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AbbVie Stock Rises After Increasing Dividend By 35%

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AbbVie ( ABBV ) shares climbed Thursday after the biopharma announced it would raise its dividend by 35% to 96 cents per share and authorized a new $10 billion stock repurchase program. The dividend increased from 71 cents per share.

[ibd-display-video id=3149582 width=50 float=left autostart=true] Piper Jaffray analyst Christopher Raymond boosted his price target on AbbVie to 138 from 130, and kept his overweight rating. The news follows AbbVie's guidance for a 9% tax rate in 2018 following U.S. tax reform.

"After an unexpected (and somewhat alarming) midday trading halt, AbbVie announced its board-approved plans for deployment of capital following U.S. tax reform, which will include $10 billion in additional share repurchase authorization and a 35% dividend increase," he said in a note to clients.

Raymond also boosted his earnings per share outlook for AbbVie to $7.60, $8.87 and $10.41 for the 2018-20 fiscal years, respectively.

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The cash dividend is payable May 15 to stockholders of record at the close of business on April 13, AbbVie said in a news release.

In after-hours trading on the stock market today , AbbVie rose a fraction after advancing 1.6% during the regular session, to 114.90. Drug stocks closed the day up 2.3%, enjoying a fifth day running in the black.

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


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

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