5 Best Passive Income Stocks in 2021

3. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 65

Ranking 3rd in our list of 10 best passive income stocks in 2021 is Pfizer Inc. (NYSE:PFE). The multinational pharmaceutical firm was founded in 1849 and offers various healthcare products including Pfizer-BioNTech COVID-19 Vaccine. The vaccine along with vaccines produced by notable healthcare companies such as Johnson & Johnson (NYSE:JNJ) and Moderna, Inc. (NASDAQ:MRNA) have all proven its effectiveness in fighting the spread of the COVID-19 virus. However, the Pfizer vaccine was shown to be 95% effective in preventing symptomatic Covid infection.

Pfizer Inc. (NYSE:PFE) posted its revenue of $14.6 billion in the first quarter of 2021, up from the expected revenue of $13.51 billion. The overall revenue boost was mainly because of the rise in COVID-19 vaccine sales which accounted for $3.5 billion of the global revenue. PFE shares currently trade for $38.79 and have a P/E of 19.65. The current dividend yield is 4.05%. The 52-week price range of Pfizer Inc. (NYSE:PFE) is $29.99-43.08. Shares of PFE jumped 13% over the last twelve months.

There were 65 hedge funds that reported owning stakes in Pfizer Inc. (NYSE:PFE) at the end of the first quarter, up from 63 funds a quarter earlier. The total value of these stakes at the end of Q1 is $2.04 billion.

Diamond Hill Capital mentioned Pfizer Inc. (NYSE:PFE) in its Q1 2021 investor letter. Here is what the fund said:

“Over the past year, pharmaceutical company Pfizer, Inc. has reshaped its business dramatically, divesting non-core segments like its consumer products and branded generics businesses to refocus its efforts on becoming a pure play pharmaceutical company once again. The stock has traded down with the general market decline, but given the stability of the business and improved margin profile going forward, we initiated a position.”