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24000.0 | 2021-07-25 00:00:00 UTC | 3 Dividend Stocks to Buy Hand Over Fist If the Market Crashes | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-hand-over-fist-if-the-market-crashes-2021-07-25 | nan | nan | I am absolutely convinced that the stock market is going to crash. However, I don't have the remotest idea when it will happen. It could be in 2021 or it could be several years from now.
There's also something else that I'm convinced about: Buying certain dividend stocks when the market crashes is a smart idea. You can lock in fantastic yields when you invest in the right dividend stocks that are trading at low prices.
What are the best stocks to scoop up during a major market meltdown? The list includes quite a few great picks. Here are three dividend stocks that I especially think are ones to buy hand over fist if the market crashes.
Image source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) already offers a juicy dividend yield of more than 4.5%. And you can count on the company's dividend continuing to flow and grow. AbbVie is only one dividend hike away from joining the group of stocks known as Dividend Kings -- S&P 500 members with at least 50 consecutive years of dividend increases.
What would happen with AbbVie during a stock market crash? Shares of the big drugmaker would likely fall as they did during the coronavirus-fueled sell-off last year. That would push its dividend yield even higher. However, AbbVie stock would probably be among the first to rebound because of the strength of its underlying business.
To be sure, AbbVie faces some uncertainties. The company's top-selling drug, Humira, faces biosimilar competition in the U.S. beginning in 2023 with sales almost certain to fall. The U.S. Food and Drug Administration (FDA) has held up approval decisions for JAK inhibitor Rinvoq in three indications because of safety concerns raised by Pfizer's post-approval clinical study of Xeljanz, which is also a JAK inhibitor.
But Rinvoq has already received FDA approval in treating rheumatoid arthritis. AbbVie remains confident that it will pick up additional approvals. The company also projects a quick return to overall sales growth after a temporary dip in 2023 due to an anticipated sales decline for Humira. I don't think AbbVie's dividend will be in any jeopardy -- and in the event of a market crash, it would be especially attractive.
Easterly Government Properties
There are a handful of dividend stocks that I'd buy right now without even a moment's hesitation. Easterly Government Properties (NYSE: DEA) ranks high on that list.
It's not just because of Easterly's dividend yield of 4.8% (although it's hard not to really like that yield). What I especially find compelling about this stock is its underlying business model that makes that dividend one of the safest you'll find on the market.
Easterly's name pretty much tells the story. The company owns and leases out government properties. As of March 31, 2021, Easterly's portfolio included 82 properties, of which 80 were leased to U.S. government agencies. Since then, the company has acquired a building in Kansas City, Missouri, that's leased to the National Weather Service.
I can't think of a more secure tenant than the U.S. government. If the day ever comes where Uncle Sam can't make its lease payments, we'll have a lot more to worry about than just a stock market crash.
Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) was one great dividend stock that I personally bought during the stock market plunge last year. By doing so, I locked in a dividend yield of nearly 12%.
The midstream energy stock has soared since the big sell-off of 2020. As a result, its dividend yield has also fallen quite a bit but still stands at a mouth-watering 7.6%.
But could Enterprise Products Partners be in trouble over the long run as the use of fossil fuels drops? Maybe. I'm not too worried, though. The company arguably has a killer advantage with its heavy focus on lower-emission natural gas, natural gas liquids, and lower sulfur crude oil.
Also, Enterprise Products Partners is looking at opportunities to expand into carbon capture, hydrogen, recycling, and renewable fuels. These won't come anywhere close to supplanting the company's core business. However, Enterprise is committed to an "all-of-the-above" approach that I suspect will pay off for investors for a long time to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie (NYSE: ABBV) already offers a juicy dividend yield of more than 4.5%. AbbVie is only one dividend hike away from joining the group of stocks known as Dividend Kings -- S&P 500 members with at least 50 consecutive years of dividend increases. What would happen with AbbVie during a stock market crash? | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Enterprise Products Partners, and Pfizer. AbbVie AbbVie (NYSE: ABBV) already offers a juicy dividend yield of more than 4.5%. AbbVie is only one dividend hike away from joining the group of stocks known as Dividend Kings -- S&P 500 members with at least 50 consecutive years of dividend increases. | AbbVie is only one dividend hike away from joining the group of stocks known as Dividend Kings -- S&P 500 members with at least 50 consecutive years of dividend increases. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Enterprise Products Partners, and Pfizer. AbbVie AbbVie (NYSE: ABBV) already offers a juicy dividend yield of more than 4.5%. | AbbVie AbbVie (NYSE: ABBV) already offers a juicy dividend yield of more than 4.5%. AbbVie is only one dividend hike away from joining the group of stocks known as Dividend Kings -- S&P 500 members with at least 50 consecutive years of dividend increases. What would happen with AbbVie during a stock market crash? |
24001.0 | 2021-07-24 00:00:00 UTC | 3 Value Stocks to Buy for the Second Half of 2021 | ABBV | https://www.nasdaq.com/articles/3-value-stocks-to-buy-for-the-second-half-of-2021-2021-07-24 | nan | nan | Bargains are hard to find these days. That's true whether you're looking for a house, searching for a used car, or investing in stocks.
Most stocks are priced at hefty premiums right now. However, there are still some bargains to be found. Here are three value stocks to buy for the second half of 2021.
Image source: Getty Images.
AbbVie
Shares of AbbVie (NYSE: ABBV) currently trade at only 9.4 times expected earnings. How cheap is that? The average forward earnings multiple for pharmaceutical stocks stands at 14.3.
With such a low valuation relative to its peers, you might think that AbbVie would be struggling. But it isn't. The company's revenue grew 51% year over year in the first quarter of 2021. Granted, most of that was the result of AbbVie's acquisition of Allergan. However, even without this deal, the company's revenue jumped more than 5%.
AbbVie does face a challenge in 2023 when its top-selling drug Humira begins to face biosimilar competition in the U.S. The company expects to quickly bounce back, though, with solid growth in the subsequent years thanks to a strong lineup of other products.
The company could have potential catalysts on the way. The U.S. Food and Drug Administration (FDA) missed the original PDUFA dates for making a decision on approval of Rinvoq in treating atopic dermatitis, psoriatic arthritis, and ankylosing spondylitis. However, AbbVie remains optimistic that the drug will win approvals in the indications in the not-too-distant future.
In the meantime, investors can count on receiving juicy dividends from the big drugmaker. AbbVie is a Dividend Aristocrat with its dividend yield currently above 4.5%.
CVS Health
CVS Health (NYSE: CVS) had a great start to 2021 with the stock jumping 22% in the first half of the year. Despite that big gain, CVS remains attractively valued, with its shares trading at less than 10.6 times expected earnings.
The company ranks as a leader in three key areas of the healthcare sector. CVS is best known as a major pharmacy retailer. It also operates one of the biggest pharmacy benefits management (PBM) units. And thanks to the acquisition of Aetna in 2018, CVS is one of the top health insurers.
This combination of businesses gives CVS an integrated healthcare model that could provide a sustainable competitive advantage. The diversification also makes the stock somewhat less risky than the stocks of rivals that operate in only one arena.
Some health experts predict an especially nasty cold and flu season is on the way this winter. That could work to CVS Health's benefit as consumers buy more over-the-counter medications. The company is also re-entering the Obamacare exchanges in eight states in 2022 with its first Aetna-CVS branded offerings. Both of these could provide further catalysts for this already high-flying stock.
Pfizer
Considering the astounding success of its COVID-19 vaccine, Pfizer (NYSE: PFE) might be the most surprising member of our list of value stocks. However, shares of the big drugmaker trade below 11.2 times expected earnings, low enough to include Pfizer as a potential bargain.
Pfizer's fortunes don't entirely depend on its COVID-19 vaccine. The company's lineup includes several blockbusters with growing sales such as blood thinner Eliquis, rare disease drug Vyndaqel/Vyndamax, and autoimmune disease drug Xeljanz.
There's no question, though, that the COVID-19 vaccine that Pfizer markets with partner BioNTech is the biggest story for the company right now. Pfizer expects the vaccine will generate sales of around $26 billion this year. The rise of the delta variant could boost sales of the vaccine next year.
Investors remain uncertain about how much recurring revenue Pfizer will be able to count on going forward. That's one key reason that the stock still trades at a discount. It's possible, though, that we'll soon know for sure that booster shots will be needed at least on an annual basis. If so, Pfizer might not be a value stock for too much longer.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Shares of AbbVie (NYSE: ABBV) currently trade at only 9.4 times expected earnings. With such a low valuation relative to its peers, you might think that AbbVie would be struggling. Granted, most of that was the result of AbbVie's acquisition of Allergan. | AbbVie Shares of AbbVie (NYSE: ABBV) currently trade at only 9.4 times expected earnings. With such a low valuation relative to its peers, you might think that AbbVie would be struggling. Granted, most of that was the result of AbbVie's acquisition of Allergan. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie and Pfizer. AbbVie Shares of AbbVie (NYSE: ABBV) currently trade at only 9.4 times expected earnings. With such a low valuation relative to its peers, you might think that AbbVie would be struggling. | AbbVie Shares of AbbVie (NYSE: ABBV) currently trade at only 9.4 times expected earnings. With such a low valuation relative to its peers, you might think that AbbVie would be struggling. Granted, most of that was the result of AbbVie's acquisition of Allergan. |
24002.0 | 2021-07-23 00:00:00 UTC | Notable ETF Inflow Detected - XLV, JNJ, UNH, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-xlv-jnj-unh-abbv-2021-07-23 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $720.6 million dollar inflow -- that's a 2.4% increase week over week in outstanding units (from 234,770,000 to 240,320,000). Among the largest underlying components of XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.6%, UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 0.3%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $130.92 as the 52 week high point — that compares with a last trade of $130.47. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.6%, UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $720.6 million dollar inflow -- that's a 2.4% increase week over week in outstanding units (from 234,770,000 to 240,320,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.6%, UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 0.3%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $130.92 as the 52 week high point — that compares with a last trade of $130.47. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.6%, UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $720.6 million dollar inflow -- that's a 2.4% increase week over week in outstanding units (from 234,770,000 to 240,320,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $130.92 as the 52 week high point — that compares with a last trade of $130.47. | Among the largest underlying components of XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.6%, UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is up by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $720.6 million dollar inflow -- that's a 2.4% increase week over week in outstanding units (from 234,770,000 to 240,320,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $130.92 as the 52 week high point — that compares with a last trade of $130.47. |
24003.0 | 2021-07-22 00:00:00 UTC | 3 Biotechs That Could Make Big Acquisitions This Year | ABBV | https://www.nasdaq.com/articles/3-biotechs-that-could-make-big-acquisitions-this-year-2021-07-22 | nan | nan | Who wants to make a deal? That's the question in the biotech world right now with valuations down from earlier this year. Several big drugmakers have both a reason to make an acquisition as well as the financial strength to do so. In this Motley Fool Live video recorded on July 14, Motley Fool contributors Keith Speights and Brian Orelli discuss which biotechs are most likely to make big acquisitions this year.
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Keith Speights: Hey, and speaking of acquisitions, Jefferies analyst Michael Yee thinks that big drugmakers could be forking over plenty of cash in the second half of this year to make deals.
Sure enough, Eli Lilly just this morning announced a $1 billion dollar-plus acquisition of Protomer Technologies. Do you agree with the analyst that more acquisitions will be on the way? If so, which companies do you think will be most likely to be in buying mode?
Brian Orelli: It seems like a reasonable hypothesis. The biotechs are certainly on sale right now and they are well off their highs, the XBI, which is the SPDR S&P Biotech ETF, is down 26% from high set earlier this year. Asking who will make the acquisitions is basically the same as asking who is desperate for growth.
With that context, I'll give you three companies, AbbVie (NYSE: ABBV), which is facing coming biosimilar competition for its mega-blockbuster, Humira. Gilead (NASDAQ: GILD), which has a solid HIV franchise, but it's not really growing that quickly, and its hepatitis C franchise which rocketed up and then backed down. Then Vertex (NASDAQ: VRTX), which is getting close to maximizing its opportunity in cystic fibrosis. There's certainly some growth left in Europe, but it won't last all that long and it really needs to find its next growth driver.
I'd say those three are most likely to be making deals in the not-too-distant future, so AbbVie, Gilead, and Vertex.
Speights: I would agree with you on all of those. Gilead certainly has a large cash stockpile. The company has been scooping up some smaller oncology biotechs, but I could still see more deals in its future.
Vertex, in particular, I think there is increasing pressure on to make some kind of deal, especially with as you said, there's still some growth left for the cystic fibrosis franchise, but the company needs some other growth drivers. It had some clinical setbacks with its AATD program. I think as time goes by, the pressure will just intensify on Vertex to pull the trigger and use some of its growing cash stockpile to make a deal.
Orelli: Yeah. All three of them have quite a few billions of dollars just waiting to get deployed. The bigger question is whether they do licensing deals or will they do full acquisitions. I don't really care whether they do one or the other, they probably just need to do something to add to the pipelines.
Speights: Of the three, I think Vertex might historically, anyway, be a little pickier about making deals.
AbbVie had the big acquisition of Allergan, I guess it was a year and a half ago, something like that, not too long ago, which there wasn't all that much overlap, I think, between their product lines.
Orelli: Gilead, as you said, has done quite a few deals in oncology. I think it's really built out most of its pipeline through deals for oncology.
Brian Orelli, PhD owns shares of Vertex Pharmaceuticals. Keith Speights owns shares of AbbVie, SPDR S&P Biotech, and Vertex Pharmaceuticals. The Motley Fool recommends Gilead Sciences and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With that context, I'll give you three companies, AbbVie (NYSE: ABBV), which is facing coming biosimilar competition for its mega-blockbuster, Humira. I'd say those three are most likely to be making deals in the not-too-distant future, so AbbVie, Gilead, and Vertex. AbbVie had the big acquisition of Allergan, I guess it was a year and a half ago, something like that, not too long ago, which there wasn't all that much overlap, I think, between their product lines. | Keith Speights owns shares of AbbVie, SPDR S&P Biotech, and Vertex Pharmaceuticals. With that context, I'll give you three companies, AbbVie (NYSE: ABBV), which is facing coming biosimilar competition for its mega-blockbuster, Humira. I'd say those three are most likely to be making deals in the not-too-distant future, so AbbVie, Gilead, and Vertex. | With that context, I'll give you three companies, AbbVie (NYSE: ABBV), which is facing coming biosimilar competition for its mega-blockbuster, Humira. I'd say those three are most likely to be making deals in the not-too-distant future, so AbbVie, Gilead, and Vertex. AbbVie had the big acquisition of Allergan, I guess it was a year and a half ago, something like that, not too long ago, which there wasn't all that much overlap, I think, between their product lines. | With that context, I'll give you three companies, AbbVie (NYSE: ABBV), which is facing coming biosimilar competition for its mega-blockbuster, Humira. I'd say those three are most likely to be making deals in the not-too-distant future, so AbbVie, Gilead, and Vertex. AbbVie had the big acquisition of Allergan, I guess it was a year and a half ago, something like that, not too long ago, which there wasn't all that much overlap, I think, between their product lines. |
24004.0 | 2021-07-21 00:00:00 UTC | Drugmakers, pharmacies next targets for U.S. opioid settlements | ABBV | https://www.nasdaq.com/articles/drugmakers-pharmacies-next-targets-for-u.s.-opioid-settlements-2021-07-21 | nan | nan | By Brendan Pierson
NEW YORK, July 21 (Reuters) - With a $26 billion nationwide settlement in sight over claims that the three largest U.S. drug distributors and Johnson & Johnson JNJ.N helped fuel a nationwide opioid epidemic, state and local governments will soon turn their attention to pharmacies and a handful of drugmakers.
U.S. state attorneys general are expected to unveil a settlement proposal this week with distributors McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N contributing a combined $21 billion, while Johnson & Johnson would pay $5 billion.
The ultimate settlement price-tag could fluctuate depending on how many state and local governments agree to the deal or reject it to pursue litigation on their own.
More than 3,000 lawsuits, mostly by local governments, have been filed over the opioid crisis against a range of companies for allegedly downplaying the risk of the drugs and for lax controls that allowed the highly addictive painkillers to flood communities.
Excluded from the potential $26 billion deal are pharmacy operators including Walgreens Boots Alliance WBA.O, Walmart Inc WMT.N, Rite Aid Corp RAD.N and CVS Health Corp CVS.N, which have been accused of ignoring red flags that opioid drugs were being diverted into illegal channels.
The deal also would not include drugmakers AbbVie Inc ABBV.N, Teva Pharmaceutical Industries Ltd TEVA.TA or Endo International Plc ENDP.O, which have been accused of misleadingly marketing their pain medicines as safe.
Nearly 500,000 people died from opioid overdoses in the United States from 1999 to 2019, according to the U.S. Centers for Disease Control and Prevention. The CDC last week said provisional data showed that 2020 was a record year for overall drug overdose deaths with 93,331, up 29% from a year earlier.
The pharmacies and drugmakers have denied the claims, saying rising opioid prescriptions were driven by doctors, that they followed federal law and that the known risks were included in U.S.-approved labels for the drugs.
News of the proposed nationwide settlement came three weeks into a jury trial in New York, and legal experts said upcoming court proceedings will pressure the remaining defendants to reach a deal.
The drugmakers are currently defending themselves at the New York trial and a trial in Orange County, California, and are expected to face another trial in San Francisco along with the pharmacies later this year. The pharmacies, which settled the New York case shortly before trial, also face an October trial in Ohio.
Endo is scheduled to go to trial next week to assess damages over a lawsuit brought on behalf of Tennessee counties and an infant allegedly born addicted to opioids, in which a judge has already ruled the company liable. District Attorney General Barry Staubus of Tennessee's Sullivan County told WHLJ television that the company offered to settle, but the deal would be limited to that case.
'COMMON GOAL' TO END EPIDEMIC
Richard Ausness, a law professor at the University of Kentucky, said a settlement this week reduces the groups of defendants in the litigation and makes it harder for the remaining companies to blame others.
"It puts pressure on them to reach a deal, especially if the mechanics were formulated in this present settlement,” he said.
Peter Mougey, a lawyer representing the local governments pursuing opioid litigation around the country, said at a news conference to discuss proposed settlements that he was "frustrated" pharmacies were not part of the nationwide deal.
"They've had ample time to assess where they are with their liability, and we all have the common goal of trying to end this opioid epidemic," he said.
The pharmacies did not immediately respond to requests for comment.
In 2019, Teva proposed a settlement in which it would donate addiction treatment drugs that it valued at $23 billion. Industry analysts said the actual cost of the drugs to Teva could be as little as $1.5 billion, however, and plaintiffs' lawyers balked at what they called an inflated valuation.
Joe Rice, another plaintiffs' lawyer, said Teva had not been involved in settlement talks since early 2020 but that plaintiffs hoped to negotiate with them going forward.
Teva said in a statement on Tuesday that it remained "confident" it would reach a deal involving donated drugs, and that it would defend itself against "unfounded claims" in the meantime.
"Now more than ever - with local state government budgets dramatically impacted by COVID - it is clear that donated medicines provide the holistic approach needed for solving the epidemic of addiction," the Israel-based company said.
AbbVie and Endo did not immediately respond to requests for comment on settlement negotiations.
Other settlements are also being negotiated with OxyContin maker Purdue Pharma and generic opioid maker Mallinckrodt Plc MCDG.MU now working through the bankruptcy courts to secure support for settlements worth more than $10 billion and $1.6 billion, respectively.
(Reporting By Brendan Pierson in New York and Tom Hals in Wilmington, Delaware; Editing by Bill Berkrot)
((Brendan.Pierson@thomsonreuters.com; 646-223-6017 (desk); 646-306-0235 (cell);))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The deal also would not include drugmakers AbbVie Inc ABBV.N, Teva Pharmaceutical Industries Ltd TEVA.TA or Endo International Plc ENDP.O, which have been accused of misleadingly marketing their pain medicines as safe. AbbVie and Endo did not immediately respond to requests for comment on settlement negotiations. More than 3,000 lawsuits, mostly by local governments, have been filed over the opioid crisis against a range of companies for allegedly downplaying the risk of the drugs and for lax controls that allowed the highly addictive painkillers to flood communities. | AbbVie and Endo did not immediately respond to requests for comment on settlement negotiations. The deal also would not include drugmakers AbbVie Inc ABBV.N, Teva Pharmaceutical Industries Ltd TEVA.TA or Endo International Plc ENDP.O, which have been accused of misleadingly marketing their pain medicines as safe. By Brendan Pierson NEW YORK, July 21 (Reuters) - With a $26 billion nationwide settlement in sight over claims that the three largest U.S. drug distributors and Johnson & Johnson JNJ.N helped fuel a nationwide opioid epidemic, state and local governments will soon turn their attention to pharmacies and a handful of drugmakers. | The deal also would not include drugmakers AbbVie Inc ABBV.N, Teva Pharmaceutical Industries Ltd TEVA.TA or Endo International Plc ENDP.O, which have been accused of misleadingly marketing their pain medicines as safe. AbbVie and Endo did not immediately respond to requests for comment on settlement negotiations. By Brendan Pierson NEW YORK, July 21 (Reuters) - With a $26 billion nationwide settlement in sight over claims that the three largest U.S. drug distributors and Johnson & Johnson JNJ.N helped fuel a nationwide opioid epidemic, state and local governments will soon turn their attention to pharmacies and a handful of drugmakers. | AbbVie and Endo did not immediately respond to requests for comment on settlement negotiations. The deal also would not include drugmakers AbbVie Inc ABBV.N, Teva Pharmaceutical Industries Ltd TEVA.TA or Endo International Plc ENDP.O, which have been accused of misleadingly marketing their pain medicines as safe. News of the proposed nationwide settlement came three weeks into a jury trial in New York, and legal experts said upcoming court proceedings will pressure the remaining defendants to reach a deal. |
24005.0 | 2021-07-20 00:00:00 UTC | Drug distributors to pay up to $1.1 bln to settle New York opioid case | ABBV | https://www.nasdaq.com/articles/drug-distributors-to-pay-up-to-%241.1-bln-to-settle-new-york-opioid-case-2021-07-20-0 | nan | nan | By Brendan Pierson and Nate Raymond
NEW YORK, July 20 (Reuters) - The three largest U.S. drug distributors agreed mid-trial to pay up to $1.1 billion to settle claims by New York state and two of its biggest counties over their role in the nationwide opioid epidemic, the state's attorney general said on Tuesday.
McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N settled as state attorneys general prepare to announce as soon as this week a landmark $26 billion deal with the distributors and drugmaker Johnson & Johnson JNJ.N resolving cases nationwide.
The deal with New York Attorney General Letitia James and the populous Long Island counties of Nassau and Suffolk came three weeks into the first jury trial accusing companies of profiting from a flood of addictive painkillers that devastated communities.
Hunter Shkolnik, a lawyer for Nassau County at the law firm Napoli Shkolnik, in a statement said that unlike the proposed national settlement, the New York deal "is not contingent on the rest of the country or other states joining."
"More importantly, it guarantees stringent injunctive relief that will help stop this from ever occurring again," he said.
Nearly 500,000 people died from opioid overdoses in the United States from 1999 to 2019, according to the U.S. Centers for Disease Control and Prevention. And the crisis appeared to have worsened during the COVID-19 pandemic.
The CDC last week said provisional data showed that 2020 was a record year for drug overdose deaths with 93,331, up 29% from a year earlier. Opioids were involved in 74.7%, or 69,710, of those fatalities.
The New York trial will continue against three drugmakers accused of deceptively marketing their painkillers - Endo International Plc ENDP.O, Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit.
