AGN - How Safe Is AbbVie Stock and Its Dividend?
Recent market volatility has unfairly whipsawed many stocks that are usually considered steady eddies, and the effects have been even stronger for specific sectors and speculative stocks. That said, some stocks were wildly overvalued when the market was hitting new highs not so long ago, and were ready for a correction.
Pharmaceutical maker AbbVie (NYSE: ABBV) has been caught in the downdraft, down 7% since the beginning of the year. The company pays a juicy 5.9% dividend. Which category does AbbVie fall into, and is the dividend safe?
Spun off from Abbott Laboratories (NYSE: ABT) in 2013, AbbVie has grown annual revenue from $18.8 billion that year to $33.3 billion in 2019. The multipurpose drug Humira has been the main engine behind this growth; in fact, it's now the top-selling drug in the world.