Pfizer Has the Highest-Yielding Dividend in the S&P 500. Should Investors Be Worried?
The pharma giant's yield of around 7.1% is more than six times the S&P 500 average.
Overview
A high-yielding dividend may sound great for investors, but it can be a double-edged sword: when it's too high, investors start to worry about its safety. That's a big part of the reason why Pfizer (NYSE: PFE), whose 7.1% yield is well above the S&P 500 average of just 1.1%, isn't able to draw in investors; many are worried the dividend is due for a cut.
Not only is Pfizer's dividend far above average, but it is now also the highest yield in the entire S&P 500. Is this a warning sign for investors that the dividend may be cut in the near future, or could Pfizer prove to be an underrated income stock to buy right now?
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Originally published at www.fool.com.