(Reporting by Brendan Pierson in New York and Nate Raymond in Boston Editing by Tom Hals, Chizu Nomiyama, Bill Berkrot and Nick Zieminski)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The New York trial will continue against three drugmakers accused of deceptively marketing their painkillers - Endo International Plc ENDP.O, Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit. The deal with New York Attorney General Letitia James and the populous Long Island counties of Nassau and Suffolk came three weeks into the first jury trial accusing companies of profiting from a flood of addictive painkillers that devastated communities. (Reporting by Brendan Pierson in New York and Nate Raymond in Boston Editing by Tom Hals, Chizu Nomiyama, Bill Berkrot and Nick Zieminski) ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The New York trial will continue against three drugmakers accused of deceptively marketing their painkillers - Endo International Plc ENDP.O, Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit. By Brendan Pierson and Nate Raymond NEW YORK, July 20 (Reuters) - The three largest U.S. drug distributors agreed mid-trial to pay up to $1.1 billion to settle claims by New York state and two of its biggest counties over their role in the nationwide opioid epidemic, the state's attorney general said on Tuesday. McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N settled as state attorneys general prepare to announce as soon as this week a landmark $26 billion deal with the distributors and drugmaker Johnson & Johnson JNJ.N resolving cases nationwide. | The New York trial will continue against three drugmakers accused of deceptively marketing their painkillers - Endo International Plc ENDP.O, Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit. By Brendan Pierson and Nate Raymond NEW YORK, July 20 (Reuters) - The three largest U.S. drug distributors agreed mid-trial to pay up to $1.1 billion to settle claims by New York state and two of its biggest counties over their role in the nationwide opioid epidemic, the state's attorney general said on Tuesday. McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmerisourceBergen Corp ABC.N settled as state attorneys general prepare to announce as soon as this week a landmark $26 billion deal with the distributors and drugmaker Johnson & Johnson JNJ.N resolving cases nationwide. | The New York trial will continue against three drugmakers accused of deceptively marketing their painkillers - Endo International Plc ENDP.O, Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc's ABBV.N Allergan unit. By Brendan Pierson and Nate Raymond NEW YORK, July 20 (Reuters) - The three largest U.S. drug distributors agreed mid-trial to pay up to $1.1 billion to settle claims by New York state and two of its biggest counties over their role in the nationwide opioid epidemic, the state's attorney general said on Tuesday. The deal with New York Attorney General Letitia James and the populous Long Island counties of Nassau and Suffolk came three weeks into the first jury trial accusing companies of profiting from a flood of addictive painkillers that devastated communities. |
24006.0 | 2021-07-20 00:00:00 UTC | Have $2,000? 2 All-Weather Stocks to Buy This Month | ABBV | https://www.nasdaq.com/articles/have-%242000-2-all-weather-stocks-to-buy-this-month-2021-07-20 | nan | nan | Finding stocks that can guide your portfolio to safe harbor when the next market storm strikes doesn't have to be complicated. It's true that stocks are incredibly expensive right now and some just can't justify their nosebleed valuations. Even so, you can find compelling buying opportunities if you know where to look.
Two top-notch stocks from very different sectors -- healthcare and e-commerce -- have continued to generate high levels of balance sheet and business growth throughout the pandemic and each has something to offer a well-rounded portfolio. Let's dig deeper.
Image source: Getty Images.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is by far one of the most important players in the global multi-billion-dollar cystic fibrosis (CF) drug industry. The company has four approved drugs on the market: Trikafta, Symdeko, Orkambi, and Kalydeco. All of these drugs are for the treatment of individuals with CF.
More importantly, these four products are the only ones in a class of CF drugs known as CFTR (cystic fibrosis transmembrane conductance regulator) modulators that have as of yet made it to market. According to the Cystic Fibrosis Foundation, CFTR modulators "are designed to correct the malfunctioning protein made by the CFTR gene."
AbbVie is another well-known pharmaceutical company working on several different CFTR modulators, but its candidates are still in either phase 1 or 2 clinical trials. Even if these drugs do eventually gain approval down the line, the opportunity within the CF drug market and even more specifically within the CFTR modulator drug market is massive and far from saturated.
The global CF drug market is on track to hit a global valuation of about $14 billion by the year 2025, according to Grand View Research. Meanwhile, an April 2021 report by Research & Markets estimated the CFTR modulator drug market alone represents a $20 billion market opportunity. The same report also found that Vertex's Trikafta controlled 50% of this market as of 2020.
Trikafta is Vertex Pharmaceuticals' top-selling product. The drug was only approved by the U.S. Food and Drug Administration in October 2019, but its approval was a huge breakthrough because Trikafta is indicated for roughly 90% of all CF patients. In the first quarter of 2021 alone, Trikafta accounted for $1.2 billion of Vertex's overall revenue of $1.7 billion.
The company's total first-quarter product revenue represented a robust 14% year-over-year increase, and was accompanied by a healthy 8% spike in its net income from the year-ago period. Management is forecasting that the company can increase its product revenue by as much as 11% for the full-year 2021.
Vertex also has an impressive pipeline that includes investigational CF therapies, along with drug candidates for other rare diseases like Duchenne muscular dystrophy, sickle cell disease, and beta thalassemia.
Vertex Pharmaceuticals' notable competitive advantage in a highly profitable and fast-growing sector of the rare disease drug market paired with its consistent balance sheet growth make its stock an attractive buy for long-term healthcare investors. Demand for Vertex's life-changing medicines is driven by non-cyclical factors and is only increasing -- the Cystic Fibrosis Foundation estimates that there are more than 70,000 individuals with CF globally and roughly 1,000 new cases are identified annually.
Shares of Vertex Pharmaceuticals are trading down about 16% from the beginning of the year, but have gained well over 100% in the trailing five-year period. It's a great time to get this stock on sale and hold it in your portfolio for the long term.
2. Etsy
If you're an investor who wants to jump on the e-commerce boom, Etsy (NASDAQ: ETSY) is hands down one of the top stocks to buy in this burgeoning market space.
It's hardly a secret that the e-commerce industry is growing at a record pace. In 2019, before the pandemic accelerated the popularity and utilization of e-commerce worldwide, this market had already achieved a global valuation of more than $9 trillion. According to Grand View Research, e-commerce is on track to realize a compound annual growth rate (CAGR) of about 15% from 2020 to 2027 alone.
Shares of Etsy have seen record growth since the pandemic drove a new increase in both buyers and sellers to the company's innovative platform. The stock is up more than 1,800% from where it was trading just five years ago, and has soared nearly 80% over the past 12 months alone.
When Etsy reported its financial results for the first quarter of 2021, any worries investors might have had about a potential slowdown in growth as the world reopens were quickly quashed. Not only did Etsy's revenue surge by an incredible 142% from the year-ago period, but its net income also rose by more than 1,048%.
Even as pandemic restrictions shift around the globe and more and more people are getting out into the world again, Etsy's balance sheet and its business continue to grow. Etsy completed two major acquisitions in June: its $1.6 billion purchase of fashion resale marketplace Depop and one of Brazilian online marketplace Elo7 for $217 million.
Etsy's strategy of business expansion that focuses on marketplaces selling unique or custom items is enabling the company to continue differentiating itself from other major e-commerce players and will undoubtedly continue to drive its rapid balance sheet gains in the years to come.
In addition to explosive top- and bottom-line gains, Etsy also reported that gross merchandise sales (GMS) spiked 132% year over year while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) took a giant leap of over 243%. The number of active sellers and buyers on Etsy's platform also increased by double-digit percentages from the year-ago quarter.
Analysts are estimating that Etsy can keep up average annual earnings growth of more than 52% for the next five years alone. Etsy is just starting to pursue its full growth potential, and investors shouldn't hesitate to scoop up this premium stock before shares explode even higher.
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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Etsy. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is another well-known pharmaceutical company working on several different CFTR modulators, but its candidates are still in either phase 1 or 2 clinical trials. Two top-notch stocks from very different sectors -- healthcare and e-commerce -- have continued to generate high levels of balance sheet and business growth throughout the pandemic and each has something to offer a well-rounded portfolio. Vertex Pharmaceuticals' notable competitive advantage in a highly profitable and fast-growing sector of the rare disease drug market paired with its consistent balance sheet growth make its stock an attractive buy for long-term healthcare investors. | AbbVie is another well-known pharmaceutical company working on several different CFTR modulators, but its candidates are still in either phase 1 or 2 clinical trials. Vertex Pharmaceuticals Vertex Pharmaceuticals (NASDAQ: VRTX) is by far one of the most important players in the global multi-billion-dollar cystic fibrosis (CF) drug industry. The global CF drug market is on track to hit a global valuation of about $14 billion by the year 2025, according to Grand View Research. | AbbVie is another well-known pharmaceutical company working on several different CFTR modulators, but its candidates are still in either phase 1 or 2 clinical trials. Even if these drugs do eventually gain approval down the line, the opportunity within the CF drug market and even more specifically within the CFTR modulator drug market is massive and far from saturated. Vertex Pharmaceuticals' notable competitive advantage in a highly profitable and fast-growing sector of the rare disease drug market paired with its consistent balance sheet growth make its stock an attractive buy for long-term healthcare investors. | AbbVie is another well-known pharmaceutical company working on several different CFTR modulators, but its candidates are still in either phase 1 or 2 clinical trials. The global CF drug market is on track to hit a global valuation of about $14 billion by the year 2025, according to Grand View Research. Meanwhile, an April 2021 report by Research & Markets estimated the CFTR modulator drug market alone represents a $20 billion market opportunity. |
24007.0 | 2021-07-19 00:00:00 UTC | 3 High-Yield Dividend Aristocrats To Buy Now | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-aristocrats-to-buy-now-2021-07-19 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Income investors are always searching for high yields, which are hard to find with today’s historically low interest rates and record-high stock prices. But investors should not sacrifice dividend safety in favor of higher yields. This is why high-quality dividend stocks like the Dividend Aristocrats are so valuable.
The Dividend Aristocrats are a select group of 65 stocks in the S&P 500 Index that have each raised their dividends for at least 25 consecutive years. We consider these to be some of the best dividend stocks in the entire market — and high-yield Dividend Aristocrats can bring an even stronger income.
7 A-Rated Retirement Stocks to Buy to for Your Golden Years
These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models:
Chevron Corporation (NYSE:CVX)
AbbVie Inc. (NYSE:ABBV)
Realty Income (NYSE:O)
Dividend Stocks: Chevron Corporation (CVX)
CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" />
Source: Sundry Photography / Shutterstock.com
Chevron is an integrated oil and gas company with a large upstream exploration and production business. It also has a downstream refining and marketing business. CVX stock has a market capitalization of nearly $200 billion.
The oil and gas industry is notorious for its “boom-and-bust” cycle. There is good reason for this — the profits of oil and gas companies can swing wildly depending on the underlying commodity price. This has been a huge negative for energy investors in the past few years. For example, the price of oil collapsed in 2020 due to the Covid-19 pandemic, and CVX stock fell rapidly in response.
However, fortunes are beginning to change in the energy industry. West Texas Intermediate (WTI) crude prices recently touched $75 per barrel, a level not seen in years. If oil prices continue to rise, the fundamental performance of oil majors like Chevron will vastly improve.
Indeed, Chevron has already notched significantly higher profits this year as the global economy has recovered from the pandemic. It posted adjusted earnings of $1.7 billion in the first quarter of 2021. That’s a significant increase from an adjusted loss of $11 million in Q4 2020.
As oil and gas prices recover, the company’s bottom line will follow suit. Earnings will also be improved by Chevron’s capital discipline — Q1 capital spending declined 43% from the same quarter last year. The company can continue raising its dividends each year as its financials improve.
Chevron has increased its dividend for more than 30 consecutive years. That’s a remarkable track record given the high level of volatility in its business model. The company increased its dividend by 4% in April and shares currently yield 5.3%.
AbbVie Inc. (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. The company split off to grow independently with its own dedicated leadership team and financial resources. Management believed two separate entities could unlock greater shareholder value than a single company.
Since then, the management team has been proven right. Between 2013 and 2020, AbbVie generated a 13.5% compound annual growth rate (CAGR) in revenue and a CAGR of more than 18% in annual adjusted EPS.
Humira, a multi-purpose medication, played a big role in AbbVie’s growth. It was the highest-selling drug in the U.S. in 2019. However, Humira’s patent expired in Europe, which has led to deep discounts to maintain market share. Making matters worse, AbbVie will lose exclusivity to Humira in the U.S. in 2023.
A steep patent cliff is one of the biggest risks a pharmaceutical company can face. Fortunately, AbbVie has prepared for this by investing heavily in new products, both organically and through mergers and acquisitions. For example, AbbVie has seen strong growth from Skyrizi, which grew sales by 89% last quarter. Meanwhile, Rinvoq revenue more than doubled year-over-year (YOY).
AbbVie also completed the $63 billion acquisition of Allergan to accelerate its future growth. Allergan’s flagship product is Botox, which gives AbbVie’s portfolio exposure to the global aesthetics market. This segment of their products generated $1.1 billion in Q1 revenue, up 35% YOY.
While AbbVie expects its full-year revenue to decline in 2023, the company anticipates a quick bounce back to revenue growth in 2024 and beyond. Looking further out, AbbVie expects a return to a high-single digit CAGR in 2025 and believes it will continue at that pace through the rest of the decade.
7 of the Best Contrarian Stocks to Buy as Others Get Greedy
In the meantime, AbbVie rewards shareholders with a 4.4% dividend yield and solid dividend growth, including a 10% raise in October 2020.
Dividend Stocks: Realty Income (O)
Source: Shutterstock
Lastly, Realty Income is a real estate investment trust (REIT) operating in the retail industry. The Covid-19 pandemic has been difficult for retailers with physical properties, and many stores across the country were forced to close. But even before the pandemic, brick-and-mortar retailers were struggling with the intensifying threat of online retail competition.
But despite these setbacks, Realty Income continues to generate steady growth and reward shareholders with rising dividends. The company’s consistency can be attributed to its operational excellence and management expertise.
Realty Income owns more than 6,600 properties in the U.S., the U.K. and Puerto Rico. It has a diverse array of tenants including grocery stores, convenience stores, drug stores and dollar stores. For the most part, Realty Income’s properties sell necessities, making them somewhat resistant to e-commerce competition.
Realty Income’s top tenants include Walgreens (MASDAQ:WBA), 7-Eleven, Dollar General (NYSE:DG) and FedEx (NYSE:FDX). A strong property portfolio has led to steady growth over the years. According to the company, Realty Income has generated compound annual shareholder returns above 15% per year since it went public in 1994.
Income investors have been rewarded as well. The company has increased its dividend by more than 4% per year since its initial public offering (IPO). Realty Income has delivered 110 dividend increases since the company went public. Even better, it pays its dividend each month, which provides investors with more frequent payouts. Currently, O stock provides a 4.1% dividend yield.
On the date of publication, Bob Ciura held a long position in ABBV. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
The post 3 High-Yield Dividend Aristocrats To Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 7 A-Rated Retirement Stocks to Buy to for Your Golden Years These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models: Chevron Corporation (NYSE:CVX) AbbVie Inc. (NYSE:ABBV) Realty Income (NYSE:O) Dividend Stocks: Chevron Corporation (CVX) CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" /> Source: Sundry Photography / Shutterstock.com Chevron is an integrated oil and gas company with a large upstream exploration and production business. AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. Between 2013 and 2020, AbbVie generated a 13.5% compound annual growth rate (CAGR) in revenue and a CAGR of more than 18% in annual adjusted EPS. | 7 A-Rated Retirement Stocks to Buy to for Your Golden Years These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models: Chevron Corporation (NYSE:CVX) AbbVie Inc. (NYSE:ABBV) Realty Income (NYSE:O) Dividend Stocks: Chevron Corporation (CVX) CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" /> Source: Sundry Photography / Shutterstock.com Chevron is an integrated oil and gas company with a large upstream exploration and production business. 7 of the Best Contrarian Stocks to Buy as Others Get Greedy In the meantime, AbbVie rewards shareholders with a 4.4% dividend yield and solid dividend growth, including a 10% raise in October 2020. Dividend Stocks: Realty Income (O) Source: Shutterstock Lastly, Realty Income is a real estate investment trust (REIT) operating in the retail industry. AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. | 7 A-Rated Retirement Stocks to Buy to for Your Golden Years These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models: Chevron Corporation (NYSE:CVX) AbbVie Inc. (NYSE:ABBV) Realty Income (NYSE:O) Dividend Stocks: Chevron Corporation (CVX) CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" /> Source: Sundry Photography / Shutterstock.com Chevron is an integrated oil and gas company with a large upstream exploration and production business. 7 of the Best Contrarian Stocks to Buy as Others Get Greedy In the meantime, AbbVie rewards shareholders with a 4.4% dividend yield and solid dividend growth, including a 10% raise in October 2020. Dividend Stocks: Realty Income (O) Source: Shutterstock Lastly, Realty Income is a real estate investment trust (REIT) operating in the retail industry. AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. | 7 A-Rated Retirement Stocks to Buy to for Your Golden Years These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models: Chevron Corporation (NYSE:CVX) AbbVie Inc. (NYSE:ABBV) Realty Income (NYSE:O) Dividend Stocks: Chevron Corporation (CVX) CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" /> Source: Sundry Photography / Shutterstock.com Chevron is an integrated oil and gas company with a large upstream exploration and production business. AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. Between 2013 and 2020, AbbVie generated a 13.5% compound annual growth rate (CAGR) in revenue and a CAGR of more than 18% in annual adjusted EPS. |
24008.0 | 2021-07-18 00:00:00 UTC | 4 Large-Cap Healthcare Stocks You'll Want on Your Radar for the Second Half of 2021 | ABBV | https://www.nasdaq.com/articles/4-large-cap-healthcare-stocks-youll-want-on-your-radar-for-the-second-half-of-2021-2021-07 | nan | nan | The first half of 2021 brought plenty of big stories that impacted healthcare stocks -- from COVID-19 vaccines' success to pivotal decisions from the U.S. Food and Drug Administration (FDA). In this Motley Fool Live video recorded on July 7, Motley Fool contributors Keith Speights and Brian Orelli talk about four large-cap healthcare stocks for investors to have on their radar in the second half of the year.
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Keith Speights: Brian, we have moved past the first half of 2021 now, we're into the second half of the year. Are there any large-cap healthcare stocks that you think investors should have on their radar for the second half of this year?
Brian Orelli: Yeah, I'm definitely watching Biogen (NASDAQ: BIIB) and looking at the initial sales of Aduhelm, its new Alzheimer's disease drug. Then also looking at how quickly the decline of its multiple sclerosis drugs happens. Can Aduhelm make up the difference for the decline in multiple sclerosis drugs?
I'm looking at Moderna (NASDAQ: MRNA). It's crazy that's considered a large cap. But its market cap is actually substantially larger than Biogen's, it's at $93 billion last time I looked versus $52 billion for Biogen. Obviously, the main valuation driver for Moderna is going to be sales commitments for 2022 of its COVID-19 vaccine.
Then maybe a twofer -- AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) for the outcome of the JAK inhibitor saga. There's probably other companies that are also involved in the issue. AbbVie's trying to get expanded use over Rinvoq, and then Pfizer has Xeljanz, which caused the controversy, and also abrocitinib.
I think seeing what the FDA outcome of looking at the Xeljanz data that showed that there were some safety issues with JAK inhibitors in whether the FDA says that it's a class issue. Then that would cause problems for AbbVie, as well as Pfizer's other JAK inhibitor.
Speights: All right. Brian, so you mentioned Biogen, Moderna, AbbVie, and Pfizer. Out of those four stocks, put on your prediction cap here. Which do you think would perform the best over the second half of this year?
Orelli: I want to go with Pfizer, I guess. [laughs] I've been saying this for a year and a half, Moderna's overpriced. [laughs] I've been wrong so far, so maybe I go with Moderna. But I feel like Pfizer is a value stock. That would probably be my best bet.
Biogen certainly could rocket higher, but I don't have confidence in Aduhelm. But I think there could be a lot of demand from patients, even if doctors aren't really interested in it. Maybe they succumb to the patient's desire to have the drug, and so maybe Biogen could rocket higher if Aduhelm sales are definitely well and do well.
Speights: Yeah, I suspect you're right. I don't know that Biogen's going to get a ton of sales on the books this year for Aduhelm, certainly not compared to what it will be eventually. The stock has already skyrocketed.
I think you're probably right, Pfizer might have the best shot. It is undervalued and maybe some good news for its COVID vaccine in terms of building investors' confidence in recurring revenue could make that stock go higher.
Orelli: Yeah. Biogen has even said that they don't really expect that much sales from Aduhelm, but I think the initial sales in the first couple of quarters should give an inclination of what the doctors and their patients are thinking about the drug in the long run.
Speights: Right, investors will certainly be reading the tea leaves there.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie and Pfizer. The Motley Fool recommends Biogen and Moderna Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Then maybe a twofer -- AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) for the outcome of the JAK inhibitor saga. AbbVie's trying to get expanded use over Rinvoq, and then Pfizer has Xeljanz, which caused the controversy, and also abrocitinib. Then that would cause problems for AbbVie, as well as Pfizer's other JAK inhibitor. | Then maybe a twofer -- AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) for the outcome of the JAK inhibitor saga. Brian, so you mentioned Biogen, Moderna, AbbVie, and Pfizer. AbbVie's trying to get expanded use over Rinvoq, and then Pfizer has Xeljanz, which caused the controversy, and also abrocitinib. | Then maybe a twofer -- AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) for the outcome of the JAK inhibitor saga. AbbVie's trying to get expanded use over Rinvoq, and then Pfizer has Xeljanz, which caused the controversy, and also abrocitinib. Then that would cause problems for AbbVie, as well as Pfizer's other JAK inhibitor. | Brian, so you mentioned Biogen, Moderna, AbbVie, and Pfizer. Then maybe a twofer -- AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) for the outcome of the JAK inhibitor saga. AbbVie's trying to get expanded use over Rinvoq, and then Pfizer has Xeljanz, which caused the controversy, and also abrocitinib. |
24009.0 | 2021-07-17 00:00:00 UTC | Will This Biopharma Company Continue to Crush It? | ABBV | https://www.nasdaq.com/articles/will-this-biopharma-company-continue-to-crush-it-2021-07-17 | nan | nan | If you've ever had a migraine or know someone who has, you know it's something you would pretty much do anything to get rid of. Biohaven Pharmaceutical Holding (NYSE: BHVN), a commercial-stage pharma company focused on drugs that target the nervous system, is keenly aware of the relief that migraine treatment can bring to these sufferers.
Biohaven first received approval from the Food and Drug Administration for its drug, Nurtec ODT, in February 2020. The drug was originally approved for the treatment of migraines. Now, a new FDA approval has opened the doors to additional opportunities for patients, and potential revenue growth for Biohaven.
In May of this year, Nurtec received a new FDA approval, this time for use in preventing migraines. This approval has given Biohaven the only approved medication for prevention and treatment of migraines. It is also the first, and only, for prevention of migraines.
Image source: Getty Images.
Open doors to revenue
Since the launch of Nurtec in February 2020, the company has pulled in $200 million in revenue due to the migraine drug. On July 7 of this year, the company announced that preliminary product revenue total was $93 million for the second quarter alone. That number is nearly half of the total revenue generated by Nurtec since its launch in a little more than four quarters' worth of sales, and total prescriptions filled are now at 750,000 since launch. Of that number, 52% of prescriptions are new to the brand.
The $93 million in preliminary product revenue for the second quarter was an astounding 112% increase over the previous quarter, and crushed the average $54.7 million number anticipated by analysts. The company is looking for even greater things to come in a growing migraine-treatment market and in the wake of an ongoing worldwide pandemic. As noted by Biohaven CEO Dr. Vlad Coric: "As the first and only dual-therapy medication indicated to both treat and prevent migraines, NURTEC ODT is redefining the treatment paradigm for patients."
COVID-19 impact
A preventative treatment would be welcome relief to the over 40 million people in the U.S. who suffer from migraines. In fact, the World Health Organization classifies migraines as one of the 10 most disabling medical illnesses, and the third most prevalent illness in the world.
