Here's How Many Shares of AbbVie You'd Need for $5,000 in Yearly Dividends
Key PointsAbbVie is a resilient Dividend King with a wide moat.
AbbVie, a pharmaceutical company, has been a Dividend King for 53 consecutive years, consistently increasing its dividend payouts. Currently, its forward yield stands at 2.4%, which is lower than the 10-Year Treasury yield of 5.1%. However, its low forward price-to-earnings ratio of 16 and a portfolio of billion-dollar drugs like Skyrizi and Rinvoq suggest limited downside potential.
To generate $5,000 in annual dividends, one would need to own approximately 723 shares of AbbVie, valued at around $206,358 as of now. While this might not appear as attractive as investing in Pfizer, which could provide nearly $12,000 in annual dividends for the same investment, AbbVie's stock has shown remarkable resilience. Its value soared 93% over the past three years, as the company overcame the loss of U.S. exclusivity for its blockbuster drug Humira and introduced new drugs to counteract this pressure.
In contrast, Pfizer's stock declined by 8% due to diminishing sales of COVID-19 vaccines and patent cliffs on other major drugs. Therefore, AbbVie remains a viable option for long-term income investors despite its modest yield. For more insightful stock recommendations and portfolio guidance, consider The Motley Fool's premium services.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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