AbbVie Just Raised Its Dividend by 5.5%. Should You Buy ABBV Stock Here?

Industry Overview - The global drug market is projected to reach $1.21 trillion by 2025, highlighting the significance of the pharmaceutical industry [1] AbbVie Performance - AbbVie reported third-quarter 2025 revenue of $15.78 billion, a 9.1% increase from the same quarter last year, surpassing analyst expectations of $15.58 billion [2] - The company announced a 5.5% increase in its quarterly cash dividend, raising it from $1.64 to $1.73 per share, with the first payment scheduled for February 17, 2026 [3] - AbbVie's stock has increased by 15.18% over the past three months, outperforming the S&P 500 Index, which rose by 7.50% during the same period [4] Dividend and Valuation - AbbVie trades at a forward price-earnings ratio of 21.57x, slightly above the healthcare sector average of 18.77x, indicating investor confidence in AbbVie compared to its peers [7] - The company has maintained a dividend yield of approximately 3.22%, significantly higher than the healthcare sector average of 1.58% [7] - AbbVie has a history of raising its dividend for 54 consecutive years, reflecting strong business confidence, with a payout ratio of 59.92%, allowing for future dividend increases while investing in new medicines [8]