Pfizer Slashed Dividend By 50%

Pharmaceutical giant Pfizer (PFE: 21.20 +0.43%) 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: 0.00 N/A). 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 282^nd 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.

 

Recommend This Article To Others:

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

Related Dividend Articles:

• Was Pfizer’s Dividend Cut Really Necessary?
• Honeywell Declares Quarterly Dividend
• Merck Maintains High Dividend Yield
• McDonald’s Announces Cash Dividend
• U.S. Steel Slashes Dividend By 83%