a boost from a strong earnings report is Pfizer (NYSE: PFE). The company's valuation has plummeted in recent years as patent cliffs and question marks about its long-term growth have made investors hesitant to invest in the business, despite its offering an exceptionally high yield.
Pfizer's stock has fallen close to 30% in the past five years, but despite its low valuation, investors haven't been taking the bait. However, the company has been reporting solid results in its recent quarters. It even raised its guidance when it last reported its numbers in August.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
With its third-quarter earnings report scheduled to come out on Nov. 4, could yet another strong performance be what finally gets the stock going, and should you consider investing in Pfizer before those numbers come out?
What has to happen for Pfizer's stock to get out of its current rut?
Pfizer is a cheap stock by most metrics. It trades at a price-to-earnings multiple of only 13, while the S&P 500 average is 25. But Pfizer has been trading at a discount for a while, and that hasn't been enough to get investors on board and believing that it's a good buy. Many might be worried that it's a value trap.
A strong outlook might be what's necessary to turn things around for the pharma stock. There's been a lot of talk from the Trump administration about lowering drug prices. The government has also imposed tariffs on some imported pharmaceuticals. Last month, Pfizer reached a "landmark agreement" with the government to work on lowering drug prices. And it also committed to spending $70 billion on research and development efforts in the U.S. to avoid tariffs.
Investors may be looking for some reassurance from Pfizer about its growth opportunities in both the short and long term. If the company is able to paint a more promising picture for the future, then there could finally be a rally forthcoming for this beaten-down stock. But I wouldn't hold my breath.
Why a rally isn't likely to happen after Pfizer reports earnings
Investors have been hesitant to invest in healthcare stocks this year, largely due to the uncertainty around tariffs and government policies. While the S&P 500 has risen nearly 15% thus far in 2025, the Health Care Select Sector SPDR Fund is up by just over 5%. There's clearly some caution from investors, and it may take more than increased guidance or strong earnings performance from Pfizer to convince the market that the stock is a safe buy.
There's no mistaking the continuous downward trend for the stock, with earnings reports doing little to stop the tailspin in recent years.
Why Pfizer's stock might be worth buying anyway
I don't anticipate that Pfizer's Q3 earnings will prove to be a significant catalyst for the stock. While the company has been building out its pipeline and investing in companies to help further its growth, those are steps that will take time. And with healthcare stocks, it's usually strong clinical trial results that can send them soaring, rather than an impressive earnings report.
That being said, if you're a long-term investor, this can still be a stock worth taking a position in right now, simply because its valuation is so low. Pfizer hasn't been trading at its current levels in years, and the business is by no means in bad shape. Its top line grew by 10% last quarter, and its adjusted earnings rose by 30%.
The company is not in a dire situation, which is why I don't believe it's a value trap. Investors are discounting it due to market and industry conditions, but if you're willing to buy and hold and be patient with the stock, I think investing in Pfizer's stock today can pay off years from now.
Should you invest $1,000 in Pfizer right now?
Before you buy stock in Pfizer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Pfizer Stock Before Nov. 4?

