Dividend Increase: AbbVie (ABBV)

Abbvie (ABBV) is a pharmaceutical company, established in 2013 by a spin off from Abbott Labs.  ABBV does research for development of new drugs and is best known for Humira, which has commercials on all the time.

Since becoming its own publicly traded company in 2013, ABBV has announced dividend increases ever since being spun off from ABT.

For 2017, ABBV has announced a $0.07 per share increase to their quarterly dividend, representing a nice 12.28% YOY increase for shareholders.  This brings the current dividend yield to 4.13% (12/13/2016).  This increase beats my expectation of a 7.02%, or $0.04 per share increase to $0.61 quarterly.

Dividend History:

A graphical look at the complete dividend history for ABBV since the spin off.

Looking at the short history of the ABBV dividend, we see the average annual increase comes in at 12.68% per year, impressive to say the least.  The annual payout comes in at the same 12.68% since all dividend increases have come with the Q1 payment.  At that rate of growth, passive income from dividends would double approximately every 6 years.

Company Data:

Market Cap: $100 Billion

PE Ratio: 16

Profit Margin: 24%

Revenue: $25.24 Billion (Humira represents about $10 Billion)

Total Cash: $7.95 Billion

Total Debt: $37.31 Billion

Current Yield: 4.13%

Payout Ratio: 60%

Pipeline is super important to drug companies.  Without a continual flow of new products, the major drug makers eventually lose revenue on established drugs as generics eventually come on the market, so having drugs in the pipeline is very important.  So the big concern for ABBV (and any pharmaceutical company) is what’s coming next.  With nearly half of the companies revenue coming from one drug alone, hopefully new drugs are along the way for final FDA approval.  Here is the pipeline for ABBV.  As you can see, there are several drugs at varying stages of FDA approval.  All it takes is 1 drug to get final approval and become a hit.  It also works the opposite way too.  A drug losing out on final approval can be a blow to expected revenue growth and hit the stock price.

Performance vs S&P500:

abbv-vs-sp500

Looking back 4 years (due to ABBV short publicly traded timeframe), we see that ABBV has outperformed the S&P500 since the start.

Conclusion:

I like ABBV for both appreciation and dividend growth prospects.  While I would expect the dividend growth rate to eventually slow down from the current 12% level, the potential of the drug pipeline could extend that growth rate out for a few more years.  As more drugs enter phase 3 and gain final approval, that should diversify the risk and dependence away from Humira being such a large portion of the companies revenue.  If we compare ABBV to MRK or PFE, it trades at a much lower PE ratio, while offering better or close to the profits of the bigger 2, which translates to a higher EPS.  I am long ABBV, and added 100 shares earlier this year.

Follow me on the social medias:

Readers Comments (45)

  1. buy sumycin buy viagra with discount generic bactrim Byzhdw bceojc

  2. best viagra alternative https://sslidpl.com/ viagra cheap Stkxwn ubwrua

  3. brand viagra over the net site buy viagra online cheap Fkgnjf mbnchr

  4. causes of erectile dysfunction https://edplpro.com/ ed pills that work quickly Ilvmqz plijba

  5. levitra vs viagra https://edlevitp.com/ vardenafil canada Fgiwmo sxdnjl

  6. generic cialis https://procialpi.com/ tadalafil reviews Uwxkyv wfjnct

  7. pharmacy canadian https://propharmp.com/ vyvanse canadian pharmacy Vythvy vjwsxc

  8. canada pharmacy https://strongpharmp.com/ buy adderall canadian pharmacy Wbmuhg wjkhtx

  9. buying cheap cialis online http://erectileprop.com/ online ed meds Fgutje vqwcue

  10. generic cialis without prescription http://erectileprop.com/ what are ed drugs Chjzam cpaxbf

  11. buy viagra indiana http://shpilipills.com/ ed pills Grqrqd kjwstp

  12. cialis use http://cicilisp.com/ causes of ed Lydaxr syailv

  13. help writing papers for college http://essayhhelp.com/ pay for essay writing uk Ixxcwe hjacmq

  14. price for cialis http://pisiapills.com/ help me with my essay Kpsrtx jxrvso

  15. best price cialis http://ciapili.com/ do my research paper Gykeev ckeagf

  16. write papers online http://boessay.com/ online thesis writing Gqdwmw walpjq

  17. provigil generic http://provipls.com/ provigil settlement Jvxoyc epddpe

  18. Global Message Here this product
    https://levitrahill.com levitra

  19. Regards. Plenty of postings. viagra without doctor prescription – viagra for erectile dysfunction

  20. Accustomed Low-down Fro this by-product
    https://cialisgrade.com tadalafil

  21. General Dope Fro this outcome
    https://viafromcanada.com sildenafil

  22. stromectol 12mg – stromectol 3 mg tablets price ivermectin virus

  23. levothyroxine tab 137.5mcg – levothyroxine 37 5 mg cheap generic levothyroxine

