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AbbVie’s Dividend Has Risen 140% since 2013

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Dividend overview

AbbVie (ABBV) announced its fourth-quarter dividend yield of 4.09%. On September 7, AbbVie announced a dividend of $0.96 per share to its shareholders of record on October 15.

AbbVie’s dividend has increased by 140.0% since 2013, witnessing consistent growth over the past three years. AbbVie’s dividend reached $0.96 in the second quarter, the third quarter, and the fourth quarter. AbbVie’s dividend grew from $0.57 per share during the fourth quarter of 2015 to $0.71 per share in the first quarter and finally to $0.96 per share in the fourth quarter.

Wall Street analysts expect AbbVie to deliver a dividend of $0.79 in January 2019. Analysts expect AbbVie to increase its dividend to $1.01 in the second quarter of 2019.

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Recent developments

In September, the Committee for Medicinal Products for Human Use (or CHMP) of the European Medicines Agency (or EMA) recommended a positive opinion for AbbVie’s Venclyxto and rituximab combination therapy. This combination therapy is for the treatment of individuals with R/R CLL (relapsed or refractory chronic lymphocytic leukemia) who underwent at least one prior therapy. 

The CHMP recommended a positive opinion for Venclyxto and rituximab combination therapy based on the data from the Phase 3 MURANO trial. In this trial, the Venclyxto and rituximab combination therapy demonstrated statistically significant progress in investigator-examined PFS (progression-free survival) compared to rituximab and bendamustine combination therapy.

Financials in a nutshell

In the first half, AbbVie (ABBV) reported revenues of $16.2 billion compared to $13.5 billion in the first half of 2017, reflecting ~20% YoY (year-over-year) growth. AbbVie’s Humira and Imbruvica pushed this revenue growth. 

AbbVie’s HCV segment also significantly pushed the company’s revenue growth, reporting revenues of $1.9 billion in the first half of the year. AbbVie generated revenues of $9.9 billion and $1.6 billion from the sales of Humira and Imbruvica, respectively, reflecting ~12.0% and ~36.9% YoY growth.

In the first half, AbbVie reported net income and diluted EPS of $4.8 billion and $2.99, respectively, compared to $3.6 billion and $2.25 in the first half of 2017. The iShares US Healthcare ETF (IYH) holds AbbVie (ABBV) with ~3.67% weight in its portfolio.

Analysts’ recommendations

Of the 21 analysts tracking AbbVie stock in September, four recommended a “strong buy” while five analysts recommended a “buy” rating. Ten analysts recommended a “hold” while two analysts recommended a “sell” for AbbVie in September.

On September 26, AbbVie had consensus 12-month target price of $109.42, which represents an ~15.89% return on investment over the next 12 months.

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