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Yahoo
a day ago
- Business
- Yahoo
Why AbbVie (ABBV) Remains a Dividend Standout in the Pharma Sector
AbbVie Inc. (NYSE:ABBV) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025. A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist. AbbVie Inc. (NYSE:ABBV) stands out as a major player in the pharmaceutical industry, with a broad range of approved treatments. Among its most significant offerings are the immunology drugs Skyrizi and Rinvoq, which are expected to contribute to revenue growth well into the next decade. While these drugs will eventually face patent expirations, they highlight the company's strong track record of managing major patent losses, an essential trait for long-term success in the sector. Since 2013, AbbVie Inc. (NYSE:ABBV) has boosted its dividend payouts by 310%. Including its history under Abbott Laboratories, the company qualifies as a Dividend King, having raised its dividends for 53 consecutive years. From its solid business foundation to its consistent dividend growth, the company appears well-positioned to support a long-term passive income strategy. AbbVie Inc. (NYSE:ABBV) has a strong cash position, which would help the company to pay its dividend smoothly in the future. For the trailing twelve-month period, its operating cash flow came in at $16.4 billion, and levered free cash flow was $16.94 billion. The company currently offers a quarterly dividend of $1.64 per share and has a dividend yield of 3.46%, as of July 17. While we acknowledge the potential of ABBV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Why AbbVie (ABBV) Remains a Dividend Standout in the Pharma Sector
AbbVie Inc. (NYSE:ABBV) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025. A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist. AbbVie Inc. (NYSE:ABBV) stands out as a major player in the pharmaceutical industry, with a broad range of approved treatments. Among its most significant offerings are the immunology drugs Skyrizi and Rinvoq, which are expected to contribute to revenue growth well into the next decade. While these drugs will eventually face patent expirations, they highlight the company's strong track record of managing major patent losses, an essential trait for long-term success in the sector. Since 2013, AbbVie Inc. (NYSE:ABBV) has boosted its dividend payouts by 310%. Including its history under Abbott Laboratories, the company qualifies as a Dividend King, having raised its dividends for 53 consecutive years. From its solid business foundation to its consistent dividend growth, the company appears well-positioned to support a long-term passive income strategy. AbbVie Inc. (NYSE:ABBV) has a strong cash position, which would help the company to pay its dividend smoothly in the future. For the trailing twelve-month period, its operating cash flow came in at $16.4 billion, and levered free cash flow was $16.94 billion. The company currently offers a quarterly dividend of $1.64 per share and has a dividend yield of 3.46%, as of July 17. While we acknowledge the potential of ABBV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
ABBV or BMY: Which Biopharma Giant Has Better Prospects for Now?
AbbVie, Inc. ABBV and Bristol Myers Squibb BMY are leading drugmakers with broad and diverse portfolios and a global footprint. AbbVie is a global, diversified biopharmaceutical company with a dominant position across key therapeutic areas, including immunology, neuroscience, oncology, aesthetics and eye care. On the other hand, Bristol Myers is focused on discovering, developing and delivering transformational drugs for oncology, hematology, immunology, cardiovascular, neuroscience and other diseases. Both of these biopharma/biotech giants have strong footholds in their targeted businesses, delivering consistent returns to shareholders. In such a scenario, choosing one stock over the other can be tricky. Let us delve into their fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice. AbbVie's flagship drug Humira has lost patent protection both in the United States and Europe. Biosimilar competition significantly eroded the drug's sales in 2024, and the decline is expected to be sharper in 2025. Nonetheless, the acquisition of Botox maker Allergan for $63 billion in May 2020 has bolstered the product portfolio and lowered its dependence on Humira. ABBV's immunology drugs Skyrizi and Rinvoq have put up a stellar performance and positioned it well for long-term growth. These drugs are witnessing strong uptake across their approved indications, especially in the popular inflammatory bowel disease space, which includes two conditions, ulcerative colitis and Crohn's disease. Strong sales of these drugs have enabled AbbVie to offset the decline in sales of the blockbuster drug Humira. AbbVie has also built a strong oncology franchise with drugs like Imbruvica and Venclexta. Label expansion over the past couple of years have significantly expanded the eligible patient population for Venclexta. This, in turn, is boosting sales of the drug. In October 2024, AbbVie gained approval for Vyalev, a transformative therapy for treating advanced Parkinson's disease. Approval of new drugs further expands ABBV's portfolio. AbbVie has several promising R&D programs with the potential to drive long-term growth. This includes next-generation approaches in immunology, a focus on bispecifics, ADCs, as well as innovative therapies for neuropsychiatric and neurodegenerative disorders. The company has also been active on the M&A front. It acquired ImmunoGen, which added antibody-drug conjugate, Elahere and neuroscience drugmaker Cerevel Therapeutics in 2024. As of March 31, 2025, AbbVie had $64.5 billion in long-term debt and $5.4 billion in short-term debt/obligations on its balance sheet. Cash and cash equivalents totaled approximately $5.2 billion. However, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise are major headwinds, along with declining Humira sales. BMY's Growth Portfolio, comprising drugs like Reblozyl, Breyanzi, Camzyos and Opdualag, has stabilized its revenue base amid generic competition for its legacy drugs. Thalassemia drug Reblozyl has put up a stellar performance since its approval, posting strong growth in the United States and international markets. The drug is expected to contribute significantly in the coming decade. Sales of its oncology drug, Opdualag, have also been robust, fueling the top line. Strong growth in the U.S. market and encouraging uptake in newly launched markets have boosted sales. Strong momentum in Camzyos should further drive growth. Opdivo continues to maintain momentum on consistent label expansions. The FDA approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use should help extend the impact of its immuno-oncology franchise to patients into the next decade. Other drugs like Zeposia and Krazati should also contribute to top-line growth. The company has made strategic acquisitions to broaden its portfolio and drive top-line growth. The recent FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults, was approved under the brand name Cobenfy. The approval of Cobenfy for schizophrenia broadens BMY's portfolio and validates the acquisition of Karuna Therapeutics. While the newer drugs boost sales, generic competition for legacy drugs, which account for the majority of total revenues, is a significant headwind and will affect top-line growth in the near term. Legacy Portfolio revenues declined 20% in the first quarter due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the U.S. Medicare Part D redesign effect. Nonetheless, BMY is looking to boost its bottom line through cost-cutting initiatives. While BMY's strategy of acquiring companies with promising drugs and candidates is encouraging, this has resulted in substantial debt to finance these acquisitions. As of March 31, 2025, the company had cash and equivalents of $12.1 billion and a long-term debt of $46.1 billion. The Zacks Consensus Estimate for ABBV's 2025 sales implies a year-over-year increase of 6.6%, and that for earnings per share (EPS) suggests an improvement of 20.65%. However, EPS estimates for 2025 have moved south in the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for BMY's 2025 sales implies a year-over-year decrease of 4.13%, while that for EPS suggests an increase of 487.83%. The extraordinary EPS growth rate is attributed to an extremely low EPS figure in 2024 due to acquisition expenses. EPS estimates for both 2025 and 2026 have moved south in the past 60 days. Image Source: Zacks Investment Research From a price-performance perspective, ABBV has fetched better returns than BMY so far this year. Shares of ABBV have gained 11.8%, while those of BMY have lost 11.2%. The large-cap pharma industry has gained 1.6% in the said period. Image Source: Zacks Investment Research From a valuation standpoint, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, ABBV is slightly more expensive than BMY. ABBV's shares currently trade at 14.76X forward earnings, higher than 7.60X for BMY. The large-cap pharma industry currently trades at 15.16X forward earnings. Image Source: Zacks Investment Research Both ABBV and BMY have an attractive dividend yield. This is a strong positive for investors. However, BMY's dividend yield of 5.20% is higher than ABBV's 3.4%. Large pharma/biotech companies are generally considered safe havens for investors interested in this sector. However, with both ABBV and BMY stocks currently carrying a Zacks Rank #3 (Hold), choosing one over the other is a complex task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. ABBV has a strong and diverse portfolio. Immunology drugs Skyrizi and Rinvoq maintain momentum for the company. However, declining Humira sales, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise are major headwinds for the company. BMY's efforts to revive the top line in the face of generic challenges for key drugs are commendable. Approval of new drugs and label expansion of key drugs should generate incremental revenues for the company. However, we believe there is still time before the efforts reap a harvest for the company. The outlook for 2025 indicates challenges as of now. While both companies deal with patent cliffs, we believe ABBV is a better pick at present, primarily due to the diversity and strength of its portfolio. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
AbbVie to Acquire Capstan Therapeutics for $2.1B, Boosting Autoimmune Pipeline
AbbVie Inc. (NYSE:ABBV) is one of the most undervalued large cap stocks to buy according to analysts. On June 30, AbbVie announced its intention to acquire Capstan Therapeutics in a deal valued at up to $2.1 billion in cash. The acquisition will expand AbbVie's product pipeline, particularly in experimental treatments for autoimmune diseases. Capstan Therapeutics Inc. is a clinical-stage biotechnology company that specializes in developing CAR-T therapies. These therapies use a patient's immune cells, specifically T-cells, to combat diseases. The lead asset is CPTX2309, which is currently in early-stage (Phase 1) clinical development for B-cell-mediated autoimmune diseases. A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist. AbbVie will also acquire Capstan's CellSeeker tLNP platform technology, which is designed to deliver RNA payloads, such as mRNA, to engineer cell types in vivo. AbbVie is already projected to make over $31 billion in sales by 2027 with its autoimmune drugs Skyrizi and Rinvoq combined. AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company that researches, develops, manufactures, commercializes, and sells medicines and therapies worldwide. While we acknowledge the potential of ABBV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
