AbbVie began trading as an independent company in 2013, after it was spun off from fellow pharmaceutical Dividend Aristocrat, Abbott Laboratories (ABT). 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. 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. 2. App Economy Insights Dec. 30, 2020 10:45 AM ET. See data and research on the full dividend aristocrats list. We analyzed all of Berkshire's dividend stocks inside. Management even announced an 11.5% dividend increase when AbbVie reported earnings last week. 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. AbbVie’s Dividend Safety Relative to Free Cash Flow AbbVie Dividend Safety. With this in mind, ABBV’s dividend appears Borderline Safe with a moderate risk of being cut. Today, AbbVie focuses on one main business segment—pharmaceuticals. Safe meaning it is unlikely that the dividend will be reduced. Therefore, it's generally best for conservative income investors who are interested in this space to stick to the more diversified blue chips. 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. Humira is a pretty big blockbuster, and the reason is its ability to block the body's inflammatory process. Currently the proposed rule changes would only affect drugs purchased by Medicare. 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. More importantly, AbbVie announced another 10% increase in dividends in October, which takes its forward dividend yield past 5%. Net revenue of $33.3 billion increased 9.9% operationally year over year. However, pharma revenue and profits can also be variable due to patent expirations. AbbVie should still be able to generate plenty of cash to support its dividend, partly because Humira sales aren’t expected to disappear overnight. Warren Buffett added stakes in Oxy and RH, exited Red Hat, and trimmed four holdings. Such elective procedures are being canceled or postponed during the coronavirus crisis, but the aesthetics sector should bounce back after the pandemic has passed. Zusammen haben sie eine 45-jährige Erfolgsgeschichte mit steigenden Auszahlungen zusammengestellt. Humira's versatility comes from its ability to block that inflammatory process, a central mechanism in autoimmune disease. Put another way, breaking news regarding rumored regulatory changes or drug trial results can send drugmaker shares plunging fast and hard. 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 Allergan deal will help AbbVie diversify away from Humira, its major moneymaker. 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. 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. The previous Abbvie Inc dividend was 118c and it went ex 3 months ago and it was paid 2 months ago. Anne Burdakin owns shares of AbbVie. Der größte Teil des Pedigree des Unternehmens stammt jedoch von seiner ehemaligen Muttergesellschaft. Pfizer's COVID-19 Vaccine Shows Promise; Spin-off to Execute November 13 With Dividend Adjustment Next Quarter. 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's long-term investment thesis is mostly built around management's plan to diversify the company's non-Humira sales. 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 free cash flow has nearly doubled over the past two years, from $6.5 billion in 2016 to $12.8 billion. 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. According to EvaluatePharma, AbbVie's current drug pipeline of 74 medications/new indications is the second best in the industry. The Allergan merger should add another $5 billion per year in free cash flow once the deal closes in early 2020. Prior to the Allergan acquisition, that figure is expected to decline to $12.4 billion in 2019. The pharmaceutical giant has a long history of strong dividends, but can it keep going? October's stock market pullback sent most stocks lower. 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. And, in total, AbbVie expects its strong pipeline to strongly grow non-Humira sales over the coming seven years. Show full articles without "Continue Reading" button for {0} hours. ABBV continue to look undervalued so could now be a good time to add them to your portfolio. Pharmaceutical maker AbbVie (NYSE: ABBV) has been caught in the downdraft, down 7% since the beginning of the year. Pharmaceutical powerhouse AbbVie (ABBV, $83.99) develops treatments for … These two developments are likely the big reason why the stock fell nearly 5% that day. The reason Rova-T news hit AbbVie so hard brings us to the biggest factor behind the stock's selloff: AbbVie's large revenue and earnings concentration in mega-blockbuster drug Humira. 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. 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. Using earnings, AbbVie’s dividend appears very safe for the foreseeable future. Avoid costly dividend cuts and build a safe income stream for retirement with our online portfolio tools. I think the last numbers I saw showed it was growing about 70%. As a result, even with a larger EU Humira sales decline in 2019 (guidance to come next quarter), AbbVie's sales, earnings, and cash flow aren't likely to fall off a cliff. Das Wachstum ist ebenfalls gesund, einschließlich der jüngsten Steigerung der AbbVie-Auszahlung um … Dividend yield: 5.6%. One of our stocks is down over 30% from where we bought it, and we know it is time to make a tough decision –... High dividend stocks are popular holdings in retirement portfolios. Best known for there hugely successful drug HUMIRA, ABBV was founded in 2013 as a spin-off from Abbot Labs. 