The Motley Fool has no position in any of the stocks mentioned. AbbVie Inc. (ABBV) is a dividend aristocrat paying over 25+ years of dividend. While that’s a short track record, the pre-split legacy dividend growth track record dated back d… This is a product that is about an $850 million product. Management expects to see revenue growth for 2020 approaching 8% on an operational basis. That bodes well for the dividend, which has steadily grown since the inception of the company. Market value: $124.0 billion. 2. AbbVie Dividend Safety Score. Humira is a pretty big blockbuster, and the reason is its ability to block the body's inflammatory process. Debt is an important metric for ABBV dividend safety. Dividend Safety Scores range from 0 to 100. The deal is expected to close in May. B grade indicates a very low probability for a dividend cut. A high-level overview of AbbVie Inc. (ABBV) stock. AbbVie reported strong 2019 year-end results on Feb. 7. 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 deal is expected to close in May. Management expects to see revenue growth for 2020 approaching 8% on an operational basis. AbbVie will issue 2020 pro forma guidance following the close of the planned Allergan acquisition. A score of 50 is average, 75 or higher is excellent, and 25 or lower is weak. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. We intend to reduce debt levels by [$15 billion to] $18 billion by the end of 2021, with further deleveraging through 2023.". Regarding dividend safety, AbbVie said in a company announcement regarding the Allergan acquisition: "The combined company will produce robust cash … AbbVie looks like a safe stock to own. AbbVie does not have a very long dividend growth track record on its own, but we believe that its dividend looks relatively safe. Review ABBV (XNYS) dividend yield and history, to decide if ABBV is the best investment for you. AbbVie’s free cash flow payout ratio over the last 12 months is a healthy 49%, which is roughly in line with the company’s payout ratios realized since it was spun off in 2013. P.P.S. 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. Such elective procedures are being canceled or postponed during the coronavirus crisis, but the aesthetics sector should bounce back after the pandemic has passed. Net revenue of $33.3 billion increased 9.9% operationally year over year. With this in mind, ABBV’s dividend appears Borderline Safe, with a moderate risk of being cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories. We intend to reduce debt levels by [$15 billion to] $18 billion by the end of 2021, with further deleveraging through 2023.". Humira's versatility comes from its ability to block that inflammatory process, a central mechanism in autoimmune disease. In 2019, a deal was struck for AbbVie to acquire Allergan (NYSE:AGN), expanding the reach and scope of the company. Learn more about Dividend Safety Scores here. A score of 50 is average, 75 or higher is excellent, and 25 or lower is weak. 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. @themotleyfool #stocks $AGN $ABBV $ABT, 3 Stocks to Buy With Dividends Yielding More Than 4%, Coronavirus Stimulus Checks: Top Stocks To Buy Now, 2 High-Yielding Dividend Stocks to Buy if the Market Crashes Again, Copyright, Trademark and Patent Information. I think Abbvie will deliver very nice returns for investors. 25'' list, signifying a stock with above-average ''DividendRank'' statistics … But AbbVie has more going for it. Learn more about Dividend Safety Scores here. Returns as of 01/06/2021. 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. How Safe Is AbbVie Stock and Its Dividend? ABBV, AbbVie Inc - Stock quote performance, technical chart analysis, SmartSelect Ratings, Group Leaders and the latest company headlines Like mutinous pirates, autoimmune disease causes your body's immune system to attack your own healthy cells by mistake. Today, AbbVie focuses on one main business segment—pharmaceuticals. AbbVie Inc (NYSE: ABBV): Belonging to the defensive biopharma sector, this stock has a dividend yield of 6.3%. This article first appeared on Dividends & Income. That's right -- they think these 10 stocks are even better buys. AbbVie reported strong 2019 year-end results on Feb. 7. Courtesy AbbVie. Like mutinous pirates, autoimmune disease causes your body's immune system to attack your own healthy cells by mistake. Still, with a massive drug that will continue to earn profits for years to come, backed by a solid pipeline of new products, AbbVie is positioned to make a lot of money and return a lot of cash flow back to their shareholders. Which category does AbbVie fall into, and is the dividend safe? Dividend Safety Scores range from 0 to 100. Pharmaceutical maker AbbVie (NYSE: ABBV) has been caught in the downdraft, down 7% since the beginning of the year. That said, some stocks were wildly overvalued when the market was hitting new highs not so long ago, and were ready for a correction. 