With the Market Flashing Warning Signs Not Seen Since the Dot-Com Bust, Is Pfizer's 6% Yield a Safe Haven or a Trap?
While Pfizer's dividend looks like a trap, its strong balance sheet and low valuation make it safer.
Overview
The Shiller CAPE Ratio is at its second-highest reading in 150 years. The last time it was this high was right before the dot-com bubble burst, with the S&P 500 Index (SNPINDEX:^GSPC) crashing nearly 50% over the next two and a half years. That elevated market valuation indicator has me looking for more safe investments.
I came across Pfizer (NYSE:PFE) while screening for quality dividend stocks to buy amid the current market environment. While its high 6% yield initially looked like a trap, the more I dig into Pfizer, the more I see a potential safety net for a looming market storm.
Image source: The Motley Fool.
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Originally published at www.fool.com.