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%.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AbbViepharmaceuticalsmergers and acquisitionsdividends
Open a keyword to see other news on the same topic.
Related news
- Forget High - Yield Traps : AbbVie Is the Dividend King to Buy and Hold Through Any Rate Cycle
The article argues AbbVie (ABBV) is not a high-yield trap, since its free cash flow comfortably covers its $1.73-per-share quarterly dividend and most of its $70.8 billion debt is fixed-rate. The company has raised its dividend for 54 consecutive years, qualifying it as a Dividend King. Skyrizi and Rinvoq together brought in over $7.5 billion in Q2 2026, more than the $6.1 billion paid in dividends that quarter, and AbbVie has about 90 clinical-development programs, roughly 60 of them in mid- or late-stage studies. Its 2.5% yield is lower than before mainly because the share price has risen sharply, and the article notes that pipeline setbacks remain a risk.
- 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.
- Forget High-Yield Traps: AbbVie Is the Dividend King to Buy and Hold Through Any Rate Cycle
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.
- Merck (MRK) Reports a Negative Operating Margin and Pays Out 266% of Earnings. What Explains Both?
Merck (NYSE:MRK) closed at $145.45 on October 12. In the first quarter it booked an acquired research charge of roughly $9.00 billion tied to the Cidara acquisition, and a further charge for Terns in the second quarter. These went through R&D expense with no tax benefit, which pushes the operating margin below zero. The article argues they are one-time purchase-price write-offs rather than recurring cash costs, since free cash flow came in at several times net income, so the 266.67% payout ratio is distorted; revenue still grew 5.10% in the latest quarter. The bigger question is whether the well over ten billion dollars spent on pipeline assets that have yet to produce revenue can replace sales from its largest product once it loses exclusivity later this decade, with debt at $53.91 billion. The 15.62 forward multiple assumes that bet pays off.
- What Higher Interest Rates Mean for Dividend Stocks Like AbbVie and Pfizer
The article argues that rising interest rates could make the high dividend yields of pharmaceutical stocks such as Pfizer and AbbVie less appealing, since the 10-year U.S. Treasury yield serves as the benchmark for comparing income investments. The Federal Reserve raised rates by 25 basis points last month after a series of cuts in 2024 and 2025, and numerous economists expect further hikes. Pfizer, with a 5.7% dividend yield, has several top products approaching patent expiration and is in a slow reset phase, while AbbVie's 2.4% yield is supported by growth from Skyrizi and Rinvoq. The author expects rising rates to pressure Pfizer's stock more than AbbVie's, though he remains bullish on both companies.
- 3 Reasons Royalty Pharma Is a Dividend Stock You Never Have to Sell
The article argues that Royalty Pharma suits buy-and-hold income investors for three reasons: healthcare spending tends to stay resilient through economic cycles, the company's experts select which drugs to back, and its portfolio is diversified. Royalty Pharma pays drug companies cash up front in exchange for future royalties on approved and in-development drugs, and that cash funds its shareholder distributions. Its yield is around 1.5%, slightly above the pharmaceutical sector average of roughly 1.4%. The portfolio includes 35 approved products and 16 in development, with 16 generating more than $1 billion in annual revenue and an average remaining royalty duration of around 13 years. The article acknowledges that some of its drug investments will not work out as planned.
Related markets
Latest news
- Meta’s new non-voting shares aim to protect Zuckerberg’s control: Oppenheimer
Oppenheimer said Meta's plan to issue non-voting Class C shares to all shareholders on Jan. 19, 2027 is likely designed to protect CEO Mark Zuckerberg's voting control amid a potential California wealth tax (Prop 40), a one-time 5% levy on residents with net worth above $1 billion that could cost him $10 billion to $15 billion in 2027. The firm maintained its Perform rating and $710 price target, and it expects Meta to raise capital for its AI buildout, though below the hundreds of billions of dollars the company cited. As of Oct. 1, Zuckerberg held 60.6% of voting power and 13.4% of shares outstanding. Analyst Jason Helfstein estimated his voting power would fall to 56.3% if he raised $15 billion personally and Meta raised $150 billion without non-voting stock, a level that is still above 50%.
