14 Best Pharma Dividend Stocks to Buy in 2026

6. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 84

Dividend Yield as of December 29: 6.88%

Pfizer Inc. (NYSE:PFE) is among the best dividend stocks to invest in.

On December 16, Pfizer Inc. (NYSE:PFE) said the next few years are expected to be bumpy, starting in 2026. The company pointed to lower sales of its COVID vaccine and treatment, price cuts promised to the US government, and patent expirations on several key drugs.

Management does not expect revenue to return to growth until 2029. In the meantime, the focus is on developing new blockbuster medicines, including obesity treatments added through recent deals. The pipeline has not delivered a true breakthrough since Pfizer Inc. (NYSE:PFE) helped develop the COVID vaccine Comirnaty and launched the treatment Paxlovid earlier in the decade.

Cost control is also front and center. The company aims to save more than $7 billion a year through 2027 as part of a broader efficiency push. At the same time, leadership has been rebuilding the pipeline both internally and through acquisitions. One recent purchase was Metsera, which is working on obesity treatments. If those drugs receive regulatory approval, Pfizer would gain a foothold in a fast-growing and lucrative market. The potential appeal is clear, with oral medications instead of injections and monthly dosing rather than frequent shots.

Revenue growth may stay muted for a while, but shareholders are still being compensated as the stock offers a dividend yield of about 6.9%. That level can raise questions about sustainability, yet management continues to stand behind the payout. Earnings coverage provides added support.

Pfizer Inc. (NYSE:PFE) remains a large, research-driven biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines across a broad range of health conditions.