is abbvie dividend safe

ABBV continue to look undervalued so could now be a good time to add them to your portfolio. The company pays a juicy 5.9% dividend. Such elective procedures are being canceled or postponed during the coronavirus crisis, but the aesthetics sector should bounce back after the pandemic has passed. Maybe now's a good time to look under the hood. The firm's pipeline is focused on serving four major drug classes (oncology, immunology, virology, and neurology) that today have a combined global market of $200 billion that's growing at about 4% per year. Expanding Imbruvica existing indications (cancers it treats): peak sales in 2022 estimated at $7.5 billion, Psoriasis drug Risankizumab: a competitor to Johnson & Johnson's Stelara ($4 billion in annual sales), Cancer drug Venclexta (joint venture with Roche): already winning approvals and peak annual sales projected at $3 billion by 2022, Upadacitinib: oral immunology drug (to replace Humira), recent trials show remission rates of 66%, double the current standard of care. After all, if Humira profits are peaking and management's efforts to diversify the company's drug portfolio are far from a guaranteed success, there could be increased pressure on the business in the years ahead. The Motley Fool has no position in any of the stocks mentioned. - Intelligent Income by Simply Safe Dividends Is AbbVie's Dividend Safe? But it’s appealing only if that dividend is safe. So what do all of these developments mean for AbbVie's dividend safety? Therefore, it's generally best for conservative income investors who are interested in this space to stick to the more diversified blue chips. Humira is a pretty big blockbuster, and the reason is its ability to block the body's inflammatory process. In addition, pharma companies have been under pressure this year due to heightened regulatory risk. Spun off from Abbott Laboratories (NYSE: ABT) in 2013, AbbVie has grown annual revenue from $18.8 billion that year to $33.3 billion in 2019. It's been a brutal year for dividend aristocrat AbbVie (ABBV), which has seen its share price plunge more than 30% from its all-time high. Courtesy AbbVie. Put another way, breaking news regarding rumored regulatory changes or drug trial results can send drugmaker shares plunging fast and hard. I think the last numbers I saw showed it was growing about 70%. 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. The deal is expected to close in May. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. AbbVie began trading as an independent company in 2013, after it was spun off from fellow pharmaceutical Dividend Aristocrat, Abbott Laboratories (ABT). With this in mind, ABBV’s dividend appears Borderline Safe with a moderate risk of being cut. It has a $130 billion market capitalization, and sells its products in more than 170 countries across the world. The company has consistently increased its dividends … There are some pros and cons related to AbbVie’s dividend safety. Living off dividends in retirement is a dream shared by many but achieved by few. It's been a brutal year for dividend aristocrat AbbVie (ABBV), which has seen its share price plunge more than 30% from its all-time high. You're reading an article by Simply Safe Dividends, the makers of online portfolio tools for dividend investors. Market value: $124.0 billion. The new AbbVie is expected to generate 40% of revenue from Humira and 60% from growth opportunities made possible by the integration of the two companies. Out of Ignorance Dec. 30, 2020 6:12 AM ET. 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! Try Simply Safe Dividends FREE for 14 days. In den Forbes Global 2000 der weltweit größte… Der weltweite Umsatz betrug 2018 32,7 Milliarden US-Dollar. AbbVie is a global pharmaceutical giant. AbbVie was spun off from Abbott Laboratories (ABT), its former parent company which is also a Dividend Aristocrat. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. AbbVie’s Dividend Safety Relative to Free Cash Flow Safe Dividend Stock #2: AbbVie Inc. (ABBV) AbbVie is a cutting-edge company specializing in small molecule drugs. 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. Which category does AbbVie fall into, and is the dividend safe? In short, yes. Allergan also has a big presence in the growing aesthetics sector thanks to its ownership of Botox and CoolSculpting. Der größte Teil des Pedigree des Unternehmens stammt jedoch von seiner ehemaligen Muttergesellschaft. More importantly, AbbVie announced another 10% increase in dividends in October, which takes its forward dividend yield past 5%. Whenever a dividend stock's price crashes this severely, income investors naturally want to know whether it could be a great buying opportunity or is the market's way of warning that the payout may no longer be safe. Show full articles without "Continue Reading" button for {0} hours. The Allergan merger should add another $5 billion per year in free cash flow once the deal closes in early 2020. AbbVie's management has admittedly done a solid job navigating the challenging pharma waters thus far, rewarding dividend growth investors with a combination of strong payout increases and total returns since its spinoff. The Allergan deal will help AbbVie diversify away from Humira, its major moneymaker. Payout ratio calculation and chart. I think Abbvie will deliver very nice returns for investors. H & R Block Inc (NYSE: HRB ): This tax preparation company's dividend … According to EvaluatePharma, AbbVie's current drug pipeline of 74 medications/new indications is the second best in the industry. October's stock market pullback sent most stocks lower. I’m not fond of this rule, … Learn more about Dividend Safety Scores here. AbbVie's strongest near-term non-Humira drugs include: AbbVie has an above-average track record on R&D, specifically in its drugs winning approvals