Core Viewpoint - The article presents a list of 26 top dividend stocks for 2026, highlighting both established companies and new entrants in the dividend space [1]. Dividend Kings - AbbVie (NYSE: ABBV): A pharmaceutical company with a market cap of $405 billion and a forward dividend yield of 3%. It has successfully navigated a patent cliff with its drug Humira [3][4]. - The Coca-Cola Company (NYSE: KO): A multinational beverage maker with a market cap of $301 billion and a forward dividend yield of 2.9% [3]. - Walmart (NASDAQ: WMT): A large retailer with a market cap of $888 billion and a forward dividend yield of 0.8% [3]. High-Yield Dividend Stocks - Ares Capital (NASDAQ: ARCC): A leading publicly traded business development company (BDC) with a market cap of $14 billion and a forward dividend yield of 9.5% [6]. - Realty Income (NYSE: O): A large real estate investment trust (REIT) with a market cap of $52 billion and a forward dividend yield of 5.7%. It is noted for paying dividends monthly and has increased its dividend for 30 consecutive years [6][7]. Growth-Oriented Dividend Stocks - The article mentions the "Magnificent Seven" stocks, which are primarily recognized for their growth potential rather than dividends. However, some members of this group do offer dividends [8].

Core Insights - Warren Buffett is no longer the CEO of Berkshire Hathaway but remains chairman and involved in major decisions [1] - Buffett's investing wisdom continues to be relevant, particularly his two-step test for stock evaluation [2][4] Investment Strategy - The first step in Buffett's test is to determine if earnings can be estimated for at least five years [5] - The second step involves checking if the stock's valuation is reasonable relative to the lower end of the projected earnings range [6] - Buffett emphasizes focusing on stocks within one's "circle of competence" to improve the accuracy of earnings projections [8] Market Analysis - As of early 2026, there are limited stocks that pass Buffett's test, with Berkshire holding a record-high cash stockpile [10] - AbbVie is highlighted as a strong candidate, having navigated its Humira patent cliff and expected to deliver robust earnings growth, with a current market cap of $405 billion and a dividend yield of 2.86% [11][12] - Nucor is another potential stock, benefiting from data center construction and infrastructure investments, with a low forward price-to-earnings ratio of 14.5 [11][12]

Company Overview - AbbVie is a pharmaceutical leader with a strong business model that generates consistent revenue and earnings through economic cycles, making it resilient even during recessions [4] - The company has a diversified portfolio across multiple therapeutic areas, including immunology, neuroscience, and oncology, with top-selling products like Skyrizi and Rinvoq [5] Financial Performance - AbbVie has a current market capitalization of $405 billion and a gross margin of 69.68% [10][7] - The company has a dividend yield of 2.86% and is recognized as a Dividend King, having increased its payouts for 54 consecutive years [8] Growth Potential - AbbVie has a robust pipeline and the capability to acquire smaller drugmakers or enter licensing agreements to enhance its product offerings [7] - The company is projected to deliver solid long-term returns, with an investment of $50,000 potentially growing to approximately $1,000,000 over 30 years at a compound annual growth rate (CAGR) of 10.5% [11] Market Position - AbbVie has successfully navigated the loss of patent exclusivity for its key product Humira in 2023, indicating strong underlying business fundamentals [5][7] - The company’s ability to maintain consistent performance through good and bad times positions it well for long-term success [7]

AbbVie Inc. (NYSE:ABBV) is one of the best stocks for the next decade. On December 12, Morgan Stanley raised the firm’s price target on AbbVie to $269 from $261 with an Overweight rating on the shares. Earlier on December 10, HSBC upgraded AbbVie to Buy from Hold with a price target of $265, which was up from $225. The firm highlighted AbbVie’s strong growth momentum and consistent operational execution. The firm downplayed concerns regarding competitive pressure from Tremfya, asserting that it is unlikel ...

December 26, 2025 01:59 PM GMT Biopharma | North America A picture is worth a thousand words Comprehensive US drug market analysis (IQVIA Rx). The latest weekly Total Prescription YoY growth (wk ending 12/19) was +1.1% vs. +1.0% last wk and +0.8% over the past 12 wks. GILD's Yeztugo vs. Descovy vs. Apretude launch comparison chart ( Exhibit 4 ). GILD's Yeztugo (lenacapavir) was approved on 6/18/2025. Latest week total TRx (oral + injectable) were ~780 vs. ~800 previous week, and last week TRx for injectable ...

