"Passive income can help secure your retirement, but building a dependable income is not easy. You must be able to identify stocks to buy and hold for decades. There are top-tier dividend stocks with strong yields, steady payouts, and business models that can survive any market uncertainty. In the current market, dividend investing has become the gold standard. You can invest in top-quality stocks that will offer steady income and a cushion against downside risk. I've identified three dividend stocks that are cheap and will generate passive income for you for several years. Each of these stocks is trading at a discount. Let's take a look at them."
"Pfizer Inc. Pharmaceutical giant Pfizer Inc. ( NYSE: PFE) offers a juicy 6.65% dividend yield and is one of the highest-yielding stocks in the sector. It enjoyed a revenue boom during the pandemic, but the growth has slowed since then. The stock looks cheap to me at $25.86, and investors are waiting for the next phase of the company's growth. While the company has a high payout ratio, the pharmaceutical giant has the ability to sustain the payouts. Pfizer has one of the strongest balance sheets in the industry and enough liquidity to continue rewarding the shareholders. It has a payout ratio of 53.13% and pays an annual dividend of $1.72 per share. The company has a portfolio of drugs that generate enormous cash flow. It has raised dividends for 15 consecutive years. Its acquisition of Metsera for $10 billion has put it in the billion-dollar weight loss market. The company has mentioned the possibility of bringing new oncology drugs to the market by the end of this decade. Pfizer's promising pipeline of drugs in immunology and cancer has placed the company in a strong position in the industry. It not only offers an exceptional yield but also the potential for capital appreciation. This is the year Pfizer could reset, and a rebound could begin."
Passive income can help secure retirement, but building a dependable income requires identifying stocks to buy and hold for decades. Top-tier dividend stocks offer strong yields, steady payouts, and business models that can survive market uncertainty. Dividend investing currently serves as a primary strategy for steady income and downside protection. Three dividend stocks are listed as trading at discounts and capable of generating passive income for several years. Pfizer offers a 6.65% dividend yield, a payout ratio of 53.13%, an annual dividend of $1.72, and fifteen consecutive years of dividend increases. Pfizer's strong balance sheet, a $10 billion Metsera acquisition, and immunology and oncology pipeline support cash flow and growth potential.
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