AbbVie's 2.7% yield and robust pipeline keep Wall Street bullish on the Dividend King

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Summary · why it matters

AbbVie continues to attract Wall Street attention as a Dividend King with a 2.7% dividend yield, well above the S&P 500's roughly 1% and the pharmaceutical average of 1.5%. The company inherited its Dividend King status from former parent Abbott but has increased its dividend every year since the 2013 spin-off, with a cash dividend payout ratio around 60% that suggests the payout is on firm ground despite a high earnings-based payout ratio. AbbVie has successfully navigated Humira's patent expiration by launching Skyrizi and Rinvoq, and it recently agreed to acquire Apogee for roughly $11 billion to bolster its immunology pipeline. The company also benefits from Botox, a brand-driven aesthetic drug with expanding healthcare uses, providing a differentiated revenue foundation. With a strong balance sheet and a track record of developing and acquiring valuable drugs, AbbVie is viewed as a worthwhile long-term dividend holding.

Impact on assets 3

Biotech & Genomic Medicine▲
AbbVie Inc
ABBV
▲ PositiveCapitalrelevance

Article highlights AbbVie's strong dividend yield, robust pipeline, and successful navigation of Humira patent expiration, with Wall Street bullish.

Off-coverage companies 1

Apogee Minerals Ltd.i
Private± Mixedrelevance