1 Top Dividend Stock to Buy and Hold Forever

Core Viewpoint - AbbVie is positioned as a strong dividend-paying stock with a reliable business model, making it an attractive option for long-term investors seeking passive income [2][12]. Group 1: Business Stability - AbbVie operates in the pharmaceutical industry, which is considered defensive as demand for medications persists regardless of economic conditions [3]. - The company has a diverse portfolio that includes treatments for serious and chronic conditions, contributing to consistent revenue and profits [4]. Group 2: Challenges and Responses - AbbVie faces challenges such as patent cliffs and regulatory setbacks, but its historical responses indicate a robust underlying business [6]. - The loss of U.S. patent exclusivity for Humira in 2023 initially impacted revenue and earnings, but AbbVie has since rebounded [7]. Group 3: Strategic Moves - AbbVie has proactively developed new products and made significant acquisitions, including the $63 billion purchase of Allergan in 2020, to diversify its offerings [8]. - The company has entered the weight loss market through a $350 million agreement with Gubra A/S, with potential future payments totaling $1.9 billion [10]. - AbbVie also acquired Capstan Therapeutics for approximately $2.1 billion, enhancing its pipeline for autoimmune disease treatments [11]. Group 4: Dividend Performance - AbbVie has a strong dividend history, being classified as a Dividend King with 53 consecutive years of dividend increases [12]. - The company's forward yield stands at 3%, significantly higher than the S&P 500 average of 1.3% [13]. - AbbVie's cash payout ratio is reasonable at 61.8%, supporting the sustainability of its dividend program [14].