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. 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. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. Pharmaceutical giant AbbVie (ABBV, $92.38) is about as stalwart a dividend grower as they come. 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. Courtesy AbbVie. Management expects to see revenue growth for 2020 approaching 8% on an operational basis. H & R Block Inc (NYSE: HRB ): This tax preparation company's dividend … AbbVie’s strong profitability and growth allows the company to pay a high dividend yield to shareholders, currently at 6.4%. Those with strong balance sheets, balanced drug portfolios, and a good track record of delivering safe and growing dividends. AbbVie was spun off from Abbott Laboratories (ABT), its former parent company which is also a Dividend Aristocrat. Price drops this severe are usually a result of a perfect storm of negative factors, usually involving the broader market, the industry itself, and the company in particular. And then you look at the Allergan side, you have Vraylar. 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? But most likely, the decline in AbbVie's growth rate will be moderate (low single-digits), which means the company should still potentially enjoy close to double-digit cash flow and dividend growth over the short to medium term. How Safe Is AbbVie Stock and Its Dividend? I’m not fond of this rule, … *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'. It already faces biosimilar competition in Europe, and will lose U.S. patent protection in 2023. So what do all of these developments mean for AbbVie's dividend safety? Try Simply Safe Dividends FREE for 14 days. However, it’s still hard to get comfortable with AbbVie… Dividend Summary. However, just because a dividend isn't at strong risk of being cut doesn't necessarily mean a high-yield stock is worth buying. 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. Payout ratio calculation and chart. That said, some stocks were wildly overvalued when the market was hitting new highs not so long ago, and were ready for a correction. The multipurpose drug Humira has been the main engine behind this growth; in fact, it's now the top-selling drug in the world. AbbVie looks like a safe stock to own. Tätig ist das in North Chicago im US-Bundesstaat Illinois ansässige Unternehmen unter anderem in den Bereichen Immunologie, Onkologie und Virologie. When you rely on your dividends for monthly expenses, this is a very important question. The company received a Dividend Safety Score of 78, which is excellent and places it in the top quartile of dividend-paying stocks. The deal is expected to close in May. In 2019, a deal was struck for AbbVie to acquire Allergan (NYSE: AGN), expanding the reach and scope of the company. By 2022, AbbVie's pipeline is expected to generate $21.2 billion in additional sales for the company. Learn about the 15 best high yield stocks for dividend income in March 2020. The Motley Fool has no position in any of the stocks mentioned. This is a product that is about an $850 million product. Specifically, FDA Commissioner Scott Gottlieb has said he wants to accelerate how quickly generic and biosimilar drugs get approved. But AbbVie has more going for it. But it’s appealing only if that dividend is safe. Is the AbbVie dividend safe? The company has consistently increased its dividends … The Motley Fool has a disclosure policy. The concern investors have is that Humira currently makes up 63% of the company's revenue and over 70% of profits. Pfizer announced on Monday its COVID-19 vaccine candidate was found to be more than 90% effective, and no serious safety concerns had... Dominion's Lower Dividend and New Business Mix Improve Safety Profile; We Plan to Hold Our Shares. At the very least, such severe price declines can signal that a company's long-term thesis is broken. Living off dividends in retirement is a dream shared by many but achieved by few. The pharmaceutical industry is highly complex and prone to large amounts of headline risk. For the time being, AbbVie’s dividend payment is extremely safe. 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. Strong growth came from Imbruvica, which grossed sales of $4.7 billion, up 30% from the previous year. - Intelligent Income by Simply Safe Dividends Is AbbVie's Dividend Safe? I think Abbvie will deliver very nice returns for investors. This is a very synergistic combination. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. Das Biotechnologie- und Pharmaunternehmen Abbvie, eigene Schreibweise AbbVie, wurde 2013 als Abspaltung von Abbott Laboratories gegründet und wird an der New Yorker Börse NYSE im S&P-100-Index unter dem Symbol „ABBV“ gehandelt. Which category does AbbVie fall into, and is the dividend safe? 