Topic: How To Invest

Dividend Advisor Hotline – Friday, March 12, 2021

Article Excerpt

ABBVIE INC., $108.22, New York symbol ABBV, is a new buy for TSI Dividend Advisor subscribers. The company makes medical devices, diagnostic tests, pediatric and adult nutritional products, and generic drugs. In February 2021, AbbVie increased its quarterly dividend 10.2%, to $1.30 a share from $1.18. The new annual rate of $5.20 offers investors a high 4.8% yield. Since its spinoff from Abbott Laboratories in January 2013, AbbVie has depended heavily on its Humira drug to drive sales and earnings. As a treatment for various autoimmune disorders, blockbuster Humira is routinely prescribed to arthritis, psoriasis and Crohn’s disease sufferers. In 2020, Humira accounted for nearly 45% of AbbVie’s total revenue. Humira’s patent protection in the European Union (EU) expired in 2018. That let biosimilars (cheaper copies of complex biologic drugs) enter the EU market. But thanks to AbbVie’s success with U.S. lawsuits, the release of biosimilars in the U.S. has been put off until 2023. To cut its reliance on Humira, in May 2020 AbbVie…