Pfizer Paid Out $14.6 Billion in Dividends Over the Last 18 Months. Can It Keep This Up Through the Patent Cliff?

Pfizer's attractive 7% dividend yield masks significant risks as the company faces a patent cliff with major drugs losing protection in 2027-2028. With a dividend payout ratio over 130% and limited new drug candidates in the pipeline, investors are concerned about the sustainability of the dividend. However, the company has cash reserves and debt options to maintain payments, and management has prioritized dividend preservation.