| Stock Ticker | Home Page | Asset Class | Sector | Industry | Investment Strategy | Dividend Frequency | Geographic Focus |
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| AAPL | Apple Inc. | Stock / Equity | Technology | Consumer Electronics | Growth | Quarterly | Global |
AbbVie, the pharmaceutical giant known for its drugs like Humira, Imbruvica, and Skyrizi, is a dividend-paying stock with both income and growth potential. While its dividend yield (currently around 3.68%) may not be the highest, its consistent payouts and strong track record of share price appreciation make it a compelling option for long-term investors seeking a balance between income and capital appreciation. Its high and consistent dividend, defensive position in the healthcare sector, and diverse pipeline further add to its appeal. However, investors should be aware of risks such as the Humira patent cliff.
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Overview |
AbbVie Inc. is a global, research-driven biopharmaceutical company renowned for its strong exposure to immunology and oncology. The company's leading products include Humira, Skyrizi, and Rinvoq in the field of immunology, and Imbruvica and Venclexta in oncology. AbbVie focuses on developing innovative therapies for complex and serious diseases, including chronic kidney disease, hepatitis C, women's health, and neuroscience. AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues and have a remarkable impact on people's lives. |
Business Model |
AbbVie generates revenue primarily through the sale of pharmaceuticals in several key therapeutic areas. The company invests heavily in research and development (R&D) to discover and develop new drugs. AbbVie operates globally, with a significant portion of its revenue coming from the U.S. market. Its business model focuses on leveraging advanced science, deep therapeutic expertise, and a rapid pace of innovation to create and market its products. |
Industry Competition |
AbbVie competes in the highly competitive biopharmaceutical industry. Key competitors include other large pharmaceutical companies such as Pfizer, Johnson & Johnson, Merck, and Roche. Competition is based on drug efficacy, safety, ease of use, price, and the ability to innovate and bring new drugs to market. Despite the competition, AbbVie's strong portfolio of key drugs and pipeline of potential new therapies position it well within the industry. |
Competitive Advantages |
AbbVie's competitive advantages include its strong pipeline of innovative drugs, leadership in immunology and oncology, and robust financial performance. The company's focus on R&D and strategic acquisitions, such as the purchase of Allergan, bolster its portfolio and market position. AbbVie's global presence and operational efficiency further enhance its competitive edge. |
Management Team |
Led by CEO Richard A. Gonzalez, AbbVie's management team combines extensive experience in pharmaceuticals and healthcare. The team's expertise spans clinical development, business strategy, and operations, supporting the company's mission to develop and market innovative therapies. |
Financial Performance |
AbbVie has shown strong financial performance with consistent revenue growth, driven by its key products and strategic acquisitions. The company's financial health is solid, with significant investment in R&D to fuel future growth. |
Investment Thesis |
AbbVie represents a compelling investment opportunity due to its innovative product pipeline, leadership in key therapeutic areas, and strong financials. The company's strategic focus on expanding its portfolio through R&D and acquisitions, coupled with its commitment to returning value to shareholders, makes it attractive for long-term investors. |
Conclusion |
For investors looking for a blend of growth, innovation, and stability in the biopharmaceutical sector, AbbVie offers a robust platform. Its focus on critical therapeutic areas, combined with a strong pipeline and financial foundation, positions AbbVie well for future success. |
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ABBV Dividend Data |
AbbVie (ABBV) is a well-known biopharmaceutical company that has been paying dividends since 2013. The annual dividend for ABBV shares is $6.20. AbbVie pays quarterly dividends to shareholders. > |
ABBV Dividend Yield |
The current dividend yield for AbbVie is 3.47%. This means that for every $100 invested in the company's stock, investors would receive $3.47 in dividends per year. /td> |
ABBV Dividend History |
Over the past three years, the company's dividend has grown by an average of 7.84% per year. AbbVie has increased its dividend for the past 52 consecutive years. The most recent change in the company's dividend was an increase of $0.07 on Friday, October 27, 2023. |
ABBV Dividend Payout & Dividend Payout Ratio |
The dividend payout ratio for ABBV is 227.11% based on the trailing year of earnings. This means that AbbVie is currently paying out more than its earnings in dividends, which could be a concern for some investors. However, with its reasonably low cash payout ratio (44.3%), ABBV's dividend payments are well covered by cash flows. |
ABBV Dividend Stability & Growth |
AbbVie has a track record of consistently increasing its dividends. Over the past three years, the company's dividend has grown by an average of 7.84% per year. AbbVie has increased its dividend for the past 52 consecutive years, indicating a strong commitment to returning capital to shareholders. However, the high payout ratio could be a potential concern for the stability of future dividend growth. |
| ABBV | JNJ | PFE | MRK | |
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| Current Yield | 3.68% | 2.94% | 6.08% | 2.31% |
| P/E Ratio | 65.1 | 30.0 | 72.1 | 951.2 |
| Strengths | High & consistent dividend, defensive healthcare sector, diverse pipeline | Size & stability, diversified portfolio | Strong pipeline, emerging markets presence | R&D focus, animal health segment |
| Weaknesses | Humira patent cliff risk, limited upside potential | Lower yield, slower growth | Regulatory hurdles, geographic concentration | Dependence on mature drugs, limited pipeline |
When evaluating AbbVie's (ABBV) dividend attractiveness, it's crucial to consider the risks associated with its dividend policy. The company's historical dividend yield of 3.53% and a payout of $1.55 per share reflect a stable past performance. However, the payout ratio, currently at 53%, may indicate a cautious approach to dividend safety, ensuring that retained earnings are sufficient to cover dividends paid. Investors should watch for the upcoming ex-dividend date on April 12 and the subsequent dividend payment date to ensure they receive the next dividend payment. The next ex-dividend date is a critical metric for those looking to add ABBV to their watchlist, as shares purchased post this date will not qualify for the $1.55 next dividend payment.
AbbVie's acquisition of Allergan and the introduction of several new drugs in aesthetics, virology, and gastroenterology have expanded its market capitalization and could contribute to dividend stability and growth. However, the earnings per share (EPS) of $6.20 and the recent trend of AbbVie's dividend suggest a need for vigilance. The EPS is an indicator of the company's profitability, and any significant changes could affect future dividends. While the historical data shows a positive trend, with a dividend increase of 4.7% from the previous year and a five-year average annual increase of 8.28%, the past 12 months have seen a more modest earnings growth of 0.36%. This modest growth, along with the payout ratio, may indicate that the company is prioritizing financial prudence over aggressive dividend hikes or share buybacks. Investors should consider these factors, alongside recommendations from sources like TipRanks, to assess the long-term sustainability of AbbVie's dividend policy. It's important to note that past performance does not constitute investment advice, and completeness of information should always be verified.