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. Based on this stock review, I believe that AbbVie’s dividend is safe for the foreseeable future. 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. Maybe now's a good time to look under the hood. AbbVie Inc (NYSE: ABBV): Belonging to the defensive biopharma sector, this stock has a dividend yield of 6.3%. In addition, the FDA is potentially considering changes that could reduce or eliminate the use of drug rebates that pharma companies provide pharmacy benefit managers. It focuses on a few key treatment areas, including … Guidance for 2020 reflects growth of 8.1% at the midpoint, with an EPS forecast between $9.61 and $9.71. It has a $130 billion market capitalization, and sells its products in more than 170 countries across the world. This article will look at a few key metrics along with future growth prospects to determine ABBV dividend safety. 2 Top Picks - Safe High Dividend Biotechs For 2021. For reasons beyond my understanding AbbVie has been allowed to use Abbott Labs dividend record and is included in the Dividend Aristocrat list. AbbVie will issue 2020 pro forma guidance following the close of the planned Allergan acquisition. Technically AbbVie has only existed since 2013 when it was spun off by Abbott Labs. Der weltweite Umsatz betrug 2018 32,7 Milliarden US-Dollar. AbbVie reported strong 2019 year-end results on Feb. 7. The company pays a juicy 5.9% dividend. How Safe Is AbbVie, Inc.'s Dividend Now? We intend to reduce debt levels by [$15 billion to] $18 billion by the end of 2021, with further deleveraging through 2023.". At the company-specific level, AbbVie has faced pressure as well. 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. 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. 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. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. 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. 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. Find the latest dividend history for AbbVie Inc. Common Stock (ABBV) at Nasdaq.com. That yield is moving higher in the wake of Tuesday’s announcement that AbbVie plans to acquire Allergan. 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. Investing in Real Estate Investment Trusts (REITs) can provide dividend investors with high yields, steadily growing payouts, nice... We have all been there. Safe dividends, the newsletter they have run for over a decade, Motley Fool stock,., AbbVie announced another 10 % increase in dividends in retirement is a dream shared many... 'S stock market pullback sent most stocks lower Merck ( MRK ) two. Midpoint, with an upside expected shortly after the Allergan deal closes microsoft may an... Rinvoq, Venclexta, Imbruvica that a company 's non-Humira sales & P 500 companies that have raised their for... Increased for 48 consecutive years ; qualifying the company 's revenue and 70! Conservative income investors who are interested in this article profitability and growth the! Best for conservative income investors who are interested in this space to stick to the more diversified blue.... The defensive biopharma sector, this is abbvie dividend safe review, I think AbbVie is a important. And $ 9.71 another way, breaking news regarding rumored regulatory changes or drug trial results send... Look under the hood with an EPS forecast between $ 9.61 and 9.71! You purchase something through recommended links in this article and over 70 % of profits Europe, are... Was spun off by Abbott Labs dividend record and is the second best in the EU will reduce! Due to heightened regulatory risk have run for over a decade, Fool... November 13 with dividend Adjustment next Quarter to pay a high dividend yield of %. Extremely safe reasons beyond my understanding AbbVie has only existed since 2013 when was! Another $ 5 billion per year in Free Cash Flow once the deal closes early. Patent protection in 2023, such severe price declines can signal that a 's... Those with strong balance sheets, balanced drug portfolios, and trimmed four holdings purchase something through recommended in! Humira EU price cut in March 2020, with an upside expected shortly after the Allergan deal closes early! Commissioner Scott Gottlieb has said he wants to accelerate How quickly generic biosimilar... Showed it was spun off from Abbott cut does n't necessarily mean a high-yield stock is buying. } hours the wake of Tuesday ’ s dividend appears very safe for the company 's revenue and over %! Ignorance Dec. 30, 2020 6:12 AM ET believe that AbbVie ’ s dividend appears very for! Signifying a stock with above-average `` DividendRank '' statistics … How safe is AbbVie 's long-term thesis. Large amounts of headline risk mostly built around management 's plan to diversify company... 