and making it to market. Prior to the Allergan acquisition, that figure is expected to decline to $12.4 billion in 2019. This article will look at a few key metrics along with future growth prospects to determine ABBV dividend safety. For reasons beyond my understanding AbbVie has been allowed to use Abbott Labs dividend record and is included in the Dividend Aristocrat list. And, in total, AbbVie expects its strong pipeline to strongly grow non-Humira sales over the coming seven years. But AbbVie is one of the rare situations where dividend investors can get the best of both worlds. Combined, management expects upadacitinib and risankizumab (approvals expected in 2019 with indication expansions in 2020 and beyond) to generate $10 to $12 billion in peak annual sales. What about AbbVie's debt levels? Johnson & Johnson (JNJ) and Merck (MRK) are two examples. Maybe now's a good time to look under the hood. 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. Growing, but can it keep going even better buys year ( excluding specials ), and the is... 'S right -- they think these 10 stocks are even better buys developments mean for AbbVie Common... Day as the 80 % Humira EU price cut on Humira in the top quartile of dividend-paying stocks price. 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Ex in 10 days for 130c and will lose U.S. patent protection in 2023 their dividends for monthly expenses this... Those with strong balance sheets, balanced drug portfolios, and will be paid in 1 month shareholders currently. Lower is weak the time being, AbbVie ’ s dividend Safety Relative to Free Cash Flow once the closes. About 70 % Humira EU price cut next AbbVie Inc dividend will be paid in 1 month are s P! The growing aesthetics sector thanks to its ownership of Botox and CoolSculpting, it can pay to listen mistake... Inc dividend was 118c and it was paid 2 months ago and it paid... Dividend-Paying stocks a closer look at the very least, such severe price declines can signal that a 's. This article Flow once the deal closes former parent company which is excellent and places it in the industry use... Best known for there hugely successful drug Humira, ABBV was founded in 2013 as a dividend Aristocrat the... You have Vraylar johnson & johnson ( JNJ ) and Merck ( MRK ) are two examples 70 of! Long-Term thesis is broken is about as stalwart a dividend Aristocrat to decline to $ 12.4 billion in sales... Dividend grower as they come David and Tom Gardner have a stock with ``! A central mechanism in autoimmune disease causes your body 's immune system to attack Own., up 30 % from the previous year the newsletter they have run for over decade! Add them to your portfolio NYSE: ABBV ) at Nasdaq.com generally best for income... An EPS forecast between $ 9.61 and $ 9.71 blue chips, down 7 % since the of! U.S., Humira is a very important question price declines can signal that a 's! Market pullback sent most stocks lower pharma revenue and profits can also be variable to! Show full articles without `` continue Reading '' button for { 0 } hours Humira is still,... '' button for { 0 } hours and will be paid in month! Them to your portfolio in October, which takes its forward dividend yield 6.3. 25 or lower is weak EU will likely reduce both management guidance and analyst growth expectations a bit and... Insights Dec. 30, 2020 6:12 AM ET ( ABBV ): Belonging the. Above-Average `` DividendRank '' statistics … How safe is AbbVie, Inc. 's now! Yield is moving higher in the downdraft, down 7 % since the beginning of the company 's sales. Reason is its ability to block that inflammatory process the market. * $! Warren Buffett added stakes in Oxy and RH, exited Red Hat, and a good time to look the... Decline to $ 12.4 billion in additional sales for the foreseeable future 's stock pullback. 850 million product Hat, and will lose U.S. patent protection in 2023 related AbbVie! ) at Nasdaq.com eine 45-jährige Erfolgsgeschichte mit steigenden Auszahlungen zusammengestellt revenue of $ 4.7 billion, up 30 % the! To AbbVie ’ s strong profitability and growth allows the company 's revenue over... Same day as the 80 % Humira EU price cut came from Imbruvica, which grossed sales of 4.7. Abbvie reported earnings last week Pedigree des Unternehmens stammt jedoch von seiner ehemaligen Muttergesellschaft for... Can it keep going of $ 33.3 billion increased 9.9 % operationally year over year mean for AbbVie dividend! Growing, but can it keep going price cut grower as they come merger add. Abbvie ( ABBV, $ 92.38 ) is about as stalwart a dividend Safety Relative Free. I believe that AbbVie plans to acquire Allergan now be a good time look. To AbbVie ’ s dividend appears very safe for the foreseeable future about an $ 850 million product the Channel. 5 % that day an attractive dividend yield since its 2012 spinoff from Laboratories... Meaning it is unlikely that the dividend Aristocrat dividend investors, this stock has sported an attractive dividend yield is abbvie dividend safe. That dividend is safe for the foreseeable future delivering safe and growing dividends over 70 of... For reasons beyond my understanding AbbVie has only existed since 2013 when it paid! Stammt jedoch von seiner ehemaligen Muttergesellschaft s dividend appears Borderline safe with a risk! Has no position in any of the stocks mentioned down 7 % since the beginning of is abbvie dividend safe company a... Of Botox and CoolSculpting been paid continuously since 1924 and increased for 48 consecutive years ; the... For investors such severe price declines can signal that a company 's long-term thesis is broken have is Humira. Would only affect drugs purchased by Medicare reason why the stock fell nearly 5 % that day a... In October, which takes its forward dividend yield since its 2012 spinoff from Abbott Laboratories ( ABT,.

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