Key Points
Every large company has to deal with both industry conditions and the efficiency of their own business.
Pfizer is making the changes needed to deal with the world around it and handle normal issues in the drug sector.
Medtronic is working to bring out new medical devices while also streamlining its business to become more efficient.
Being a big company comes with a lot of positives. But there are negatives, too. Some businesses end up imploding under their own weight because they face increased scrutiny and competition and, inevitably, end up losing some of the flexibility that allowed them to grow in the first place.
A select few companies, however, have proven over time that they can survive and thrive even after becoming industry giants. Which is why you might want to invest in Pfizer (NYSE: PFE) and Medtronic (NYSE: MDT) today.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Pfizer is doing what has to be done
Pfizer is one of the oldest and most successful pharmaceutical companies on the planet. In fact, it still sports a $140 billion market cap even after the stock has declined by around 60% from its late 2022 high-water mark. The company has impressive scale and reach in an industry that is highly regulated, driven by research and development, and extremely competitive.
And Pfizer is taking the steps needed to survive, just like it has many times before. Today, that means inking a deal with the U.S. government to increase capital investment in the United States while also offering lower prices to consumers. In exchange, Pfizer is expected to avoid tariffs and, perhaps equally important, stay in the good graces of regulators.
From a more company-specific point of view, Pfizer has also agreed to buy Metsera. This will help the company deal with upcoming patent cliffs, in which older drugs lose their patent protections. The acquisition was necessitated by the fact that Pfizer's own drug pipeline was looking a little weak. However, the move shows that Pfizer will do what's necessary to remain a top contender.
There's only one issue that investors need to be careful of here. The last time the company made a big acquisition (Wyeth), the board of directors cut the dividend. That was the right call for Pfizer as a business, even if it wasn't a great outcome for dividend investors. With the payout ratio hovering around 90%, this is probably more of a turnaround story than a dividend story despite a lofty 7% dividend yield. But if you like turnarounds, a $1,000 investment will let you buy around 40 shares of Pfizer's stock.
Medtronic is slimming down to improve its margins
Medtronic is more of a dividend investment -- the medical device company is just two years away from achieving Dividend King status (50+ annual dividend increases). In fact, the company's plan to spin off its diabetes division in 2026 came with the specific statement that Medtronic was not going to alter its dividend policy. Protecting the dividend is clearly important to the board of directors.
The other big piece of information around the diabetes spinoff is that it will be instantly accretive to Medtronic's earnings. That's the big goal, as Medtronic is attempting to increase its profitability. Jettisoning diabetes is the big one, but over the last few years, the company has exited other less profitable lines of business, too. This is just normal pruning for a company that has been around for a while and grown to be fairly large (Medtronic's market cap is $120 billion).
The timing of this effort is notable because the company, after a dry spell, is starting to bring out some important new products. The hope is that the company's new products will be more impactful on growth in the future once it slims down the overall business. And that, in turn, will get investors more excited about the stock. If you are a dividend investor, you should probably pay attention to the historically high 3% dividend yield on offer right now. A $1,000 investment will get you about 10 shares.
Go long while the market is going short
The key with both Pfizer and Medtronic is that companies that are successful over the long term often have to deal with short-term headwinds. Both are doing so right now, with Wall Street focused so myopically on today that it isn't considering what these companies will look like in the future. Given what they are doing, the future looks like it could be very bright for these long successful healthcare giants.
Should you invest $1,000 in Pfizer right now?
Before you buy stock in Pfizer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Reuben Gregg Brewer has positions in Medtronic. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Unstoppable Health Care Giants to Buy Right Now for Less Than $1,000