  24. where to buy female viagra us – buy viagra online no prescription buy cheap viagra online

  25. Global Low-down Fro this offshoot
    https://ivermectinstrom.com ivermectin for humans

  26. buy ivermectin tablets – stromectol buy oral ivermectin

  27. cialis 800mg – price of cialis generic where to buy tadalafil 20mg

  28. generic clomiphene – cheap clomid clomid tablets

  29. ed pill on shark tank – over the counter erectile dysfunction medication over the counter ed pills cvs

  30. generic prednisone 10mg online – prednisone 60mg for sale prednisone pills

  31. prednisone – prednisone online paypal 20 mg prednisone generic

  32. cheap viagra fast shipping – viagra online 25mg viagra canada

  33. You could certainly see your expertise in the article you write.

    The world hopes for more passionate writers like you who are
    not afraid to say how they believe. At all times go
    after your heart.

  34. stromectol 0.5 mg – ivermectin 3mg tablets

  35. no prescription prednisone canadian pharmacy – 24 mg prednisone order prednisone 5mg

  36. Keflex Respiratory Infection

  37. Global Message Far this outcome
    https://canadianexpresspharm.com online pharmacies

  38. ivermectin lotion – stromectol pills for humans buy stromectol 2mg

  39. http://www.viagrob.com – buying viagra without prescription

Trackbacks & Pingbacks (89)

  1. cytotmeds.com
  2. prednisone dosage for arthritis
  3. hydroxychloroquine 200 mg mexico
  4. priligy 30 mg daily use
  5. dapoxetine tablets in india
  6. albuterol box
  7. hydroxychloroquine tablets 200 mg
  8. can hydroxychloroquine prevent coronavirus
  9. hydroxychloroquine dosing for coronavirus
  10. hydroxychloroquine 200mg tablets
  11. ivermectil antibiotic dosage
  12. is generic priligy available yet
  13. stromectol for rosacea therapy
  14. tadalafil cialis 5mg
  15. canadian generic viagra
  16. cheap viagra online canadian pharmacy
  17. free viagra
  18. sildenafil citrate 100mg
  19. buy sildenafil
  20. buy viagra online
  21. cialis 5 mg tablet
  22. sex pills cialis
  23. purchase cialis online cheap
  24. cialis 10
  25. viagra price
  26. what does ivermectin treat
  27. cheapest viagra online
  28. viagra buy
  29. where can i purchase sildenafil
  30. ivermectin 1000mg
  31. where can i buy female viagra
  32. cialis viagra
  33. sildenafil coupon
  34. 20 mg cialis for daily use
  35. viagra online prescription free
  36. stromectol 6mg a45
  37. sildenafil 50mg
  38. sildenafil 20 mg online canada
  39. buy viagra without a script
  40. ivermectin kills what parasites
  41. erection pills cialis
  42. sildenafil canada where to buy
  43. online viagra sales with vipps®
  44. generic viagra coupon -goodrx
  45. cost of viagra per tablet
  46. cheap generic cialis
  47. cialis mexico
  48. where can i buy generic viagra in india
  49. walgreens generic viagra
  50. purchase viagra
  51. discount viagra
  52. viagra prescription drugs
  53. viagra no precipitation
  54. viagra non-prescription
  55. strongest viagra pill
  56. whats viagra
  57. viagra sans ordonnance
  58. viagra for women
  59. walmart viagra
  60. viagra no prescription
  61. viagra cheap online
  62. cialis mexico cost
  63. viagra pills for men
  64. cialis 40mg generic
  65. viagra para mujeres
  66. viagra precautions
  67. compra viagra
  68. female viagra
  69. viagra generic
  70. viagra sildenafil
  71. roman viagra
  72. hims sildenafil
  73. sildenafil citrate 100mg
  74. cialis reviews patients
  75. viagra overnight
  76. azithromycin tablet
  77. meloxicam 15mg tabs mg
  78. when to redoes with ivermectin
  79. cialis 10mg dosage
  80. azithromycin ivermectin
  81. ciprofloxacin cats
  82. omnicef uti
  83. flexweld keflex
  84. zithromax antibiotic
  85. zithromax 250
  86. erythromycin dosages
  87. zithromax dosage
  88. cefdinir generation
  89. celebrex costco

Comments are closed.

Follow me on the social medias: