{
  "id": 15163694,
  "title": "Forget High-Yield Traps: AbbVie Is the Dividend King to Buy and Hold Through Any Rate Cycle",
  "url": "https://urgent.news/2026/10/17/forget-high-yield-traps-abbvie-is-the-dividend-king-to-buy-and-hold",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-17T08:44:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/17/forget-high-yield-traps-abbvie-is-the-dividend-kin/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Forget high-yield traps when considering investment options; AbbVie is the true dividend king that can be held through any rate cycle. While high-yield dividend stocks exist, they often turn out to be traps. One clear indicator of this is a high dividend yield paired with a payout ratio consistently exceeding free cash flow, implying the company may need to cut its dividend soon. Interest rate hikes exacerbate the situation for companies with substantial floating-rate debt, as they must divert funds from dividends to cover higher interest expenses. Furthermore, businesses whose revenue depends heavily on consumer spending may suffer when rates rise, as consumers allocate more funds towards loans and credit card debt. AbbVie, however, proves to be an exception to these pitfalls. The pharmaceutical company generates ample free cash flow to cover its quarterly dividend of $1.73 per share and has a debt load of $70.8 billion, much of which is in fixed-rate senior notes unaffected by interest rate fluctuations. Patients do not stop taking AbbVie's medications due to rising interest rates, further solidifying the company's stability. Notably, AbbVie has increased its dividend for 54 consecutive years (including the time it was part of Abbott Laboratories), earning its place among the Dividend Kings – stocks that have raised their dividends for at least 50 consecutive years. Dividend Kings are cautious about breaking their streaks, preserving their prestigious status. AbbVie's Dividend King status is further supported by two blockbuster autoimmune disease drugs, Skyrizi and Rinvoq, which contributed over $7.5 billion in the second quarter of 2026 alone, far surpassing the $6.1 billion paid in dividends during the same period. Additionally, AbbVie has a diverse pipeline of 90 programs, with about 60 in mid- or late-stage clinical studies, ensuring a steady revenue stream for future dividend growth. While AbbVie's dividend yield of 2.5% is lower than its historical high, this decline reflects the company's impressive stock performance in recent years. The robust pipeline of therapies further mitigates the risk of setbacks, ensuring AbbVie's continued success. In a market rife with potential high-yield traps, AbbVie stands out as an ideal long-term investment choice for those seeking a reliable Dividend King.",
  "summary": "Rising rates can expose dividend traps, but this Dividend King is built to keep paying.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Forget High-Yield Traps: AbbVie Is the Dividend King to Buy and Hold Through Any Rate Cycle",
        "url": "https://urgent.news/2026/10/17/forget-high-yield-traps-abbvie-is-the-dividend-king-to-buy-and-hold-15164591",
        "published": "2026-10-17T09:04:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}