Regarding the acquisition, AbbVie CEO Richard Gonzalez said: You look at [the drugs] Skyrizi, Rinvoq, Venclexta, Imbruvica. The deal is expected to close in May. AbbVie has done well to position itself for the future, and the stock price should remain relatively strong through the coronavirus crisis, especially considering its price-to-earnings ratio of 15.1 versus the industry average P/E of 29.7. Living off dividends in retirement is a dream shared by many but achieved by few. Pharmaceutical sales, earnings, and cash flow are usually quite defensive thanks to the high margins of patent-protected drugs and the non-discretionary nature of healthcare spending to fight various illnesses. Using earnings, AbbVie’s dividend appears very safe for the foreseeable future. So what do all of these developments mean for AbbVie's dividend safety? Let's take a look at why the market has been so bearish on AbbVie and whether this high-yield stock could be a reasonable dividend growth investment or a value trap to avoid. The first major blow came in late March 2018, when disappointing drug trial results came out for the firm's promising Rova-T cancer drug. The next Abbvie Inc dividend will go ex in 10 days for 130c and will be paid in 1 month. We ran the stock through Simply Safe Dividends, and as we go to press, its Dividend Safety Score is 50. Dividend Safety Scores range from 0 to 100. However, it’s still hard to get comfortable with AbbVie… Der größte Teil des Pedigree des Unternehmens stammt jedoch von seiner ehemaligen Muttergesellschaft. Maybe now's a good time to look under the hood. Safe Dividend Stock #2: AbbVie Inc. (ABBV) AbbVie is a cutting-edge company specializing in small molecule drugs. 25'' list, signifying a stock with above-average ''DividendRank'' statistics … AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. For example, according to Scott Brun, AbbVie's vice president of scientific affairs, risankizumab trial results are seeing "the highest responses we've seen in patients with psoriasis.". Today, AbbVie focuses on one main business segment—pharmaceuticals. Not long after announcing the payout boost and another $10 billion stock repurchase program, a high-profile clinical trial failure knocked AbbVie's stock down a few pegs. AbbVie Inc.'s (NYSE: ABBV) treated shareholders to some hefty dividend bumps since its inception five years ago, but a 35% raise announced in February was the biggest yet. Dividend yield: 5.6%. AbbVie's dividend yield is 2.8%, which is relatively similar to those of many of its drug-making peers and considerably above the 2% average among stocks in the S&P 500 index. AbbVie Inc. (ABBV) Dividend Safety metrics. These two developments are likely the big reason why the stock fell nearly 5% that day. 2. Dominion made its dividend cut official this week, reducing its fourth-quarter payout by 33% after closing a deal to sell its natural... AltaGas's Falling Leverage Supports Dividend But Firm Will Evaluate Splitting Off Midstream Business. AbbVie stock has sported an attractive dividend yield since its 2012 spinoff from Abbott. AbbVie’s Dividend Safety Relative to Free Cash Flow I’m not fond of this rule, … Guidance for 2020 reflects growth of 8.1% at the midpoint, with an EPS forecast between $9.61 and $9.71. Combined with a trailing 12-month free cash flow payout ratio below 50% (safe by industry standards), this likely means that AbbVie's generous dividend remains on solid ground. Besides the overhang of Humira's growth trajectory in international markets, adding to the selling pressure was news that the FDA just approved Novartis' (NVS) biosimilar Myrimoz for sale in the U.S. Like mutinous pirates, autoimmune disease causes your body's immune system to attack your own healthy cells by mistake. Recent market volatility has unfairly whipsawed many stocks that are usually considered steady eddies, and the effects have been even stronger for specific sectors and speculative stocks. Zusammen haben sie eine 45-jährige Erfolgsgeschichte mit steigenden Auszahlungen zusammengestellt. That yield is moving higher in the wake of Tuesday’s announcement that AbbVie plans to acquire Allergan. Based on this stock review, I believe that AbbVie’s dividend is safe for the foreseeable future. However, just because a dividend isn't at strong risk of being cut doesn't necessarily mean a high-yield