Pfizer Slashed Dividend By 50%

Pharmaceutical giant Pfizer [[PFE]] announced today that they are slashing their quarterly dividend by 50% to $.16 per share.

 

The dividend cut reduces Pfizer’s dividend yield from 9.8% to 4.9%.

 

The decision to reduce the company’s quarterly dividend was made in part to help finance the $62 billion acquisition of Wyeth [[WYE]]. Reducing the dividend will save the company $4 – $5 billion.

 

The dividend will be payable June 2, 2009 to shareholders of record as of May 8, 2009. The dividend payment will mark the 282nd consecutive quarter that Pfizer has paid a cash dividend.

 

Not all Pfizer investor’s were happy about the dividend cut. Pfizer’s stock has badly underperformed the market in 2009, falling over 26% compared to the Dow Jones index’s modest 10% decline.

 

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