AbbVie Offers Nice Dividend Yield, Stock At New High


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DrugmakerAbbVie ( ABBV ) offers a nice dividend yield as the stock marches higher.

AbbVie, which was spun off fromAbbott Laboratories ( ABT ) 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 15.

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 companies.

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 ( VRX ) andQuestcor Pharmaceuticals ( QCOR ).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance Investing Ideas
Referenced Stocks: ABBV , ABT , QCOR , VRX

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