Byte #29 – Not Exciting — Just Essential: My Go-To Defensive Stock of 2025
Dear Reader,
This was one of my defensive plays from April, and I thought I’d walk you through why I picked it — and why it continues to hold its place in my portfolio.
Most people have at least heard of Pfizer (PFE), and that’s the company I'm featuring in this week’s byte. For those who may not be as familiar: Pfizer Inc., founded in 1849, is one of the world’s largest pharmaceutical companies, generating roughly $60 billion in annual revenue. Its portfolio spans:
Cardiovascular and migraine therapies (Eliquis, Nurtec ODT/Vydura, Zavzpret, Premarin family)
Vaccines addressing key infectious diseases (Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, Trumenba)
COVID-19 products and future mRNA/antiviral candidates (Comirnaty, Paxlovid)
I’ll be honest — I have a bit of a love–hate relationship with Pfizer. This isn’t a growth rocket. It’s more of a steady, defensive income play. Its exceptional execution during COVID led to over $90B in combined revenue across 2021–2022, temporarily elevating ROIC and strengthening the balance sheet. But revenue has since normalized, and upcoming patent expirations (Ibrance in 2027; Eliquis and Vyndaqel in 2028) will limit near-term growth. Nevertheless, these factors don’t overshadow its role as a portfolio stabilizer in volatile markets.
That said, here’s why I bought the stock in April 2025 — and why I still consider it a solid defensive pick:
1. Strong scale + diversified revenue + global reach + near-term pipeline catalysts A wide footprint and multiple therapeutic areas help lower risk and smooth out volatility.
2. Attractive dividend + low valuation When I bought it at $22.08 in Apr ’25, the dividend yield was 7.78%. Today it still offers a healthy 6.67% yield with a P/E of only ~8.2, which is inexpensive for a mega-cap pharma name.
3. Low volatility + potential for emerging-drug growth Pfizer tends to move less sharply than high-beta names, which helps cushion portfolios during market pullbacks. At the same time, the acquisition of Metsera (MTSR) could be meaningful, giving Pfizer exposure to next-gen oral and injectable therapies for metabolic disease and obesity — one of the hottest segments in healthcare.
4. Strong 3Q25 performance Pfizer beat both EPS and revenue expectations and raised full-year EPS guidance, while reaffirming substantial cost-saving targets of ~$7.2B by 2027.
In a nutshell:
I like Pfizer as a steady income generator with strong dividend safety and 36 consecutive years of payments. This is one of those classic dividend compounders trading at a low valuation — not exciting, not flashy, but reliable.
If you found this breakdown helpful, don’t forget to like, share, and subscribe to #InvestSmartWithPooja so you never miss a new byte each week. And as always, I’d love to hear your thoughts — would you consider adding a defensive name like Pfizer to your portfolio? Let me know!
