AbbVie (ABBV) Could Be a Great Choice

Company Overview - AbbVie (ABBV) is a medical stock headquartered in North Chicago, with a year-to-date price change of 4.23% [2] - The company currently pays a dividend of $1.55 per share, resulting in a dividend yield of 3.84%, which is significantly higher than the Large Cap Pharmaceuticals industry's yield of 2.68% and the S&P 500's yield of 1.57% [2] Dividend Performance - AbbVie's current annualized dividend of $6.20 has increased by 4.7% from the previous year [2] - Over the past five years, AbbVie has raised its dividend five times, achieving an average annual increase of 8.25% [2] - The company's payout ratio stands at 57%, indicating that it distributes 57% of its trailing 12-month earnings per share as dividends [2] Earnings Expectations - AbbVie is projected to experience earnings growth in the current fiscal year, with the Zacks Consensus Estimate for 2024 at $11.13 per share, reflecting a year-over-year growth rate of 0.18% [3] Investment Considerations - Dividends are favored by investors for various reasons, including enhancing stock investing profits and providing tax advantages [4] - Established firms with stable profits are typically viewed as the best dividend options, while high-growth companies and tech startups rarely offer dividends [4] - AbbVie is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [4]