Jim Trippon, CPA

Pfizer (NYSE: PFE), the world's largest drugmaker, may raise its quarterly dividend by as much as 20% later this month, according to a Credit Suisse analyst.

Obviously, this is good news for wary Pfizer shareholders that endured a 50% dividend reduction earlier this year as the company attempted to conserve cash for its $68 billion acquisition of Wyeth.

For years, the primary reason to own Pfizer's shares was the dividend and with a current payout of just 16 cents a share per quarter, it's tough to endorse Pfizer as a great dividend stock.

Analyst Catherine Arnold believes the quarterly dividend could rise to 18.5 cents to 19.25 cents a share.

That's a start and with expectations low for Pfizer's drug pipeline, any positive surprises on that front combined with a dividend hike could give a near-term jolt to the shares.

Oddly enough, today's news about Pfizer's dividend comes just days after we told you about the company being removed from the Dividend Aristocrat's Index.

Coincidence or not, we'd like to see Pfizer get back to its 2008 dividend. Pfizer currently yields 3.5%.