rtmark
LearnBonds UK

How to Buy Pfizer Shares in 2020 – A Beginner’s Guide

Looking to buy Pfizer shares? This guide will walk you through the reasons why Pfizer is an attractive company and how you can buy Pfizer shares today!
Alan Draper Lewis
Last Updated: October 12, 2020
Pfizer shares logo
Pfizer shares logo

Pfizer is an American multinational pharmaceutical company based in New York City. With almost $52 billion in 2019 revenues and 88,000 employees worldwide, Pfizer is one of the world’s largest pharmaceutical companies. Pfizer shares are listed on the New York Stock Exchange and Pfizer has been a member of the Dow Jones Industrial Average index since 2004, so it’s easy to see why many investors want to buy Pfizer shares.

Looking to buy Pfizer shares today? In this guide, we will review the reasons that make Pfizer an attractive company, present some of the best brokers to buy Pfizer shares and show you how to invest in Pfizer for yourself!

Table of Contents

    How to Buy Pfizer Shares in 3 Simple Steps

    No time to read this guide? Don’t worry! Simply follow these 3 simple steps and get started buying Pfizer shares now.

    Step 1: Choose a share broker

    etoro to buy shares

    To buy Pfizer shares, you will need a broker that offers shares listed on the NYSE, such as eToro.

    Step 2: Fund your account

    FUnd your account to buy shares

    Fund your account using one of the accepted payment methods, including bank cards and e-wallets.

    Step 3: Buy Pfizer shares

    Pfizer shares logo

    Search for Pfizer shares, choose how much you would like to invest and buy Pfizer shares!

    75% of retail investors lose money when trading CFDs with this provider.

    Where to Buy Pfizer Shares?

    When it comes to finding a platform on which to buy shares, there are loads of different brokers to choose from. Whilst this means you have plenty of choice, it can also make it tricky to find the best stock brokers for you.

    You should also consider whether you want to buy Pfizer shares and hold the assets, which is the traditional way of investing, or trade share contracts for difference (CFDs). CFDs allow you to trade shares without actually owning the assets, allowing you to go short (speculate on prices going down) and apply leverage (make larger trades with borrowed capital).

    To help you find the best place to buy Pfizer shares, below we’ve reviewed the top five UK share brokers that allow you to invest in Pfizer. Let’s take a look at what they have to offer.

    1. eToro - Leading Social Trading Share Broker

    If you’re looking for the best place to buy Pfizer shares, look no further than eToro. This broker immediately stands out because it allows you to both buy over 800 shares and trade CFDs, so you can choose the investment option that best suits you.

    When it comes to fees, eToro is one of the most competitive around. It doesn’t charge any commission, and the spreads are also very tight. There is a $5 withdrawal fee. You can trade share CFDs with up to 1:20 leverage on eToro.

    eToro made its name in the space as a social trading broker that allows you to interact with other users. It’s also famous for its copy trading tools, allowing you to copy the entire portfolios of top investors on the eToro platform!

    You can get started with a $200 minimum deposit, or try the demo account. Accepted payment methods include PayPal, Neteller and Skrill, and there’s the eToro mobile app for buying shares on the go. Licensed by the FCA, eToro is a very secure and trustworthy broker.

    Our Rating

    • Copy Trading: Mimic professional traders’ positions
    • Global Shares: Trade more than 800+ global companies
    • 100% Commission Free: Competitive spreads for share trades
    • Trustworthy: FCA regulated
    • High CopyPortfolio Minimum: $5,000
    75% of retail investors lose money when trading CFDs with this provider.

    2. Plus500 - Shares CFD Broker with Share Price Alerts

    Plus500 is a specialist CFD broker that is well known for its low fees, with no commissions and some of the tightest spreads in the industry. There are no fees when it comes to deposits or withdrawals, either.

    Trading on Plus500 takes place on the broker’s proprietary platform. One of the best things about this is that you can create custom price alerts that can be sent to your mobile via the Plus500. This means you’ll never have to worry about missing out when Pfizer shares hit a certain price. The platform also has plenty of technical indicators and some basic charting tools.

    Plus500 has a minimum deposit of just £100, which is lower than most brokers, and accepts a range of payment methods including PayPal. This broker is licensed by numerous authorities, including the FCA, so you know you’re in safe hands.