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. The company has increased its dividend for seven consecutive years, which goes back to the spin-off. 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. Dividend Safety Grade: C A grade indicates an extremely low probability of a dividend cut. 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. 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. 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. 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. *Stock Advisor returns as of March 18, 2020, Like us on Facebook to see similar stories, Authorities on high alert as pro-Trump supporters flood DC to protest election, Dozens of Hong Kong pro-democracy figures, including U.S. lawyer, arrested. Cumulative Growth of a $10,000 Investment in Stock Advisor, How Safe Are AbbVie Stock and Its Dividend? This is a very synergistic combination. And then you look at the Allergan side, you have Vraylar. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Find the latest dividend history for AbbVie Inc. Common Stock (ABBV) at Nasdaq.com. Which category does AbbVie fall into, and is the dividend safe? It already faces biosimilar competition in Europe, and will lose U.S. patent protection in 2023. Is AbbVie's Dividend Safe? Once it gets its hands on an additional $5 billion per year in cash flow, don’t be surprised if the payout sharply increases or if AbbVie pays a special dividend. AbbVie Inc. (ABBV) Dividend Safety metrics. Interest coverage is probably one of the most important metrics that I use. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. The dividend is safe, and the Allergan acquisition should make it safer. AbbVie will issue 2020 pro forma guidance following the close of the planned Allergan acquisition. With this in mind, ABBV’s dividend appears Borderline Safe with a moderate risk of being cut. 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. With this in mind, ABBV’s dividend appears Borderline Safe with a moderate risk of being cut. The company received a Dividend Safety Score of 78, which is excellent and places it in the top quartile of dividend-paying stocks. Allergan also has a big presence in the growing aesthetics sector thanks to its ownership of Botox and CoolSculpting. The multipurpose drug Humira has been the main engine behind this growth; in fact, it's now the top-selling drug in the world. They include earnings growth over the previous 12 months, a company’s dividend actions over … Strong growth came from Imbruvica, which grossed sales of $4.7 billion, up 30% from the previous year. Regarding the acquisition, AbbVie CEO Richard Gonzalez said: You look at [the drugs] Skyrizi, Rinvoq, Venclexta, Imbruvica. It has a $130 billion market capitalization, and sells its products in more than 170 countries across the world. This is a product that is about an $850 million product. ABBV's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! 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. Strong growth came from Imbruvica, which grossed sales of $4.7 billion, up 30% from the previous year. 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. Stock Advisor launched in February of 2002. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Anne Burdakin owns shares of AbbVie. Humira is a pretty big blockbuster, and the reason is its ability to block the body's inflammatory process. 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 … ABBV’s long-term dividend and fundamental data charts can all be seen by clicking here. The more debt a company has than the greater the amount of interest they have to pay. 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! AbbVie is a global pharmaceutical giant. This is a very synergistic combination. ABBV dividend safety – Is the dividend safe? 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. But AbbVie has more going for it. It already faces biosimilar competition in Europe, and will lose U.S. patent protection in 2023. Those all have significant growth opportunities ahead of them on the AbbVie side. 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 the U.S., Humira is still growing, but in Europe, sales are dropping as cheaper options become available. AbbVie began trading as an independent company in 2013, after it was spun off from fellow pharmaceutical Dividend Aristocrat, Abbott Laboratories (ABT). In the U.S., Humira is still growing, but in Europe, sales are dropping as cheaper options become available. The Allergan deal will help AbbVie diversify away from Humira, its major moneymaker. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. And then you look at the Allergan side, you have Vraylar. I think the last numbers I saw showed it was growing about 70%. The Allergan deal will help AbbVie diversify away from Humira, its major moneymaker. The multipurpose drug Humira has been the main engine behind this growth; in fact, it's now the top-selling drug in the world. After issuing shares to help finance the cash-and-stock deal, AbbVie's annual dividend commitment, using its current payout of $4.28 per share, will rise to about $7.5 billion. 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. In fact, I think AbbVie is a buy at these levels, with an upside expected shortly after the Allergan deal closes. I think the last numbers I saw showed it was growing about 70%. Allergan also has a big presence in the growing aesthetics sector thanks to its ownership of Botox and CoolSculpting. This can have a huge burden on cash flow which in turn may affect the cash left over to pay a dividend. Those all have significant growth opportunities ahead of them on the AbbVie side. AbbVie's Dividend Safety Score Downgraded to Borderline Safe The good news is the new AbbVie's dividend will remain comfortably covered by the firm's free cash flow. Guidance for 2020 reflects growth of 8.1% at the midpoint, with an EPS forecast between $9.61 and $9.71. It focuses on a few key treatment areas, including … 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. H & R Block Inc (NYSE: HRB ): This tax preparation company's dividend … This was possible due to a combination of strong earnings-per-share growth and an increase in AbbVie’s dividend payout ratio. Net revenue of $33.3 billion increased 9.9% operationally year over year. Guidance for 2020 reflects growth of 8.1% at the midpoint, with an EPS forecast between $9.61 and $9.71. In fact, I think AbbVie is a buy at these levels, with an upside expected shortly after the Allergan deal closes. Dividend.com: The #1 Source For Dividend Investing. Humira's versatility comes from its ability to block that inflammatory process, a central mechanism in autoimmune disease. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Dividend yield: 5.6%. 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. Humira and other products already on the market helped the company generate $9.4 billion in free cash flow last year, which was a lot more than the company needed to make dividend … Market data powered by FactSet and Web Financial Group. Pharmaceutical maker AbbVie (NYSE:ABBV) has been caught in the downdraft, down 7% since the beginning of the year. The Motley Fool has a disclosure policy. In analyzing dividend safety, Reality Shares uses seven factors. The company pays a juicy 5.9% dividend. I think Abbvie will deliver very nice returns for investors. 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. 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. AbbVie (NYSE:ABBV) declares $1.30/share quarterly dividend, 10.2% increase from prior dividend of $1.18.Forward yield 6.45%Payable Feb. 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 looks like a safe stock to own. This article will look at a few key metrics along with future growth prospects to determine ABBV dividend safety. Instead, dividends are reduced when … AbbVie started to pay dividends in 2013, and since then, the payout has risen quickly. Payout ratio calculation and chart. Show full articles without "Continue Reading" button for {0} hours. Find more details information on this page. Such elective procedures are being canceled or postponed during the coronavirus crisis, but the aesthetics sector should bounce back after the pandemic has passed. 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. 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. 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. 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. Regarding dividend safety, AbbVie said in a company announcement regarding the Allergan acquisition: "The combined company will produce robust cash … 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. In 2019, a deal was struck for AbbVie to acquire Allergan (NYSE: AGN), expanding the reach and scope of the company. Regarding the acquisition, AbbVie CEO Richard Gonzalez said: You look at [the drugs] Skyrizi, Rinvoq, Venclexta, Imbruvica. Dividend Safety Score: 86 Dividend Yield: 4.5% Dividend Growth Streak: 24 years Realty Income Corp (NYSE: O) is a real estate investment trust (REIT) that … AbbVie’s Dividend Safety Relative to Recession Performance Companies do not cut their dividends in the good times. A score of 50 is average, 75 or higher is excellent, and 25 or lower is weak. 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