Key Points
Pfizer is racing towards patent cliffs that will lead to even worse financial results.
Vertex Pharmaceuticals is posting strong revenue growth and excellent clinical progress.
As a result, Vertex should be worth more than Pfizer by 2030.
Vertex Pharmaceuticals (NASDAQ: VRTX) and Pfizer (NYSE: PFE) are both among the largest drugmakers in the world. The latter currently has the edge in this department, with a market cap of $141 billion compared to the former's $109 billion. However, Vertex has a significantly better medium-term outlook and could surpass its larger peer in the next five years.
Pfizer's issues
Pfizer's financial results haven't been great in the past couple of years, as its pandemic-related products are no longer the growth drivers they once were. The company will also encounter some critical patent cliffs by 2030. One of them will be for Eliquis, an anticoagulant that is one of its top-selling medicines; its cancer medicine Xtandi and pneumonia vaccine Prevnar 13 will encounter the same fate. Pfizer is likely to experience at least a few more years of slow sales growth due to these obstacles.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Vertex's prospects
Meanwhile, Vertex Pharmaceuticals should maintain strong revenue growth through this entire period. First of all, the company remains the leader in the market for cystic fibrosis (CF), and the only major player with medicines that treat its root causes. Despite making significant headway in this area over the past decade, Vertex Pharmaceuticals has plenty of white space left.
And Vertex doesn't have to worry about patent cliffs in the next five years. The company's most important CF products, Alyftrek and Trikafta, won't lose patent exclusivity until the late 2030s.
Additionally, Vertex Pharmaceuticals' new launches should experience strong growth in the next five years. One of them is Journavx, a non-opioid medicine for acute pain. Then there's Casgevy, a gene-editing therapy for two rare blood disorders.
Vertex should earn other important approvals through 2030 that could jolt its stock price. It's developing a treatment called zimislecel for type 1 diabetes (T1D), and the therapy is showing the ability to restore patients' insulin production in clinical trials.
The company's late-stage pipeline also features products like inaxaplin, which is being developed to treat APOL-1 mediated kidney disease, a condition with no current treatment options that target its underlying causes. Between new launches and a strong lineup that generates consistent revenue and profits, Vertex Pharmaceuticals should perform much better than its larger counterpart.
Should investors give up on Pfizer?
Pfizer is working on developing new medicines that could help it overcome its challenges. It has a deep pipeline with promising programs in weight management and oncology. The drugmaker also has newer products whose sales should increase. And as Pfizer starts posting significant clinical wins, its stock could bounce back.
That, combined with its solid dividend and reasonable valuation, still makes Pfizer attractive for income-seeking investors willing to hold the stock well beyond the next five years. However, between now and 2030, Vertex Pharmaceuticals will likely be the far better performer of the two, and overtake Pfizer's market cap.
Should you invest $1,000 in Vertex Pharmaceuticals right now?
Before you buy stock in Vertex Pharmaceuticals, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertex Pharmaceuticals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Pfizer and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: Vertex Pharmaceuticals Will Be Worth More Than Pfizer by 2030

