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ABBV or CELG: Comparing Dividends, Interest Expenses, and Debt

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Comparing dividend projections

AbbVie (ABBV) and Celgene (CELG) reported dividends per share of $3.59 and $0.0, respectively, in 2018.

Analysts expect AbbVie’s dividend per share to rise 58.45% YoY (year-over-year) to $1.13 in the first quarter, 19.49% YoY to $4.29 in 2019, 8.18% YoY to $4.64 in 2020, and 4.55% YoY to $4.85 in 2021.

Analysts expect Celgene to pay zero dividends to its shareholders until 2021. For this reason, AbbVie is definitely a better pick than Celgene for income investors.

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Comparing interest expenses, total debt, and free cash flow

In 2018, AbbVie reported interest expenses of $1.14 billion, a YoY rise of 13.94%, while Celgene reported interest expenses of $741 million, a YoY rise of 41.95%.

Analysts expect AbbVie’s interest expenses to rise 23.51% YoY to $310 million in the first quarter and fall 1.85% YoY to $1.12 billion in 2019, 4.74% YoY to $1.07 billion in 2020, and 4.89% YoY to $1.02 billion in 2021.

On the other hand, analysts expect Celgene’s interest expenses to rise 11.13% YoY to $184.48 million in the first quarter and fall 1.54% YoY to $729.62 million in 2019, 3.89% YoY to $701.27 million in 2020, and 5.18% YoY to $664.94 million in 2021.

Analysts expect AbbVie’s total debt to fall 17.52% YoY to $17.65 billion in 2019, 0.0% YoY to $17.65 billion in 2020, and 23.23% YoY to $13.55 billion in 2021. They expect Celgene’s total debt to rise 7.74% YoY to $21.84 billion in 2019 and then fall 9.16% YoY to $19.84 billion in 2020.

Analysts expect AbbVie’s free cash flow to fall 0.53% YoY to $12.26 billion in 2019 but rise 14.31% YoY to $14.02 billion in 2020 and 6.30% YoY to $14.90 billion in 2021. Analysts expect Celgene’s free cash flow to be $6.20 billion, $6.32 billion, and $7.53 billion, respectively, in 2019, 2020, and 2021.

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