AbbVie and Coca-Cola: Safe Investments with Up to 3.2% Dividend Yields
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Fool
- AbbVie Dividend Growth: Since spinning off from Abbott in 2013, AbbVie has not only maintained but also increased its dividend, raising its quarterly payout from $1.30 to $1.73 over five years, a 33% increase, currently yielding 3.2%, providing a reliable income source for investors.
- Cash Flow Assurance: Despite a payout ratio exceeding 100%, AbbVie generated nearly $20 billion in free cash flow over the past 12 months, significantly surpassing its $11.5 billion in dividend payments, indicating a strong foundation as a safe dividend stock.
- Coca-Cola's Stability: As a Dividend King, Coca-Cola has raised its dividend for 63 consecutive years, with a 24% increase over the past five years, currently yielding 2.9%, effectively helping retirees combat inflation.
- Resilience: In 2022, while the stock market declined, Coca-Cola's share price rose over 7%, and its low volatility (beta of 0.39) makes it an ideal choice for risk-averse investors seeking stable returns amid economic uncertainty.
Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABBV is 253.26 USD with a low forecast of 218.00 USD and a high forecast of 289.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
15 Buy
7 Hold
0 Sell
Moderate Buy
Current: 220.770
Low
218.00
Averages
253.26
High
289.00
Current: 220.770
Low
218.00
Averages
253.26
High
289.00
About ABBV
AbbVie Inc. is a global, diversified research-based biopharmaceutical company. It is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Its product portfolio includes Immunology, Oncology, Aesthetics, Neuroscience, Eye Care and Other Key Products. Immunology products include rheumatology, dermatology and gastroenterology. Oncology products include Imbruvica, Venclexta/Venclyxto, Elahere and Epkinly. Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring, and skincare products. Its Neuroscience products include Botox Therapeutic, Vraylar, Duopa and Duodopa, Ubrelvy, and Qulipta. Eye Care products include Ozurdex, Lumigan/Ganfort, Alphagan/Combigan, Restasis, and other eye care. Other key products include Mavyret/Maviret, Creon, and Linzess/Constella. Its investigational candidate, bretisilocin, is for the treatment of patients with moderate-to-severe major depressive disorder (MDD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
