Practice management news, reports, video and more. AbbVie Dividend Safety: 74% = 4/5 Above-Average The Dividend Kings Safety Model Is based on 58 safety metrics (up from 55 in the last ABBV video). * Annualized return assumes initial investment is continually reinvested in similar BDC stocks. This is the 49th consecutive year of dividend increases by the biopharmaceutical company. When drug companies’ dividend yields are high, it’s often because their main products are about to no longer be covered by patents. Once its nearly $20 billion of annual Humira revenues start to disappear, it may pare back its massive dividend . AbbVie (ABBV), a large pharmaceutical company whose biggest selling drug is Humira, plans to boost its quarterly dividend to $1.30 a share from $1.18 for a 10% hike. From June 2015 to March 2017, its shares nearly got cut in half, and the stock traded at a price-earnings ratio of ten or less the whole way down. The Allergan deal looks like a risky and potentially even desperate measure. ABBV Dividends News. As a result, EvaluatePharma cut its net present value of that drug (based on discounted future cash flows) by 98%, from $8.5 billion to less than $200 million, making Rova-T the biggest major drug failure of the past year. High dividend yields (usually over 10%) should be considered extremely risky, while low dividend yields (1% or less) are simply not very beneficial to long-term investors. The world's best-selling drug in 2018, autoimmune drug Humira is now set to become a serious albatross for AbbVie, as patent expirations and biosimilar competition outside the U.S. chip away at its revenue. This includes Amgen (AMGN), Samsung Bioepis, Mylan (MYL), and most recently Novartis. But the drug’s sales have started to fall now, as generic versions of it have been launched in some countries outside the U.S. Its sales fell to $19 billion in 2019, giving the slightest taste of what things will look like after 2023 when Humira will be totally off-patent and its revenues will subsequently collapse. Particularly in the post-coronavirus world, when companies are slashing their dividends left and right, AbbVie can easily justify a similar move. With that coming headwind in mind, AbbVie has done some M&A deals to diversify its revenues. AbbVie has also recently cut deals with all its major rivals who have biosimilars coming to the U.S.. Compare ABBV to Popular Health Care Sector Dividend Funds, Compare ABBV to Popular Health Care Sector Dividend ETFs. Portfolio management news, reports, video and more. On top of that, the stock's price-to-earnings ratio (P/E) is … AbbVie (NYSE:ABBV) declares $1.30/share quarterly dividend, 10.2% increase from prior dividend of $1.18. That’s because drug makers have to reinvest so much of their profits in research and development. Stocks that yield more than 8% are red flags, he said, warning that high yields can be cut or the stock price could be on a decline. WCP's cash dividend payout ratio of 15.98% means there won't likely be a need for a dividend cut any time soon. A score of 50 is average, 75 or higher is excellent, and 25 or lower is weak. Find the latest dividend history for AbbVie Inc. Common Stock (ABBV) at Nasdaq.com. Abbott is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for 25 consecutive years. Article printed from InvestorPlace Media, https://investorplace.com/2020/06/abbvie-will-be-in-big-trouble-when-its-patent-cliff-arrives/. One such deal was buying Allergan. Today, AbbVie focuses on one main business segment—pharmaceuticals. Hand picked by analysts based on Dividend.com rating system. 2021 InvestorPlace Media, LLC. Find the latest AbbVie Inc. (ABBV) stock quote, history, news and other vital information to help you with your stock trading and investing. Now, however, AbbVie must adapt quickly or ABBV stock will be in big trouble. This represents a 10.12% increase over last quarterly dividend. If a stock is valued near, or slightly below the market average, research has shown that the market expects the stock’s dividend to increase. * Dividend.com does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security. Fixed income news, reports, video and more. If a future payout has not been declared, The Dividend Shot Clock will not be set. There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 2.1. For comparison’s sake, AbbVie’s entire business generated $34 billion of revenue last year, and produced $8.4 billion of net income. AbbVie (ABBV) Outpaces Stock Market Gains: What You Should Know - January 5, 2021 - Zacks.com Each one was selected due to … It divides the Forward Annualized Dividend by FY1. ABBV's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! But what is going to happen once the companies’ revenues start trending down? A stock’s Earnings Growth rating evaluates a company’s expected. But because of AbbVie’s huge yield, investors have flocked to the stock. If a stock’s yield is above or near the