The Journal of Headache and Pain conducted a survey of 1,000 migraine sufferers in July 2020. The survey found that COVID-19 had a negative impact on migraine sufferers -- 59% reported an increase in frequency of migraines, with 63% of all respondents noting that the severity of migraines worsened compared to pre-pandemic levels.
Of the 1,000 survey respondents, only 4% acknowledged being infected by COVID-19; that means the vast majority of those experiencing increased frequency or severity compared to pre-pandemic experiences may have been affected simply by the stress of the pandemic spreading throughout the world. Now, as the Delta variant of COVID-19 spreads, it would not be unreasonable to expect migraine sufferers to continue to experience issues, and rely on Nurtec to help prevent episodes from happening or worsening.
What the market holds
Theglobal marketfor migraine treatment is expected to grow to upwards of $7 billion, at a compound annual growth rate of nearly 15%, as projected by some data forecasts through 2027. That market projection provides an outlook that favors Biohaven and its investors; Biohaven has a clear advantage, as Nurtec is the first (and so far only) approved dual preventative and treatment for migraine sufferers.
But Nurtec is currently the only FDA-approved drug for the company. It will need to rely on a pipeline of drugs in late-stage testing, such as glutamate modulation for treatment of Alzheimer's disease, in order to generate and continue growing revenue to keep long-term investors happy.
Biohaven is also not without competitors in this space. A primary competitor to Nurtec is Ubrelvy, from Abbvie (NYSE: ABBV). Ubrelvy produced sales of $65 million in the fourth quarter of 2020, and followed that up with $81 million in the first quarter of 2021, an increase of 24%. The company estimates that Ubrelvy will hit peak sales of greater than $1 billion over thhe next few years.
Is Biohaven worth an investment?
Upon announcement of preliminary product revenue results, Biohaven's share price jumped 12% the same day, going to nearly $113. Since that July 7 announcement, the stock is up another 4%, while hitting a 52-week and all-time high of $118. Analysts' 12-month price targets are in the neighborhood of $116, which is squarely in line with where the stock price has moved as of late. But investors should also note that the stock has seen a huge uptick in just the past two months, shooting up from $70 on May 10 to the new highs of this past week at $118. That's a 68% slingshot in a very short time frame.
If Biohaven can continue to grow revenue for Nurtec at a rapid pace, while staving off the competition, there's enough positive news to keep it on the radar of long-term investors. But after such a strong jump in a short amount of time, I'd wait a bit to see if a profit-taking dip occurs, or if more analysts raise price targets to meet the high-end target of $140. I'd also be on the lookout for news about the company's pipeline of drug candidates currently in testing phases.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A primary competitor to Nurtec is Ubrelvy, from Abbvie (NYSE: ABBV). Biohaven Pharmaceutical Holding (NYSE: BHVN), a commercial-stage pharma company focused on drugs that target the nervous system, is keenly aware of the relief that migraine treatment can bring to these sufferers. Of the 1,000 survey respondents, only 4% acknowledged being infected by COVID-19; that means the vast majority of those experiencing increased frequency or severity compared to pre-pandemic experiences may have been affected simply by the stress of the pandemic spreading throughout the world. | A primary competitor to Nurtec is Ubrelvy, from Abbvie (NYSE: ABBV). Open doors to revenue Since the launch of Nurtec in February 2020, the company has pulled in $200 million in revenue due to the migraine drug. On July 7 of this year, the company announced that preliminary product revenue total was $93 million for the second quarter alone. | A primary competitor to Nurtec is Ubrelvy, from Abbvie (NYSE: ABBV). Biohaven Pharmaceutical Holding (NYSE: BHVN), a commercial-stage pharma company focused on drugs that target the nervous system, is keenly aware of the relief that migraine treatment can bring to these sufferers. Open doors to revenue Since the launch of Nurtec in February 2020, the company has pulled in $200 million in revenue due to the migraine drug. | A primary competitor to Nurtec is Ubrelvy, from Abbvie (NYSE: ABBV). In May of this year, Nurtec received a new FDA approval, this time for use in preventing migraines. COVID-19 impact A preventative treatment would be welcome relief to the over 40 million people in the U.S. who suffer from migraines. |
24010.0 | 2021-07-16 00:00:00 UTC | AbbVie, Lilly face fresh delays in FDA approval for expanded use of arthritis drugs | ABBV | https://www.nasdaq.com/articles/abbvie-lilly-face-fresh-delays-in-fda-approval-for-expanded-use-of-arthritis-drugs-2021-07 | nan | nan | AbbVie Inc ABBV.N and ELi Lilly & Co LLY.N are facing fresh delays in the approval of their respective rheumatoid arthritis drugs for treating chronic skin disease eczema as the U.S. health regulator assesses the new class of treatment over safety concerns.
The treatment, called JAK inhibitors, blocks inflammation-causing enzymes known as Janus kinases and targets a range of autoimmune diseases.
It, however, has come under the U.S. Food and Drug Administration's scrutiny after preliminary results from a safety trial of Pfizer's JAK inhibitor drug earlier this year showed an increased risk of serious heart problems and cancer in patients.
Due to the agency's ongoing assessment, both AbbVie and Lilly said on Friday that the FDA would be unable to take a decision on the expanded use of their drugs before the previously set deadline.
The decision on Abbvie's Rinvoq and Lilly's Baricitinib for treating eczema was expected by early third quarter after the agency in April extended its review of the drugs by three months to examine additional data.
The disease affects 16.5 million adults in the United States, according to patient advocacy group Asthma and Allergy Foundation of America.
AbbVie, which has sought to expand the use of Rinvoq to new indications including psoriatic arthritis and ankylosing spondylitis, is betting on the drug as its blockbuster treatment, Humira, loses patent protection in the United States in 2023.
Rinvoq, which brought in sales of $731 million for AbbVie in 2020, was approved for the treatment of rheumatoid arthritis in 2019.
(Reporting by Amruta Khandekar; Editing by Anil D'Silva)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc ABBV.N and ELi Lilly & Co LLY.N are facing fresh delays in the approval of their respective rheumatoid arthritis drugs for treating chronic skin disease eczema as the U.S. health regulator assesses the new class of treatment over safety concerns. The decision on Abbvie's Rinvoq and Lilly's Baricitinib for treating eczema was expected by early third quarter after the agency in April extended its review of the drugs by three months to examine additional data. AbbVie, which has sought to expand the use of Rinvoq to new indications including psoriatic arthritis and ankylosing spondylitis, is betting on the drug as its blockbuster treatment, Humira, loses patent protection in the United States in 2023. | AbbVie Inc ABBV.N and ELi Lilly & Co LLY.N are facing fresh delays in the approval of their respective rheumatoid arthritis drugs for treating chronic skin disease eczema as the U.S. health regulator assesses the new class of treatment over safety concerns. The decision on Abbvie's Rinvoq and Lilly's Baricitinib for treating eczema was expected by early third quarter after the agency in April extended its review of the drugs by three months to examine additional data. Rinvoq, which brought in sales of $731 million for AbbVie in 2020, was approved for the treatment of rheumatoid arthritis in 2019. | AbbVie Inc ABBV.N and ELi Lilly & Co LLY.N are facing fresh delays in the approval of their respective rheumatoid arthritis drugs for treating chronic skin disease eczema as the U.S. health regulator assesses the new class of treatment over safety concerns. The decision on Abbvie's Rinvoq and Lilly's Baricitinib for treating eczema was expected by early third quarter after the agency in April extended its review of the drugs by three months to examine additional data. AbbVie, which has sought to expand the use of Rinvoq to new indications including psoriatic arthritis and ankylosing spondylitis, is betting on the drug as its blockbuster treatment, Humira, loses patent protection in the United States in 2023. | AbbVie Inc ABBV.N and ELi Lilly & Co LLY.N are facing fresh delays in the approval of their respective rheumatoid arthritis drugs for treating chronic skin disease eczema as the U.S. health regulator assesses the new class of treatment over safety concerns. The decision on Abbvie's Rinvoq and Lilly's Baricitinib for treating eczema was expected by early third quarter after the agency in April extended its review of the drugs by three months to examine additional data. Rinvoq, which brought in sales of $731 million for AbbVie in 2020, was approved for the treatment of rheumatoid arthritis in 2019. |
24011.0 | 2021-07-15 00:00:00 UTC | Here's Why Galapagos Stock Is Falling Today | ABBV | https://www.nasdaq.com/articles/heres-why-galapagos-stock-is-falling-today-2021-07-15 | nan | nan | What happened
Shares of Galapagos (NASDAQ: GLPG), a biopharmaceutical company, are under pressure following clinical trial readouts for a couple of new drug candidates in phase 1 studies. Disappointing results from the company's Toledo program pushed the stock 13.1% lower as of 3:52 p.m. EDT on Thursday.
So what
Following the implosion of Jyseleca in the U.S., Galapagos has leaned on its early clinical-stage pipeline to get attention from investors. The company has invested heavily in the Toledo program, which is a series of new drug candidates that target salt inducible kinases.
Image source: Getty Images.
Galapagos stock is sliding today because the company reported disappointing data for the first clinical-stage candidate to emerge from the Toledo program. After six weeks of treatment, rheumatoid arthritis patients randomized to receive GLPG3970 weren't any better off than the placebo group.
Ulcerative colitis patients who received GLPG3970 improved their Mayo Clinic Score, a measurement of disease severity, by 2.7 points on average. Unfortunately, the placebo group's score improved by 2.6 points.
If there's a future for GLPG3970 it's as a treatment for psoriasis. Four out of 13 psoriasis patients treated with GLPG3970 showed an improvement of 50% or better compared to none of the patients who received a placebo.
Galapagos also reported top-line results from a psoriasis study with GLPG3667, a selective TYK compound. After four weeks, treatment with GLPG3667 led to a 50% improvement or better for four out of 10 patients given a high dosage. None of the patients in the low-dose cohort achieved a 50% improvement.
Now what
Fairly positive psoriasis data is better than nothing, but neither of these new drug candidates looks like they have what it takes to eventually succeed in a commercial setting. Skyrizi, a successful psoriasis treatment AbbVie launched in 2019 led to 90% improvements for 75% of patients treated in clinical trials leading to its approval.
After watching Galapagos stock lose about 70% of its value over the past year, contrarian investors might be thinking about catching this falling knife. Considering the number of disappointments this company has already delivered, it's probably best to watch its story play out from a safe distance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Skyrizi, a successful psoriasis treatment AbbVie launched in 2019 led to 90% improvements for 75% of patients treated in clinical trials leading to its approval. What happened Shares of Galapagos (NASDAQ: GLPG), a biopharmaceutical company, are under pressure following clinical trial readouts for a couple of new drug candidates in phase 1 studies. Galapagos stock is sliding today because the company reported disappointing data for the first clinical-stage candidate to emerge from the Toledo program. | Skyrizi, a successful psoriasis treatment AbbVie launched in 2019 led to 90% improvements for 75% of patients treated in clinical trials leading to its approval. Galapagos stock is sliding today because the company reported disappointing data for the first clinical-stage candidate to emerge from the Toledo program. Unfortunately, the placebo group's score improved by 2.6 points. | Skyrizi, a successful psoriasis treatment AbbVie launched in 2019 led to 90% improvements for 75% of patients treated in clinical trials leading to its approval. Galapagos stock is sliding today because the company reported disappointing data for the first clinical-stage candidate to emerge from the Toledo program. Four out of 13 psoriasis patients treated with GLPG3970 showed an improvement of 50% or better compared to none of the patients who received a placebo. | Skyrizi, a successful psoriasis treatment AbbVie launched in 2019 led to 90% improvements for 75% of patients treated in clinical trials leading to its approval. Galapagos stock is sliding today because the company reported disappointing data for the first clinical-stage candidate to emerge from the Toledo program. Four out of 13 psoriasis patients treated with GLPG3970 showed an improvement of 50% or better compared to none of the patients who received a placebo. |
24012.0 | 2021-07-15 00:00:00 UTC | Britain fines drugmakers $360 million for overcharging NHS | ABBV | https://www.nasdaq.com/articles/britain-fines-drugmakers-%24360-million-for-overcharging-nhs-2021-07-15-0 | nan | nan | Adds details from CMA statement
July 15 (Reuters) - Britain's competition regulator said on Thursday it has fined several drugmakers a total of more than 260 million pounds ($360 million) for overcharging the state-backed NHS healthcare network in relation to supply of hydrocortisone tablets.
The companies engaged in practices including buying potential rivals to keep them off the market, increase prices of the drugs as the sole provider and paying off competition, the Competition and Markets Authority said.
The regulator fined Actavis UK, Auden Mckenzie, Allergan Plc, Accord Healthcare, Intas Pharmaceuticals INTA.NS, Waymade Plc, Amdipharm, Advanz Pharma and some Cinven entities. Auden Mckenzie and Actavis UK together will pay 221.1 million pounds.
The watchdog said the firms charged the NHS "excessively high prices" for almost a decade for the steroid hydrocortisone, which is used to treat conditions where adrenal glands do not make sufficient hormones.
"These were egregious breaches of the law that artificially inflated the costs faced by the NHS, reducing the money available for patient care," said CMA Chief Executive Andrea Coscelli.
"Our fine serves as a warning to any other drug firm planning to exploit the NHS."
The companies could not be immediately reached for comment.
($1 = 0.7219 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur)
((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details from CMA statement July 15 (Reuters) - Britain's competition regulator said on Thursday it has fined several drugmakers a total of more than 260 million pounds ($360 million) for overcharging the state-backed NHS healthcare network in relation to supply of hydrocortisone tablets. The watchdog said the firms charged the NHS "excessively high prices" for almost a decade for the steroid hydrocortisone, which is used to treat conditions where adrenal glands do not make sufficient hormones. "These were egregious breaches of the law that artificially inflated the costs faced by the NHS, reducing the money available for patient care," said CMA Chief Executive Andrea Coscelli. | The companies engaged in practices including buying potential rivals to keep them off the market, increase prices of the drugs as the sole provider and paying off competition, the Competition and Markets Authority said. The regulator fined Actavis UK, Auden Mckenzie, Allergan Plc, Accord Healthcare, Intas Pharmaceuticals INTA.NS, Waymade Plc, Amdipharm, Advanz Pharma and some Cinven entities. Auden Mckenzie and Actavis UK together will pay 221.1 million pounds. | Adds details from CMA statement July 15 (Reuters) - Britain's competition regulator said on Thursday it has fined several drugmakers a total of more than 260 million pounds ($360 million) for overcharging the state-backed NHS healthcare network in relation to supply of hydrocortisone tablets. The companies engaged in practices including buying potential rivals to keep them off the market, increase prices of the drugs as the sole provider and paying off competition, the Competition and Markets Authority said. The regulator fined Actavis UK, Auden Mckenzie, Allergan Plc, Accord Healthcare, Intas Pharmaceuticals INTA.NS, Waymade Plc, Amdipharm, Advanz Pharma and some Cinven entities. | The companies engaged in practices including buying potential rivals to keep them off the market, increase prices of the drugs as the sole provider and paying off competition, the Competition and Markets Authority said. Auden Mckenzie and Actavis UK together will pay 221.1 million pounds. The watchdog said the firms charged the NHS "excessively high prices" for almost a decade for the steroid hydrocortisone, which is used to treat conditions where adrenal glands do not make sufficient hormones. |
24013.0 | 2021-07-15 00:00:00 UTC | Britain fines drugmakers $360 million for overcharging NHS | ABBV | https://www.nasdaq.com/articles/britain-fines-drugmakers-%24360-million-for-overcharging-nhs-2021-07-15 | nan | nan | July 15 (Reuters) - Britain's competition regulator said on Thursday it has fined several drugmakers a total of more than 260 million pounds ($360 million) for overcharging the state-backed NHS healthcare network for hydrocortisone tablets for almost a decade.
The Competition and Markets Authority said it has fined Accord-UK, Auden Mckenzie, Allergan Plc, Accord Healthcare, Intas Pharmaceuticals INTA.NS, Waymade Plc, Amdipharm, Advanz Pharma Services and some Cinven entities.
($1 = 0.7219 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur)
((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 15 (Reuters) - Britain's competition regulator said on Thursday it has fined several drugmakers a total of more than 260 million pounds ($360 million) for overcharging the state-backed NHS healthcare network for hydrocortisone tablets for almost a decade. The Competition and Markets Authority said it has fined Accord-UK, Auden Mckenzie, Allergan Plc, Accord Healthcare, Intas Pharmaceuticals INTA.NS, Waymade Plc, Amdipharm, Advanz Pharma Services and some Cinven entities. ($1 = 0.7219 pounds) (Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur) ((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 15 (Reuters) - Britain's competition regulator said on Thursday it has fined several drugmakers a total of more than 260 million pounds ($360 million) for overcharging the state-backed NHS healthcare network for hydrocortisone tablets for almost a decade. The Competition and Markets Authority said it has fined Accord-UK, Auden Mckenzie, Allergan Plc, Accord Healthcare, Intas Pharmaceuticals INTA.NS, Waymade Plc, Amdipharm, Advanz Pharma Services and some Cinven entities. ($1 = 0.7219 pounds) (Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur) ((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 15 (Reuters) - Britain's competition regulator said on Thursday it has fined several drugmakers a total of more than 260 million pounds ($360 million) for overcharging the state-backed NHS healthcare network for hydrocortisone tablets for almost a decade. The Competition and Markets Authority said it has fined Accord-UK, Auden Mckenzie, Allergan Plc, Accord Healthcare, Intas Pharmaceuticals INTA.NS, Waymade Plc, Amdipharm, Advanz Pharma Services and some Cinven entities. ($1 = 0.7219 pounds) (Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur) ((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 15 (Reuters) - Britain's competition regulator said on Thursday it has fined several drugmakers a total of more than 260 million pounds ($360 million) for overcharging the state-backed NHS healthcare network for hydrocortisone tablets for almost a decade. The Competition and Markets Authority said it has fined Accord-UK, Auden Mckenzie, Allergan Plc, Accord Healthcare, Intas Pharmaceuticals INTA.NS, Waymade Plc, Amdipharm, Advanz Pharma Services and some Cinven entities. ($1 = 0.7219 pounds) (Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur) ((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; Mobile: +91 852 751 3793 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
24014.0 | 2021-07-14 00:00:00 UTC | Best Health Care Stocks To Buy Now? 3 To Know | ABBV | https://www.nasdaq.com/articles/best-health-care-stocks-to-buy-now-3-to-know-2021-07-14 | nan | nan | 3 Hot Health Care Stocks To Add To Your July Watchlist
You can’t deny that health care has been and continues to be a top priority in the world today. By extension, this would see health care stocks continue to gain traction in the stock market today. Indeed, as the world deals with the coronavirus pandemic and its various variants, maintaining one’s health would be key. This would be the case as many countries are seeing a resurgence in cases brought about by the Delta variant. If anything, health care companies need to bring their A-game to the table now, more than ever. With this in mind, some would argue that it is prime time to keep an eye on the top health care stocks.
Accordingly, Senate Democrats recently announced another positive update regarding their budget allocation. Namely, the current budget agreement will see up to $3.5 trillion worth of federal resources allocated towards key industries highlighted by President Joe Biden over the next decade. The three key areas of focus include climate change, family services, and health care programs. In particular, the federal Medicare program is now being expanded to include vision, hearing, and dental benefits for U.S. seniors. Overall, the current spending plan would serve to bolster the economy further towards recovery. Because of all this, investors could see opportunities in the health care industry now.
For one thing, the health care industry is home to a wide array of stocks for varying investment strategies. Investors looking towards more defensive plays would consider pharmaceutical giants like GlaxoSmithKline (NYSE: GSK). Alternatively, those looking to bet on coronavirus stocks could be looking at Moderna (NASDAQ: MRNA). You may say that investors are spoilt for choices in the stock market now. Could one of these three be a top buy?
Top Health Care Stocks To Buy [Or Sell] This Week
Pfizer Inc. (NYSE: PFE)
AbbVie Inc. (NYSE: ABBV)
UnitedHealth Group Inc. (NYSE: UNH)
Pfizer Inc.
Pfizer is a multinational health care company that is headquartered in New York City. It was one of the first companies in the world to have had its coronavirus vaccine approved for use. With over 170 years of experience, the company also has a wide portfolio of innovative medicines and vaccines. The company has also collaborated with health care providers, governments, and local communities to support and expand affordable health care around the world. PFE stock currently trades at $39.92 a share as of 1:22 p.m. ET.
Last week, the company announced a new collaboration with Biogen (NASDAQ: BIIB) and AbbVie to create the world’s largest browsable resource linking rare protein-coding genetic variants to human health and disease. The companies engaged with the Broad Institute for data processing and to conduct single variant and gene-based association testing with approximately 4,000 UK Biobank phenotypes to identify associations between distinct genes. This would help better utilize biomedical data and would no doubt support the company’s development pipeline.
In June, the company also published positive findings for its oral Janus kinase inhibitor, tofacitinib. The trial demonstrated the cumulative incidence of death had reduced with the drug when compared to the placebo for hospitalized patients with coronavirus-related pneumonia. Also, the company recently declared a third-quarter dividend of $0.39 for the company’s common stock, payable on September 7, 2021. All things considered, will you add PFE stock to your portfolio?
Source: TD Ameritrade TOS
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AbbVie Inc.
AbbVie is a biopharmaceutical company that develops and commercializes advanced therapies. With over 45,000 employees, the company is dedicated to helping patients around the world. Specifically, its therapeutic areas include oncology, neuroscience, and immunology among others. AbbVie continues to leverage its core R&D expertise to target specific difficult-to-cure diseases. ABBV stock currently trades at $116.91 as of 1:22 p.m. ET.
In late June, the company reported that its upadacitinib drug had met the primary and all secondary endpoints in its 52-week Phase 3 ulcerative colitis maintenance study. Ulcerative colitis is a disease with unpredictable symptoms and frequent flares, so the company is very encouraged by the results it sees. Furthermore, AbbVie reports that safety results were consistent with its previous Phase 3 induction studies and no new safety risks were observed.
In anticipation of the company’s second-quarter 2021 earnings on July 30, 2021, how has the company been doing financially? Based on its latest quarter financials in April, AbbVie posted net revenue of $13.01 billion, an increase of 51% year-over-year. Its global net revenue from its immunology portfolio was an impressive $4.86 billion. The company also posted first-quarter diluted earnings per share of $1.99. With an excellent start to 2021, the company hopes to deliver an impressive performance in 2021 as it expects five approvals this year. With that in mind, do you think ABBV stock is worth watching right now?
Source: TD Ameritrade TOS
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UnitedHealth Group Inc.
Another top name to know in the health care industry now would be UnitedHealth Group Inc. (UNH). In brief, the Minnesota-based company identifies as a managed health care and insurance services provider. Notably, UNH offers its clients the full spectrum of health benefit programs in the U.S. It does so for individuals, employers, and even Medicaid and Medicare beneficiaries. Moreover, UNH boasts direct contracts with over 1.3 million physicians and care professionals across 6,500 health care facilities nationwide. With UNH stock currently trading at $414.51 a share as of 1:22 p.m. ET, could it be worth investing in right now?
While that remains to be seen, UNH seems to be gaining momentum. For starters, the company would be a prime candidate to benefit from the current federal tailwinds in the health care industry. Ideally, as the coverage of Medicare grows, so too would the demand for UNH’s industry-leading services. On top of that, the company is now employing predictive analytics to further optimize its services. Through this tech, UNH can more efficiently identify “people in need of support related to social determinants of health”. Simply put, UNH can now help employers on this front by assessing over 300 markets across the U.S.
