Any part of your body can be mistakenly attacked, resulting in conditions like lupus, Crohn's disease, rheumatoid arthritis, chronic plaque psoriasis, and other illnesses. AbbVie Inc. (NYSE: ABBV) is a healthcare giant with a focus on pharmaceuticals.Its most important individual product is Humira, a multi-purpose pharmaceutical that was the top-selling drug in … Those all have significant growth opportunities ahead of them on the AbbVie side. AbbVie started to pay dividends in 2013, and since then, the payout has risen quickly. Stock Advisor launched in February of 2002. 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. 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. Show full articles without "Continue Reading" button for {0} hours. Like mutinous pirates, autoimmune disease causes your body's immune system to attack your own healthy cells by mistake. Simply Safe Dividends (SSD) awards a safety score of 50 out of 100 points, a grade that it calls “borderline safe.” SSD lowered ABBV’s safety score in 2019 from 61 (“safe”) to 50 (“borderline safe”) upon the announcement of AbbVie’s intent to acquire Allergan in an $80 billion deal. The company received a Dividend Safety Score of 78, which is excellent and places it in the top quartile of dividend-paying stocks. It already faces biosimilar competition in Europe, and will lose U.S. patent protection in 2023. In the U.S., Humira is still growing, but in Europe, sales are dropping as cheaper options become available. 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. ABBV’s long-term dividend and fundamental data charts can all be seen by clicking here. 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. Learn more about Dividend Safety Scores here. This is a very synergistic combination. Courtesy AbbVie. The deal is expected to close in May. I think Abbvie will deliver very nice returns for investors. Dividend.com: The #1 Source For Dividend Investing. That's right -- they think these 10 stocks are even better buys. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories. The deal is expected to close in May. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Regarding dividend safety, AbbVie said in a company announcement regarding the Allergan acquisition: "The combined company will produce robust cash flow which will support continued growth of our dividend, further investment in our pipeline, and reduction of debt. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Today, AbbVie focuses on one main business segment—pharmaceuticals. AbbVie will issue 2020 pro forma guidance following the close of the planned Allergan acquisition. That bodes well for the dividend, which has steadily grown since the inception of the company. AbbVie also reported adjusted earnings per share of $8.94, reflecting 13% year-over-year growth and beating the company's initial guidance midpoint by $0.24. In fact, I think AbbVie is a buy at these levels, with an upside expected shortly after the Allergan deal closes. The more debt a company has than the greater the amount of interest they have to pay. Allergan also has a big presence in the growing aesthetics sector thanks to its ownership of Botox and CoolSculpting. Any part of your body can be mistakenly attacked, resulting in conditions like lupus, Crohn's disease, rheumatoid arthritis, chronic plaque psoriasis, and other illnesses. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. 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. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. Market data powered by FactSet and Web Financial Group. And then you look at the Allergan side, you have Vraylar. ABBV's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! This article will look at a few key metrics along with future growth prospects to determine ABBV dividend safety. Market value: $124.0 billion. But AbbVie has more going for it. Find the latest dividend history for AbbVie Inc. Common Stock (ABBV) at Nasdaq.com. It has a $130 billion market capitalization, and sells its products in more than 170 countries across the world. P.P.S. Interest coverage is probably one of the most important metrics that I use. Returns as of 01/06/2021. They include earnings growth over the previous 12 months, a company’s dividend actions over … In the U.S., Humira is still growing, but in Europe, sales are dropping as cheaper options become available. Cumulative Growth of a $10,000 Investment in Stock Advisor, How Safe Are AbbVie Stock and Its Dividend? The company pays a juicy 5.9% dividend. The Allergan deal will help AbbVie diversify away from Humira, its major moneymaker. Which category does AbbVie fall into, and is the dividend safe? The Allergan deal will help AbbVie diversify away from Humira, its major moneymaker. Find more details information on this page. AbbVie’s Dividend Safety Relative to Recession Performance Companies do not cut their dividends in the good times. 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. AbbVie (NYSE:ABBV) declares $1.30/share quarterly dividend, 10.2% increase from prior dividend of $1.18.Forward yield 6.45%Payable Feb. ABBV dividend safety – Is the dividend safe? Management expects to see revenue growth for 2020 approaching 8% on an operational basis. This is a product that is about an $850 million product. Instead, dividends are reduced when … Guidance for 2020 reflects growth of 8.1% at the midpoint, with an EPS forecast between $9.61 and $9.71. 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! Dividend Safety Grade: C A grade indicates an extremely low probability of a dividend cut. AbbVie also reported adjusted earnings per share of $8.94, reflecting 13% year-over-year growth and beating the company's initial guidance midpoint by $0.24. B grade indicates a very low probability for a dividend cut. AbbVie's management expects several financial benefits from the merger, including an immediate 10% increase to earnings per share over the first full year of the combination, cost reductions of at least $2 billion by year three, and operating cash flow estimated at $19 billion. AbbVie Inc. (ABBV) Dividend Safety metrics. The multipurpose drug Humira has been the main engine behind this growth; in fact, it's now the top-selling drug in the world. The dividend is safe, and the Allergan acquisition should make it safer. AbbVie reported strong 2019 year-end results on Feb. 7. AbbVie began trading as an independent company in 2013, after it was spun off from fellow pharmaceutical Dividend Aristocrat, Abbott Laboratories (ABT). 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