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Is (ABBV) Outperforming Other Medical Stocks This Year?
The current health scare drives market volatility and calls for investment in consumer staples, healthcare and IT sectors for stable returns.
AbbVie (NYSE: ABBV) and Biogen (NASDAQ: BIIB) are two drugmakers that have moved in opposite directions on the stock market of late. While AbbVie has rebounded nicely from the market crash since late March -- with its stock up by 11.7% year to date as of this writing -- shares of Biogen have lost altitude since early April or so, and are down by 10.7% since the beginning of the year. As we will see below, Biogen has encountered some severe headwinds recently, which explains its poor stock-price performance.
We have publicly tracked our portfolio since 2015, which has beaten the S&P; 500 in terms of total return over this period of time. Most importantly, dividend income continues to grow Continue reading...
AbbVie (NYSE: ABBV) will announce its second-quarter 2020 financial results on Friday, July 31, 2020, before the market opens. AbbVie will host a live webcast of the earnings conference call at 8 a.m. Central time. It will be accessible through AbbVie's Investor Relations website investors.abbvie.com. An archived edition of the session will be available later that day.
If you buy and hold a stock for many years, you'd hope to be making a profit. Better yet, you'd like to see the share...
AbbVie's (ABBV) key drug, Humira is seeing strong demand in the United States while generics are eroding ex-U.S. sales. New drugs Skyrizi and Rinvoq are off to a strong start.
You can do just that with dividend stocks. Others are on such shaky ground that their dividends are in jeopardy. If you've got $5,000 to invest, here are three high-yield dividend stocks that are flat-out money machines.
AbbVie (ABBV) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Eli Lilly (NYSE: LLY) is a veteran in the pharmaceutical community and has been in business for over 140 years. AbbVie (NYSE: ABBV) is a relative newcomer and was established back in 2013 after spinning off parent organization Abbott Laboratories. Last year was a good one for Eli Lilly.
One of the places they've found cash returns is in dividend stocks, particularly those that offer a relatively high payout. Fortunately, some high-yield dividend stocks remain well-positioned to sustain their dividends. AbbVie (NYSE: ABBV) spent most of its history as a subsidiary of Abbott Laboratories before becoming an independent company in 2013.
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]
AbbVie (NYSE:ABBV) stock is both cheap and has a very attractive dividend yield. In addition, this pharmaceutical company's growth prospects are high, now that its purchase of Allergan is closed.Source: Piotr Swat / Shutterstock.com For example, the stock trades on a forward earnings ratio of just 9.2 times 2020 expected earnings. It is even lower with 2021 earnings prospects.In addition, the $4.72 per share annual dividend is very attractive to most investors for several reasons. For one, the dividend yield for ABBV stock is much higher than the average stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSecondly, the dividend is likely to keep on growing at a nice pace. For example, on June 17 AbbVie declared a $1.18 quarterly dividend for the third time. After the fourth quarterly dividend at this rate, I suspect the company will raise the dividend in Q4. According to Seeking Alpha, AbbVie has had a 20.86% dividend growth rate annually on a compounded basis. * 7 Utilities Stocks to Buy With Reassuring DividendsLastly, the dividend is still well covered by the company's earnings. For example, Seeking Alpha's poll of 15 analysts' estimates of 2020 is $10.46 per share. But the dividend rate right now is $4.72. So the dividend is more than 100% covered by earnings. Why Is AbbVie Stock So Cheap?AbbVie's main revenue driver, up until its recent acquisition of Allergan, was Humira, a rheumatoid arthritis drug. It also acts as an anti-inflammatory drug for other conditions including Crohn's disease, psoriasis, ulcerative colitis, etc. It is the world's best-selling drug.But adalimubab, the actual name of the drug, went off-patent in 2016. Recently, generic versions of the drug have become available.The problem for AbbVie is that up until Q1 2020, Humira accounted for 54.5% of its revenue. AbbVie said its Q1 sales were $8.619 billion, up 10.7% year-over-year. But Humira sales were $4.703 billion, up 6.4%.This is the most likely reason for AbbVie's low valuation. It is too reliant on one drug and that drug is now off-patent. The market assumes that generic drugs will eventually overtake that revenue stream for AbbVie. But things are not as bad as that. Why Investors Need Not Be So WorriedFirst of all, Humira does not go completely off-patent in the U.S., even though in some other countries this has happened. Its core U.S. patents went off-patent in 2016, but it has a "patent thicket" that extends its exclusivity to as late as 2034, according to one source. Another source says its exclusivity extends to 2023.Second, the company will now have a much lower reliance on Humira. On May 8, AbbVie closed on its acquisition of Allergan for about $63 billion in cash and stock. Allergan made $3.6 billion in sales in its latest quarter and $378 million in profits.So you can see that on a pro-forma combined basis, Humira will now account for a lower amount of total sales. They would total $12.2 billion on a combined basis in Q1. But Humira's $4.7 billion would account for only 38.4%. Given that other drugs in the portfolio are likely growing faster than Humira, that portion will continue to fall.So the risk is falling for the over-reliance on one drug. But some analysts point out that AbbVie's other drugs and its pipeline are very attractive as growth drivers. Valuing AbbVie StockGiven that management clearly seems intent on growing its dividend, we can use this aspect of the return of capital to value AbbVie stock. Let's assume the dividend next rises 10% next year, just like it did this year. That would put the annual dividend at $5.20 per share.The historical dividend yield for AbbVie stock has been 4.22% over the past four years, according to Seeking Alpha. Therefore, by taking the $5.20 dividend per share and dividing it by 4.22%, the target price is $123.22 per shareThat represents a significant gain over the current price of about $98. So not only is AbbVie stock cheap with an attractive dividend yield, but it also has good upside potential.Mark Hake runs the Total Yield Value Guide which you can review here. As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post AbbVie Is Cheap and Pays an Attractive Yield appeared first on InvestorPlace.
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All of this might make investors want to consider AbbVie for the second half of 2020 with coronavirus fears and volatility likely to linger...
AbbVie (ABBV) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
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When most people think of marijuana stocks, the last thing they think of is dividends. The legal marijuana industry is still very young, and new companies in growing industries need money to expand. Furthermore, U.S. investors in the marijuana space tend to currently focus on a handful of Canadian companies that have enjoyed the opportunity to list on U.S. exchanges.
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