Pfizer's 6.4% yield and cheap valuation support a $35 target; Chevron's Hess synergies and Microsoft power deal back $250 by 2027.
AbbVie's Skyrizi and Rinvoq each grew over 20% in Q2, driving management to raise EPS guidance and supporting a $325 price target.
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Dividend investors have had plenty to cheer in 2026. Pfizer (NYSE:PFE) is up 19.3% year to date, Chevron (NYSE:CVX) has surged 38.76%, and AbbVie (NYSE:ABBV) has added 19.16%.
With all three throwing off healthy yields and beating estimates, I want to lay out how Pfizer could reach $35, Chevron $250, and AbbVie $325 in 2027.
Pfizer trades at a forward P/E near 9 while paying a $1.72 annualized dividend yielding roughly 6.4%. At $35, shares would still trade under 12x the midpoint of 2026 guidance of $2.80 to $3. CEO Albert Bourla told investors, "we remain committed to maintaining and, over time, growing our dividends."
Pfizer has beaten EPS expectations in all ten of the last ten quarters. Catalysts for a re-rating include Metsera's monthly GLP-1 targeting a $150 billion obesity market, Padcev growth over 20%, and $9.7 billion in cost savings through 2029.
Chevron just delivered $6.06 in adjusted Q2 EPS and $15.4 billion in free cash flow, with debt cut by more than $8 billion. The $7.12 annualized dividend is comfortably covered. At forward P/E of 13, $250 would push the multiple toward 16, reasonable given Hess synergies of $1.5 billion hit six months early.
The Microsoft 20-year, 2.67 gigawatt Project Kilby offers mid-teens returns uncorrelated to oil. CEO Mike Wirth described Guyana as a "world-class asset" extending growth into the 2030s. EIA sees Brent averaging $79/b in 2027, a headwind Chevron has already stress-tested.
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AbbVie posted Q2 revenue of nearly $17 billion, up 10.2%, with Skyrizi at $5.5 billion (+24%) and Rinvoq topping $2.5 billion (+23.7%). Management raised full-year EPS to $13.87 to $14.07. On forward P/E of 18, $325 implies roughly 23x, in line with the S&P 500. Piper Sandler raised the firm's price target on AbbVie to $303 from $298 and keeps an Overweight rating on the shares.
CEO Rob Michael said AbbVie's "long-term outlook remains very strong." The $10.9 billion Apogee deal and Skyrizi subcutaneous Crohn's launch could "drive a meaningful acceleration" in 2027. The $6.92 annualized dividend keeps growing, up from $1.64 quarterly in 2025 to $1.73 today.
Wall Street's consensus targets sit at $28.61 for Pfizer, $216.83 for Chevron, and $276.41 for AbbVie. My stretch targets of $35, $250, and $325 require beat streaks to continue, pipelines to deliver, and macro conditions to cooperate.
Returns like these carry execution risk each year, yet each name has laid out a credible blueprint for 2027 (for investors who want the longest-running dividend growers screened by valuation, we ranked ten of them in a free Dividend Kings report).
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AbbVie didn't make the cut. Grab the names FREE today.