10 Best Dividend Leaders to Buy Now

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1. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 99

Pfizer Inc. (NYSE:PFE) is among the best dividend leaders to invest in. The company’s strategy focuses on steadily increasing its dividend, reinvesting in the business with strong financial returns, and carrying out value-driven share buybacks. In the first quarter, it returned $2.4 billion to shareholders through dividends.

Pfizer Inc. (NYSE:PFE)’s cash flow remains strong enough to support these payouts. In 2024, the company generated $12.7 billion in operating cash flow, up from $8.7 billion in 2023. Free cash flow also rose to $9.8 billion in 2024, compared to $4.8 billion in 2022.

That said, Pfizer Inc. (NYSE:PFE) has a five-year average payout ratio above 101%, which may seem alarming at first. A company can’t consistently pay more in dividends than it earns. After generating $9.8 billion in free cash flow in 2024, the company paid out around $9.5 billion in dividends, leaving it with a narrow margin.

However, its free cash flow is still enough to cover the dividend. Looking ahead, Pfizer Inc. (NYSE:PFE) plans to achieve $7.2 billion in cost savings by 2027, which should improve cash flow and provide more flexibility for sustaining its dividend. The company offers a quarterly dividend of $0.43 per share and has a dividend yield of 7.16%, as of June 23. It has raised its payouts for 15 years straight.

While we acknowledge the potential of PFE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Dividend Stocks for a Bear Market and 10 Technology Dividend Aristocrats to Buy in 2025

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