AbbVie is a top dividend stock in the pharmaceutical industry, showing strong growth potential

From Yahoo Finance: 2025-06-20 23:53:00

AbbVie Inc. (NYSE: ABBV) is considered one of the best dividend stocks for a bear market, holding the title of Dividend King with 52 consecutive years of dividend raises. The company’s strong product lineup and top growth drivers like Skyrizi and Rinvoq have led to a 2027 sales forecast of over $31 billion.

With a dividend yield of 3.5%, AbbVie Inc. remains an attractive choice for income investors seeking long-term stability. However, concerns exist regarding the company’s elevated payout ratio, currently at 267.66%, which could lead to a dividend cut if challenges arise.

Despite challenges from biosimilars and market exclusivity loss for Humira, AbbVie Inc. is seeing strong growth in its next-generation immunology drugs. The company’s deep pipeline of new therapies and other key products like Botox provide a solid foundation for future growth.

While AbbVie Inc. offers potential as an investment, some believe that certain AI stocks may provide greater upside potential with less downside risk. Investors looking for undervalued AI stocks may benefit from exploring other opportunities in the market.

Read more: Is AbbVie the Best Dividend Stock in Big Pharma Today?