Citadel Advisors, the hedge fund led by billionaire Ken Griffin, has been increasing its stake in AbbVie (ABBV) in recent months. In the second quarter, Citadel bought 2.7 million shares at an average price of $234.57, for about $633 million, bringing its holding to 3.2 million shares worth $909 million at the current price of about $284. The stock has risen about 24% this year and trades at 74 times trailing earnings, which some investors may view as expensive. The article's author nonetheless sees merit in AbbVie as a Dividend King that has raised its annual dividend for 50 consecutive years, currently $6.92 per share, a 2.43% dividend yield. The company has a strong brand lineup including Skyrizi, Rinvoq, Humira and Botox, and about 90 drugs and treatments in development; the FDA approved its once-daily Parkinson's pill Juvmo in September, and William Blair analysts expect its sales could reach as much as $1.4 billion annually by 2040. Of the 30 analysts tracked by Yahoo Finance, 24 rate the stock 'strong buy' or 'buy'.
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- Great News for AbbVie Stock Investors
AbbVie (ABBV) shares have climbed 26% this year on strong financial performance, and the author sees a bright medium-term outlook. Skyrizi, the company's biggest growth driver, generated almost $10 billion in sales in the first half, up 27%, but its U.S. patents may begin expiring by 2033, potentially opening the door to cheaper biosimilars. On Oct. 19, AbbVie reported encouraging Phase 2a results for ABBV-466, which combines risankizumab and trosunilimab, though these must still be confirmed in Phase 3 studies. Its $10.9 billion cash acquisition of Apogee Therapeutics brought zumilokibart, which AbbVie hopes can challenge Dupixent (over $15 billion in annual sales), with maintenance injections possibly only every three or six months. Rinvoq should not face U.S. generics until 2037, and the author says AbbVie can deliver competitive long-term returns, with a forward yield of 2.5% versus the S&P 500's average of 1.1%.
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- Forget High - Yield Traps : AbbVie Is the Dividend King to Buy and Hold Through Any Rate Cycle
The article argues AbbVie is not a high-yield trap, because its free cash flow is sufficient to cover its quarterly dividend of $1.73 per share, and most of its $70.8 billion debt is in fixed-rate notes. AbbVie has raised its dividend for 54 consecutive years, qualifying it as a Dividend King, a group of stocks that have raised dividends for at least 50 years. Skyrizi and Rinvoq together brought in over $7.5 billion in the second quarter of 2026, more than the $6.1 billion paid in dividends that quarter, and the company has about 90 programs in development, around 60 of them in mid- or late-stage studies. The dividend yield of 2.5% is lower than before because the share price has risen faster than dividends, and the article notes that pipeline setbacks remain a risk.
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The article contrasts AbbVie with high-yield traps, arguing its free cash flow covers its quarterly dividend of $1.73 per share and that most of its $70.8 billion in debt is fixed-rate senior notes. AbbVie has raised its dividend for 54 consecutive years, qualifying it as a Dividend King, and Skyrizi and Rinvoq together brought in over $7.5 billion in the second quarter of 2026, more than the $6.1 billion paid in dividends that quarter. The company has roughly 90 programs in clinical development, around 60 in mid- or late-stage studies. Its 2.5% yield is lower than before because the share price has risen faster than dividends. The author notes that pipeline setbacks remain a risk.
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