The year is coming to a close, and for income investors, it makes sense to pick something that will pay off in the long run. Apart from eyeing outperforming market giants, it’s worth paying attention to the high-dividend stocks that have stacked up so high for quite some time. If you’ve been following keenly on the activities in the stocks market, you must have spotted AbbVie Inc (NYSE:ABBV) for high dividends.
But is the 4.76% dividend yield safe for income investors?
AbbVie Inc (NYSE:ABBV) Dividend Information
AbbVie currently pays an annual dividend of $4.28 per share, with a dividend yield of 4.76%. The stock has grown its dividend for the last 46 consecutive years, with annual dividend growth of 0.27%. The company pays its dividend quarterly, paying $1.07 every quarter. On November 1, 2019, the company increased its dividend by $0.11. AbbVie Inc (NYSE:ABBV) pays out 54.11% of its earnings to its shareholders, indicating that the stock has a healthy cash flow that can sustain its handsome dividend payout.
Strong Earnings Reports
AbbVie’s high dividend is supported by its solid earnings. In the third-quarter of 2019, the stock realized a net revenue of $8.479 billion, representing a 3% year-over-year increase. AbbVie Inc (NYSE:ABBV) attributes its third-quarter revenue growth to the strong performance of its Immunology and Hematologic-Oncology portfolios, which are expected to go up in the coming years.
Following the positive earnings results, the company announced an increase in its quarterly dividend from $1.07 per share to $1.18 per share beginning with the dividend payable on February 14, 2020, to shareholders of record as of January 15, 2020. This represents an increase of about 10.3%, indicating that AbbVie is committed to returning cash to shareholders through a growing dividend.
AbbVie Inc. is a research-based bio-pharmaceutical company. It’s engaged in the discovery, development, manufacture, and sale of a range of pharmaceutical products. The company was founded on October 19, 2011, and is headquartered in North Chicago, Illinois. It’s currently valued at 132.87 billion with a revenue of $32.75 billion.