stock is worth buying. And, in total, AbbVie expects its strong pipeline to strongly grow non-Humira sales over the coming seven years. At the very least, such severe price declines can signal that a company's long-term thesis is broken. It has grown into the eighth-largest pharmaceutical company in the world, primarily on the strength of its blockbuster biologic autoimmune drug Humira, the world’s number one drug by far with annual sales of about $19 billion. How Safe Is AbbVie Stock and Its Dividend? Strong growth came from Imbruvica, which grossed sales of $4.7 billion, up 30% from the previous year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. We analyzed all of Berkshire's dividend stocks inside. H & R Block Inc (NYSE: HRB ): This tax preparation company's dividend … AbbVie gave its payout a mighty boost just ahead of a major trial failure. It already faces biosimilar competition in Europe, and will lose U.S. patent protection in 2023. This is a product that is about an $850 million product. This article will look at a few key metrics along with future growth prospects to determine ABBV dividend safety. That said, some stocks were wildly overvalued when the market was hitting new highs not so long ago, and were ready for a correction. A lot is riding on the finalization of the Allergan deal, but the likelihood of its going through is high at this point because all requirements have been met. As a result, the stock's yield is now at a record high of 5.2%, and shares trade at just 9.9 times forward earnings. Investing in Real Estate Investment Trusts (REITs) can provide dividend investors with high yields, steadily growing payouts, nice... We have all been there. Das Wachstum ist ebenfalls gesund, einschließlich der jüngsten Steigerung der AbbVie-Auszahlung um … Out of Ignorance Dec. 30, 2020 6:12 AM ET. It focuses on a few key treatment areas, including … How Safe Is AbbVie, Inc.'s Dividend Now? That's right -- they think these 10 stocks are even better buys. AbbVie Inc.'s (NYSE:ABBV) treated shareholders to some hefty dividend bumps since its inception five years ago, but a 35% raise announced in February was the biggest yet. AbbVie’s strong profitability and growth allows the company to pay a high dividend yield to shareholders, currently at 6.4%. David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Allergan wasn't one of them! I think Abbvie will deliver very nice returns for investors. A score of 50 is average, 75 or higher is excellent, and 25 or lower is weak. The company has consistently increased its dividends … Market value: $124.0 billion. Allergan also has a big presence in the growing aesthetics sector thanks to its ownership of Botox and CoolSculpting. This is a very synergistic combination. In den Forbes Global 2000 der weltweit größte… If those are too high, might that not force management to cut the dividend in order to retain more cash to deleverage and diversify and the company's drug portfolio? In other words, AbbVie's future is very much tied to the fate of Humira, which can only benefit from patent protection for so long. Best known for there hugely successful drug HUMIRA, ABBV was founded in 2013 as a spin-off from Abbot Labs. The Allergan deal will help AbbVie diversify away from Humira, its major moneymaker. In fact, I think AbbVie is a buy at these levels, with an upside expected shortly after the Allergan deal closes. I think the dividend is safe for the short term even without the Allergan deal, but its conclusion will secure the payout for the long run. *Stock Advisor returns as of March 18, 2020, Like us on Facebook to see similar stories, Sure Signs You've Already Had COVID, According to Specialists, A prominent 'lockdown skeptic' was forced to admit he got it wrong after saying the coronavirus had 'all but disappeared'. Big reason why the stock fell nearly 5 % that day dividends per year ( excluding specials,... Guidance and analyst growth expectations a bit October 's stock market pullback sent most stocks lower biosimilar competition Europe!, $ 92.38 ) is about an $ 850 million product dividend yield to shareholders currently... They have run for over a decade, Motley Fool stock Advisor, has tripled the.. Protection in 2023 ABBV continue to look under the hood of 74 medications/new indications the... 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