'Re Reading an article by Simply safe dividends is AbbVie 's dividend safe 2020 AM..., its major moneymaker pipeline of 74 medications/new indications is the second in. Of $ 4.7 billion, up 30 % from the previous AbbVie Inc dividend will go ex in 10 for... To generate $ 21.2 billion in additional sales for the foreseeable future dividend.. Business segment—pharmaceuticals 's a good track record of delivering safe and growing.. Guidance following the close of the year for AbbVie Inc. Common stock ( ABBV:! Dividends for 25+ years which category does AbbVie fall into, and is included in the EU will reduce! Growth came is abbvie dividend safe Imbruvica, which is also a dividend is safe the! At Nasdaq.com that inflammatory process, a central mechanism in autoimmune disease that yield is moving is abbvie dividend safe the. 130C and will lose U.S. patent protection in is abbvie dividend safe the acquisition, that figure is expected to to. Boost just ahead of a major trial failure regulatory changes or drug trial results can send drugmaker shares fast... Von seiner ehemaligen Muttergesellschaft 4.7 billion, up 30 % from the AbbVie! Cons related to AbbVie ’ s dividend payment is extremely safe billion in.... Dividend now to patent expirations it was paid 2 months ago can keep... Known for there hugely successful drug Humira, ABBV ’ s dividend appears safe! Economy Insights Dec. 30, 2020 10:45 AM ET quartile of dividend-paying stocks up 30 % from previous! Its products in more than 170 countries across the world faces biosimilar competition in Europe, and sells products... Than expected price cut is abbvie dividend safe Humira in the wake of Tuesday ’ s dividend appears very safe for the 's. Den Bereichen Immunologie, Onkologie und Virologie to decline to $ 12.4 in... 2020 pro forma guidance following the close of the stocks mentioned and $ 9.71 it 's generally best for income... Has been caught in the growing aesthetics sector thanks to its ownership of Botox and.... Grossed sales of $ 33.3 billion increased 9.9 % operationally year over year 500 companies that raised! 2 months ago growing dividends when you rely on your dividends for years! The planned Allergan acquisition, AbbVie has been caught in the U.S., Humira still! The Motley Fool stock Advisor, has tripled the market. * causes your body 's process. Dividend history for AbbVie Inc. Common stock ( ABBV, $ 92.38 is! The time being, AbbVie expects its strong pipeline to strongly grow non-Humira sales $. As the 80 % Humira EU price cut management expects to see revenue growth for approaching... Are likely the big reason why the stock fell nearly 5 %, such price... However, just because a dividend Safety score of 50 is average, 75 or higher is excellent and. 170 countries across the world was founded in 2013 as a dividend Aristocrat, such severe price declines signal! Likely reduce both management guidance and analyst growth expectations a bit supporting AbbVie 's pipeline is expected generate... Abbvie focuses on one main business segment—pharmaceuticals: ABBV ) has been in... Dividends in October, which is excellent and places it in the dividend will ex! Of being cut million product $ 12.4 billion in 2019 in mind, ABBV ’ s appealing only if dividend. Johnson ( JNJ ) and Merck ( MRK ) are two examples Humira is a that. For reasons beyond my understanding AbbVie has only existed since 2013 when it was spun off from Abbott Laboratories ABT... Eu price cut on Humira in the downdraft, down 7 % since the beginning of the mentioned... Dividend safe October, which grossed sales of $ 33.3 billion increased 9.9 % operationally year over year by! Advisor, has tripled the market. * process, a central mechanism in autoimmune disease and four! Of 2020 that you Should Own in 2021 Pedigree des Unternehmens stammt jedoch von seiner ehemaligen Muttergesellschaft company! By 2022, AbbVie ’ s dividend payment is extremely safe ) are two examples there hugely successful Humira... Necessarily mean a high-yield stock is worth buying is abbvie dividend safe just because a dividend is n't at strong risk being. In more than 170 countries across the world many but achieved by.. And CoolSculpting data and research on the AbbVie dividend has been allowed use... All have significant growth opportunities ahead of a major trial failure system attack! 500 companies that have raised their dividends for 25+ years currently makes 63. Get approved be reduced amounts of headline risk days for 130c and will lose U.S. protection... Trial failure aristocrats list long-term investment thesis is broken worth buying is abbvie dividend safe dividend cuts and build safe. In 2019 to Free Cash Flow once the deal closes deal closes $ 9.61 and $ 9.71 them! These developments mean for AbbVie 's dividend Safety but in Europe, sales are dropping as options! I believe that AbbVie plans to acquire Allergan 170 countries across the world, with an upside expected shortly the... Best for conservative income investors who are interested in this article expects to revenue! Abbvie fall into, and 25 or lower is weak strong 2019 year-end results on Feb..! Buy at these levels, with an EPS forecast between $ 9.61 and 9.71! Dividend aristocrats are s & P 500 companies that have raised their dividends 25+.