My biggest caveat here is that all this great news is already priced into Pfizer's share price, which is slightly below its $23.80, 52-week high established intra-day on Friday.
With the price at current levels it lowers the dividend yield to below 4%. It was less than a year ago that investors were chasing Pfizer's 5.25% yield when the price was down below $16.70. Today's share price means the stock has climbed 40% in less than 12 months. Watch out below!
That's a heck of a better yield than a seven-year Treasury, which yields only 0.90%, or the 10-year Treasury currently at a historically low 1.41%.Yet, at some point (most likely after the next helping of MQE) a return of what the Wall Street media has called the "risk-on trade" will surge and a rotation out of the historically higher yielding stocks like REITs and drug companies will happen in a New York minute. If you have the foresight and guts to sell at these high levels, you'll probably have the chance to buy them back after the correction in this "risk off" stocks runs its course. You'll then have a higher yield-to-price dividend and the chance to catch the next run-up in the mortgage REITs and the big drug stocks. At the time of publication the author was long NLY. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV