) offers a nice dividend yield as the stock marches higher.
AbbVie, which was spun off fromAbbott Laboratories (
) earlier this year, is at its highest level since going public
Jan. 2. It's climbed 17% since its IPO.
Meanwhile, the company on Feb. 15 declared a quarterly cash
dividend of 40 cents a share, or $1.60 a year. That brings the
annual dividend yield to 3.9% at the current share price. The
dividend is payable May 15 to shareholders of record on April
AbbVie was named to the S&P 500 Dividend Aristocrats Index
of companies that have boosted their dividend for at least 25
straight years after the index changed its treatment of spin-off
Bank of America on March 11 reaffirmed its buy rating on
AbbVie shares and raised its price target by $2 to $42, which is
2% above Monday's close of 41.12.
AbbVie, formerly the pharmaceuticals unit of Abbott Labs,
relies heavily on Humira, a treatment for rheumatoid arthritis,
psoriasis and Crohn's disease that accounts for almost half of
the company's revenue. Sales of testosterone-boosting treatment
AndroGel have also picked up. AbbVie is currently working on a
hepatitis C regimen that analysts expect will debut in 2015.
The company expects to earn between $3.03 and $3.13 a share in
2013, which is in line with Wall Street's expectations.
AbbVie's A- Accumulation/Distribution Rating points to strong
institutional demand for the shares.
AbbVie is in the 40-member Medical-Ethical Drugs industry
group, which hosts a number of current and former market leaders,
including IBD 50 stock Valeant Pharmaceuticals (
) andQuestcor Pharmaceuticals (