Key Points
Kenvue was spun off from Johnson & Johnson in mid-2023, and its life is starting out a little rough.
Pfizer is working through typical drug industry issues, but there's a notable dividend risk to consider.
Omega Healthcare has proven it is a reliable dividend stock, and it's getting back on the growth track.
A big dividend yield is nice to see, but it shouldn't be the only thing you look at when buying a stock. The actual business behind the yield is, in fact, more important. That's why you'll need to think carefully about your risk tolerance when you look at high-yielding healthcare stocks like Kenvue (NYSE: KVUE), Pfizer (NYSE: PFE), and Omega Healthcare (NYSE: OHI). Here's a quick review of all of these high-yield healthcare stocks.
Kenvue gets off on the wrong foot
Kenvue was spun off from Johnson & Johnson (NYSE: JNJ) in mid-2023. It basically owns its former parent's over-the-counter products. It is more like a consumer staples company than a healthcare company in many ways, even though it sells things like Tylenol. Tylenol is notable right now because it was just highlighted as a potential risk if taken during pregnancy. That led investors to dump the stock.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
On top of that, the healthcare-focused consumer staples maker is also performing a bit poorly right now. In the second quarter of 2025, sales fell 4% and organic sales dropped 4.2%. Adjusted earnings came in at $0.29 per share, down from $0.32 in the same quarter of 2024. It isn't shocking for a newly separated business to have some issues as it starts out its new, stand-alone life. And given the generally stable nature of consumer staples products, it is probably worth giving the company the benefit of the doubt.
But at the same time, the stock has fallen notably, and the yield has risen to a rather high 5.5%. The average dividend yield for a consumer staples stock is 2.7%. If you can handle some near-term uncertainty and have a contrarian streak, Kenvue may be of interest to you. Just go in recognizing that there isn't much of a dividend track record to go on here (though it is worth noting that its former parent is a Dividend King).
Pfizer is doing what needs to be done
Pfizer is one of the oldest and most respected pharmaceutical companies in the world. It has proven that it knows how to survive in what is a very technologically complicated and competitive business. Yet the stock has a huge 6.9% yield right now as it faces down some typical industry headwinds.
There are perception issues around drugmakers that are a hindrance today. But Pfizer is working to get back into favor, noting that it recently inked a deal with the U.S. government to make sizable capital investments in the country, keep consumer costs low, and avoid tariff issues. In addition, the company recently inked a deal to buy Metsera (NASDAQ: MTSR) to bolster its drug pipeline. That's an effort to offset the expected hit from a patent cliff the company is facing and was necessitated by Pfizer's lack of success with its own pipeline of drug candidates.
However, dealing with the government and patents is just normal for the drug industry. Still, the high yield highlights a real risk. Pfizer cut its dividend when it acquired Wyeth back in 2009. With the payout ratio hovering in the 90% range, which is high, the board of directors might choose to cut the dividend again as it completes its Metsera deal. It is probably best to view Pfizer as a turnaround story, noting that the stock price has fallen nearly 60% since late 2021. If the dividend holds, it is icing on the cake.
3. Omega Healthcare stood tall through the storm
Omega Healthcare is going to be the easiest stock for dividend investors to love on this list. The company is a senior-housing-focused real estate investment trust (REIT). The dividend yield is an attractive 6.6%. But the big story is around what happened to the dividend during the coronavirus pandemic.
That period of time was particularly difficult for senior housing assets, since the elderly were most at risk and COVID-19 spread most easily in group settings. Omega had to deal with a large number of tenants who couldn't pay their rent. That process is nearly over -- and here's the impressive part -- the dividend was sustained right through all of it. Many peers resorted to dividend cuts. In fact, Omega is starting to grow again, with over half a billion dollars in assets acquired in the second quarter of 2025 alone.
The worst is over, and now Omega can get back to more normal operations. Only buy it if you don't mind investing in an industry that was in the news in a bad way just recently. That said, this REIT is offering a huge dividend yield and is, frankly, one of the cleanest dirty shirts in the senior housing niche.
Don't just look at yield when buying these stocks
Kenvue, Pfizer, and Omega are all interesting dividend stocks with high yields. But you need to dig into each of the stories before you hit the buy button. Of the trio, Omega is probably the least risky choice, given how well it survived the pandemic. Kenvue is a bit of an unknown, but its business is fairly stable despite some post-J&J separation wobbles. And Pfizer is almost certain to survive and thrive, but what happens to the dividend is less clear, given the company's dividend history.
Should you invest $1,000 in Pfizer right now?
Before you buy stock in Pfizer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kenvue and Pfizer. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2026 $13 calls on Kenvue. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Healthcare Stocks Paying the Highest Dividends of 2025