Overall, UNH’s market reach seems to be expanding across the board. If that wasn’t enough, the company also saw green across the board in its latest quarter fiscal posted in April. In short, it raked in total revenue of $70.2 billion and saw a sizable year-over-year bump of 44% in earnings per share. With UNH looking to report its second-quarter earnings before tomorrow’s opening bell, will you be investing in UNH stock?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last week, the company announced a new collaboration with Biogen (NASDAQ: BIIB) and AbbVie to create the world’s largest browsable resource linking rare protein-coding genetic variants to human health and disease. Top Health Care Stocks To Buy [Or Sell] This Week Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) UnitedHealth Group Inc. (NYSE: UNH) Pfizer Inc. Pfizer is a multinational health care company that is headquartered in New York City. 4 To Know AbbVie Inc. AbbVie is a biopharmaceutical company that develops and commercializes advanced therapies. | Top Health Care Stocks To Buy [Or Sell] This Week Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) UnitedHealth Group Inc. (NYSE: UNH) Pfizer Inc. Pfizer is a multinational health care company that is headquartered in New York City. Based on its latest quarter financials in April, AbbVie posted net revenue of $13.01 billion, an increase of 51% year-over-year. Last week, the company announced a new collaboration with Biogen (NASDAQ: BIIB) and AbbVie to create the world’s largest browsable resource linking rare protein-coding genetic variants to human health and disease. | Top Health Care Stocks To Buy [Or Sell] This Week Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) UnitedHealth Group Inc. (NYSE: UNH) Pfizer Inc. Pfizer is a multinational health care company that is headquartered in New York City. Last week, the company announced a new collaboration with Biogen (NASDAQ: BIIB) and AbbVie to create the world’s largest browsable resource linking rare protein-coding genetic variants to human health and disease. 4 To Know AbbVie Inc. AbbVie is a biopharmaceutical company that develops and commercializes advanced therapies. | Top Health Care Stocks To Buy [Or Sell] This Week Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) UnitedHealth Group Inc. (NYSE: UNH) Pfizer Inc. Pfizer is a multinational health care company that is headquartered in New York City. Last week, the company announced a new collaboration with Biogen (NASDAQ: BIIB) and AbbVie to create the world’s largest browsable resource linking rare protein-coding genetic variants to human health and disease. 4 To Know AbbVie Inc. AbbVie is a biopharmaceutical company that develops and commercializes advanced therapies. |
24015.0 | 2021-07-13 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for July 14, 2021 | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-ex-dividend-date-scheduled-for-july-14-2021-2021-07-13 | nan | nan | AbbVie Inc. (ABBV) will begin trading ex-dividend on July 14, 2021. A cash dividend payment of $1.3 per share is scheduled to be paid on August 16, 2021. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that ABBV has paid the same dividend. At the current stock price of $117.63, the dividend yield is 4.42%.
The previous trading day's last sale of ABBV was $117.63, representing a -0.61% decrease from the 52 week high of $118.35 and a 48.69% increase over the 52 week low of $79.11.
ABBV is a part of the Health Care sector, which includes companies such as McKesson Corporation (MCK) and AmerisourceBergen Corporation (Holding Co) (ABC). ABBV's current earnings per share, an indicator of a company's profitability, is $2.83. Zacks Investment Research reports ABBV's forecasted earnings growth in 2021 as 19.51%, compared to an industry average of 7%.
For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABBV through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABBV as a top-10 holding:
First Trust Nasdaq Pharmaceuticals ETF (ABBV)
First Trust Morningstar ETF (ABBV)
WBI Bull-Bear Rising Income 1000 ETF (ABBV)
WBI BullBear Value 3000 ETF (ABBV)
WBI BullBear Yield 3000 ETF (ABBV).
The top-performing ETF of this group is WBIG with an increase of 9.14% over the last 100 days. FTXH has the highest percent weighting of ABBV at 8.12%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ABBV's forecasted earnings growth in 2021 as 19.51%, compared to an industry average of 7%. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. ABBV's current earnings per share, an indicator of a company's profitability, is $2.83. The following ETF(s) have ABBV as a top-10 holding: First Trust Nasdaq Pharmaceuticals ETF (ABBV) First Trust Morningstar ETF (ABBV) WBI Bull-Bear Rising Income 1000 ETF (ABBV) WBI BullBear Value 3000 ETF (ABBV) WBI BullBear Yield 3000 ETF (ABBV). | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. The following ETF(s) have ABBV as a top-10 holding: First Trust Nasdaq Pharmaceuticals ETF (ABBV) First Trust Morningstar ETF (ABBV) WBI Bull-Bear Rising Income 1000 ETF (ABBV) WBI BullBear Value 3000 ETF (ABBV) WBI BullBear Yield 3000 ETF (ABBV). | The following ETF(s) have ABBV as a top-10 holding: First Trust Nasdaq Pharmaceuticals ETF (ABBV) First Trust Morningstar ETF (ABBV) WBI Bull-Bear Rising Income 1000 ETF (ABBV) WBI BullBear Value 3000 ETF (ABBV) WBI BullBear Yield 3000 ETF (ABBV). AbbVie Inc. (ABBV) will begin trading ex-dividend on July 14, 2021. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. |
24016.0 | 2021-07-12 00:00:00 UTC | Ex-Dividend Reminder: Abbott Laboratories, AbbVie and BankUnited | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-abbott-laboratories-abbvie-and-bankunited-2021-07-12 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories will pay its quarterly dividend of $0.45 on 8/16/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 8/16/21, and BankUnited Inc. will pay its quarterly dividend of $0.23 on 7/30/21. As a percentage of ABT's recent stock price of $119.38, this dividend works out to approximately 0.38%, so look for shares of Abbott Laboratories to trade 0.38% lower — all else being equal — when ABT shares open for trading on 7/14/21. Similarly, investors should look for ABBV to open 1.11% lower in price and for BKU to open 0.55% lower, all else being equal.
Below are dividend history charts for ABT, ABBV, and BKU, showing historical dividends prior to the most recent ones declared.
Abbott Laboratories (Symbol: ABT):
AbbVie Inc (Symbol: ABBV):
BankUnited Inc. (Symbol: BKU):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.51% for Abbott Laboratories, 4.43% for AbbVie Inc, and 2.20% for BankUnited Inc..
In Monday trading, Abbott Laboratories shares are currently down about 0.3%, AbbVie Inc shares are up about 0.8%, and BankUnited Inc. shares are down about 2% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If they do continue, the current estimated yields on annualized basis would be 1.51% for Abbott Laboratories, 4.43% for AbbVie Inc, and 2.20% for BankUnited Inc.. Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories will pay its quarterly dividend of $0.45 on 8/16/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 8/16/21, and BankUnited Inc. will pay its quarterly dividend of $0.23 on 7/30/21. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories will pay its quarterly dividend of $0.45 on 8/16/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 8/16/21, and BankUnited Inc. will pay its quarterly dividend of $0.23 on 7/30/21. Abbott Laboratories (Symbol: ABT): AbbVie Inc (Symbol: ABBV): BankUnited Inc. (Symbol: BKU): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories will pay its quarterly dividend of $0.45 on 8/16/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 8/16/21, and BankUnited Inc. will pay its quarterly dividend of $0.23 on 7/30/21. Abbott Laboratories (Symbol: ABT): AbbVie Inc (Symbol: ABBV): BankUnited Inc. (Symbol: BKU): In general, dividends are not always predictable, following the ups and downs of company profits over time. | If they do continue, the current estimated yields on annualized basis would be 1.51% for Abbott Laboratories, 4.43% for AbbVie Inc, and 2.20% for BankUnited Inc.. Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories will pay its quarterly dividend of $0.45 on 8/16/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 8/16/21, and BankUnited Inc. will pay its quarterly dividend of $0.23 on 7/30/21. |
24017.0 | 2021-07-07 00:00:00 UTC | Got $5,000? Buy and Hold These 3 Value Stocks for Years | ABBV | https://www.nasdaq.com/articles/got-%245000-buy-and-hold-these-3-value-stocks-for-years-2021-07-07 | nan | nan | Whether you are worried about a recession or just want investments you can safely hang on to for years, value stocks are great options to consider putting your money into. With modest valuations and strong fundamentals, these are the types of stocks that can lead to long-term wealth. Some of them pay recurring dividends too.
If you've got $5,000 that you can afford to invest, then three stocks that should rank high on your list of possible investments are AbbVie (NYSE: ABBV), Bank of America (NYSE: BAC), and Dell (NYSE: DELL). They are solid companies that together, can also help diversify your portfolio by giving you exposure to the healthcare, banking, and technology sectors.
Image source: Getty Images.
1. AbbVie
AbbVie may look like an expensive buy when you look at its price-to-earnings (P/E) ratio, which today is more than 40. However, that is based on the company's trailing 12 months. On a forward basis and where analysts expect the healthcare company to be next year in terms of profitability, its P/E ratio falls to a multiple of just nine. To put that into perspective, industry giant Johnson & Johnson trades at more than 17 times its future earnings and Abbott Laboratories (which AbbVie used to be a part of) is at a multiple of more than 27. This makes AbbVie seem like a cheap buy in comparison, by a mile.
One of the big reasons the company's financials will get a boost is that they now include the results from Botox maker Allergan. The deal officially closed in May 2020, which means it hasn't been a full year yet where the company's top and bottom lines have benefited from the inclusion of the business.
When AbbVie reported its first-quarter results for the period ending March 31, its sales looked incredible at $13 billion, representing year-over-year growth of 51%. However, Allergan was a big reason behind those stronger results; on a comparable basis, the revenue growth was closer to 5%. But what's important is that Allergan is now included in the sales mix, and that means better profit numbers. In the first quarter, net earnings of $3.6 billion were 18% higher than in the prior-year period. And the company is bullish on its future, projecting that for 2021 its diluted earnings per share will come in as high as $7.47 -- nearly three times the $2.72 it reported in 2020 and 41% better than the $5.28 it reported in the last full non-pandemic year in 2019.
On top of these expectations, AbbVie's dividend yield today rings in around 4.3%-- much higher than the S&P 500 average of 1.4%, making AbbVie a sound investment to add to your portfolio today.
2. Bank of America
Shares of Bank of America have been soaring over the past year, up more than 72%. That's better than the S&P 500's returns of 39% (and well above AbbVie's modest 17% rise in value). But despite that incredible performance, the top bank stock still isn't an expensive buy; at a forward P/E of 13 it is trading at a slightly steeper valuation than its peers Wells Fargo and JPMorgan Chase which trade at around 12 times their future earnings, but that's still not a terribly high value for value investors. And with interest rates potentially on the rise as early as next year, that multiple could come down in a hurry as banks can capitalize on better rates and pocket more of the spread between what they pay and what they charge.
Bank stocks are often good value buys because they usually post profits and aren't extremely aggressive in their growth. Over the past four quarters, Bank of America has generated a profit margin of 24%. And when looking at the last five years, its bottom line has typically been at least 19% of its revenue. The company confirmed the strength of its financial results after passing the Federal Reserve's 2021 stress test. As a result, it will be hiking its dividend payments by 17%. Other banks also made rate hikes amid strong performances in the sector. With a yield of 1.8%, Bank of America's payout also comes in higher than the S&P 500 average.
For long-term investors, Bank of America is an easy stock to put away in your portfolio and forget that you own. Its stellar results make it among the safest buys out there and an above-average yield will give you extra incentive to hang on and watch that dividend income grow over the years.
3. Dell
The tech sector usually doesn't contain many great value buys, but Dell is an exception. By its forward P/E of less than 12, it's an even cheaper buy than Bank of America. Even a safe tech stock like Cisco trades at more than 16 times its future earnings. You might not expect that from Dell given that it has already generated returns of 83% over the past year. But the stock may have even more to give: Morgan Stanley recently priced the stock as high as $130 (last week shares of Dell closed right around the $100 mark).
Dell is coming off a strong first quarter fiscal 2022 for which it reported sales of $24 billion in the period ending April 30. That was a year-over-year increase of 12% -- a sharp improvement given that over a two-year span from fiscal 2019 to fiscal 2021, its top line grew by just 4%. The company doesn't think it's a fluke, either. With more businesses turning to the cloud and transforming their operations so that they are more digital and versatile, Dell sees a brighter future ahead. Not only did its product sales grow by 12%, but service-related revenue (which accounted for more than a quarter of its top line) also rose by 10% from the same period last year.
Although the stock is the only one on this list that doesn't pay dividends, investors will likely be OK with that given the potential capital gains they could earn from owning this top computer company for many years. If you want some attractive growth opportunities along with great value, Dell is a stock you won't want to pass up.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you've got $5,000 that you can afford to invest, then three stocks that should rank high on your list of possible investments are AbbVie (NYSE: ABBV), Bank of America (NYSE: BAC), and Dell (NYSE: DELL). AbbVie AbbVie may look like an expensive buy when you look at its price-to-earnings (P/E) ratio, which today is more than 40. To put that into perspective, industry giant Johnson & Johnson trades at more than 17 times its future earnings and Abbott Laboratories (which AbbVie used to be a part of) is at a multiple of more than 27. | If you've got $5,000 that you can afford to invest, then three stocks that should rank high on your list of possible investments are AbbVie (NYSE: ABBV), Bank of America (NYSE: BAC), and Dell (NYSE: DELL). When AbbVie reported its first-quarter results for the period ending March 31, its sales looked incredible at $13 billion, representing year-over-year growth of 51%. AbbVie AbbVie may look like an expensive buy when you look at its price-to-earnings (P/E) ratio, which today is more than 40. | If you've got $5,000 that you can afford to invest, then three stocks that should rank high on your list of possible investments are AbbVie (NYSE: ABBV), Bank of America (NYSE: BAC), and Dell (NYSE: DELL). AbbVie AbbVie may look like an expensive buy when you look at its price-to-earnings (P/E) ratio, which today is more than 40. To put that into perspective, industry giant Johnson & Johnson trades at more than 17 times its future earnings and Abbott Laboratories (which AbbVie used to be a part of) is at a multiple of more than 27. | If you've got $5,000 that you can afford to invest, then three stocks that should rank high on your list of possible investments are AbbVie (NYSE: ABBV), Bank of America (NYSE: BAC), and Dell (NYSE: DELL). AbbVie AbbVie may look like an expensive buy when you look at its price-to-earnings (P/E) ratio, which today is more than 40. To put that into perspective, industry giant Johnson & Johnson trades at more than 17 times its future earnings and Abbott Laboratories (which AbbVie used to be a part of) is at a multiple of more than 27. |
24018.0 | 2021-07-07 00:00:00 UTC | iShares Russell Top 200 Growth ETF Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/ishares-russell-top-200-growth-etf-experiences-big-outflow-2021-07-07 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $254.1 million dollar outflow -- that's a 5.9% decrease week over week (from 27,850,000 to 26,200,000). Among the largest underlying components of IWY, in trading today Mastercard Inc (Symbol: MA) is down about 0.6%, Netflix Inc (Symbol: NFLX) is down about 0.9%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average:
Looking at the chart above, IWY's low point in its 52 week range is $108.91 per share, with $154.805 as the 52 week high point — that compares with a last trade of $154.31. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IWY, in trading today Mastercard Inc (Symbol: MA) is down about 0.6%, Netflix Inc (Symbol: NFLX) is down about 0.9%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $108.91 per share, with $154.805 as the 52 week high point — that compares with a last trade of $154.31. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IWY, in trading today Mastercard Inc (Symbol: MA) is down about 0.6%, Netflix Inc (Symbol: NFLX) is down about 0.9%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $108.91 per share, with $154.805 as the 52 week high point — that compares with a last trade of $154.31. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IWY, in trading today Mastercard Inc (Symbol: MA) is down about 0.6%, Netflix Inc (Symbol: NFLX) is down about 0.9%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $254.1 million dollar outflow -- that's a 5.9% decrease week over week (from 27,850,000 to 26,200,000). For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $108.91 per share, with $154.805 as the 52 week high point — that compares with a last trade of $154.31. | Among the largest underlying components of IWY, in trading today Mastercard Inc (Symbol: MA) is down about 0.6%, Netflix Inc (Symbol: NFLX) is down about 0.9%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $108.91 per share, with $154.805 as the 52 week high point — that compares with a last trade of $154.31. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. |
24019.0 | 2021-07-07 00:00:00 UTC | What Stocks To Buy Today? 4 Dividend Stocks To Watch In July 2021 | ABBV | https://www.nasdaq.com/articles/what-stocks-to-buy-today-4-dividend-stocks-to-watch-in-july-2021-2021-07-07 | nan | nan | Check Out These Top Dividend Stocks In The Stock Market Today
Amidst the volatility seen in the stock market recently, more investors could be turning towards dividend stocks. You see, it’s easy to forget about dividend stocks in a bullish market. After all, what’s the deal with a 10% annual dividend yield when some of the top growth stocks could achieve that in a matter of days. However, investors who want to hold less volatile assets that could survive a stock market downturn may find dividend stocks appealing.
For investors who want a passive income every month, you might want to take a look at some of the best monthly dividend stocks to buy. For instance, Realty Income (NYSE: O) probably tops the list as it has made 611 monthly dividends consecutively. This steady performance makes it a great staple for an income investor’s portfolio. While a high yield is certainly attractive, the reality is that it could be short-lived. Having said that, if you are still keen on finding the best high yield dividend stocks to buy, there are several other key factors to consider when it comes to dividend investing.
For starters, companies that focus their resources towards dividends could be lagging in terms of growth projects. This would account for slower stock appreciation over time but provide more predictable income overall. Next, the company’s dividend-paying history would also be another aspect to consider. In this case, consistency and steady increments in a company’s dividends would be important to look out for. To put it simply, income investors want the highest yield possible with the least risk. With all that in mind, here is a list of some of the best dividend stocks that might do just that in the stock market today.
Top Dividend Stocks To Buy [Or Avoid] Right Now
Annaly Capital Management Inc. (NYSE: NLY)
Clorox Co. (NYSE: CLX)
AbbVie Inc. (NYSE: ABBV)
Chevron Corp. (NYSE: CVX)
Annaly Capital Management
First up the list is mortgage real estate investment trust (mREIT) Annaly Capital Management. It’s no secret that REITs in general have high dividend yields, but NLY stock is one top dividend stock that not only produces high yield, but is also quite safe and manageable. Why is that? Well, an mREIT doesn’t invest in real property. Instead, it invests in real estate debt, and the mortgages from Analy are guaranteed by the federal government. Essentially, this means that the company takes limited credit risk and is less likely to default, which makes it a sound investment.
Annaly currently has a dividend yield of nearly 10%. For most other industries, any dividend yield near this level is a red flag. But in Annaly’s case, it is a high yield that is not short-lived. In fact, it has averaged out about 10% yield for more than two decades. Sure, NLY stock suffered a massive drop at the height of the pandemic, and that’s to be expected. Now, with its business improving significantly in the latest quarter, investors can safely rely on Annaly Capital to keep producing great returns while maintaining a decent payout.
Source: TD Ameritrade TOS
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Clorox
Clorox has certainly benefited from the pandemic hoarding. The consumer staple stock which usually sounds rather dull in a growth-oriented market finds itself in a sweet spot in the stock market. Many consumers rushed to stock up on its disinfecting wipes. After all, the public was cautious about contracting the virus and therefore wanted to be squeaky clean. If anything, the pandemic helped propel Clorox’s sales to record highs.
The company’s dividend yield stands at 5% as of late. Clorox is also one of those companies that have been boosting its payout annually for the past four decades. As impressive as it may seem, investors have left Clorox stock on worries that there might be a pullback as the COVID-19 threat fades. Without sounding too pessimistic on the pandemic situation, with new variants emerging from time to time, the demand for cleaning and disinfecting supplies is likely to stay for some time. Considering all these, would you agree that CLX stock is a top dividend stock to buy right now?
Source: TD Ameritrade TOS
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AbbVie
AbbVie is a biotech company focusing on the discovery and development of innovative medicines. The likes of which aim to impact a wide array of therapeutic areas across AbbVie’s portfolio. These include but are not limited to the fields of immunology, oncology, virology, neuroscience, and eye care. Across its current portfolio, AbbVie currently markets and distributes over 32 drugs in the U.S. Given the scale and variety of AbbVie’s work, ABBV stock could be a go-to for biotech investors today.
AbbVie currently has a dividend yield of 4.5%. The company has been gathering a lot of investor’s attention recently as the company continues to make tremendous breakthroughs. For the uninitiated, AbbVie recently revealed that its treatment for ulcerative colitis, upadacitinib, met all of its primary and secondary endpoints set in a one-year-long Phase 3 study. According to AbbVie vice-chairman Michael Severino, the results demonstrate the drug’s potential as a treatment option for patients with moderate to severe ulcerative colitis. As AbbVie continues to expand its offerings, would you consider adding ABBV stock to your watchlist?
Source: TD Ameritrade TOS
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Chevron
With oil prices briefly hitting a six-year high after OPEC fails to get a deal, things may be looking up for energy stocks like Chevron Corporation. Many investors, including Warren Buffett, love CVX stock because it has a strong balance sheet and good growth prospects. Although the energy sector isn’t in its heyday anymore, Chevron has got a few tricks up its sleeves. The company is also keeping up with the times through its initiatives in hydrogen to support the green economy.
