Dividend.com: Sinking Waters

Pfizer Announces Job Cuts

Pfizer(PFE Quote) has just announced it will be cutting 700 jobs in France.

The move will affect the company's Paris headquarters. Management believes the cost-cutting move is necessary to offset the rising cost of developing drugs. Stricter regulations are also leading to fewer products making it to the market.

We had removed the shares of Pfizer from our "Recommended" list on Nov. 12, when the stock was trading at $16.77. The company has a 7.73% dividend yield. With a sparse pipeline, we have been cautious about the future for Pfizer shares. The yield is very attractive, but we want to see the company produce a catalyst that can make us comfortable to believe the payout can be sustained. We prefer Eli Lilly (LLY Quote) and Bristol-Myers(BMY Quote) at this point.

Pfizer is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.

Steel Dynamics Takes Profit Guidance Lower

Steel Dynamics(STLD Quote) just announced it is cutting EPS guidance for 2008.

The company now expects to report 2008 EPS in the range of $2.35 to $2.40, compared with its previous estimate of about $3.25. The company is simply seeing lower demand for steel and recycled metal.

We had removed shares of Steel Dynamics from our "Recommended" list back on July 18, when the stock was trading at $30.86. The company has a 3.71% dividend yield, based on last night's closing stock price of $10.77. The steelmakers have been rallying since the end of last week, and the stock is actually bouncing off of today's open. We are not optimistic on the sector from a long-term perspective, but short term Nucor(NUE Quote) is the name we would prefer to focus on. The "January effect" has helped lift shares in the heavily beaten down group.