Meet the 6.3% yield dividend stock that could grow into 2026

Pfizer (NYSE: PFE ) It has a well-above-market dividend yield of 6.3%. Despite a payout ratio of over 100%, the drugmaker plans to maintain its dividend. But the real catalyst for the stock rally could come in June, when the company reports trial results for its long-acting GLP-1 weight-loss drug PF’3944. What should investors do?

Pfizer has two notable problems. First, it faces patent cliffs in 2027 and 2028, when the drugs Ibrance, Eliquis, and Vyndaqel lose patent protection. Generic competition is likely to cause dramatic revenue declines for these blockbuster drugs. On top of that, the pharmaceutical giant has fallen behind in the race for GLP-1 weight loss drugs.

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Novo Nordisk GLP-1 was the first on the market with the shot. Eli LillyKo’s shot immediately gained traction, taking the lead into space. And Pfizer’s internally developed GLP-1 drug was abandoned because it didn’t work as expected. Now that Novo Nordisk has introduced a pill form of its GLP-1 drug, Eli Lilly is working hard to bring its own pill to market. Pfizer had to buy another company to get back in the running.

Pfizer’s GLP-1 candidate, PF’3944, is progressing through clinical trials. The company plans to present data about the drug at the American Diabetes Association (ADA) scientific sessions in June. Pfizer’s share price is already bouncing off the lows it hit in 2025. And if the data is as good as Pfizer suggests, the update could prove a catalyst for further share price gains.

The big story, however, is that Pfizer’s GLP-1 injection can be administered monthly. Currently, GLP-1 shots from Novo Nordisk and Eli Lilly require weekly injections. The new Novo Nordisk pill is taken daily. A GLP-1 drug that could be taken less frequently would likely be better received by consumers.

Good news from ADA Scientific Sessions could put Pfizer back in the running as a GLP-1 weight loss drug play. However, even if this specific drug isn’t the catalyst that management is looking for, Pfizer has other drugs in development. Given its strong history of innovation, it is highly likely that Pfizer will not only survive but also thrive in the long term. For more aggressive income investors, buying before the June data release is likely a worthwhile risk/reward trade-off.