AbbVie’s diversification pays off

Article Excerpt

We continue to see attractive investment opportunities for our subscribers in top drug stocks—and that includes AbbVie Inc. Over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think AbbVie has further gains ahead for investors. We recommend this stock as a Power Buy. ABBVIE INC., $115.85, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $207.0 billion; Dividend yield: 4.5%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies. Under the terms of the breakup, Abbott handed out shares of AbbVie to its shareholders in a tax-free transaction—that is, shareholders will only pay capital-gains taxes on their new AbbVie shares if they sell them. Abbott Laboratories retained the company name and the ABT stock symbol. It makes medical devices, diagnostic tests, pediatric and…