    Our Rating

    • Price Alerts: Catch the next pullback for trading
    • Leverage: Trade share CFDs at up to 20:1
    • Beginner-friendly: Easy to use trading platform
    • Limited Analysis: No backtests or custom technical indicators
    80.5% of retail investors lose money when trading CFDs with this provider.

    3. Capital.com - UK Broker with AI-Based Trading Bot

    If you’re looking to utilise artificial intelligence in your trading, Capital.com is a good option. This investment platform provides access to an AI trading bot that you can use to help find trading ideas and develop your strategy. In addition, the platform offers advanced charts with over 75 technical indicators, drawing tools, and useful risk management options.

    Capital.com is also worth considering if you’re a new trader looking to learn the ropes, due to its plentiful educational resources. There are guides for share trading, in addition to a range of other trading topics, and there’s even a mobile app that’s entirely focused on providing trading education!

    When it comes to shares, Capital.com offers a wide variety of companies, although only CFDs are available on this platform. There’s no commissions to pay, spreads are competitive, and the inactivity fees only kicks in if you don’t trade for a year.

    Our Rating

    • AI Trading: Use a trading bot to find new ideas
    • Trader Education: Includes education-based mobile app
    • Low Fees: No withdrawal fee and low inactivity fee
    • No Backtesting: Doesn’t enable you to test out your trading strategy
    There is no guarantee you will make money with this provider.

    4. FXCM - Share CFDs Trading Platform with MT4

    If you don’t fancy being restricted to a single trading platform, you should check out FXCM. While the likes of Plus500 and Capital.com only offer their own proprietary platforms, FXCM supports the likes of MetaTrader 4, Ninja Trader and Zulu Trade, the last one offering social trading.

    These platforms provide a range of advanced trading and backtesting tools that you can use to take your trading to the next level. Alternatively, you can use FXCM’s proprietary charting software for quick technical analysis.

    FXCM doesn’t offer as many shares as other brokers, with companies mostly based in the US and Europe, but you can trade Pfizer CFDs on this platform. On the plus side, it doesn’t charge commission and the spreads are lower than the industry average, while non-trading fees are also kept low.

    Our Rating

    • Multiple Platforms: Connect to MetaTrader 4, Ninja Trader, or ZuluTrade
    • Low Fees: No withdrawal fee
    • Supports Backtesting: Test out strategies with Ninja Trader
    • Limited Selection: Relatively few shares available through CFDs
    There is no guarantee you will make money with this provider.

    5. FinmaxFX - Excellent Mobile Share Trading App

    FinmaxFX is a CFD broker that offers a wide range of financial instruments, including more than 180 global shares from around the world. You can trade shares CFDs with up to 1:20 leverage with this broker.

    All trading on FinmaxFX takes place on MetaTrader 5, so you’ll have access to loads of advanced charting tools, in addition to other features like trading robots. MetaTrader 5 is available as both a desktop application and a mobile app, so you can trade Pfizer shares on the device of your choosing.

    One thing to note about FinmaxFX is it charges higher fees than the other brokers on this list. Although there are no commissions to pay, the spreads are slightly higher than the industry average and there are withdrawal fees of up to 3%, depending on your chosen banking method.

    Our Rating

    • Mobile Trading Apps: For iOS and Android devices
    • Includes MetaTrader 5: Advanced indicators, trading signals, and backtesting
    • 180 Global Shares: Trade popular US, European, and Asian companies
    • High Spreads: Higher than average for shares
    There is no guarantee you will make money with this provider.

    Why Buy Pfizer Shares?

    Pfizer is one of the world’s largest pharmaceutical companies, with over $50 billion in sales spread over 125 countries. Thanks to its leadership, its large R&D pipeline, its strong cash flows for M&A and its remarkable dividend yield, Pfizer shares are attractive for both defensive and growth investors.

    Deciding which shares or stocks to buy is never an easy task, whether you’re investing in Pfizer, want to buy Amazon shares or are interested in any other company, but the ultimate decision is strictly yours to make. We cannot give you personalized investment advice or make the investment decision for you. However, to help you in your research, below is a list of elements that make Pfizer shares attractive to buy.