Key Points
Kenvue owns Johnson & Johnson's former over-the-counter brands.
Medtronic has a diversified medical-device portfolio and is closing in on "Dividend King" status.
Pfizer has a lofty yield as it faces fairly normal industry headwinds.
Dividend investors shouldn't be dissuaded from investing just because the S&P 500 (SNPINDEX: ^GSPC) has a miserly 1.2% yield. If you dig in a bit, you can find attractive dividend stocks, including in the growth-oriented healthcare sector. Three you might want to consider right now are Kenvue (NYSE: KVUE), Medtronic (NYSE: MDT), and (with a grain of salt) Pfizer (NYSE: PFE). Here's what you need to know.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
1. Kenvue is a boring consumer-staples business
Kenvue was created when it was spun off from "Dividend King" Johnson & Johnson. (A Dividend King is a company that has raised its dividend annually for 50-plus consecutive years.) That left J&J operating a drug and medical-device company and Kenvue operating J&J's over-the-counter business.
Kenvue is a consumer-staples company, with iconic brands like Band-Aid, Johnson's Shampoo, Aveeno, and Tylenol. However, right now, that last brand has gotten a lot of negative attention after it was singled out by members of the Trump administration as presenting a potential health issue for the baby if taken during pregnancy.
That attention has resulted in Kenvue's stock price plunging. The stock price drop pushed the dividend yield up to 5.5%.
It is still a young business, for sure, but Kenvue has a strong stable of brands and products to which customers are loyal. This isn't a fly-by-night company, and the negativity probably represents an emotional pendulum swing that's gone too far. It's true that the business hasn't been performing particularly well in 2025 and recently lowered its full-year guidance, but even good brands go through weak periods.
It seems highly likely that this consumer-staples company will muddle through this period in one piece while continuing to reward investors for sticking around. That, by the way, is exactly what former parent J&J has provided for decades. A $1,000 investment will get you around 66 shares of Kenvue stock.
2. Medtronic is closing in on a big dividend achievement
Johnson & Johnson is a Dividend King because it has increased its dividend for over five decades. Medtronic's streak is at 48 years, so it's just two years shy of that incredible achievement. The company isn't planning to fall short, noting that it specifically stated that a planned business spinoff of its diabetes division won't lead to a change in its dividend policy.
The spinoff, however, is part of an important business overhaul. Medtronic, which makes medical devices, has been working through a period of slow growth. Now it has new products coming out and is looking to focus on only its most profitable businesses.
Diabetes doesn't have the same margins as the rest of the company, and the spinoff is expected to be instantly accretive to earnings. This spinoff and other changes being made should position the company for stronger growth in the years ahead.
That said, Wall Street is taking a show-me attitude. Medtronic's yield is a historically elevated 3% or so. If you like fairly boring dividend stocks, $1,000 will net you around 10 shares of Medtronic while the company works to get back into investors' good graces.
3. Pfizer is a high-risk/high-reward dividend stock
Pfizer has the highest yield here at nearly 7%. However, the dividend-payout ratio is hovering worryingly close to 100%.
The pharmaceutical giant has cut its dividend before, specifically following the large acquisition of Wyeth. Given that it's again working on a big acquisition of Metsera, there's a risk that the dividend gets a haircut.
When you add upcoming patent expirations to the list of issues, you can see why investors are worried. But Pfizer is one of the largest and most resilient drug companies on the planet, and what's happening to the business right now isn't unusual for a drug company.
If you shift your view and look at it as a turnaround stock, it could be worth buying. The high yield, in this case, is simply a sign that the stock is deeply unloved today. But even if there's a dividend cut, a dividend is likely to continue being paid. If history is any guide, the dividend will start to grow again after a reset.
The Metsera acquisition is actually a sign that the company is doing what it needs to do to get back on track. Simply put, Pfizer wasn't having enough success with its own drug pipeline, so it bought a company with more promising drug candidates. It was the right move and a statement to the company's long-term staying power. A $1,000 commitment here will allow you to buy roughly 40 shares.
Three options, from low risk to high risk
If you want a boring high-yield healthcare stock that's on the cusp of being a Dividend King, Medtronic is for you. If you don't mind a little uncertainty, Kenvue's consumer-staples business could be interesting, even as the company deals with some business headwinds. For turnaround lovers, Pfizer's high yield is a sign that Wall Street isn't fond of the drugmaker, even though it has proven that it will do what's necessary to be a long-term survivor.
Should you invest $1,000 in Kenvue right now?
Before you buy stock in Kenvue, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kenvue wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,380!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Reuben Gregg Brewer has positions in Medtronic. The Motley Fool has positions in and recommends Kenvue and Pfizer. The Motley Fool recommends Johnson & Johnson and Medtronic and recommends the following options: long January 2026 $13 calls on Kenvue, long January 2026 $75 calls on Medtronic, and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pfizer, Inc.

Trend

Trend Class

Trend Power

Pattern

EMA

EMA-20

EMA-50

EMA-100

EMA-20

EMA-50

EMA-100

Oscillators

Stochastic

RSI

MACD

Candle pattern type