market average then it will be rated higher within this parameter. AbbVie’s upcoming dividend is US$1.18 a share, following on from the last 12 months, when the company distributed a total of US$4.72 per share to shareholders. On April 23, Invesco announced it would be cutting its dividend by 50%, from 31 cents per share to 15.5 … And in a recessionary economy, pharma may seem like a safe haven. Thus, dividend investors should steer clear of AbbVie stock for the time being. While there are always exceptions, in general, drug companies shouldn’t pay a high dividend; yields of 5% and up are dangerous. Make short-term dividend income. A score of 50 is average, 75 or higher is excellent, and 25 or lower is weak. However, it could lose most of those sales over the next few years, as Humira’s patent protection will disappear in 2023. Dividend.com: The #1 Source For Dividend Investing. The Verdict on ABBV Stock AbbVie (NYSE:ABBV) declares $0.71/share quarterly dividend, 10.9% increase from prior dividend of $0.64. Buy the Stock One Day Before the Ex-Dividend Date. Check out the securities going ex-dividend this week. These are 10 of the leading dividend stocks that offer no-fee DRIPs. If a future payout has been declared and you own this stock before time runs out, then you will receive the next payout. Meanwhile, yield-seeking investors are attracted to the cash flow of blockbuster drugs. To see all exchange delays and terms of use, please see disclaimer. And, like AbbVie, Pfizer is a great dividend stock. Compare their average recovery days to the best recovery stocks in the table below. Learn more about Dividend Safety … You take care of your investments. Monthly payments from Quarterly Payers ››. A stock’s dividend reliability is determined by a healthy payout ratio that is higher than other stocks. Critical Facts You Need to Know About Preferred Stocks, Earn More With Dividend Stocks Than With Annuities for Your Retirement. AbbVie began trading as an independent company in 2013, after it was spun off from fellow pharmaceutical Dividend Aristocrat, Abbott Laboratories (ABT). AbbVie (ABBV) Raises Quarterly Dividend 10.2% to $1.30; 6.4% Yield; … And that’s very much the case with AbbVie. Cramer said a stock with a 4% yield is ideal. Humira’s annual sales grew from an already tremendous $8 billion in 2011 all the way to $20 billion in 2018. A grade indicates an extremely low probability of a dividend cut. In the past, the owners of its shares fixated on its past results rather than thinking about its future. Dividend Safety Scores range from 0 to 100. The time remaining before the next ex-dividend date. On Friday, October 30 the Board of Directors of AbbVie Inc. announced a quarterly dividend increase of from $ 1.18 to $ 1.30 per share that’s payable February 16, 2020 to holders of record January 15, 2020. AbbVie  spent more than $60 billion on Allergan to try to fill its upcoming Humira revenue hole. AbbVie's dividend yield of close to 6.3% will probably make your mouth water. AbbVie paid out $6.5 billion of dividends last year. A stock’s Dividend Uptrend rating is dependent on the company’s price-to-earnings (P/E) ratio to evaluate whether or not a stock’s dividend is likely to trend upward. Upgrade to Premium to get unlimited access to Ratings, Recommendations, Payout Estimates, and more. Dividend Capture Avg Days for Stock Price Recovery, BlackRock Health Sciences Opportunities Portfolio, SPDR® Bloomberg Barclays High Yield Bond ETF, Abbott Laboratories, AbbVie and PNC Financial Go Ex-dividend This Week, AbbVie, Oracle and Abbott Laboratories Go Ex-dividend This Week, The Market Wrap for July 26: Rising Earnings Lift the Street’s Spirits, Trending: AbbVie Snatches Allergan in Search for Growth, Understanding the Global Industry Classification System (GICS), Top 10 Dividend Stocks That Offer No-Fee DRIPs, High Stakes: Two Dividend-Paying Stocks That Give You Exposure to Marijuana. Based on the quick analysis above ABBV scored a total of 82 out of 100 which means I believe they are a low risk to cut the dividend. © 2020  Market data provided is at least 15-minutes delayed and hosted by Barchart Solutions. It has a $130 billion market capitalization, and sells its products in more than 170 countries across the world. Calculating the last year’s worth of payments shows that AbbVie has a trailing yield of 5.9% on the current share price of $79.75. Consecutive Years of Dividend Increase is the number of years in a row in which there has been at least one payout increase and no payout decreases. All stock quotes on this website should be considered as having a 24-hour delay. Copyright © With a great deal of that revenue set to disappear in 2023, why have investors been bidding up ABBV stock recently? If you purchase the stock on or after the 14th of April, you won't be eligible to receive this dividend, when it is paid on the 15th of May. Stay up to date with timely dividend news. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. AbbVie (ABBV) closed at $106.50 in the latest trading session, marking a +1.03% move from the prior day. Sure, Allergan will help to some extent. AbbVie has admitted as much with a $4.6 billion write-down on the Stemcentrx acquisition. These agreements mean that not only should AbbVie face little to no Humira biosimilar competition in the U.S. until 2023, but it will also receive a royalty payment on any biosimilar sales. AbbVie pays an annual dividend of $4.72 per share, with a dividend yield of 4.41%. AbbVie has attracted a ton of attention from investors primarily because it pays a huge dividend. U.S. revenue should be safe until around 2023, but AbbVie is staring down a scary patent cliff given that Humira accounted for 57% of the company's total … Helpful articles on different dividend investing options and how to best save, invest, and spend your hard-earned money. Review ABBV (XNYS) dividend yield and history, to decide if ABBV is the best investment for you. Browse our guide to explore. With pro-marijuana legislation sweeping the continent, many investors believe they are in the... How will healthcare stocks be affected by Donald Trump's wins? AbbVie Inc. (ABBV) Dividend Growth History: By month or year. The major determining factor in this rating is whether the stock is trading close to its 52-week-high. Most experienced investors  see that risk and run for the hills. The company has grown its dividend for the last 48 consecutive years and is increasing its dividend by an average of 23.36% each year. With this in mind, ABBV’s dividend appears Borderline Safe with a moderate risk of being cut. Reproduction of such information in any form is prohibited. A good example is Gilead (NASDAQ:GILD). Dividend Aristocrat AbbVie (ABBV) will raise its quarterly dividend by 10.2% to $1.30 per share next year. Many healthcare companies tend to have a dividend yield of 2%-3%. Dividend Summary The next Abbvie Inc dividend will go ex in 19 days for 130c and will be paid in 2 months. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. All rights reserved. View Payout Estimates For The Next 12 Months. Learn more about Dividend Safety Scores here. Up until recently, AbbVie relied on its blockbuster Humira drug for around 60% of its revenue. It’s far from certain that AbbVie will be able to keep anything close to its current level of profitability once its Humira patents expire. Sometimes a company offers a high dividend simply because the market is underestimating its prospects. Copyright © 2021 InvestorPlace Media, LLC. All rights reserved. Because of the possibility of human or mechanical error by Mergent's sources, Mergent or others, Mergent does not guarantee the accuracy, adequacy, completeness, timeliness or availability or for the results obtained from the use of such information. AbbVie Will Be in Big Trouble When Its Patent Cliff Arrives, Louis Navellier and the InvestorPlace Research Staff, Avoid Overvalued Airbnb Stock Until After The Honeymoon, Matt McCall and the InvestorPlace Research Staff, What Did the Stock Market Do Today? With this in mind, ABBV’s dividend appears Borderline Safe with a moderate risk of being cut. Chart. AbbVie (NASDAQ:ABBV) is in the midst of a transition. And, like AbbVie, Pfizer is a great dividend stock. … It focuses on a few key treatment areas, including … Find out how much your money can grow by using our Compounding Returns Calculator. We like that. Annualized Dividend is a standard in finance that lets you compare companies that have different payout frequencies. Dividend stocks making payouts in the next 10 business days and have a history of rebounding in price shortly thereater. Forward yield 6.45% Payable Feb. 16; for shareholders of record Jan. 15; ex-div Jan. 14. B grade indicates a very low probability for a dividend cut. Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. While the patent protection will result in a loss of revenue for ABBV, they have been working hard in R&D to build products that can help offset the loss of revenue. Not sure where to start? Learn from industry thought leaders and expert market participants. Fwd Payout Ratio is used to examine if a company’s earnings can support the current dividend payment amount. AbbVie simply can’t be judged based on its 2019 earnings and dividend. At the time of this writing, he owned Gilead stock. Dividend Yield is the relation between a stock’s Annualized Dividend and its current stock price. Forward yield 3.17% Payable Feb. 15; for shareholders of record Jan. 12; ex-div Jan. 11. For reference, last quarter, Humira's international revenue dropped by 28% year over year, even while domestic revenue increased by 7%. 1125 N. Charles St, Baltimore, MD 21201. C grade indicates a low probability for a dividend cut and/or average safety risk. Enhance retirement outcomes with helpful tactics. 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