Core Viewpoint - AbbVie has shown strong financial performance and growth potential, making it an attractive investment option heading into 2026 [2][3][11] Financial Performance - AbbVie's revenue increased by 8% year over year to $44.5 billion in the first nine months of the year [3] - Adjusted earnings per share declined to $7.29 from $7.96, primarily due to acquisition-related charges, but this is not a major concern [3] - The company projects high single-digit revenue growth through 2029, indicating sustained financial momentum [3] Growth Drivers - AbbVie has revised its 2027 sales projections for Skyrizi and Rinvoq, increasing it by $4 billion, which are key growth drivers [5] - Other contributors to growth include Vraylar for schizophrenia and Qulipta for migraines [6] - Humira, despite losing patent exclusivity, generated $3.3 billion in sales in the first nine months of 2025, although its revenue declined by 55% year over year [6] Challenges - The U.S. government has targeted Vraylar for drug price negotiations, effective in 2027, but management does not expect significant long-term impacts [7] - AbbVie anticipates no loss of patent exclusivity for major growth drivers through the end of the decade [7] Valuation and Dividend - AbbVie is trading at 16.1 times forward earnings, below the healthcare sector average of 18.2, suggesting reasonable valuation [9] - The company's PEG ratio is currently 0.4, indicating that shares are undervalued [10] - AbbVie has a strong dividend program, with a forward yield of 3% and a cash payout ratio of 61.8%, making it a Dividend King with 54 consecutive annual dividend increases [10][11]

Core Insights - The Zacks Equity Research team has highlighted several stocks, including AbbVie Inc., The Coca-Cola Co., Chevron Corp., ImmuCell Corp., and Precipio, Inc., in their Analyst Blog [1][2]. AbbVie Inc. (ABBV) - AbbVie has outperformed the Zacks Large Cap Pharmaceuticals industry over the past year, with a share price increase of +31.6% compared to the industry’s +19.5% [4]. - The company has successfully managed the loss of exclusivity for Humira by launching new immunology drugs, Skyrizi and Rinvoq, which are performing well and expected to support revenue growth [4][5]. - AbbVie is returning to robust revenue growth in 2025, following the U.S. Humira loss of exclusivity, and has been actively acquiring companies to enhance its early-stage pipeline [5]. The Coca-Cola Co. (KO) - Coca-Cola's shares have outperformed the Zacks Beverages - Soft Drinks industry over the past year, with a gain of +14.5% compared to +10.5% for the industry [6]. - The company's performance is attributed to solid organic revenue growth, effective pricing strategies, and gains in global market share within the non-alcoholic ready-to-drink category [6][7]. - Ongoing innovation and digital transformation efforts are enhancing Coca-Cola's competitive edge, although the company faces challenges such as soft volumes in key regions and currency headwinds [7][8]. Chevron Corp. (CVX) - Chevron's shares have increased by +9.5% over the past year, while the Zacks Oil and Gas - Integrated - International industry has gained +16% [9]. - The acquisition of Hess has significantly improved Chevron's growth outlook by adding high-quality assets in regions like Guyana and the Gulf of Mexico [9]. - The Permian Basin remains a key asset for Chevron, driving consistent growth, although challenges such as lower crude realizations and regulatory issues in California temper optimism [10]. ImmuCell Corp. (ICCC) - ImmuCell has outperformed the Zacks Medical - Products industry with a share price increase of +26.3% compared to +1% for the industry [11]. - The company’s First Defense franchise leads the market in calf scours prevention, with Tri-Shield accounting for 70% of volume and a 48% market share [11][12]. - ImmuCell has resolved operational bottlenecks, restoring capacity to $30 million in annual sales, with TTM revenues of $27.8 million, reflecting a 16% year-over-year increase [12][13]. Precipio, Inc. (PRPO) - Precipio's shares have surged by +361.2% over the past year, significantly outperforming the Zacks Medical Info Systems industry, which saw a decline of -1.3% [14]. - The company is moving towards self-funded growth, driven by its Pathology Services division, which is experiencing steady organic growth and rising margins [14][15]. - Precipio has improved profitability and cash flow, although it faces risks related to liquidity and regulatory uncertainties [15][16].