    Strong profitability and cash flows

    Despite slightly shrinking revenues in 2019 ($52 billion vs. nearly $54 billion in 2018), Pfizer’s profit margins stood in excess of 30%, significantly up from 2018.

    While sales and profits can vary significantly in a business where old drugs lose their patents while new ones come to market, strong cash flows are key to continue growing and to reward shareholders. With over $12.5 billion in cash from operating activities, Pfizer has ample ability to invest in its R&D pipeline, pursue lucrative M&A deals and pay a healthy dividend to shareholders.

    The spinoff of its Upjohn and Consumer Health businesses will shrink Pfizer’s size significantly. Nevertheless, it will keep large stakes in the new businesses that will continue to contribute to its bottom line. Thus, Pfizer should continue to generate hefty profits and cash flows in the future, hallmarks of a company in excellent health.

    Large drug pipeline and a history of innovation

    Pfizer is one of the most prolific pharmaceutical companies in terms of number of new drugs coming to market every year. At the end of 2019, it had 95 products in the pipeline, and marketed or distributed over 300 products in the US and worldwide.Pfizer shares logo

    Pfizer’s 171-years long history of innovation in all domains, from disease-specific drugs to antibiotics, vaccines and over-the-counter remedies is remarkable. Its know-how, large cash flows for R&D and acquisitions and web of partnerships with other biotech and pharma companies give investors strong hopes that Pfizer will continue innovating for the many years to come.

    Refocusing of the group on the core business

    Pfizer’s spinoff of its Upjohn division gives its shareholders a controlling stake in a new world leader in generic manufacturers. The merger of Upjohn with Mylan, one of the largest generic drug manufacturers in the world, will result in a company significantly larger than rivals, with strong cash flows and a healthy dividend. Consequently, buying Pfizer shares before the merger will entitle the holder to a double dividend: one from Pfizer and one from Upjohn-Mylan.

    Similarly, the decision to merger Pfizer’s and GSK’s consumer healthcare businesses will create a world leader in many over-the-counter remedies and supplements. With Pfizer retaining a large stake, the expected synergies from the deal should benefit Pfizer shareholders even more.

    Consequently, the “new Pfizer” will be able to focus on its core business of Biopharmaceuticals while receiving dividends and participating in the growth of two category leaders in generics and consumer healthcare. In the long-run, a more focused business is likely to yield superior returns to Pfizer shareholders.

    A strong position in the race for a coronavirus vaccine

    Since the beginning of the coronavirus crisis, Pfizer has partnered with NASDAQ-listed biotech firm BioNTech to develop a Covid-19 vaccine using novel mRNA technology. At the time of writing, the Pfizer-BioNTech partnership was among the front-runners in the race to develop the vaccine, with human testing beginning in Germany in April and a US study in May.

    In April, both firms announced their plan to produce millions of vaccine doses by the end of 2020, and hundreds of millions by the end of 2021. Pfizer is rumored to be ready to enter Phase III studies as early as July.

    Buying shares to bet on a vaccine is a risky bet, particularly since the results of FDA approvals are notoriously hard to predict. Nonetheless, so long as no company successfully developed a vaccine for Covid-19, there is tremendous optionality built in Pfizer shares.

    Large and growing dividend paired with strong share buybacks

    A final and particularly appealing aspect of buying Pfizer shares is the company’s generous policies to return cash to shareholders. In 2019, Pfizer paid $8 billion in dividends to shareholders and spend another ~$9 billion in share buybacks, bringing shareholder remuneration at almost $17 billion. Pfizer’s generous and steadily growing dividend gives Pfizer shares a strong income component, even though the company may slow down its share repurchase program for optics.

    At the time of writing, the dividend yield on Pfizer shares was over 4.5%, an attractive proposition for investors looking for yield. In addition to the growth potential of the company, from vaccines and new drugs to participation in new generics and consumer healthcare giants, its history of paying healthy dividends give Pfizer shares both a great growth and income profile.

    About Pfizer Shares

    Company History & Business Model

    Pfizer is one of the world’s largest pharmaceutical companies, with 2019 revenues approaching $52 billion and over 88,000 employees worldwide. Its products are sold in 125 countries. In 2018, eight of Pfizer’s drugs generated over $1 billion in global sales.

