Guidance for 2020 reflects growth of 8.1% at the midpoint, with an EPS forecast between $9.61 and $9.71. In 2019, a deal was struck for AbbVie to acquire Allergan (NYSE: AGN), expanding the reach and scope of the company. In fact, I think AbbVie is a buy at these levels, with an upside expected shortly after the Allergan deal closes. AbbVie looks like a safe stock to own. 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. Allergan also has a big presence in the growing aesthetics sector thanks to its ownership of Botox and CoolSculpting. The company has increased its dividend for seven consecutive years, which goes back to the spin-off. Guidance for 2020 reflects growth of 8.1% at the midpoint, with an EPS forecast between $9.61 and $9.71. We intend to reduce debt levels by [$15 billion to] $18 billion by the end of 2021, with further deleveraging through 2023.". 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. Find the latest dividend history for AbbVie Inc. Common Stock (ABBV) at Nasdaq.com. Humira is a pretty big blockbuster, and the reason is its ability to block the body's inflammatory process. That said, some stocks were wildly overvalued when the market was hitting new highs not so long ago, and were ready for a correction. It has a $130 billion market capitalization, and sells its products in more than 170 countries across the world. I think the last numbers I saw showed it was growing about 70%. 2. Stock Advisor launched in February of 2002. Pharmaceutical maker AbbVie (NYSE: ABBV) has been caught in the downdraft, down 7% since the beginning of the year. It already faces biosimilar competition in Europe, and will lose U.S. patent protection in 2023. AbbVie started to pay dividends in 2013, and since then, the payout has risen quickly. Is AbbVie's Dividend Safe? Dividend.com: The #1 Source For Dividend Investing. ABBV's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! It already faces biosimilar competition in Europe, and will lose U.S. patent protection in 2023. AbbVie looks like a safe stock to own. Pharmaceutical maker AbbVie (NYSE:ABBV) has been caught in the downdraft, down 7% since the beginning of the year. Regarding dividend safety, AbbVie said in a company announcement regarding the Allergan acquisition: "The combined company will produce robust cash … Net revenue of $33.3 billion increased 9.9% operationally year over year. Like mutinous pirates, autoimmune disease causes your body's immune system to attack your own healthy cells by mistake. 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 … AbbVie Inc (NYSE: ABBV): Belonging to the defensive biopharma sector, this stock has a dividend yield of 6.3%. 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. AbbVie Dividend Safety Score. The company received a Dividend Safety Score of 78, which is excellent and places it in the top quartile of dividend-paying stocks. And then you look at the Allergan side, you have Vraylar. Strong growth came from Imbruvica, which grossed sales of $4.7 billion, up 30% from the previous year. @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. We intend to reduce debt levels by [$15 billion to] $18 billion by the end of 2021, with further deleveraging through 2023.". The company pays a juicy 5.9% dividend. That bodes well for the dividend, which has steadily grown since the inception of the company. 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. How Safe Is AbbVie Stock and Its Dividend? That said, some stocks were wildly overvalued when the market was hitting new highs not so long ago, and were ready for a correction. 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. AbbVie (NYSE:ABBV) declares $1.30/share quarterly dividend, 10.2% increase from prior dividend of $1.18.Forward yield 6.45%Payable Feb. Net revenue of $33.3 billion increased 9.9% operationally year over year. 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 (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. Today, AbbVie focuses on one main business segment—pharmaceuticals. Dividend Safety Scores range from 0 to 100. A high-level overview of AbbVie Inc. (ABBV) stock. Which category does AbbVie fall into, and is the dividend safe? And then you look at the Allergan side, you have Vraylar. 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. It focuses on a few key treatment areas, including … 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. They include earnings growth over the previous 12 months, a company’s dividend actions over … A score of 50 is average, 75 or higher is excellent, and 25 or lower is weak. This can have a huge burden on cash flow which in turn may affect the cash left over to pay a dividend. 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 … A score of 50 is average, 75 or higher is excellent, and 25 or lower is weak. 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. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories. In fact, I think AbbVie is a buy at these levels, with an upside expected shortly after the Allergan deal closes. AbbVie reported strong 2019 year-end results on Feb. 7. Which category does AbbVie fall into, and is the dividend safe? AbbVie Inc. (ABBV) is a dividend aristocrat paying over 25+ years of dividend. The Motley Fool has no position in any of the stocks mentioned. Review ABBV (XNYS) dividend yield and history, to decide if ABBV is the best investment for you. AbbVie began trading as an independent company in 2013, after it was spun off from fellow pharmaceutical Dividend Aristocrat, Abbott Laboratories (ABT). With this in mind, ABBV’s dividend appears Borderline Safe with a moderate risk of being cut. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. A score of 50 is average, 75 or higher is excellent, and 25 or lower is weak. That's right -- they think these 10 stocks are even better buys. 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. P.P.S. 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! Regarding the acquisition, AbbVie CEO Richard Gonzalez said: You look at [the drugs] Skyrizi, Rinvoq, Venclexta, Imbruvica. AbbVie’s Dividend Safety Relative to Recession Performance Companies do not cut their dividends in the good times. 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. Humira is a pretty big blockbuster, and the reason is its ability to block the body's inflammatory process. Learn more about Dividend Safety Scores here. 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. Management expects to see revenue growth for 2020 approaching 8% on an operational basis. This is a very synergistic combination. 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. This is a product that is about an $850 million product. This article first appeared on Dividends & Income. AbbVie will issue 2020 pro forma guidance following the close of the planned Allergan acquisition. Management expects to see revenue growth for 2020 approaching 8% on an operational basis. B grade indicates a very low probability for a dividend cut. Such elective procedures are being canceled or postponed during the coronavirus crisis, but the aesthetics sector should bounce back after the pandemic has passed. H & R Block Inc (NYSE: HRB ): This tax preparation company's dividend … While that’s a short track record, the pre-split legacy dividend growth track record dated back d… Those all have significant growth opportunities ahead of them on the AbbVie side. 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. Cumulative Growth of a $10,000 Investment in Stock Advisor, How Safe Are AbbVie Stock and Its Dividend? 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