This high yield comes with spinoff potential: AbbVie

Article Excerpt

We recently added pharmaceutical maker AbbVie to our coverage. The company has strong appeal for income-seeking investors, as it has increased its dividend each year since it became a public company in 2013. As well, AbbVie could spin off part of its recent acquisition of Allergan, which would further enhance your returns. ABBVIE INC. $112 is a buy. The company (New York symbol ABBV; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares outstanding: 1.8 billion; Market cap: $201.6 billion; Dividend yield: 4.6%; Dividend Sustainability Rating: Above Average; www.abbvie.com) makes medical devices, diagnostic tests, pediatric and adult nutritional products, and generic drugs. AbbVie took its current form on January 3, 2013, when Abbott Laboratories (New York symbol ABT) split into two publicly traded firms. AbbVie has raised its dividend each year since 2013. The latest increase was in February 2021, to $1.30 a share. That’s up 10.2% from $1.18. The new annual rate of $5.20 yields a high 4.6%. Since its spinoff from Abbott Laboratories, the company has depended heavily…

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