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Undervalued Dividend StockOne of my favorite dividend growth stocks is $ABBV
The company owns the #1 selling drug in the world, Humira, which has US patent protection into 2023
This year, the company closed on its acquisition of Botox inventor Allergan
The company maintains not only a trong portfolio of current products, but also has a strong line of up and coming products and a VERY strong pipeline
3 top selling drugs include the following + Q2 revenues:
Humira $4.8B
Imbruvica $1.3B (produced with $JNJ)
Skyrizi $330M
3 top selling drugs include the following + Q2 revenues:
Humira $4.8B
Imbruvica $1.3B (produced with $JNJ)
Skyrizi $330M
The Allergan acquisition is huge because it expands and diversifies the company's portfolio, which was management's goal with the acquisition knowing Humira was losing patent protection in 2023
However, many of $ABBV drugs, including Imbruvica, have been growing at a strong clip
However, many of $ABBV drugs, including Imbruvica, have been growing at a strong clip
Imbruvica grew sales 17% in Q2
The company is still trading at very cheap levels and the recent declines is giving investors another opportunity to pick up shares of this pharma stock
2021 EPS estimates are $12.24
2022 EPS estimates are $13.61
The company is still trading at very cheap levels and the recent declines is giving investors another opportunity to pick up shares of this pharma stock
2021 EPS estimates are $12.24
2022 EPS estimates are $13.61
Those estimates equate to a Fwd P/E of 7.7x in 2021 and 6.9x in 2022. Those are ABSURDLY low valuations
Over the past 5yrs, shares of $ABBV have traded at a P/E of 13.9x
Dividend Yield of 5.0%
5yr Avg Div Yield of 3.9%
Payout Ratio = 51%
FCF Payout Ratio = 60%
Over the past 5yrs, shares of $ABBV have traded at a P/E of 13.9x
Dividend Yield of 5.0%
5yr Avg Div Yield of 3.9%
Payout Ratio = 51%
FCF Payout Ratio = 60%
5yr Avg Dividend Growth = 21% per year
Plenty of room from a cash flow perspective to continue raising the dividend at a strong clip
Looking at the current chart the stock trades at an RSI of 45
Next support level is $92, after that $89
Resistance level is $98
Plenty of room from a cash flow perspective to continue raising the dividend at a strong clip
Looking at the current chart the stock trades at an RSI of 45
Next support level is $92, after that $89
Resistance level is $98