06-07-2025
- Business
- Globe and Mail
2 Dividend Stocks to Buy for Decades of Passive Income
Key Points Healthcare giants AbbVie and Abbott Laboratories are both Dividend Kings. They should maintain their dividend growth habits for a long time to come. That's thanks to their solid businesses and promising product pipelines. In 2013, AbbVie (NYSE: ABBV) became a publicly traded corporation after splitting from its former parent company, Abbott Laboratories (NYSE: ABT). Since then, both have produced strong returns and have been great picks for income-seeking investors, thanks to consistent payout hikes. That likely won't change soon. These healthcare leaders should continue to perform well and reward shareholders with dividend increases for a long time. Read on to find out more. 1. AbbVie AbbVie is a pharmaceutical leader with a large portfolio of approved products, none more important than a duo of immunology medicines: Skyrizi and Rinvoq. In the first quarter, the company's revenue increased by 8.4% year over year to $13.3 billion, while its adjusted earnings per share came in at $2.46, 6.5% higher than the year-ago period. These results are all the more impressive considering AbbVie faced a major patent cliff just two years ago; however, it has since recovered, largely thanks to Skyrizi and Rinvoq. The former generated $3.4 billion in sales during the period, representing a 70.5% year-over-year increase. Rinvoq's revenue came in at $1.7 billion, 57.2% higher than the year-ago period. Management predicts their combined annual sales will exceed $31 billion by 2027. Not only is that significantly higher than the $17.7 billion they racked up last year, it's also $4 billion higher than their previous guidance. Skyrizi and Rinvoq are expected to drive top-line growth well into the 2030s. Although they will eventually lose patent protection, they demonstrate AbbVie's ability to navigate even the biggest patent cliffs, a quality that is essential for any pharmaceutical company to thrive over the long term. AbbVie has other products that help drive revenue growth, and, equally important, it has a deep pipeline that it routinely strengthens through acquisitions. In March, the company announced a licensing deal with Denmark-based Gubra A/S for GUB014295, an investigational weight management therapy. AbbVie paid $350 million up front for this candidate, with potential milestones of $1.9 billion, not including royalties. AbbVie entered the fast-growing weight loss market with this move; GUB014295 might not pan out, but AbbVie's large pipeline, with approximately 90 products in development, should allow it to launch brand-new products frequently, navigate patent cliffs, and remain successful over the long run. Now turning to the company's dividend, AbbVie has increased its payouts by 310% since 2013. And counting the time it spent under Abbott Laboratories' name, AbbVie is a Dividend King with 53 consecutive years of payout increases. These facts, from AbbVie's underlying business to the company's dividend track record, point to a company capable of sustaining a passive income program for a long time. 2. Abbott Laboratories Abbott Laboratories is best known for its leadership in the medical device space, where it markets dozens of products across multiple therapeutic areas. The company also operates a diagnostic business and has a presence in the pharmaceutical and nutrition industries. Abbott Laboratories' operations are diversified, which can help it overcome challenges in specific segments. That's one of the company's strengths. Here's another: Abbott Laboratories has been a leader in the highly regulated healthcare sector for decades. The company has built a solid reputation with physicians and consumers, all of whom are more likely to gravitate toward the brands they know and trust. In the medical device field, Abbott is a trusted brand. And thanks to its vast portfolio, it generates consistent revenue and earnings. Abbott's biggest growth driver in recent years has been its diabetes care segment, led by its continuous glucose monitoring (CGM) franchise, the FreeStyle Libre. As the company noted, the FreeStyle Libre has become the most successful medical device in history in terms of dollar sales. That's no small feat. Yet there is still massive whitespace ahead, since only a small portion of the world's diabetics use CGM technology despite its advantages. Abbott's work in this niche should provide a powerful long-term tailwind, but there will be many others. The company boasts other growth drivers, including its structural heart segment, where it markets a range of successful devices, such as its MitraClip device, a leader in its mitral valve repair niche. Beyond any single product, Abbott Laboratories has a proven track record as an innovator and should continue launching newer and better ones. Lastly, Abbott is also a Dividend King, and over the past decade, it has increased its payouts by almost 146%. Abbott Laboratories' business is built to last. Investors who purchase the company's shares today can expect consistent dividend growth over the long term. Should you invest $1,000 in AbbVie right now? Before you buy stock in AbbVie, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor 's total average return is1,060% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 30, 2025