- Extreme heat causes record losses in Europe
A study by Imperial College London and the London School of Hygiene & Tropical Medicine estimates that heat during summer 2026 was linked to 50,391 deaths across 854 cities in 30 European countries, 71% higher than in 2022 and well above the 28,462 recorded during the 2003 heatwave. About 2/3 of these deaths would not have occurred without human-caused climate change. Western Europe had its hottest summer on record, with average temperatures nearly 3 degrees Celsius above the 1991-2020 average. According to Bloomberg Economics, extreme heat cut about 0.17% from EU GDP between April and September 2026, equal to nearly 17 billion euros and 2.5 times the average loss for the same period over the previous decade. In the second quarter alone, GDP was estimated to be 0.2 percentage points lower in France, 0.1% lower in Germany and 0.05% lower in Spain due to high temperatures.
- Hedge Funds Are Shorting Stocks at Near-Record Levels
Goldman Sachs prime brokerage data shows hedge funds have built short positions in stocks to a near five-year high, while global fundamental long-short funds lost 2.9% through October 15 and suffered losses every trading day in that stretch. On October 22, the S&P 500 fell 1.21% to 7,663.43 and the Nasdaq Composite dropped 2.6%, even though most stocks rose as the selloff stayed concentrated in megacap tech. The Philadelphia Semiconductor Index lost over 6%, Meta fell 6.98% after its third-quarter report, and the 10-year Treasury yield dropped 19.3 basis points to 4.953%. Fundstrat's Tom Lee said the selloff is nearly over, while the article notes that a yield rebound, weak megacap results or a hawkish Fed would prove the shorts right. It also warns that rising prices could force short sellers to buy back shares in a short squeeze.
- Apple Overtakes Nvidia As World's Most Valuable Company — iPhone Duo Hits Stores Amid Strong Demand
Apple (AAPL) hit a record high on Friday, with its market capitalization reaching $5.11 trillion, edging past Nvidia's $5.09 trillion to become the world's most valuable publicly traded company, according to Google Finance. The rally coincided with the launch of the $1,999 iPhone Duo, its first foldable iPhone, where pre-orders exceeded initial supply, estimated delivery dates stretched into late January, and buyers were limited to two devices each. Morgan Stanley's supply-chain checks point to about 6.5 million Duo units in the second half of the year, while IDC expects Apple to capture 44% of global foldable smartphone market value in 2026. iPhone sales made up $54.25 billion of the $109.42 billion in fiscal Q3 revenue, and Q4 results due on November 2 will not include Duo sales. Apple shares are up more than 29% year-to-date.
- Not Nvidia. Not Micron. This Little-Known Chip Stock Is the AI Boom's Best-Kept Secret.
The article argues that Credo Technology Group (CRDO), a connectivity chip designer, receives less attention than its major cloud-provider customers would suggest. Its signature product is an active electrical cable (AEC) that carries 800 gigabits per second over copper, and revenue for the quarter ended Aug. 1 more than doubled from a year earlier. The company is shifting toward optical connectivity after acquiring DustPhotonics in May, with its 1.6-terabit ZeroFlap Active Light Cable slated to ship in 2027 and drawing about 30% less power than a comparable copper AEC. Cited risks include revenue concentrated among a handful of hyperscalers, a stock decline of over 40% from its high earlier this year, and about $2.5 million of stock sold by the CEO in September.
- Apple Duo goes on sale in-store as iPhone 18 demand disappoints
Apple's iPhone Duo is now on sale in stores, priced from $2,000 up to $3,200 for the 2 terabyte version. The hosts said it is sold out, and new online orders show delivery as late as the end of January. Early analyst reports from Asia suggest iPhone 18 demand was below expectations, raising the question of whether Duo sales can offset that. The hosts described the Duo as a consumption device with a weaker camera that lacks optical zoom and heats up, while the iPhone 18 Pro was called a true pro phone with a more robust camera.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.