The oil giant currently has an attractive dividend yield of 5.17% and its most recent hike was announced earlier this month. The company’s credibility as a top dividend stock lies in the track record of its payout. It has increased its payout for the past 34 consecutive years. Chevron is one option to consider if you are looking for a relatively low-risk investment in the energy sector. With one of the strongest balance sheets among its industry peers, investors may feel safer investing in it. After all, the oil and gas sector isn’t the shiniest investment you can get in the stock market today. Considering its diversified businesses and a reasonable valuation, would you invest in CVX stock?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the uninitiated, AbbVie recently revealed that its treatment for ulcerative colitis, upadacitinib, met all of its primary and secondary endpoints set in a one-year-long Phase 3 study. According to AbbVie vice-chairman Michael Severino, the results demonstrate the drug’s potential as a treatment option for patients with moderate to severe ulcerative colitis. Top Dividend Stocks To Buy [Or Avoid] Right Now Annaly Capital Management Inc. (NYSE: NLY) Clorox Co. (NYSE: CLX) AbbVie Inc. (NYSE: ABBV) Chevron Corp. (NYSE: CVX) Annaly Capital Management First up the list is mortgage real estate investment trust (mREIT) Annaly Capital Management. | Top Dividend Stocks To Buy [Or Avoid] Right Now Annaly Capital Management Inc. (NYSE: NLY) Clorox Co. (NYSE: CLX) AbbVie Inc. (NYSE: ABBV) Chevron Corp. (NYSE: CVX) Annaly Capital Management First up the list is mortgage real estate investment trust (mREIT) Annaly Capital Management. 4 Tech Stocks To Consider AbbVie AbbVie is a biotech company focusing on the discovery and development of innovative medicines. The likes of which aim to impact a wide array of therapeutic areas across AbbVie’s portfolio. | Top Dividend Stocks To Buy [Or Avoid] Right Now Annaly Capital Management Inc. (NYSE: NLY) Clorox Co. (NYSE: CLX) AbbVie Inc. (NYSE: ABBV) Chevron Corp. (NYSE: CVX) Annaly Capital Management First up the list is mortgage real estate investment trust (mREIT) Annaly Capital Management. 4 Tech Stocks To Consider AbbVie AbbVie is a biotech company focusing on the discovery and development of innovative medicines. The likes of which aim to impact a wide array of therapeutic areas across AbbVie’s portfolio. | AbbVie currently has a dividend yield of 4.5%. Top Dividend Stocks To Buy [Or Avoid] Right Now Annaly Capital Management Inc. (NYSE: NLY) Clorox Co. (NYSE: CLX) AbbVie Inc. (NYSE: ABBV) Chevron Corp. (NYSE: CVX) Annaly Capital Management First up the list is mortgage real estate investment trust (mREIT) Annaly Capital Management. 4 Tech Stocks To Consider AbbVie AbbVie is a biotech company focusing on the discovery and development of innovative medicines. |
24020.0 | 2021-07-06 00:00:00 UTC | Notable Tuesday Option Activity: ABBV, F, RBBN | ABBV | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-abbv-f-rbbn-2021-07-06 | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 23,592 contracts have traded so far, representing approximately 2.4 million underlying shares. That amounts to about 42.6% of ABBV's average daily trading volume over the past month of 5.5 million shares. Especially high volume was seen for the $125 strike call option expiring September 17, 2021, with 3,039 contracts trading so far today, representing approximately 303,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $125 strike highlighted in orange:
Ford Motor Co. (Symbol: F) options are showing a volume of 322,870 contracts thus far today. That number of contracts represents approximately 32.3 million underlying shares, working out to a sizeable 42.4% of F's average daily trading volume over the past month, of 76.1 million shares. Especially high volume was seen for the $15 strike call option expiring July 09, 2021, with 23,551 contracts trading so far today, representing approximately 2.4 million underlying shares of F. Below is a chart showing F's trailing twelve month trading history, with the $15 strike highlighted in orange:
And Ribbon Communications Inc (Symbol: RBBN) options are showing a volume of 1,623 contracts thus far today. That number of contracts represents approximately 162,300 underlying shares, working out to a sizeable 41.3% of RBBN's average daily trading volume over the past month, of 392,770 shares. Particularly high volume was seen for the $7.50 strike put option expiring July 16, 2021, with 1,600 contracts trading so far today, representing approximately 160,000 underlying shares of RBBN. Below is a chart showing RBBN's trailing twelve month trading history, with the $7.50 strike highlighted in orange:
For the various different available expirations for ABBV options, F options, or RBBN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $125 strike call option expiring September 17, 2021, with 3,039 contracts trading so far today, representing approximately 303,900 underlying shares of ABBV. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 23,592 contracts have traded so far, representing approximately 2.4 million underlying shares. That amounts to about 42.6% of ABBV's average daily trading volume over the past month of 5.5 million shares. | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 23,592 contracts have traded so far, representing approximately 2.4 million underlying shares. That amounts to about 42.6% of ABBV's average daily trading volume over the past month of 5.5 million shares. Especially high volume was seen for the $125 strike call option expiring September 17, 2021, with 3,039 contracts trading so far today, representing approximately 303,900 underlying shares of ABBV. | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 23,592 contracts have traded so far, representing approximately 2.4 million underlying shares. Especially high volume was seen for the $125 strike call option expiring September 17, 2021, with 3,039 contracts trading so far today, representing approximately 303,900 underlying shares of ABBV. That amounts to about 42.6% of ABBV's average daily trading volume over the past month of 5.5 million shares. | Below is a chart showing RBBN's trailing twelve month trading history, with the $7.50 strike highlighted in orange: For the various different available expirations for ABBV options, F options, or RBBN options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 23,592 contracts have traded so far, representing approximately 2.4 million underlying shares. That amounts to about 42.6% of ABBV's average daily trading volume over the past month of 5.5 million shares. |
24021.0 | 2021-07-06 00:00:00 UTC | 3 Dividend Stocks That Are Dirt Cheap Right Now | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-are-dirt-cheap-right-now-2021-07-06 | nan | nan | Descriptions like "income investor" and "value investor" are thrown around as if they're mutually exclusive. But they're not. There are many investors who equally belong to both groups.
However, it's challenging to be both an income investor and a value investor. There aren't very many stocks that provide solid dividends that are also available at an attractive valuation. That doesn't mean such stocks are impossible to find, though. Here are three dividend stocks that are dirt cheap right now.
Image source: Getty Images.
AbbVie
Shares of AbbVie (NYSE: ABBV) currently trade at just over nine times expected earnings. To put that into perspective, the forward earnings multiple for the S&P 500 stands above 21 right now. Healthcare stocks, on average, trade at more than 16 times expected earnings.
You don't just get a low valuation with AbbVie; you also get one of the best dividends around. The company is only one dividend increase away from becoming a Dividend King (S&P 500 stocks with at least 50 consecutive years of dividend increases). Its dividend yield of nearly 4.6% is enough to make most investors' mouths water.
To top it off, AbbVie should also generate pretty good growth over the next decade. That growth will be temporarily interrupted when top-selling drug Humira loses U.S. exclusivity in 2023. Except for that year, though, it seems likely that AbbVie will post solid overall sales increases.
The company has several other products that should keep the momentum going. AbbVie's blood cancer drugs Imbruvica and Venclexta continue to perform well. Its newer autoimmune disease drugs, Rinvoq and Skyrizi, could together offset much of the sales declines for Humira. The big drugmaker's acquisition of Allergan also gives it several products that should help provide growth.
Bristol Myers Squibb
Another big drugmaker, Bristol Myers Squibb (NYSE: BMY), sports an even more appealing valuation than AbbVie does. BMS stock trades at under 8.9 times expected earnings.
The company is no slouch in the dividend department, either. Its dividend currently yields a little under 3%. And while BMS can't claim the impressive track record that equals AbbVie, it has increased its dividend payout each year over the last decade.
Top-selling drug Revlimid will face limited-volume generic competition beginning next year. However, the company's lineup includes several other blockbusters with solid sales growth, including blood thinner Eliquis and cancer immunotherapy Yervoy.
It also has several rising stars. Bristol Myers Squibb recently won a key approval for Zeposia in treating ulcerative colitis, the second approved indication for the drug. Newly approved cancer cell therapies Abecma and Breyanzi should also be big winners over the next several years.
Viatris
You'll have a hard time finding a dividend stock that's cheaper than Viatris (NASDAQ: VTRS). Its shares trade at only 4.3 times expected earnings.
Viatris initiated its dividend program in May, so it doesn't have the history of dividends that AbbVie or Bristol Myers do. The company did start out with a solid dividend, though, that yields more than 3%. It expects to increase the dividend annually.
Don't look for jaw-dropping growth from Viatris. The drugmaker was formed by the merger of Pfizer's Upjohn unit with Mylan. Upjohn was home to Pfizer's older drugs, many of which have experienced sales declines.
Viatris' bottom line could improve, though, as it achieves cost synergies from the Upjohn-Mylan merger. Its sales should also pick up momentum within the next few years as it launches new products. For investors who prize both income and value, Viatris is definitely a stock to consider.
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Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. The Motley Fool owns shares of and recommends Bristol Myers Squibb. The Motley Fool recommends Viatris Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And while BMS can't claim the impressive track record that equals AbbVie, it has increased its dividend payout each year over the last decade. AbbVie Shares of AbbVie (NYSE: ABBV) currently trade at just over nine times expected earnings. You don't just get a low valuation with AbbVie; you also get one of the best dividends around. | Bristol Myers Squibb Another big drugmaker, Bristol Myers Squibb (NYSE: BMY), sports an even more appealing valuation than AbbVie does. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie Shares of AbbVie (NYSE: ABBV) currently trade at just over nine times expected earnings. | Viatris initiated its dividend program in May, so it doesn't have the history of dividends that AbbVie or Bristol Myers do. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie Shares of AbbVie (NYSE: ABBV) currently trade at just over nine times expected earnings. | Viatris initiated its dividend program in May, so it doesn't have the history of dividends that AbbVie or Bristol Myers do. AbbVie Shares of AbbVie (NYSE: ABBV) currently trade at just over nine times expected earnings. You don't just get a low valuation with AbbVie; you also get one of the best dividends around. |
24022.0 | 2021-07-05 00:00:00 UTC | Best Biotech Stocks To Buy In July 2021? 3 To Watch This Week | ABBV | https://www.nasdaq.com/articles/best-biotech-stocks-to-buy-in-july-2021-3-to-watch-this-week-2021-07-05 | nan | nan | 3 Top Biotech Stocks To Watch This Week
When looking for what stocks to buy in the stock market, investors could be turning towards biotech stocks once again. For one thing, the biotech industry is home to countless companies hard at work on the healthcare industry’s greatest problems. These range from the coronavirus pandemic to cancers of all kinds and even rare and genetic diseases among many others. Because of this, investors would have a wide variety of biotech stocks to choose from.
Now, it is important to know that most emerging biotech stocks are often prone to bouts of volatility. This would be the case as biotech companies often gain large bursts of attention for key clinical updates on their development pipelines. For example, we could look at the likes of Ocugen (NASDAQ: OCGN). Sure, the company mostly researches gene therapies for curing blindness. But, it is also collaborating with Bharat Biotech, an Indian biotech peer that manufactures and markets the COVAXIN coronavirus vaccine. Thanks to this manufacturing partnership, key updates regarding COVAXIN have already driven OCGN stock up by over 130% year-to-date.
Meanwhile, for investors looking to invest in less speculative plays, large-cap biotechs are also a viable play. Take Bristol-Myers Squibb (NYSE: BMY) for instance. The global biopharmaceutical company boasts a massive portfolio of prescription drugs and advanced treatments. With the company offering more consistent gains in the form of dividends, even star investors like Warren Buffett are now holding positions in the company. Overall, there is likely a biotech stock suited for most investment strategies out there. On that note, here are three to consider in the stock market today.
Best Biotech Stocks To Buy [Or Sell] Now
Moderna Inc. (NASDAQ: MRNA)
Intellia Therapeutics Inc. (NASDAQ: NTLA)
AbbVie Inc. (NYSE: ABBV)
Moderna Inc.
To begin with, we have one of the leading coronavirus vaccine companies now, Moderna. By now, most would be familiar with the biotech company as it continues to fight the coronavirus pandemic from the front lines. In brief, Moderna mainly focuses on developing vaccine tech based on messenger RNA (mRNA). Through its platform, Moderna inserts synthetic mRNA into human cells which then teach the immune system how to fight against diseases. More importantly, MRNA stock is currently sitting on gains of over 290% in the past year. This would mostly be because of its success on the coronavirus vaccine front.
Similarly, MRNA stock could be in focus again this week as the company’s vaccine received another positive update. Over the weekend, the United Arab Emirates (UAE) approved Moderna’s vaccine candidate for emergency use in the region. Notably, it is the fifth vaccine to receive said approval. This would serve to further expand Moderna’s addressable markets while also helping to speed up the inoculation rates in the UAE.
By and large, this is a win for Moderna. Why? Well, similar to many countries across the globe, the UAE is also seeing an increase in the Beta, Delta, and Alpha variants. Fortunately, Moderna’s vaccine candidate recently showed promise in a lab setting against all of these variants. In a news release posted last week, Moderna CEO Stephane Bancel said, “These new data are encouraging and reinforce our belief that the Moderna COVID-19 Vaccine should remain protective against newly detected variants.” Given all of these exciting developments, would you consider MRNA stock a top biotech stock to own now?
Source: TD Ameritrade TOS
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Intellia Therapeutics Inc.
Another name making headlines in the biotech world now would be Intellia. For the uninitiated, Intellia primarily develops biopharmaceutical treatments using the revolutionary CRISPR gene-editing system. In detail, the CRISPR system boasts the ability to identify and edit specific genes inside cells. Within the world of biotech, this tech would serve to treat and screen for genetic diseases. Now, NTLA stock would be in focus thanks to Intellia’s massive breakthrough on the gene-editing front. Evidently, the company’s shares have already skyrocketed by over 110% in the past month as a result.
Diving right into it, Intellia announced that it had completed its first systematic delivery of a CRISPR-based treatment into the human body. The progress of this ongoing collaboration with fellow biotech company Regeneron Pharmaceuticals (NASDAQ: REGN) marks an industry first. The target disease in this round of trials is transthyretin (ATTR) amyloidosis, a rare, progressive disease situated in the liver that can be fatal if untreated. According to Intellia, the NTLA-2001 treatment “has the potential to halt and reverse” the complications brought about by ATTR amyloidosis. Not to mention, these results were reportedly achieved via the administration of a single dose. CEO John Leonard also believes that these results possibly indicate that Intellia’s modular platform could treat a “wide array of other genetic diseases” down the line.
While these initial results are encouraging, the company will still have to go through rigorous clinical testing. Leonard explained in an interview with CNBC that Intellia hopes its treatment can be made available to patients “very, very soon”. Time will tell if Intellia can make the most of its ground-breaking tech moving forward. In the meantime, will you be adding NTLA stock to your portfolio?
Source: TD Ameritrade TOS
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AbbVie Inc.
Last but not least, we have AbbVie. For some context, the Illinois-based biotech company focuses on the discovery and development of innovative medicines. The likes of which aim to impact a wide array of therapeutic areas across AbbVie’s portfolio. These include but are not limited to the fields of immunology, oncology, virology, neuroscience, and eye care. Across its current portfolio, AbbVie currently markets and distributes over 32 drugs in the U.S. Given the scale and variety of AbbVie’s work, ABBV stock could be a go-to for biotech investors today.
Despite its impressive portfolio, the company does not seem to be resting on its laurels just yet. Last week, AbbVie revealed that its treatment for Ulcerative Colitis (UC), upadacitinib, met all of its primary and secondary endpoints set in a one-year-long Phase 3 study. According to AbbVie vice-chairman Michael Severino, the results demonstrate the drug’s potential as a treatment option for patients with moderate to severe ulcerative colitis. Now, to highlight, patients with UC often experience random yet severe bouts of inflammation in the large intestines. Should this be left untreated, there are cases where complications such as cancer may arise as well. As such, there would be a market for upadacitinib now.
Additionally, AbbVie continues to gain momentum on the financial front as well. In its latest quarter fiscal posted back in April, the company raked in a total revenue of $13.01 billion. This indicates a significant 50.95% year-over-year surge. As AbbVie continues to expand its offerings, would you consider ABBV stock a top buy now?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last week, AbbVie revealed that its treatment for Ulcerative Colitis (UC), upadacitinib, met all of its primary and secondary endpoints set in a one-year-long Phase 3 study. According to AbbVie vice-chairman Michael Severino, the results demonstrate the drug’s potential as a treatment option for patients with moderate to severe ulcerative colitis. Best Biotech Stocks To Buy [Or Sell] Now Moderna Inc. (NASDAQ: MRNA) Intellia Therapeutics Inc. (NASDAQ: NTLA) AbbVie Inc. (NYSE: ABBV) Moderna Inc. To begin with, we have one of the leading coronavirus vaccine companies now, Moderna. | Best Biotech Stocks To Buy [Or Sell] Now Moderna Inc. (NASDAQ: MRNA) Intellia Therapeutics Inc. (NASDAQ: NTLA) AbbVie Inc. (NYSE: ABBV) Moderna Inc. To begin with, we have one of the leading coronavirus vaccine companies now, Moderna. Source: TD Ameritrade TOS [Read More] 4 Artificial Intelligence Stocks To Watch Right Now AbbVie Inc. Last but not least, we have AbbVie. The likes of which aim to impact a wide array of therapeutic areas across AbbVie’s portfolio. | Best Biotech Stocks To Buy [Or Sell] Now Moderna Inc. (NASDAQ: MRNA) Intellia Therapeutics Inc. (NASDAQ: NTLA) AbbVie Inc. (NYSE: ABBV) Moderna Inc. To begin with, we have one of the leading coronavirus vaccine companies now, Moderna. Source: TD Ameritrade TOS [Read More] 4 Artificial Intelligence Stocks To Watch Right Now AbbVie Inc. Last but not least, we have AbbVie. The likes of which aim to impact a wide array of therapeutic areas across AbbVie’s portfolio. | Best Biotech Stocks To Buy [Or Sell] Now Moderna Inc. (NASDAQ: MRNA) Intellia Therapeutics Inc. (NASDAQ: NTLA) AbbVie Inc. (NYSE: ABBV) Moderna Inc. To begin with, we have one of the leading coronavirus vaccine companies now, Moderna. Source: TD Ameritrade TOS [Read More] 4 Artificial Intelligence Stocks To Watch Right Now AbbVie Inc. Last but not least, we have AbbVie. The likes of which aim to impact a wide array of therapeutic areas across AbbVie’s portfolio. |
24023.0 | 2021-07-05 00:00:00 UTC | 3 Warren Buffett Stocks to Buy in July | ABBV | https://www.nasdaq.com/articles/3-warren-buffett-stocks-to-buy-in-july-2021-07-05 | nan | nan | Warren Buffett is back to his winning ways. His beloved Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) lagged well behind the S&P 500 in 2020. However, it's a much better story so far this year with Berkshire's shares up more than 20% -- well ahead of any of the major market indexes.
It wouldn't be a bad move at all for investors to scoop up shares of Berkshire. However, I think some of Berkshire's holdings that underperformed in the first half of this year are poised to deliver stronger gains. Here are three Buffett stocks to buy in July.
Image source: The Motley Fool.
AbbVie
Buffett appeared to be a big fan of big pharma in 2020, buying shares of several large drugmakers. AbbVie (NYSE: ABBV) ranked as one of his top buys. Berkshire has trimmed its position in AbbVie somewhat but still owns nearly 22.9 million shares.
My view is that AbbVie is Buffett's best dividend stock by far. It offers a dividend yield of over 4.5%. The company has increased its dividend for 49 consecutive years, a feat that puts it in the upper echelon of dividend stocks.
Sure, AbbVie will lose U.S. exclusivity for blockbuster drug Humira in 2023. However, the company has several other growth drivers that it thinks will fuel robust overall revenue growth through the rest of this decade after a temporary pause when Humira's sales begin to decline.
The stock should have at least one potential catalyst on the way in the near future. AbbVie hopes to win European approval for Rinvoq in treating atopic dermatitis in Q3 after receiving a positive recommendation from the Committee for Medicinal Products for Human Use.
Amazon.com
You could argue that Amazon.com (NASDAQ: AMZN) really isn't a Buffett stock. One of the legendary investor's lieutenants actually picked the stock for Berkshire's portfolio in 2019. However, Buffett has been a longtime fan of Amazon's business and its founder, Jeff Bezos.
In some respects, Amazon seems like an ideal Buffett stock. The internet giant has a strong moat -- something that the Oracle of Omaha has always prized. It also generates a high return on equity, another big plus in Buffett's eyes.
Both of these are good reasons to consider buying Amazon stock. I'd put the company's growth prospects even higher on the list, though.
You might not think Amazon would have a lot of growth opportunities in e-commerce considering how dominant it already is. But online sales made up only 13.4% of total retail sales in the U.S. during the first quarter of 2021.
Amazon has even better avenues for growth with its AWS cloud unit and its forays into other markets. I especially look for the company to gain traction in the healthcare sector with its pharmacy and telehealth businesses.
Apple
Last, but not least, on the "A-list" of Buffett stocks to buy in July (each stock begins with the letter "A") is Apple (NASDAQ: AAPL). Actually, Apple should have arguably been first on the list. It's Berkshire's single biggest equity holding. Buffett has even referred to Apple as "probably the best business I know in the world."
I wouldn't argue with Buffett on that point. Apple recently reclaimed its throne as the world's most valuable brand (knocking Amazon out of the top spot). The company's customers remain intensely loyal.
Apple continues to provide good reasons for consumers to stay in its ecosystem. Sales of its 5G-enabled iPhones are soaring. This momentum fuels higher sales for many of the company's other products and services, including AirPods and apps on the App Store.
The future for Apple also looks bright. The company reportedly has a foldable iPhone on the way. It's positioned for success in augmented reality (AR). I expect that Apple will further cement its place as Buffett's favorite -- and make him and other investors a lot more money.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights owns shares of AbbVie, Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie hopes to win European approval for Rinvoq in treating atopic dermatitis in Q3 after receiving a positive recommendation from the Committee for Medicinal Products for Human Use. AbbVie Buffett appeared to be a big fan of big pharma in 2020, buying shares of several large drugmakers. AbbVie (NYSE: ABBV) ranked as one of his top buys. | Keith Speights owns shares of AbbVie, Amazon, Apple, and Berkshire Hathaway (B shares). AbbVie Buffett appeared to be a big fan of big pharma in 2020, buying shares of several large drugmakers. AbbVie (NYSE: ABBV) ranked as one of his top buys. | AbbVie Buffett appeared to be a big fan of big pharma in 2020, buying shares of several large drugmakers. AbbVie (NYSE: ABBV) ranked as one of his top buys. Berkshire has trimmed its position in AbbVie somewhat but still owns nearly 22.9 million shares. | My view is that AbbVie is Buffett's best dividend stock by far. AbbVie Buffett appeared to be a big fan of big pharma in 2020, buying shares of several large drugmakers. AbbVie (NYSE: ABBV) ranked as one of his top buys. |
24024.0 | 2021-07-03 00:00:00 UTC | These COVID Therapies Appear to Be the Best and Worst at Treating New Variants | ABBV | https://www.nasdaq.com/articles/these-covid-therapies-appear-to-be-the-best-and-worst-at-treating-new-variants-2021-07-03 | nan | nan | Results were recently announced from a pre-clinical study comparing several of the leading COVID-19 antibody therapies. In this Motley Fool Live video recorded on June 23, Motley Fool contributors Keith Speights and Brian Orelli discuss which drugmakers were the biggest winners and losers in this comparison.
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Keith Speights: COVID-19 vaccines aren't the only story in COVID-19 news. There are also some results from a new pre-clinical study in animal testing where several leading monoclonal antibody therapies have been tested against new coronavirus variants.
Which of these therapies in this pre-clinical study do you think appear to be the best and the worst? Should investors make much of this data at all since we're only talking about pre-clinical testing here?
Brian Orelli: Yes, this was a pretty big study they tested monoclonal antibodies, treatments from Vir Biotechnology (NASDAQ: VIR), AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), Regeneron (NASDAQ: REGN), and Eli Lilly (NYSE: LLY)
Eli Lilly seems to be the big loser here. Bamlanivimab didn't work at all against the variants and that's not really a big blow since the company had already stopped distributing it as a monotherapy.
The combination of bamlanivimab and Eli Lilly's other monoclonal antibody etesevimab also appeared to not work against the variants.
AbbVie's antibody combo had partial loss of activity. It reduced viral loads in the lung, but less so for measurements of virus levels in the nose.
As you said, this is pre-clinical testing in mice so it's hard to know how much it's going to translate into treatments or preventions in humans. Although at least for prevention that's probably less of an issue at this point because anybody who was trying to get prevented would probably just get the vaccine.
Bigger picture, you really need an antibody that binds to a place on the virus that can't be mutated, but if it gets mutated then it creates a non-functional virus so we need something that's highly conserved and very important to the virus.
Then the antibodies don't bind to the entire virus, they only bind to a small portion of the protein on the outside of the virus. You want to find something that's highly conservant, and so each one of these tests on new variants adds further evidence that the companies might have actually found an antibody that's universal to all variants.
But I'm not sure we quite have enough evidence here to declare complete victory for Vir's or AstraZeneca's or Regeneron's antibodies being universal just quite yet.
Speights: Brian, do you have any even guestimate on how significant of a market do you think that will be for this antibody therapy is going forward, especially if the vaccines continue to hold up pretty well against variants?
Orelli: Yeah, I think the other issue here, and maybe we'll talk about this later with GlaxoSmithKline and Vir, is that they tend to need to be used really early, and that's going to become really difficult as COVID wanes, and people aren't going to know the difference between "I have COVID" or "I have a flu," and so they're probably going to wait a little bit longer then they would right now to get tested.