    Founded in 1849, Pfizer is headquartered in New York City and is listed on the New York Stock Exchange. Pfizer shares are a component both of the Dow Jones Industrial Average and the S&P 500 indices. Pfizer’s business is split into 3 divisions: Biopharmaceuticals, Upjohn (soon to merge with Mylan) and Consumer Healthcare. In 2019, 46% of its revenues came from the US, 9% from China, 8% from Japan and 37% from the rest of the world (with no market >8% of global sales).

    Biopharma is Pfizer’s largest division, with just under $40 billion in 2019 revenues (up by almost $2 billion, or 5%, year-on-year). Pfizer develops and sells drugs in 6 key therapeutic areas: internal medicine, oncology, hospital, vaccines, inflammation & immunology and rare diseases, and had 6 products with 2019 sales exceeding $1 billion.

    Upjohn, Pfizer’s second-largest division with $10 billion in 2019 revenues, is set to be merged with generic drug-maker Mylan in 2020. Pfizer will spin off Upjohn and merge it into Mylan via a tax-light structure called a Reverse Morris Trust, thus giving Pfizer shareholders 57% of the combined entity. With over $20 billion in revenues, the new company would become the uncontested global leader in generic drugs, giving it a strong advantage in a brutally competitive market.

    Last, Consumer Healthcare represented $2 billion in revenues in 2019. In July 2019, Pfizer announced the completion of a merger between its Consumer Healthcare division and UK-based pharma giant GlaxoSmithKline’s consumer business. The new entity, owned 32% by Pfizer, is a world leader in overt-the-counter (i.e. prespriction-free) pain relief, respiratory medicines, oral health products vitamins, minerals and supplements.

    As a leader in branded and patented drugs, Pfizer faces several challenges including patent cliffs (large drop in sales when patents expire), threats from generics and FDA approvals that can prove exceedingly lengthy. Yet, in 2019, Pfizer had 95 products in its R&D pipeline, including 26 in Phase I, 37 in Phase II, 23 in Phase III and 9 products in the registration phase. This large pipeline, together with Pfizer’s strong M&A capabilities, position the company for a brighter future.

    Pfizer Share Price

    Pfizer is listed on the New York Stock Exchange under the NYSE:PFE ticker, and is a component of the Dow Jones Industrial Average and the S&P 500.

    Since January 2020, prior to the coronavirus crisis, Pfizer shares have lost a little over 17%, primarily due to the loss of exclusivity of its billion-dollar epilepsy and nerve pain Lyrica and the spinoff-plus-merger of the Upjohn division into Mylan. Nevertheless, with massive sales, profit margins over 30%, strong cash flows and a solid dividend, Pfizer remains a highly attractive company.

    With a 95-drugs strong pipeline, including 32 products in Phase III and registration phase, Pfizer’s pipeline looks promising for its future.

    Further, a merger between Upjohn and Mylan will create a world leader in generics, better position to compete in the market than Upjohn or Mylan alone. With a majority holding of the combined entity, Pfizer shareholders are set to benefit from the expected synergies of the deal. Similarly, the merger of its Consumer Healthcare business with that of GSK allows Pfizer to focus on its core Biopharma segment while retaining a large stake in a new consumer healthcare world leader.

    At the time of writing, the analyst consensus on Pfizer shares was between “Buy” and “Hold”, with price targets for the next 12 months ranging from $35–$53 (average of $40.3).

    Pfizer shares performance

    How To Buy Pfizer Shares Using eToro

    Now that we’ve provided you with some background information on Pfizer shares, you may to want to invest in stocks for yourself. If you do want to buy Pfizer shares, you can use this step-by-step walkthrough to learn how to invest in Pfizer using our recommended share broker, eToro.

    If you choose to use a different platform, the process remains largely the same.

