Jim Cramer stared down a stock yielding 7% and sitting near its 52-week low, and still would not tell viewers to buy it. On the July 7 episode of CNBC’s Mad Money, a caller from Orland Park, Illinois pitched Pfizer as an income-and-value setup, and Cramer conceded the case looked tempting. He landed on a reluctant pass anyway, telling the caller, “It kills me to say that a stock that yields 7% that used to have a lot of growth is going to have growth again, but I can’t come up with where the growth is. I just can’t. I’m sorry.”
The Caller and the Setup
After a friendly exchange about Cramer’s 2:47 AM wake-up habit and a shout-out to a staffer named Sean, the Orland Park caller framed the question plainly: “I’m looking at a pharmaceutical company. You’ve had the CEO on your show several times over the past few years. Pays a high dividend. Down near the 52-week low. What do you think about Pfizer, Jim?” It is the kind of pitch that usually gets a warmer response from a host who has hosted CEO Albert Bourla repeatedly.
Cramer’s Reasoning on Pfizer
Pfizer (NYSE:PFE | PFE Price Prediction) drew a diagnosis rather than an endorsement. Cramer told the caller, “Okay, they do have earnings growth problems. They haven’t been able to make the Seagen acquisition work the way it should. The dividend is safe at 7%.” The Seagen deal, closed in December 2023 for roughly $43 billion, was supposed to seed Pfizer’s post-COVID oncology franchise. Padcev, one of the assets that came over, did grow 39% operationally in Q1 2026, but that has not been enough to offset a 59% drop in Comirnaty and a 63% operational decline in Paxlovid.
The headline numbers still show a company that beats and guides steadily. Pfizer posted Q1 2026 revenue of $14.45 billion against a $13.80 billion estimate, adjusted EPS of $0.75 (a fifth consecutive beat), and reaffirmed FY2026 revenue guidance of $59.5 billion to $62.5 billion and adjusted EPS of $2.80 to $3.00, per the company’s 8-K filing. Net income of $2.687 billion was down 9.44% year over year, and operating income fell 31.44%. That is the growth gap Cramer is pointing at.
The Core Tension: Safe Yield, No Growth
Cramer’s stance boils down to a simple test that a safe payout alone does not clear. Pfizer’s quarterly dividend of $0.43 was raised from $0.42 beginning with the January 2026 payment, extending a long streak of modest increases. FY2025 dividends paid totaled $9.8 billion, and management has signaled no buybacks in 2026 despite a $3.3 billion remaining authorization. Cash is going to the payout and to deals like the ~$7.0 billion Metsera acquisition in obesity/GLP-1 and a $1.35 billion charge to in-license a PD-1 x VEGF bispecific from 3SBio. Those bets could re-seed the pipeline. They have not yet moved the earnings needle in a way that satisfies Cramer.
What the Market Says
The market seems to agree, at least for now. Pfizer closed at $24.05 on July 8, down 6.13% over the past month and roughly flat year to date. The 52-week range runs from $21.97 to $28.28, and the trailing yield sits at 7.25%. Analyst consensus target is $29.00, with 16 Hold ratings dominating the board. Forward P/E of 8x tells you the market is pricing in the patent cliff around Eliquis and Vyndaqel, IRA Medicare Part D redesign pressure, and Most-Favored-Nation drug pricing risk.
For readers weighing this against other high-yield names, our ongoing Paycheck Portfolio coverage tracks how income investors are handling yield traps versus durable payers in 2026.
The Bottom Line
Cramer’s take is Cramer’s take. Income investors who care most about a covered 7% payout may reasonably read the same facts and reach a different conclusion, especially with the stock sitting closer to the low end of its 52-week range. Growth investors hunting a catalyst will hear Cramer clearly. This is reporting on his opinion, and readers should treat it as such. Do your own research before acting.
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