At that point, by the time that you're needing to go in the hospital, these antibodies aren't very effective and so they won't be given. I think the market is going to be relatively small for these monoclonal antibodies.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie. The Motley Fool recommends GlaxoSmithKline. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Brian Orelli: Yes, this was a pretty big study they tested monoclonal antibodies, treatments from Vir Biotechnology (NASDAQ: VIR), AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), Regeneron (NASDAQ: REGN), and Eli Lilly (NYSE: LLY) Eli Lilly seems to be the big loser here. AbbVie's antibody combo had partial loss of activity. Keith Speights owns shares of AbbVie. | Brian Orelli: Yes, this was a pretty big study they tested monoclonal antibodies, treatments from Vir Biotechnology (NASDAQ: VIR), AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), Regeneron (NASDAQ: REGN), and Eli Lilly (NYSE: LLY) Eli Lilly seems to be the big loser here. AbbVie's antibody combo had partial loss of activity. Keith Speights owns shares of AbbVie. | Brian Orelli: Yes, this was a pretty big study they tested monoclonal antibodies, treatments from Vir Biotechnology (NASDAQ: VIR), AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), Regeneron (NASDAQ: REGN), and Eli Lilly (NYSE: LLY) Eli Lilly seems to be the big loser here. AbbVie's antibody combo had partial loss of activity. Keith Speights owns shares of AbbVie. | Brian Orelli: Yes, this was a pretty big study they tested monoclonal antibodies, treatments from Vir Biotechnology (NASDAQ: VIR), AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), Regeneron (NASDAQ: REGN), and Eli Lilly (NYSE: LLY) Eli Lilly seems to be the big loser here. AbbVie's antibody combo had partial loss of activity. Keith Speights owns shares of AbbVie. |
24025.0 | 2021-07-02 00:00:00 UTC | Got $400? 3 Fantastic Dividend Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/got-%24400-3-fantastic-dividend-stocks-to-buy-right-now-2021-07-02 | nan | nan | "Money is no object." You've likely heard the expression. The reality, though, is that money usually is an object -- namely because it's in relatively scarce quantity for most people.
Many investors don't have tens of thousands of dollars to invest each month. And many are jittery about putting the hard-earned money they do have into speculative stocks that could flame out.
If you're in these groups, you've come to the right place. You can invest in the stocks of well-run companies that pay solid dividends without having a fortune to start out with. If you've got $400, here are three fantastic dividend stocks to buy right now.
Image source: Getty Images.
Innovative Industrial Properties
Innovative Industrial Properties (NYSE: IIPR) ranks as the most expensive of the three dividend stocks on the list, with its share price a little over $190. But I think you'll like what your money buys for you with IIP.
The company is organized as a real estate investment trust (REIT). That means it must return at least 90% of taxable income to shareholders in the form of dividends. IIP's dividend payout has quadrupled over the last three years. Its dividend yield stands at 2.9%.
While IIP's dividend is great, that's not why I think this is a stock to buy hand over fist right now. You see, IIP is a unique kind of REIT in that it focuses on the sizzling-hot medical cannabis industry.
IIP's share price has more than quintupled over the last three years. I expect its great momentum will continue as the company buys more properties and leases them to cannabis operators. IIP currently only owns 72 properties in 18 states. My view is that it's only the tip of the iceberg for this fast-growing REIT.
AbbVie
Calvin Coolidge was the U.S. president when AbbVie (NYSE: ABBV) first began paying dividends in 1924. The big drugmaker has paid a dividend every quarter since then (as part of Abbott and as a stand-alone entity since 2013). It's only one dividend hike away from joining the elite group known as Dividend Kings -- S&P 500 members that have increased their dividends for at least 50 consecutive years.
You can currently buy one share of AbbVie for less than $115. For that amount, you'll get one of the juiciest dividends around. AbbVie's dividend yield stands at 4.6%. You'll also pick up a big pharma stock with pretty good growth prospects.
It's important to know that AbbVie's top-selling drug, Humira, faces biosimilar competition in the U.S. beginning in 2023. The company expects declining sales for the drug will weigh on it heavily in the first year that Humira loses exclusivity. However, AbbVie's dividend shouldn't be jeopardized at all.
Even better, the company expects to quickly return to growth. AbbVie's product lineup includes several other drugs with solid momentum, including blood cancer drugs Imbruvica and Venclexta, as well as the heirs apparent to Humira -- Rinvoq and Skyrizi.
Easterly Government Properties
Innovative Industrial Properties offers tremendous growth with its dividend. AbbVie provides an impressive track record. If you're looking for rock-solid safety, though, you're probably going to really like Easterly Government Properties (NYSE: DEA). And with Easterly's share price of around $21, you'll be able to scoop up several shares with your remaining cash after buying IIP and AbbVie.
Unsurprisingly, Easterly Government Properties owns and leases out... government properties. Like IIP, it's organized as a REIT. Easterly's main tenant is none other than Uncle Sam. As of March 31, 2021, the company owned 82 properties with all but two of them leased to U.S. federal government agencies.
Easterly's dividend currently yields 4.8%. The company also has solid growth prospects. The REIT even recently raised its full-year earnings guidance because of its increased opportunities to acquire new properties.
CEO William Trimble characterized the company's strength in nautical terms with Easterly's Q1 update, stating: "The longevity and stability of future cash flows backed by the full faith and credit of the U.S. Government serves as a strong anchor to windward while still achieving meaningful results for our shareholders." He's likely right that Easterly's strong relationship with the federal government should translate to smooth sailing over the long term.
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Keith Speights owns shares of AbbVie and Innovative Industrial Properties. The Motley Fool owns shares of and recommends Innovative Industrial Properties. The Motley Fool recommends Easterly Government Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Calvin Coolidge was the U.S. president when AbbVie (NYSE: ABBV) first began paying dividends in 1924. You can currently buy one share of AbbVie for less than $115. AbbVie's dividend yield stands at 4.6%. | AbbVie Calvin Coolidge was the U.S. president when AbbVie (NYSE: ABBV) first began paying dividends in 1924. You can currently buy one share of AbbVie for less than $115. AbbVie's dividend yield stands at 4.6%. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie and Innovative Industrial Properties. AbbVie Calvin Coolidge was the U.S. president when AbbVie (NYSE: ABBV) first began paying dividends in 1924. You can currently buy one share of AbbVie for less than $115. | You can currently buy one share of AbbVie for less than $115. AbbVie Calvin Coolidge was the U.S. president when AbbVie (NYSE: ABBV) first began paying dividends in 1924. AbbVie's dividend yield stands at 4.6%. |
24026.0 | 2021-06-30 00:00:00 UTC | 5 High Dividend Stocks For Your July 2021 Watchlist | ABBV | https://www.nasdaq.com/articles/5-high-dividend-stocks-for-your-july-2021-watchlist-2021-06-30 | nan | nan | Is Now The Time To Add Stocks These High Paying Dividends Stocks To Your Portfolio?
Amidst the volatility seen in the stock market recently, many investors are considering safer investments like dividend stocks. As a result, the highest-paying dividend stocks in 2021 could have more room to grow right now. While that may seem like a decent strategy to focus on, there are several other key factors to consider when it comes to dividend investing.
For starters, companies that focus their resources towards dividends could be lagging in terms of growth projects. This would account for slower stock appreciation over time but provide more predictable income overall. Next, the company’s dividend-paying history would also be another aspect to consider. In this case, consistency and steady increments in a company’s dividends would be important to look out for.
While it is important to look for stocks with the highest dividends for your portfolio, funds, and companies that offer monthly payouts are even better. Monthly dividend stocks are a popular investment in the stock market right now. After all, if your bills are monthly, why aren’t your payouts? Of course, that’s not to say dividend stocks are a sure-win strategy when it comes to investing. With all that being said, here are some of the best dividend stocks to watch in thestock market today
Best Dividend Stocks To Watch Right Now
SoFi Weekly Income ETF (NYSEARCA: TGIF)
Realty Income (NYSE: O)
AbbVie Inc. (NYSE: ABBV)
Chevron Corporation (NYSE: CVX)
AGNC Investment Corp (NASDAQ: AGNC)
SoFi Weekly Income ETF
While you may have been looking for stocks with highest dividends and monthly dividend stocks, do you know that there’s also a fund that pays out dividends on a weekly basis? Yes, you read that right. If you’re looking for weekly dividend stocks to buy, SoFi Weekly Income ETF does just that. The ETF invests in a combination of investment grade and high yield bonds. It is the first ever ETF that seeks to distribute income on a weekly basis.
The TGIF ETF is actively managed and aims to deliver distributions every Friday, which helps explain the ‘TGIF” ticker. TGIF holds more than 100 different stocks, but the fund’s top holdings include familiar names such as Ford (NYSE: F) and Delta Air Lines (NYSE: DAL). With a fair dividend yield of around 2.5% and a weekly payout schedule, it is undoubtedly an attractive fund for those looking for a steady paycheck. Whether TGIF stock is worth investing in is another question to answer. It certainly doesn’t come cheap, so you’ll have to decide if you are willing to pay up.
Source: TD Ameritrade TOS
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Realty Income
It’s nearly impossible to put up a list of best dividend stocks to buy without Realty Income. That’s because there aren’t a lot of companies that can pay consistently and raise their dividends regularly. It is also one of those rare companies that payout monthly dividends and are actually trademarked “The Monthly Dividend Company.” It has made 611 monthly dividends consecutively. This steady performance makes it a great staple for an income investor’s portfolio.
What’s making Realty Income a compelling investment is its portfolio of strong clientele. As of March 31, Realty Income owned 6,592 properties with over 114 million square feet of space. With tenants like Walmart (NYSE: WMT) and Dollar General (NYSE: DG) under its belt, it should continue to do well and maintain a stable revenue stream. With the COVID-19 restrictions ending and a high vaccination rate, Realty Income’s most affected tenants such as cinema operators and gyms should enjoy a nice recovery. Therefore, if you are expecting an improvement in its business, would you add O stock to your portfolio right now?
Source: TD Ameritrade TOS
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AbbVie
AbbVie is a major player in the biopharmaceutical industry and one of the best dividend stocks in the stock market right now. ABBV stock investors are benefiting from a dividend yield of 4.5%. Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. Now, the company’s developmental pipeline consists of potential treatments across numerous key therapeutic areas. These include but are not limited to immunology, oncology, virology, and eye care. For a sense of scale, AbbVie is currently evaluating over 20 investigational cancer medicines in over 300 clinical trials globally.
AbbVie is also gathering a lot of investors’ attention recently as the company continues to make tremendous breakthroughs. Just this month, AbbVie continues to see significant results in its cancer and arthritis portfolios. For starters, the company’s Chronic Lymphocytic Leukemia (CLL) treatment, VENCLEXTA, continues to show progress. With a market capitalization of $200 billion, the company has the balance sheet to make strategic acquisitions to further bolster its offerings. Considering the company’s high growth prospects, would you place your bet on ABBV stock right now?
Source: TD Ameritrade TOS
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Chevron
With oil prices above the $70 price level, things are looking up for energy stocks like Chevron Corporation. The oil giant has an attractive dividend yield of more than 5% and its most recent hike was announced in late April. Many investors, including Warren Buffett, love CVX stock because it has a strong balance sheet and good growth prospects. Although the energy sector isn’t in its heyday anymore, Chevron has got a few tricks up its sleeves. The company is also keeping up with the times through its initiatives in hydrogen to support the green economy.
Essentially, Chevron is one option to consider if you are looking for a relatively low-risk investment in the energy sector. With one of the strongest balance sheets among its industry peers, investors may feel safer investing in it. After all, the oil and gas sector isn’t the shiniest investment you can get in the stock market today. However, considering its highly diversified businesses and a reasonable valuation, would you agree that CVX stock is a good dividend stock to buy now?
Source: TD Ameritrade TOS
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AGNC Investment
AGNC Investment Corp is the largest mortgage REIT by market cap. The mREIT has made a strong comeback after an underwhelming 2020. For those unfamiliar, the company uses its in-house subsidiaries to help package, buy, and sell government-backed mortgages secured by residential real estate. While mortgage REITs may not be a favorite on Wall Street, there’s no question about AGNC’s consistent dividend yield. The REIT has an annualized dividend yield of more than 8%.
In 2020 alone, the company completed $1.4 billion of accretive capital transactions, having a total portfolio of $96.6 billion in agency mortgage-backed securities (MBS) and to-be-announced (TBA) securities. If you’re an investor in thestock market today you probably know a thing or two about the rising inflation rate. And rising interest rates are among the reasons why stocks were down. While these are bad for stocks in general, rising interest rates actually benefit AGNC. For this reason, some may see AGNC stock as a defensive play in the highly volatile stock market we are having today. With that in mind, would you add AGNC to your watchlist?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With all that being said, here are some of the best dividend stocks to watch in thestock market today Best Dividend Stocks To Watch Right Now SoFi Weekly Income ETF (NYSEARCA: TGIF) Realty Income (NYSE: O) AbbVie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) AGNC Investment Corp (NASDAQ: AGNC) SoFi Weekly Income ETF While you may have been looking for stocks with highest dividends and monthly dividend stocks, do you know that there’s also a fund that pays out dividends on a weekly basis? 5 Leisure Stocks In Focus AbbVie AbbVie is a major player in the biopharmaceutical industry and one of the best dividend stocks in the stock market right now. ABBV stock investors are benefiting from a dividend yield of 4.5%. | With all that being said, here are some of the best dividend stocks to watch in thestock market today Best Dividend Stocks To Watch Right Now SoFi Weekly Income ETF (NYSEARCA: TGIF) Realty Income (NYSE: O) AbbVie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) AGNC Investment Corp (NASDAQ: AGNC) SoFi Weekly Income ETF While you may have been looking for stocks with highest dividends and monthly dividend stocks, do you know that there’s also a fund that pays out dividends on a weekly basis? 5 Leisure Stocks In Focus AbbVie AbbVie is a major player in the biopharmaceutical industry and one of the best dividend stocks in the stock market right now. ABBV stock investors are benefiting from a dividend yield of 4.5%. | With all that being said, here are some of the best dividend stocks to watch in thestock market today Best Dividend Stocks To Watch Right Now SoFi Weekly Income ETF (NYSEARCA: TGIF) Realty Income (NYSE: O) AbbVie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) AGNC Investment Corp (NASDAQ: AGNC) SoFi Weekly Income ETF While you may have been looking for stocks with highest dividends and monthly dividend stocks, do you know that there’s also a fund that pays out dividends on a weekly basis? 5 Leisure Stocks In Focus AbbVie AbbVie is a major player in the biopharmaceutical industry and one of the best dividend stocks in the stock market right now. ABBV stock investors are benefiting from a dividend yield of 4.5%. | With all that being said, here are some of the best dividend stocks to watch in thestock market today Best Dividend Stocks To Watch Right Now SoFi Weekly Income ETF (NYSEARCA: TGIF) Realty Income (NYSE: O) AbbVie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) AGNC Investment Corp (NASDAQ: AGNC) SoFi Weekly Income ETF While you may have been looking for stocks with highest dividends and monthly dividend stocks, do you know that there’s also a fund that pays out dividends on a weekly basis? 5 Leisure Stocks In Focus AbbVie AbbVie is a major player in the biopharmaceutical industry and one of the best dividend stocks in the stock market right now. ABBV stock investors are benefiting from a dividend yield of 4.5%. |
24027.0 | 2021-06-30 00:00:00 UTC | AbbVie: Is the Price Right for Long-Term Investment? | ABBV | https://www.nasdaq.com/articles/abbvie%3A-is-the-price-right-for-long-term-investment-2021-06-30 | nan | nan | As Foolish investors, we're seeking long-term success. That means paying attention not just to a company's operating fundamentals, but to how the market is valuing that company.
Imagine two investors, Anne and Barry. Both of them are interested in buying shares of a coffee company -- we'll call it Starfrancs. Both of them have researched Starfrancs's balance sheet and fundamentals, and they think it's a solid business. Starfrancs is fairly valued at $100, but Anne, who's paying less attention to valuation, buys her shares at $120. Meanwhile, Barry is able to buy them on a dip at just $80 each.
Image Source: Getty Images.
Even though both investors own the same company, Barry positioned himself with a much greater margin of safety in the event that the business doesn't perform as well as expected in the future. Buying the stock at a discount makes it more likely that Barry will benefit from capital appreciation in the stock price as Starfrancs reverts to its fair value.
So we can see it's important to consider fair value when determining whether a stock is worth buying. Let's take a look at pharma giant AbbVie (NYSE: ABBV), which is up 18% over the past year. Has this share price increase taken it past fair value?
AbbVie appears undervalued
In an effort to determine the fair value of AbbVie's shares, we will be using the discounted cash flow, or DCF, model.
The DCF model lets you estimate what a company is worth by estimating the sum of its future cash flows based on the previous year of cash flows. If the results are lower than the current share price, the company is likely not worth further consideration. However, results that are higher than the current share price imply a potentially enticing investment.
Here's the formula:
Image Source: Matthew Frankel/Fool.com
As fellow Fool Matthew Frankel writes in the linked article above, "That large symbol at the front of the formula is the Greek letter sigma, and it is used to denote the sum of several quantities. In other words, this symbol tells you to perform a present value calculation for each year's cash flow and then add them all together."
The first input into the DCF model is trailing-12-month (TTM) cash flow per share, though TTM earnings per share (EPS) can also be used. In AbbVie's case, these numbers are about the same. We'll opt to use AbbVie's TTM EPS, which is $11.09.
AbbVie's business is solid -- more on that below -- but as investors, we always want to leave ourselves with a margin of safety in case a company fails to meet our expectations. For that reason, we'll assume earnings growth will be 3% annually over the next five years -- well below the analyst consensus of 4.5%. What's more, while it is likely that AbbVie will deliver some level of earnings growth after that, we'll assume zero growth after five years.
Finally, we're using 10% -- the S&P's average annual return over the long term -- as our discount rate or required annual total return rate as a benchmark to adequately reward us for our efforts as investors.
We arrive at a fair value for shares of AbbVie of $125.55 a share, which is moderately higher than its current share price of $112.55. From this, we can conclude that AbbVie is undervalued.
A leader in rapidly growing fields
Now that we know its fair value, let's talk about AbbVie's business. Its immunosuppressant Humira was the world's best-selling drug in 2019, and some investors have worried about what will happen when the drug goes off-patent in the U.S. in 2023. But the company has a number of paths, specifically within the oncology and immunology fields in which it is a leader, to stabilize its revenues and earnings.
Oncology and immunology are already the largest segments of the pharma industry by annual spending, and both are poised to benefit from 9% to 12% compound annual growth rates through 2025 (for other areas, that number is 5%). That should bring annual spending in each field to $273 billion and $175 billion, respectively, per FiercePharma.
AbbVie's oncology and immunology segments (which include Humira) comprised about 57% of the company's Q1 2021 revenue. That means the bulk of the company's sales are generated in the two most dominant, fastest-growing areas of pharma. And AbbVie is in a position to offset any near-term declines in Humira revenue with its two other immunology blockbusters, Skyrizi and Rinvoq, which combined saw year-over-year growth in excess of 100% to a combined $900 million in Q1 2021 -- further supporting the notion of massive demand in the immunology field of pharma. Further, AbbVie's two oncology drugs, Imbruvica and Venclexta, saw sales climb 7.3% year over year to a combined $1.7 billion in Q1 2021.
Is AbbVie worth your money?
AbbVie is an industry leader in the rapidly growing oncology and immunology fields. It has a solid dividend of about 4.6% and is well positioned to guard against any loss of revenue from Humira. Its current price of about $113 looks like a moderate discount to fair value, making this company worthy of attention from investors looking to start or add to a position, anywhere below $125 a share.
Please make sure you've selected a ticker.
Kody Kester owns shares of AbbVie.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's business is solid -- more on that below -- but as investors, we always want to leave ourselves with a margin of safety in case a company fails to meet our expectations. Let's take a look at pharma giant AbbVie (NYSE: ABBV), which is up 18% over the past year. AbbVie appears undervalued In an effort to determine the fair value of AbbVie's shares, we will be using the discounted cash flow, or DCF, model. | We arrive at a fair value for shares of AbbVie of $125.55 a share, which is moderately higher than its current share price of $112.55. Let's take a look at pharma giant AbbVie (NYSE: ABBV), which is up 18% over the past year. AbbVie appears undervalued In an effort to determine the fair value of AbbVie's shares, we will be using the discounted cash flow, or DCF, model. | AbbVie appears undervalued In an effort to determine the fair value of AbbVie's shares, we will be using the discounted cash flow, or DCF, model. We arrive at a fair value for shares of AbbVie of $125.55 a share, which is moderately higher than its current share price of $112.55. Let's take a look at pharma giant AbbVie (NYSE: ABBV), which is up 18% over the past year. | AbbVie appears undervalued In an effort to determine the fair value of AbbVie's shares, we will be using the discounted cash flow, or DCF, model. Further, AbbVie's two oncology drugs, Imbruvica and Venclexta, saw sales climb 7.3% year over year to a combined $1.7 billion in Q1 2021. Let's take a look at pharma giant AbbVie (NYSE: ABBV), which is up 18% over the past year. |
24028.0 | 2021-06-29 00:00:00 UTC | New York takes Teva, McKesson, others to trial over opioids | ABBV | https://www.nasdaq.com/articles/new-york-takes-teva-mckesson-others-to-trial-over-opioids-2021-06-29 | nan | nan | By Brendan Pierson
NEW YORK, June 29 (Reuters) - New York will take Teva Pharmaceutical Industries TEVA.TA and other companies, including the nation's largest drug distributors, to trial on Tuesday, seeking to hold them liable for fueling an opioid crisis that has caused nearly half a million U.S. deaths over a decade.
The trial in Central Islip, New York, will mark the first time claims over the national opioid abuse and overdose epidemic go before a jury.
It will pit state Attorney General Letitia James and Suffolk and Nassau Counties against drugmakers Teva, Endo International ENDP.O and Abbvie Inc ABBV.N, as well as drug distributors AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N.
Another defendant in the case, drugmaker Johnson & Johnson JNJ.N, announced on Saturday it would pay $263 million to settle and avoid the trial.
New York and the counties claim that drug companies deceptively promoted opioids as safe, and that distributors ignored red flags that they were being diverted to illegal channels.
More than 3,000 lawsuits have been filed in the United States against drugmakers, distributors and pharmacies over the opioid epidemic, mostly by city, county and tribal governments.
Non-jury trials are already underway in cases brought against the four drugmakers by several counties in California, and against the three distributors by a city and county in West Virginia.
The New York counties had also sued pharmacy operators Walmart Inc WMT.N, Rite Aid Corp RAD.N and CVS Health Corp CVS.N, but they were dropped from the trial during jury selection earlier this month. CVS said it had settled, without disclosing terms, while Walmart and Rite Aid declined to comment.
J&J and the three distributors last year proposed paying a combined $26 billion to settle all opioid claims against them nationwide, but the deal has not been finalized.
The U.S. Centers for Disease Control and Prevention has said nearly 500,000 people died from opioid overdoses from 1999 to 2019.
