Pfizer raises dividend 7%; stock surges
Shares of Pfizer Inc. surged 2.5% in midday trade Monday, after the drug giant said it was raising its quarterly dividend by 6.7%. The company said the new dividend of 32 cents a share, up from 30 cents, will be payable March 1, to shareholders of record on Feb. 3. At the current stock price of $32.51, the new annual dividend rate implies a dividend yield of 3.94%, compared with the aggregate yield for the Dow components of 2.33%, according to FactSet. "The dividend increase demonstrates our continued commitment to deliver value to our shareholders and our confidence in the business," said Chief Executive Ian Read. The stock has edged up 0.7% year to date, while the SPDR Health Care Select Sector ETF has lost 4% and the Dow has run up 14%.
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