    Step 1: Search for Pfizer (PFE) shares

    On the eToro trading platform, use the search function to look up Pfizer or its ticker (PFE). You will see two kinds of search results: markets and people. The first one concerns tradable instruments such as shares or commodities. The second allows you to find other users, see their profiles and portfolio as well as their P&L statistics. The ability to look up other traders, see what their performances have been and allocate money to copy them is at the core of eToro’s social trading system.

    look up pfizer shares on the etoro trading platform

     

    Step 2: Select “Trade” to get started

    After doing your research carefully, including reading annual reports, press coverage and analyst commentaries, you are ready to buy Pfizer shares! Before clicking “Trade”, make sure you are using your own portfolio. If you simply wish to try your hand at trading, you can also use eToro’s free demo account for free paper trading.

    When you are ready, click “Trade” to open the trading window and specify the direction, amount and options of your order.

    click trade on etoro to buy pfizer shares

     

    Step 3: Buy Pfizer Shares

    Once you’re in the trading window, the first step is to specify whether to sell (including short-selling) or buy Pfizer shares. On eToro, long (“buy”) orders with no leverage are executed directly while leveraged and short orders are made via CFDs.

    Next, specify how much you want to trade. You can set a specific number of shares (including fractions of shares) or a dollar amount to buy or sell. You will see the number of units and the exposure (in percentage and dollar amount) that the trade involves.

    The default order type on eToro is a market order, but you can specify limits and use special trade features such as leverage, stop-loss and take-profit,

    Last, review the fees at the bottom if your trade is via CFDs (no commissions on trades otherwise) and click “Open Trade” or “Set Order” outside of market hours to complete your trade!

    trading window on etoro to buy pfizer shares

     

    Should I Buy Pfizer Shares?

    As mentioned many times in this article, Pfizer is one of the largest pharmaceutical companies in the world. With a renewed focus on biopharmaceuticals, strong margins and a healthy dividend, Pfizer shares are an attractive buy proposition.

    We strongly recommend that you read Pfizer’s annual reports, press coverage and analyst commentaries to understand the company’s business and key risks. This is particularly important in the pharmaceutical sector, where the risks and business dynamics are not always easy to grasp at first glance.

    If you do want to buy Pfizer shares right now, there’s no better place to do so than on eToro, due to its 0% commission, copy trading tools and strict regulation. All you have to do is click on the link below to get started today!

    eToro: Buy Shares with 0% Commission

    Our Rating

    • Buy over 800 global shares
    • No commission and tight spreads
    • Social and copy trading tools
    • Accepts PayPal
    • FCA regulated
    75% of retail investor accounts lose money when trading CFDs with this provider.

    FAQs

    Where is Pfizer based and listed?

    Pfizer is headquartered in New York City and is listed on the New York Stock Exchange. It is a component of the SP500 and the Dow Jones Industrial Average.

    What business is Pfizer in?

    Pfizer's core business is the development and distribution of biopharmaceuticals, with a focus on 6 key therapeutic areas: internal medicine, oncology, hospital, vaccines, inflammation & immunology and rare diseases. Its Upjohn and consumer healthcare businesses are set to be merged with Mylan (Upjohn) and GSK's consumer health business respectively.

    Can I buy Pfizer shares if I am not based in the US?

    Absolutely. You simply need to use a broker that offers shares listed on the NYSE. Our recommended brokers in this guide do!

    Beyond your guide, what should I read before buying Pfizer shares?

    We highly recommend you to read the company's annual reports, review its press commentary and listen to what analysts have to say to form your opinion. Make sure you understand the business and the risks before buying Pfizer shares!

    Can I buy fractional shares of Pfizer?

    Many of the brokers reviewed in this article allow you to buy or short fractional shares of Pfizer, mainly via CFDs.

    Does Pfizer pay a dividend?

    Pfizer has paid a large and growing dividend over the years, coupled with very large share buyback programs. In 2019, Pfizer spend a total of $17 billion in dividends and buybacks. At the time of writing, Pfizer shares had a dividend yield of just over 4.5%.

    A-Z of Shares

    ABCDEFGHIJKLMNOPQRSTUVWXYZ#
    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    Alan Draper Lewis

    Alan is a content writer and editor who has experience covering a wide range of topics, from finance to gambling.

    X

    eToro: Buy Shares with 0% Commission

    eToro: Buy Shares with 0% Commission

    eToro: Buy Shares with 0% Commission

    Visit eToro

    Your capital is at risk.

    eToro: Buy Shares with 0% Commission
    Visit eToro

    Your capital is at risk.