(Reporting By Brendan Pierson in New York; Editing by Noeleen Walder and Bill Berkrot)
((Brendan.Pierson@thomsonreuters.com; 646-223-6017 (desk); 646-306-0235 (cell);))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It will pit state Attorney General Letitia James and Suffolk and Nassau Counties against drugmakers Teva, Endo International ENDP.O and Abbvie Inc ABBV.N, as well as drug distributors AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N. The trial in Central Islip, New York, will mark the first time claims over the national opioid abuse and overdose epidemic go before a jury. New York and the counties claim that drug companies deceptively promoted opioids as safe, and that distributors ignored red flags that they were being diverted to illegal channels. | It will pit state Attorney General Letitia James and Suffolk and Nassau Counties against drugmakers Teva, Endo International ENDP.O and Abbvie Inc ABBV.N, as well as drug distributors AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N. Another defendant in the case, drugmaker Johnson & Johnson JNJ.N, announced on Saturday it would pay $263 million to settle and avoid the trial. More than 3,000 lawsuits have been filed in the United States against drugmakers, distributors and pharmacies over the opioid epidemic, mostly by city, county and tribal governments. | It will pit state Attorney General Letitia James and Suffolk and Nassau Counties against drugmakers Teva, Endo International ENDP.O and Abbvie Inc ABBV.N, as well as drug distributors AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N. By Brendan Pierson NEW YORK, June 29 (Reuters) - New York will take Teva Pharmaceutical Industries TEVA.TA and other companies, including the nation's largest drug distributors, to trial on Tuesday, seeking to hold them liable for fueling an opioid crisis that has caused nearly half a million U.S. deaths over a decade. The New York counties had also sued pharmacy operators Walmart Inc WMT.N, Rite Aid Corp RAD.N and CVS Health Corp CVS.N, but they were dropped from the trial during jury selection earlier this month. | It will pit state Attorney General Letitia James and Suffolk and Nassau Counties against drugmakers Teva, Endo International ENDP.O and Abbvie Inc ABBV.N, as well as drug distributors AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N. Another defendant in the case, drugmaker Johnson & Johnson JNJ.N, announced on Saturday it would pay $263 million to settle and avoid the trial. Non-jury trials are already underway in cases brought against the four drugmakers by several counties in California, and against the three distributors by a city and county in West Virginia. |
24029.0 | 2021-06-29 00:00:00 UTC | Notable ETF Outflow Detected - XLV, PFE, ABBV, BMY | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-xlv-pfe-abbv-bmy-2021-06-29 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $138.5 million dollar outflow -- that's a 0.5% decrease week over week (from 222,520,000 to 221,420,000). Among the largest underlying components of XLV, in trading today Pfizer Inc (Symbol: PFE) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $98.13 per share, with $126.42 as the 52 week high point — that compares with a last trade of $126.18. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today Pfizer Inc (Symbol: PFE) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $138.5 million dollar outflow -- that's a 0.5% decrease week over week (from 222,520,000 to 221,420,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Pfizer Inc (Symbol: PFE) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $98.13 per share, with $126.42 as the 52 week high point — that compares with a last trade of $126.18. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of XLV, in trading today Pfizer Inc (Symbol: PFE) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $138.5 million dollar outflow -- that's a 0.5% decrease week over week (from 222,520,000 to 221,420,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $98.13 per share, with $126.42 as the 52 week high point — that compares with a last trade of $126.18. | Among the largest underlying components of XLV, in trading today Pfizer Inc (Symbol: PFE) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 0.1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $98.13 per share, with $126.42 as the 52 week high point — that compares with a last trade of $126.18. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). |
24030.0 | 2021-06-29 00:00:00 UTC | N.Y. jury urged to hold drugmakers liable for opioid crisis | ABBV | https://www.nasdaq.com/articles/n.y.-jury-urged-to-hold-drugmakers-liable-for-opioid-crisis-2021-06-29 | nan | nan | By Brendan Pierson
NEW YORK, June 29 (Reuters) - Teva Pharmaceutical Industries TEVA.TA, Endo International ENDP.O and Abbvie Inc's ABBV.N Allergan misleadingly marketed opioid drugs as having a low addiction risk, a lawyer for a New York county told jurors Tuesday, urging them to hold the companies liable.
Jayne Conroy, representing Suffolk County, also said that the drugmakers and the nation's largest drug distributors - AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N - failed to report suspicious opioid orders as required.
The U.S. Centers for Disease Control and Prevention has said nearly 500,000 people died from opioid overdoses in the United States from 1999 to 2019.
"Profits soared, and our communities were devastated," Conroy said.
"Manufacturers and distributors control the valve to stop the flood of opioids," she added. "They have their hands on this."
Suffolk is suing the companies alongside neighboring Nassau County and New York Attorney General Letitia James. The trial in Central Islip, New York, marks the first time governments' claims over the nationwide opioid crisis have gone before a jury.
Johnson & Johnson JNJ.N, which had been a defendant in the case, announced on Saturday it would pay $263 million to settle and avoid the trial. The healthcare company said the amount represented what it would pay New York under a $26 billion nationwide opioid settlement it proposed last year along with the three distributors that has not been finalized.
New York and the counties claim that drug companies deceptively promoted opioids as safe, and that distributors ignored red flags that massive amounts of the painkillers were being diverted to illegal channels.
More than 3,000 lawsuits have been filed in the United States against drugmakers, distributors and pharmacies over the opioid epidemic, mostly by city, county and tribal governments.
Non-jury trials are already underway in cases brought against the four drugmakers by several counties in California, and against the three distributors by a city and county in West Virginia.
The New York counties had also sued pharmacy operators Walmart Inc WMT.N, Rite Aid Corp RAD.N, CVS Health Corp CVS.N and Walgreens Boots Alliance Inc WBA.O, but they were dropped from the trial. CVS said it had settled, without disclosing terms, while Walmart and Rite Aid declined to comment. Walgreens could not immediately be reached for comment.
(Reporting By Brendan Pierson in New York; Editing by Noeleen Walder and Bill Berkrot)
((Brendan.Pierson@thomsonreuters.com; 646-223-6017 (desk); 646-306-0235 (cell);))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Brendan Pierson NEW YORK, June 29 (Reuters) - Teva Pharmaceutical Industries TEVA.TA, Endo International ENDP.O and Abbvie Inc's ABBV.N Allergan misleadingly marketed opioid drugs as having a low addiction risk, a lawyer for a New York county told jurors Tuesday, urging them to hold the companies liable. The healthcare company said the amount represented what it would pay New York under a $26 billion nationwide opioid settlement it proposed last year along with the three distributors that has not been finalized. New York and the counties claim that drug companies deceptively promoted opioids as safe, and that distributors ignored red flags that massive amounts of the painkillers were being diverted to illegal channels. | By Brendan Pierson NEW YORK, June 29 (Reuters) - Teva Pharmaceutical Industries TEVA.TA, Endo International ENDP.O and Abbvie Inc's ABBV.N Allergan misleadingly marketed opioid drugs as having a low addiction risk, a lawyer for a New York county told jurors Tuesday, urging them to hold the companies liable. Jayne Conroy, representing Suffolk County, also said that the drugmakers and the nation's largest drug distributors - AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N - failed to report suspicious opioid orders as required. More than 3,000 lawsuits have been filed in the United States against drugmakers, distributors and pharmacies over the opioid epidemic, mostly by city, county and tribal governments. | By Brendan Pierson NEW YORK, June 29 (Reuters) - Teva Pharmaceutical Industries TEVA.TA, Endo International ENDP.O and Abbvie Inc's ABBV.N Allergan misleadingly marketed opioid drugs as having a low addiction risk, a lawyer for a New York county told jurors Tuesday, urging them to hold the companies liable. Jayne Conroy, representing Suffolk County, also said that the drugmakers and the nation's largest drug distributors - AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N - failed to report suspicious opioid orders as required. The New York counties had also sued pharmacy operators Walmart Inc WMT.N, Rite Aid Corp RAD.N, CVS Health Corp CVS.N and Walgreens Boots Alliance Inc WBA.O, but they were dropped from the trial. | By Brendan Pierson NEW YORK, June 29 (Reuters) - Teva Pharmaceutical Industries TEVA.TA, Endo International ENDP.O and Abbvie Inc's ABBV.N Allergan misleadingly marketed opioid drugs as having a low addiction risk, a lawyer for a New York county told jurors Tuesday, urging them to hold the companies liable. The U.S. Centers for Disease Control and Prevention has said nearly 500,000 people died from opioid overdoses in the United States from 1999 to 2019. More than 3,000 lawsuits have been filed in the United States against drugmakers, distributors and pharmacies over the opioid epidemic, mostly by city, county and tribal governments. |
24031.0 | 2021-06-28 00:00:00 UTC | These 3 High-Dividend Stocks Have Cathie Wood's Seal of Approval | ABBV | https://www.nasdaq.com/articles/these-3-high-dividend-stocks-have-cathie-woods-seal-of-approval-2021-06-28 | nan | nan | Cathie Wood has become an investing sensation in recent years. As the founder of the ARK Invest family of exchange-traded funds , amazing returns in 2020 gave her a reputation for finding little-followed high-growth companies early in their existence and riding them to big long-term gains. Investors in her ARK Innovation ETF (NYSEMKT: ARKK) and other funds have reaped the rewards.
Given Wood's emphasis on high-growth sectors of the market, you might be surprised to learn that some of her choices for fund holdings actually carry impressive dividend yields. For most growing companies, returning capital to shareholders through dividend payments takes a backseat to reinvesting available money back into the business to grow it further. Nevertheless, below, we'll take a closer look at some of ARK Invest's high-dividend holdings to see why they're appealing both to growth and income investors.
Image source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) is perhaps the best-known dividend stock among the holdings of Cathie Wood's ETFs. The pharmaceutical company qualifies as a Dividend Aristocrat, as it has consistently boosted its annual payouts to shareholders since its spinoff from Abbott Laboratories (NYSE: ABT) in the early 2010s. Abbott itself maintained a long track record that goes back roughly half a century.
AbbVie isn't a huge holding for Wood, but her ARK Genomic Revolution ETF (NYSEMKT: ARKG) has about $60 million invested in the pharma company. That's roughly 0.66% of the fund's total assets.
With a market capitalization of $200 billion, AbbVie is big enough to make strategic acquisitions of significant companies in key areas that Wood sees as having high growth prospects. Those include long-read genomic sequencing, multi-cancer screening, and cell and gene therapies. AbbVie has already done considerable research and development on experimental cancer drugs using genomic analysis, and promising results suggest the company will make even more of an effort to move in that direction. Meanwhile, investors benefit from a dividend yield topping 4.5%.
Novartis
Novartis (NYSE: NVS) is also appealing to growth and income investors alike. The stock currently pays a dividend yield of 3.5%, but like AbbVie, the pharmaceutical company is looking into promising therapies that it hopes to use to come up with generations of future treatments to keep sales climbing over the long run.
Novartis is also a higher-conviction pick for Wood. You'll find its shares both in the Genomics ETF and in the flagship Innovation ETF, with total holdings combining to a nearly $380 million investment in the Swiss drugmaker. It's a top-10 holding in the Genomics ETF, making up more than 3% of total assets.
Novartis has done considerable work in the drug discovery realm, with efforts to use technology to build a digital data science platform. That makes the company somewhat of a pick-and-shovel play for Wood, as innovations that Novartis develops might end up proving useful to the other genomics-focused companies in which her ETFs invest.
Takeda Pharmaceuticals
Lastly, Takeda Pharmaceuticals (NYSE: TAK) plays a significant role in Wood's genomics-related positions. She's invested more than $250 million in the Japanese company, giving it a nearly 3% position in the Genomics ETF. It also boasts a dividend yield of nearly 5%, putting it in the upper echelon even among income investor-friendly pharma companies.
Takeda isn't a household name for many U.S. investors, but the company has concentrated its efforts lately on strategic acquisitions to bolster its R&D and drug pipeline capabilities. The Asian pharma giant has worked with major COVID-19 vaccine makers like Moderna (NASDAQ: MRNA) and Novavax (NASDAQ: NVAX) on the manufacturing and commercialization front, and it has also built up a stable of candidate treatments for cancer, liver disease, and other illnesses.
Of particular importance to Wood might be Takeda's leukemia drug Iclusig, as it fits well with her overall themes in the space. Takeda stock has lost significant value in recent years, and that makes Wood look a bit out of character as a buyer on attractive valuations as well as growth prospects.
Get paid with growth stocks
Most of the stocks you'll find in Cathie Wood's ARK Invest funds are plowing every penny of cash flow they get back into their respective companies. However, even dividend investors can find some attractive picks among Wood's favorites. Those seeking income would do well to take a closer look at Takeda, Novartis, and AbbVie.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With a market capitalization of $200 billion, AbbVie is big enough to make strategic acquisitions of significant companies in key areas that Wood sees as having high growth prospects. AbbVie has already done considerable research and development on experimental cancer drugs using genomic analysis, and promising results suggest the company will make even more of an effort to move in that direction. AbbVie AbbVie (NYSE: ABBV) is perhaps the best-known dividend stock among the holdings of Cathie Wood's ETFs. | AbbVie isn't a huge holding for Wood, but her ARK Genomic Revolution ETF (NYSEMKT: ARKG) has about $60 million invested in the pharma company. With a market capitalization of $200 billion, AbbVie is big enough to make strategic acquisitions of significant companies in key areas that Wood sees as having high growth prospects. AbbVie AbbVie (NYSE: ABBV) is perhaps the best-known dividend stock among the holdings of Cathie Wood's ETFs. | AbbVie AbbVie (NYSE: ABBV) is perhaps the best-known dividend stock among the holdings of Cathie Wood's ETFs. AbbVie isn't a huge holding for Wood, but her ARK Genomic Revolution ETF (NYSEMKT: ARKG) has about $60 million invested in the pharma company. With a market capitalization of $200 billion, AbbVie is big enough to make strategic acquisitions of significant companies in key areas that Wood sees as having high growth prospects. | AbbVie AbbVie (NYSE: ABBV) is perhaps the best-known dividend stock among the holdings of Cathie Wood's ETFs. AbbVie isn't a huge holding for Wood, but her ARK Genomic Revolution ETF (NYSEMKT: ARKG) has about $60 million invested in the pharma company. With a market capitalization of $200 billion, AbbVie is big enough to make strategic acquisitions of significant companies in key areas that Wood sees as having high growth prospects. |
24032.0 | 2021-06-26 00:00:00 UTC | J&J to pay $263 mln in New York opioid settlements, avoids trial | ABBV | https://www.nasdaq.com/articles/jj-to-pay-%24263-mln-in-new-york-opioid-settlements-avoids-trial-2021-06-26 | nan | nan | By Jonathan Stempel
NEW YORK, June 26 (Reuters) - Johnson & Johnson JNJ.N said on Saturday it will pay $263 million to resolve claims it fueled an opioid epidemic in New York state and two of its largest counties.
The settlements remove the drugmaker from a jury trial scheduled to begin on Tuesday on Long Island, where several big opioid makers and distributors are also defendants.
Johnson & Johnson did not admit liability or wrongdoing in settling with New York state, and with Nassau and Suffolk counties. The $229.9 million state settlement also calls for J&J to stop selling the painkillers nationwide.
“The opioid epidemic has wreaked havoc" across the nation, New York Attorney General Letitia James said in a statement. "Johnson & Johnson helped fuel this fire."
She said her focus remains "getting funds into communities devastated by opioids as quickly as possible."
J&J said the settlements were consistent with its prior agreement to pay $5 billion to settle opioid claims by states, cities, counties and tribal governments nationwide.
The healthcare company and the largest U.S. drug distributors - AmerisourceBergen Corp ABC.N, Cardinal Health Inc CAH.N and McKesson Corp MCK.N - have proposed paying a combined $26 billion to end thousands of opioid lawsuits.
J&J has also been appealing an Oklahoma judge's 2019 ruling that the New Brunswick, New Jersey-based company pay that state $465 million for its deceptive marketing of opioids.
Tuesday's opioids trial is one of several scheduled for this year, with others underway in California and West Virginia.
Drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA and several distributors are among the defendants. Pharmacy chain Walgreens Boots Alliance Inc WBA.O is also a defendant, though it was sued only by the counties.
Walmart Inc WMT.N, Rite Aid Corp RAD.N and CVS Health Corp CVS.N were severed from the trial during jury selection. CVS has settled with Nassau and Suffolk counties. Settlement terms have not been disclosed.
The U.S. Centers for Disease Control and Prevention has said nearly 500,000 people died from opioid overdoses from 1999 to 2019.
(Reporting by Jonathan Stempel in New York; Additional reporting by Nate Raymond in Boston; Editing by Bill Berkrot)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA and several distributors are among the defendants. The settlements remove the drugmaker from a jury trial scheduled to begin on Tuesday on Long Island, where several big opioid makers and distributors are also defendants. J&J said the settlements were consistent with its prior agreement to pay $5 billion to settle opioid claims by states, cities, counties and tribal governments nationwide. | Drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA and several distributors are among the defendants. By Jonathan Stempel NEW YORK, June 26 (Reuters) - Johnson & Johnson JNJ.N said on Saturday it will pay $263 million to resolve claims it fueled an opioid epidemic in New York state and two of its largest counties. Johnson & Johnson did not admit liability or wrongdoing in settling with New York state, and with Nassau and Suffolk counties. | Drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA and several distributors are among the defendants. By Jonathan Stempel NEW YORK, June 26 (Reuters) - Johnson & Johnson JNJ.N said on Saturday it will pay $263 million to resolve claims it fueled an opioid epidemic in New York state and two of its largest counties. The settlements remove the drugmaker from a jury trial scheduled to begin on Tuesday on Long Island, where several big opioid makers and distributors are also defendants. | Drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA and several distributors are among the defendants. By Jonathan Stempel NEW YORK, June 26 (Reuters) - Johnson & Johnson JNJ.N said on Saturday it will pay $263 million to resolve claims it fueled an opioid epidemic in New York state and two of its largest counties. The settlements remove the drugmaker from a jury trial scheduled to begin on Tuesday on Long Island, where several big opioid makers and distributors are also defendants. |
24033.0 | 2021-06-25 00:00:00 UTC | Friday Sector Laggards: Energy, Healthcare | ABBV | https://www.nasdaq.com/articles/friday-sector-laggards%3A-energy-healthcare-2021-06-25 | nan | nan | The worst performing sector as of midday Friday is the Energy sector, higher by 0.2%. Within that group, APA Corp (Symbol: APA) and Devon Energy Corp. (Symbol: DVN) are two large stocks that are lagging, showing a loss of 1.1% and 0.6%, respectively. Among energy ETFs, one ETF following the sector is the Energy Select Sector SPDR ETF (Symbol: XLE), which is flat on the day on the day, and up 48.06% year-to-date. APA Corp, meanwhile, is up 55.46% year-to-date, and Devon Energy Corp. is up 91.02% year-to-date. Combined, APA and DVN make up approximately 2.7% of the underlying holdings of XLE.
The next worst performing sector is the Healthcare sector, higher by 0.3%. Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Organon & Co (Symbol: OGN) are the most notable, showing a loss of 1.7% and 1.5%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is up 0.2% in midday trading, and up 11.32% on a year-to-date basis. AbbVie Inc, meanwhile, is up 7.68% year-to-date, and Organon & Co, is down 11.85% year-to-date. Combined, ABBV and OGN make up approximately 4.4% of the underlying holdings of XLV.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Friday. As you can see, nine sectors are up on the day, while none of the sectors are down.
SECTOR % CHANGE
Consumer Products +1.1%
Financial +1.0%
Services +0.7%
Utilities +0.7%
Materials +0.6%
Technology & Communications +0.4%
Industrial +0.4%
Healthcare +0.3%
Energy +0.2%
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Organon & Co (Symbol: OGN) are the most notable, showing a loss of 1.7% and 1.5%, respectively. AbbVie Inc, meanwhile, is up 7.68% year-to-date, and Organon & Co, is down 11.85% year-to-date. Combined, ABBV and OGN make up approximately 4.4% of the underlying holdings of XLV. | Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Organon & Co (Symbol: OGN) are the most notable, showing a loss of 1.7% and 1.5%, respectively. AbbVie Inc, meanwhile, is up 7.68% year-to-date, and Organon & Co, is down 11.85% year-to-date. Combined, ABBV and OGN make up approximately 4.4% of the underlying holdings of XLV. | Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Organon & Co (Symbol: OGN) are the most notable, showing a loss of 1.7% and 1.5%, respectively. AbbVie Inc, meanwhile, is up 7.68% year-to-date, and Organon & Co, is down 11.85% year-to-date. Combined, ABBV and OGN make up approximately 4.4% of the underlying holdings of XLV. | Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Organon & Co (Symbol: OGN) are the most notable, showing a loss of 1.7% and 1.5%, respectively. AbbVie Inc, meanwhile, is up 7.68% year-to-date, and Organon & Co, is down 11.85% year-to-date. Combined, ABBV and OGN make up approximately 4.4% of the underlying holdings of XLV. |
24034.0 | 2021-06-25 00:00:00 UTC | Notable Friday Option Activity: PENN, ABBV, BAC | ABBV | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-penn-abbv-bac-2021-06-25 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Penn National Gaming Inc (Symbol: PENN), where a total of 21,776 contracts have traded so far, representing approximately 2.2 million underlying shares. That amounts to about 60.2% of PENN's average daily trading volume over the past month of 3.6 million shares. Particularly high volume was seen for the $80 strike call option expiring July 02, 2021, with 1,692 contracts trading so far today, representing approximately 169,200 underlying shares of PENN. Below is a chart showing PENN's trailing twelve month trading history, with the $80 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 39,419 contracts thus far today. That number of contracts represents approximately 3.9 million underlying shares, working out to a sizeable 60.1% of ABBV's average daily trading volume over the past month, of 6.6 million shares. Particularly high volume was seen for the $110 strike put option expiring July 02, 2021, with 6,622 contracts trading so far today, representing approximately 662,200 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange:
And Bank of America Corp (Symbol: BAC) options are showing a volume of 231,108 contracts thus far today. That number of contracts represents approximately 23.1 million underlying shares, working out to a sizeable 50.2% of BAC's average daily trading volume over the past month, of 46.0 million shares. Especially high volume was seen for the $41 strike call option expiring June 25, 2021, with 14,245 contracts trading so far today, representing approximately 1.4 million underlying shares of BAC. Below is a chart showing BAC's trailing twelve month trading history, with the $41 strike highlighted in orange:
For the various different available expirations for PENN options, ABBV options, or BAC options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $110 strike put option expiring July 02, 2021, with 6,622 contracts trading so far today, representing approximately 662,200 underlying shares of ABBV. Below is a chart showing PENN's trailing twelve month trading history, with the $80 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 39,419 contracts thus far today. That number of contracts represents approximately 3.9 million underlying shares, working out to a sizeable 60.1% of ABBV's average daily trading volume over the past month, of 6.6 million shares. | Below is a chart showing PENN's trailing twelve month trading history, with the $80 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 39,419 contracts thus far today. That number of contracts represents approximately 3.9 million underlying shares, working out to a sizeable 60.1% of ABBV's average daily trading volume over the past month, of 6.6 million shares. Particularly high volume was seen for the $110 strike put option expiring July 02, 2021, with 6,622 contracts trading so far today, representing approximately 662,200 underlying shares of ABBV. | That number of contracts represents approximately 3.9 million underlying shares, working out to a sizeable 60.1% of ABBV's average daily trading volume over the past month, of 6.6 million shares. Below is a chart showing PENN's trailing twelve month trading history, with the $80 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 39,419 contracts thus far today. Particularly high volume was seen for the $110 strike put option expiring July 02, 2021, with 6,622 contracts trading so far today, representing approximately 662,200 underlying shares of ABBV. | Particularly high volume was seen for the $110 strike put option expiring July 02, 2021, with 6,622 contracts trading so far today, representing approximately 662,200 underlying shares of ABBV. Below is a chart showing BAC's trailing twelve month trading history, with the $41 strike highlighted in orange: For the various different available expirations for PENN options, ABBV options, or BAC options, visit StockOptionsChannel.com. Below is a chart showing PENN's trailing twelve month trading history, with the $80 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 39,419 contracts thus far today. |
24035.0 | 2021-06-25 00:00:00 UTC | Forget Dogecoin: These Dogs of the Dow Are More Likely to Make You Rich | ABBV | https://www.nasdaq.com/articles/forget-dogecoin%3A-these-dogs-of-the-dow-are-more-likely-to-make-you-rich-2021-06-25 | nan | nan | There are many different investment strategies. Until recently, buying a cryptocurrency started as a joke wouldn't have been on the list. Yet, Dogecoin (CRYPTO: DOGE) continues to garner attention despite falling 65% from its high. It's entertaining, but those looking to build wealth might be barking up the wrong tree.
Another approach is to buy high-yielding dividend stocks. The ones in the Dow Jones Industrial Average (DJINDICES: ^DJI) with the largest payouts are often referred to as the "Dogs of the Dow." Two of these -- Walgreens Boots Alliance (NASDAQ: WBA) and Merck (NYSE: MRK) -- could give your portfolio a lot more bite if left to compound over time. Digging in reveals how.
Image source: Getty Images.