Financial Performance - AbbVie reported adjusted diluted profits per share of $1.86 for the quarter and increased its full-year 2025 adjusted EPS outlook to a range of $10.61 to $10.65 [1] - The company achieved net revenues of $15.7 billion, representing a 9.1% year-over-year increase, driven by its immunology and neuroscience portfolios [3] - Adjusted diluted EPS of $2.80 grew 15.7% year-over-year, with management raising full-year 2025 guidance to approximately $10.85 at the midpoint [13] Dividend Policy - AbbVie has paid and increased dividends for the past 54 years, earning the title of a Dividend King, and announced a 5.5% dividend increase starting February 2026, raising the quarterly payout to $1.73 per share [1] - Since its inception in 2013, AbbVie has increased its dividend by more than 330%, showcasing its commitment to income-focused investors [1] - The company currently pays an attractive yield of 3.04%, significantly higher than the healthcare average of 1.6% [1] Revenue Growth by Segment - Neuroscience revenues increased by more than 20% to $2.841 billion, with key drugs like Vraylar, Botox Therapeutic, Ubrelvy, and Qulipta showing strong growth [2] - The immunology portfolio generated $7.8 billion in quarterly revenue, a roughly 12% increase, with Skyrizi and Rinvoq leading the growth [3] - Skyrizi alone generated $4.7 billion in revenue, up over 47%, while Rinvoq grew by more than 35% to $2.18 billion [3] Market Performance - AbbVie stock has soared 29% year-to-date, outperforming the S&P 500 Index gain of 17.4% [4] - Wall Street analysts have assigned a "Moderate Buy" rating to AbbVie, with a mean target price of $245.84, indicating a potential upside of 7.8% from current levels [6]

Key Takeaways AbbVie is rebounding post-Humira, with Skyrizi and Rinvoq sales up 53% Y/Y and expected to top $25B in 2025.AZN's newer drugs are driving growth as it targets $80B in revenues by 2030.Both face pressures: ABBV from aesthetics softness, AZN from China policy impacts and biosimilar erosion.AbbVie (ABBV) and AstraZeneca (AZN) are both global healthcare companies with diversified drug portfolios. Both companies have strong leadership positions in immunology and oncology areas.While AbbVie also has ...

Industry Overview - The drug and biotech sector has shown recovery after a weak first half, with large drugmakers signing pricing agreements with the Trump administration [1] - Dealmaking activity surged in the second half, boosting investor confidence, with the Large Cap Pharmaceuticals industry outperforming the S&P 500 in the past three months [1][4] - Innovation is at its peak, particularly in areas like obesity, cell and gene therapy, and next-gen oncology treatments, attracting investor attention [2] - Despite headwinds such as pipeline setbacks and regulatory risks, the outlook for growth in 2026 remains favorable due to rapid innovation and increased use of AI in drug development [2] Eli Lilly - Eli Lilly has achieved significant success with its tirzepatide medicines, including diabetes drug Mounjaro and weight loss medicine Zepbound, which are key revenue drivers [6][7] - Strong sales growth in 2025 is attributed to international market launches and improved production, with continued demand expected in 2026 [7] - Lilly is investing in obesity treatments with new molecules in clinical development, including orforglipron and retatrutide, with regulatory applications filed for orforglipron [8][9] - Despite challenges like declining product prices and competition in the GLP-1 market, Lilly's stock has risen 39.3% year to date, with 2026 earnings estimates improving from $30.78 to $33.61 per share [10] Johnson & Johnson - J&J has shown strong operational performance in 2025, with double-digit revenue growth from key brands despite the loss of exclusivity for Stelara [11] - The Innovative Medicine segment is expected to accelerate growth in 2026, driven by key products and new launches [12] - J&J's MedTech business has improved, with growth driven by acquired cardiovascular businesses and new product launches expected to contribute to 2026 growth [13][14] - The company has advanced its pipeline significantly and is on an acquisition spree, with a Zacks Rank of 2 (Buy) and a stock rise of 43.3% year to date [17] AbbVie - AbbVie faces declining sales from Humira due to loss of exclusivity but has successfully launched new immunology medicines Skyrizi and Rinvoq, generating combined sales of $18.5 billion in the first nine months of 2025 [18][19] - Strong market growth and new indications for these drugs are expected to drive future growth, alongside contributions from newer drugs [20] - AbbVie anticipates a high single-digit CAGR through 2029, supported by robust performance from Skyrizi and Rinvoq, with a Zacks Rank of 3 and a stock rise of 28.2% year to date [21][22] Amgen - Amgen's revenue growth is driven by key medicines like Repatha and new biosimilars, compensating for declines from mature drugs [23][24] - The company is focusing on obesity treatments with its candidate MariTide, which differentiates itself with a convenient dosing method [24] - Amgen's stock has risen 27.3% year to date, with 2026 earnings estimates increasing from $21.43 to $21.62 per share [25] AstraZeneca - AstraZeneca has several blockbuster drugs exceeding $1 billion in sales, with newer products contributing to growth despite losses from mature brands [26][27] - The company expects to achieve industry-leading top-line growth through 2030, with plans to launch 20 new medicines and generate $80 billion in total revenues [28] - AstraZeneca faces challenges such as competition and regulatory impacts but maintains a stable earnings estimate of $5.15 per share for 2026, with a stock rise of 10.7% year to date [29][30]