1. Walgreens Boots Alliance
Most people are familiar with Walgreens' more than 9,000 retail pharmacies in the U.S. They may not know that the company has one of the largest pharmacy distribution networks in the world. It's made up of 425 distribution centers delivering to more than 25,000 locations across 20 countries. About three-fourths of the company's U.S. revenue came from that segment of the business. Globally, Walgreens generated about $140 billion in sales. That scale means it doesn't grow very fast, but it does generate a lot of free cash flow -- more than $4.1 billion last year, even during a pandemic. It gives a lot of that back to shareholders.
The company pays a little less than $0.47 per share each quarter, amounting to a 3.6% dividend yield. It has raised the payout for an impressive 45 consecutive years. It can be hard to think about the distant future when you're young, but those who bought and held the stock 30 years ago have turned every $1,000 into nearly $60,000. It won't generate that kind of return over the next three decades, but management is continuing to plan for the future. It's investing in automating pharmacy operations, embracing e-commerce, and launching its own branded financial services. For investors who want to fetch respectable gains, Walgreens might be a great addition to a portfolio.
2. Merck
Merck is a global pharmaceutical company best known for its asthma drug Singulair -- which went off-patent nearly a decade ago -- and cancer therapy Keytruda. The latter is one of the best-selling drugs globally, bringing in $14.4 billion in 2020. That was second to AbbVie's Humira. Keytruda is most commonly used to treat skin cancer, but has picked up approvals from the Food and Drug Administration over the years for various cancers like esophageal, lung, head and neck, and others. The drug accounted for 30% of the company's revenue last year. Keytruda's sales have grown quickly from just $1.4 billion in 2016 and it isn't done yet. The drug continues to march through clinical trials toward approval to treat other forms of cancer.
Merck sports a 3.4% dividend yield, distributing $0.65 per share each quarter. All told, it returned $7.5 billion to shareholders in fiscal year 2020, counting both dividends and share repurchases. That amounted to a roughly 4% total yield. The company has only been increasing the dividend since 2012, but an investor who bought $1,000 worth of stock back then would have about $2,100 today.
Merck will look a little different going forward. Its CEO for the past ten years, Ken Frazier, is retiring. Management has also spun out its women's health business, along with off-patent drugs and biosimilars, as Organon (NYSE: OGN). This spinoff allows it to focus on lucrative cancer therapies. Overall, the company has 23 programs in phase 3 trials and expects sales growth of between 8% and 12% this year. For those seeking stability and yield, the stock is worth a look. The combination of dividends and top-line growth make for an investment that isn't likely to chew up your returns.
10 stocks we like better than Merck & Co.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That was second to AbbVie's Humira. Two of these -- Walgreens Boots Alliance (NASDAQ: WBA) and Merck (NYSE: MRK) -- could give your portfolio a lot more bite if left to compound over time. That scale means it doesn't grow very fast, but it does generate a lot of free cash flow -- more than $4.1 billion last year, even during a pandemic. | That was second to AbbVie's Humira. Two of these -- Walgreens Boots Alliance (NASDAQ: WBA) and Merck (NYSE: MRK) -- could give your portfolio a lot more bite if left to compound over time. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | That was second to AbbVie's Humira. Merck Merck is a global pharmaceutical company best known for its asthma drug Singulair -- which went off-patent nearly a decade ago -- and cancer therapy Keytruda. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Merck & Co. wasn't one of them! | That was second to AbbVie's Humira. Merck Merck is a global pharmaceutical company best known for its asthma drug Singulair -- which went off-patent nearly a decade ago -- and cancer therapy Keytruda. 10 stocks we like better than Merck & Co. |
24036.0 | 2021-06-25 00:00:00 UTC | 3 High-Yield Stocks With Secure Payouts | ABBV | https://www.nasdaq.com/articles/3-high-yield-stocks-with-secure-payouts-2021-06-25 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The S&P 500 has nearly doubled off its bottom last year and has climbed to new all-time highs. As a result, it has become challenging for investors to identify reasonably valued stocks with high dividend yields. In the current environment, many high-dividend stocks do not offer secure dividends, and their high yields are simply the result of a crashing share price.
When a stock offers a high dividend yield, investors should perform their due diligence before purchasing the stock. Otherwise, they run the risk of incurring a dividend cut.
Therefore, investors should be selective when it comes to high dividend stocks.
The three stocks we want to talk about today all have high yields and sustainable dividends, thanks to their unique competitive advantages and reasonable payout ratios.
9 Oil & Gas Stocks to Buy to Play Rising Energy Prices
The high yielders that we believe have secure dividend payouts are:
Altria Group (NYSE:MO)
AbbVie Inc. (NYSE:ABBV)
Enbridge Inc. (NYSE:ENB)
Dividend Stocks: Altria Group (MO)
MO) logo" width="300" height="169">
Source: Kristi Blokhin / Shutterstock.com
Altria sells cigarettes, chewing tobacco, cigars, e-cigarettes and wine under the Marlboro, Skoal, Copenhagen, and St. Michelle brands, among others. The company has also tried to diversify away from its flagship tobacco products as it has a 10% equity stake in Anheuser-Busch InBev (NYSE:BUD), a 35% stake in e-cigarette maker JUUL, and a 45% stake in the marijuana company Cronos Group (NASDAQ:CRON).
Altria has always faced a negative secular trend, namely the slowly declining percent of population that smokes. However, thanks to the inelastic demand for its products, the tobacco giant has been able to raise its prices at a much faster pace. As a result, it has grown its earnings per share at an 11.5% annual growth rate over the last decade. This is an impressive growth rate for a company whose volume sales have been under pressure.
In recent years, Altria has been facing intense competition from e-cigarettes, which have been gaining market share in the industry. In order to address this threat, Altria acquired that 35% stake in JUUL, the leader of this market. However, the company made that acquisition at the peak of the euphoria of the investing community over the growth potential of JUUL and thus Altria overpaid for that deal.
Even worse, the regulatory authorities have greatly restricted the marketing efforts of JUUL since then. As a result, Altria recently valued its stake in JUUL at a price that was 88% lower than the price it paid for it. Moreover, there is an ongoing trial, which may eventually force Altria to divest its stake in JUUL due to anti-trust issues. These negative developments have exerted pressure on the stock of Altria and thus the stock is now offering an exceptionally high dividend yield of 7.3%.
The flagship brand of Altria, Marlboro, has maintained a market share around 40%, despite the intense competition. Moreover, Altria has invested $1.8 billion in marijuana company Cronos while it is also trying to expand the reach of its own e-cigarette brand IQOS.
In the near term, the company should still generate enough cash flow to maintain its high dividend payout. Thanks to its consistent earnings growth and its excessive free cash flows, Altria has raised its dividend for 50 consecutive years. This is by far the longest dividend growth streak in the tobacco industry and places Altria in the group of Dividend Kings.
The company has a target dividend payout ratio of 80%, which means its 7.3% dividend should be considered secure.
AbbVie Inc. (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
AbbVie is a biotechnology company focused on developing and commercializing drugs for immunology, oncology and virology. It was spun off by Abbott Laboratories (NYSE:ABT) in 2013.
AbbVie has a short record as a standalone company but its business performance has been nothing short of impressive. Since the spin-off, the pharmaceutical giant has more than tripled its earnings per share, from $3.14 in 2013 to $10.56 in 2020. Even in 2020, which was marked by the fierce global recession due to the pandemic, AbbVie grew its earnings per share 18%.
Even better, AbbVie does not rest on its laurels. Instead, it continuously tries to identify new growth drivers. To this end, AbbVie acquired Allergan for $63 billion last year. As this amount is nearly one-third of the current market capitalization of AbbVie, this acquisition will obviously be a major growth driver in the upcoming years. The U.S. toxins market grew 30% in the first quarter of this year and has many years of strong growth ahead.
AbbVie is currently offering a 4.5% dividend yield. The reason behind the high yield is the expected expiration of the patent of Humira in the U.S. in 2023. Humira, a drug used in the treatment of rheumatoid arthritis, is the flagship drug of AbbVie. This has kept the stock trading at a persistently low valuation.
To be sure, Humira generated 43% of the total revenue of the company last year. The market appearse concerned over the expiration of the patent. However, AbbVie has done its best to ensure for a smooth transition after the expiration of the patent in the U.S. The company has two other auto-immune drugs in its portfolio, Rinvoq and Skyrizi. These two drugs are likely to make up for a significant portion of the expected losses in Humira revenue once it loses patent exclusivity.
7 Growth Stocks to Buy and Hold for a Golden Retirement
Moreover, investors should note that AbbVie stock features that 4.5% dividend with a relatively low payout ratio of 42%, which provides a wide margin of safety for the dividend. Given the solid balance sheet of AbbVie and its resilience to recessions, the dividend should continue to grow each year.
Dividend Stocks: Enbridge Inc. (ENB)
Source: bht2000 / Shutterstock.com
Enbridge is a midstream oil and gas company headquartered in Canada and operates in four segments: Liquids Pipelines, Gas Transmission, Gas Distribution and Green Power. Through its immense pipeline networks, the company transports approximately 25% of North America’s crude oil and 20% of the natural gas used in the U.S. It is also the largest distributor of natural gas in the U.S. by annual volumes.
Enbridge has grown its dividend (in CAD) for 26 consecutive years, at a 10% average annual rate. Given the boom-and-bust cycles of the energy sector, which are caused by the dramatic swings of commodity prices, the dividend growth record of Enbridge is certainly impressive.
Enbridge is one of the most resilient oil companies to recessions thanks to its robust business model. The company has a toll-like, fee-based business model, which involves charging fees to customers for the products they transport through the networks of Enbridge. As the contracts have minimum-volume requirements, Enbridge enjoys reliable cash flows even under adverse business conditions, when its customers transport low volumes.
The merits of the business model of Enbridge were on full display last year. The coronavirus crisis caused one of the fiercest downturns in the history of the energy market. The price of oil went into deep negative territory for the first time in history. Given also the collapse in the demand for oil products, it is only natural that most oil companies incurred excessive losses last year.
On the contrary, Enbridge was one of the extremely few oil and gas companies that grew their distributable cash flow per share. It grew its bottom line by 2% last year and is on track to grow its bottom line by another 1%-7% this year, primarily thanks to the contribution of new growth projects.
Enbridge is currently offering a 6.9% dividend yield. The company has a healthy payout ratio of 69% and is likely to continue growing its distributable cash flow thanks to its promising pipeline of growth projects.
On the date of publication, Bob Ciura was long ABBV. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
The post 3 High-Yield Stocks With Secure Payouts appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 9 Oil & Gas Stocks to Buy to Play Rising Energy Prices The high yielders that we believe have secure dividend payouts are: Altria Group (NYSE:MO) AbbVie Inc. (NYSE:ABBV) Enbridge Inc. (NYSE:ENB) Dividend Stocks: Altria Group (MO) MO) logo" width="300" height="169"> Source: Kristi Blokhin / Shutterstock.com Altria sells cigarettes, chewing tobacco, cigars, e-cigarettes and wine under the Marlboro, Skoal, Copenhagen, and St. Michelle brands, among others. AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a biotechnology company focused on developing and commercializing drugs for immunology, oncology and virology. AbbVie has a short record as a standalone company but its business performance has been nothing short of impressive. | 9 Oil & Gas Stocks to Buy to Play Rising Energy Prices The high yielders that we believe have secure dividend payouts are: Altria Group (NYSE:MO) AbbVie Inc. (NYSE:ABBV) Enbridge Inc. (NYSE:ENB) Dividend Stocks: Altria Group (MO) MO) logo" width="300" height="169"> Source: Kristi Blokhin / Shutterstock.com Altria sells cigarettes, chewing tobacco, cigars, e-cigarettes and wine under the Marlboro, Skoal, Copenhagen, and St. Michelle brands, among others. AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a biotechnology company focused on developing and commercializing drugs for immunology, oncology and virology. AbbVie has a short record as a standalone company but its business performance has been nothing short of impressive. | 9 Oil & Gas Stocks to Buy to Play Rising Energy Prices The high yielders that we believe have secure dividend payouts are: Altria Group (NYSE:MO) AbbVie Inc. (NYSE:ABBV) Enbridge Inc. (NYSE:ENB) Dividend Stocks: Altria Group (MO) MO) logo" width="300" height="169"> Source: Kristi Blokhin / Shutterstock.com Altria sells cigarettes, chewing tobacco, cigars, e-cigarettes and wine under the Marlboro, Skoal, Copenhagen, and St. Michelle brands, among others. 7 Growth Stocks to Buy and Hold for a Golden Retirement Moreover, investors should note that AbbVie stock features that 4.5% dividend with a relatively low payout ratio of 42%, which provides a wide margin of safety for the dividend. AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a biotechnology company focused on developing and commercializing drugs for immunology, oncology and virology. | 9 Oil & Gas Stocks to Buy to Play Rising Energy Prices The high yielders that we believe have secure dividend payouts are: Altria Group (NYSE:MO) AbbVie Inc. (NYSE:ABBV) Enbridge Inc. (NYSE:ENB) Dividend Stocks: Altria Group (MO) MO) logo" width="300" height="169"> Source: Kristi Blokhin / Shutterstock.com Altria sells cigarettes, chewing tobacco, cigars, e-cigarettes and wine under the Marlboro, Skoal, Copenhagen, and St. Michelle brands, among others. AbbVie is currently offering a 4.5% dividend yield. AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a biotechnology company focused on developing and commercializing drugs for immunology, oncology and virology. |
24037.0 | 2021-06-25 00:00:00 UTC | AbbVie Inc. (NYSE:ABBV) is Finding Balance between Dividends and Growth | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-nyse%3Aabbv-is-finding-balance-between-dividends-and-growth-2021-06-25 | nan | nan | By Goran Damchevski
This article was originally published on Simply Wall St News
AbbVie Inc. ( NYSE:ABBV ) is a large international pharmaceutical company.
AbbVie has six major focus areas including: immunology, oncology, neuroscience, eye care, virology, aesthetics. They have a strong and diversified pipeline of products that are in various stages of development and FDA approval.
Analysts covering AbbVie are taking into account the new potential that was visible from their last 12-month revenue growth of 47%. They are estimating the selling power from current and future projects and forecast a peak of revenues at the end of 2022 with US$ 59b.
This means that the company has enough diversified pharmaceutical assets in their pipeline and current portfolio that will allow it to grow and generate larger cashflow until the beginning of 2023, after which it is projected to stabilize.
This brings us to the returns for shareholders. In the last 12 months AbbVie stock has generated a return of 17%, but when we count in dividends, the return increases to 22.9%.
This is a significant portion of returns that we can attribute to dividends, and it is why we are going to focus on analyzing the dividend outlook for AbbVie.
Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
In this case, AbbVie likely looks attractive to dividend investors, given its 4.6% dividend yield and eight-year payment history.
There are a few simple ways to understand the risks of buying AbbVie for its dividend, and we'll go through these below.
Explore this interactive chart for our latest analysis on AbbVie!
NYSE:ABBV Historic Dividend, June 2021
Payout Ratios
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut.
So we need to assess if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 169% of AbbVie's profits were paid out as dividends in the last 12 months. Unless this is an exception, a payout ratio of above 100% is definitely a concern.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. AbbVie paid out 47% of its free cash flow as dividends last year. It's good to see that while AbbVie's dividends were not covered by profits, at least they are affordable from a cash perspective.
Still, if the company repeatedly paid a dividend greater than its profits, we'd be concerned.
Remember, you can always get a snapshot of AbbVie's latest financial position, by checking our visualisation of its financial health.
Dividend Volatility
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend.
Looking at the last decade of data, we can see that AbbVie paid its first dividend at least eight years ago, and it has been stable ever since, which is great to see.
During the past eight-year period, the first annual payment was US$1.6 in 2013, compared to US$5.2 last year. This works out to be a compound annual growth rate (CAGR) of approximately 16% a year over that time.
The dividend has been growing pretty quickly, which could be enough to get us interested, even though the dividend history is relatively short.
Dividend Growth Potential
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend.
Over the past five years, it looks as though AbbVie's EPS have declined at around 2.6% a year. This is not a large decline, but if earnings continue to decline, the dividend may come under pressure.
Conclusion
To summarize, shareholders should always check if AbbVie's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.
The high payout ratio of 169% is very concerning, although at least the dividend was covered by free cash flow.
The redeeming quality is the high revenue growth demonstrated by AbbVie in the last 12 months. This is a signal that they have not exhausted their earnings capacity and may be able to make up for the lack of coverage by profits with future growth or setting a more reliable dividend per share.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one.
Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 4 warning signs for AbbVie that investors should know about before committing capital to this stock.
Looking for more high-yielding dividend ideas? Try our curated list of dividend stocks with a yield above 3%.
Simply Wall St analyst Goran Damchevski and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Goran Damchevski This article was originally published on Simply Wall St News AbbVie Inc. ( NYSE:ABBV ) is a large international pharmaceutical company. AbbVie has six major focus areas including: immunology, oncology, neuroscience, eye care, virology, aesthetics. Analysts covering AbbVie are taking into account the new potential that was visible from their last 12-month revenue growth of 47%. | By Goran Damchevski This article was originally published on Simply Wall St News AbbVie Inc. ( NYSE:ABBV ) is a large international pharmaceutical company. NYSE:ABBV Historic Dividend, June 2021 Payout Ratios Companies (usually) pay dividends out of their earnings. AbbVie has six major focus areas including: immunology, oncology, neuroscience, eye care, virology, aesthetics. | Conclusion To summarize, shareholders should always check if AbbVie's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. By Goran Damchevski This article was originally published on Simply Wall St News AbbVie Inc. ( NYSE:ABBV ) is a large international pharmaceutical company. AbbVie has six major focus areas including: immunology, oncology, neuroscience, eye care, virology, aesthetics. | By Goran Damchevski This article was originally published on Simply Wall St News AbbVie Inc. ( NYSE:ABBV ) is a large international pharmaceutical company. AbbVie has six major focus areas including: immunology, oncology, neuroscience, eye care, virology, aesthetics. Analysts covering AbbVie are taking into account the new potential that was visible from their last 12-month revenue growth of 47%. |
24038.0 | 2021-06-23 00:00:00 UTC | Best Dividend Stocks To Buy Today? 3 To Watch Before July 2021 | ABBV | https://www.nasdaq.com/articles/best-dividend-stocks-to-buy-today-3-to-watch-before-july-2021-2021-06-23 | nan | nan | Check Out These 3 Top Dividend Stocks This Week
As the stock market recovers from a rough week of trading, some investors may be looking towards more defensive stocks now. In this case, dividend stocks would be among the viable plays now. Why? Simply put, this group of stocks can provide investors with recurring income in the form of dividends. Sure, they may not see massive gains like high volatility stocks today. But, some would argue that dividends provide a safe haven for investors amidst volatile times. This would especially be the case as the red-hot crypto market recently received a massive regulatory blow in China.
Now, when it comes to dividend investing, there are numerous factors to consider. For the most part, investors would tend to look at dividend stocks that provide higher dividend yields. This would usually be where big industry leads such as Merck & Co (NYSE: MRK) and Universal (NYSE: UVV) come into play. Alternatively, more adventurous investors would prefer betting on high-growth companies who also dish out dividends, albeit at lower rates. In this respect, you have tech giants like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) in the stock market today.
By and large, there is no shortage of variety among dividend stocks in the current market. Likewise, there could also be many reasons for investors to consider adding some of the best dividend stocks to their portfolios. Whether it is for the sake of diversification or more consistent returns, dividend stocks have plenty to offer. Having read all of this, you might be keen on this group of stocks. If so, here are three dividend-paying stocks in the spotlight now.
Top Dividend Stocks To Buy [Or Avoid] Now
AbbVie Inc. (NYSE: ABBV)
Brookfield Renewable Partners (NYSE: BEP)
Exxon Mobil Corporation (NYSE: XOM)
AbbVie Inc.
AbbVie is a health care company that delivers innovative medicines. Its key therapeutic areas include immunology, oncology, neuroscience, and virology among others. In essence, the company combines advanced science and expertise to solve the world’s most serious health issues. ABBV stock has been up by over 30% since November.
Last week, the company announced a quarterly cash dividend of $1.30 per share. The cash dividend will be payable on August 16, 2021, to stockholders of record at the close of business on July 15, 2021. Since the company’s inception in 2013, AbbVie has increased its dividend by 225%. It has also announced that it has submitted applications to the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA), seeking approval for Skyrizi, for the treatment of adults with active psoriatic arthritis.
In late April, the company also reported its first-quarter financials. In it, AbbVie posted worldwide GAAP net revenues of $13.01 billion, an increase of 51% on a reported basis. A chunk of this net revenue came from its immunology portfolio, at $5.74 billion, an increase of 12.9% year-over-year. The company also posted diluted earnings per share of $1.99 on a GAAP basis. Given the impressive financials, the company is off to an excellent start this year and continues to enjoy strong performance across its core therapeutic areas. AbbVie also says that its first-quarter revenue and earnings results are ahead of its expectations. With that in mind, will you consider adding ABBV stock to your portfolio?
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Brookfield Renewable Partners LP
Brookfield is a dividend stock that operates one of the world’s largest publicly traded renewable power platforms. Impressively, its portfolio consists of approximately 21,000 MW of capacity and nearly 6,000 generating facilities across the globe. Its investment objectives are to deliver long-term annualized total returns of 12% to 15%. BEP stock has been up by over 40% in the last year.
In May, the company reported stellar first-quarter financials. Impressively, its long-term average generation for the quarter was 14,099 GWh. It also generated funds from operation (FFO) of $242 million, a 21% increase on a normalized per unit basis year-over-year. IT also signed 29 agreements for approximately 2,300 GWh of renewable generation with corporate off-takers across all major industries. This includes many of the largest counterparties by market capitalization in the world. The company also declared a dividend of $0.30375 per share, which will be payable on June 30, 2021.
Connor Teskey, CEO of Brookfield Renewable had this to say, “The tailwinds for renewables are accelerating as governments and businesses around the world are intensifying their focus on decarbonization. Given our global scale, operational depth, and financial strength, we remain uniquely positioned to participate in the accelerating build-out of renewables that will impact all sectors of the economy.” Given these impressive financials, will you consider BEP stock a top dividend stock to buy?
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Best Quantum Computing Stock To Buy Now? 4 To Know
Exxon Mobil Corporation
Another dividend-paying company to consider now would be Exxon Mobil (XOM). In brief, the Texas-based company primarily operates in the oil and gas industry. In terms of scale, XOM is one of the largest publicly traded international energy companies in the industry. According to the company, it also boasts an industry-leading portfolio. The likes of which make it one of the largest refiners and marketers of petroleum and chemical products globally.
If anything, as demand for its products, rises amidst the economy reopening, investors could be eyeing XOM stock now. Evidently, XOM stock is currently sitting on gains of over 50% year-to-date. While all this is great news for XOM, the company does not seem to be slowing down anytime soon. Earlier this month, XOM announced the discovery of yet another high-quality hydrocarbon-bearing reservoir below its original Longtail-1 well. Senior VP Mike Cousins appears to be optimistic about XOM’s performance moving forward on this news. According to Cousins, this news, along with other discoveries further supplements the company’s “high-potential development opportunities” at offshore Guyana.
If all that wasn’t enough, the company also reported solid figures in its recent quarter fiscal posted back in April. In it, XOM raked in total revenue of $57.67 billion. Moreover, the company also saw massive year-over-year surges of 547% in net income and 557% in earnings per share. All things considered, would XOM stock be a top buy for you now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Dividend Stocks To Buy [Or Avoid] Now AbbVie Inc. (NYSE: ABBV) Brookfield Renewable Partners (NYSE: BEP) Exxon Mobil Corporation (NYSE: XOM) AbbVie Inc. AbbVie is a health care company that delivers innovative medicines. ABBV stock has been up by over 30% since November. Since the company’s inception in 2013, AbbVie has increased its dividend by 225%. | Top Dividend Stocks To Buy [Or Avoid] Now AbbVie Inc. (NYSE: ABBV) Brookfield Renewable Partners (NYSE: BEP) Exxon Mobil Corporation (NYSE: XOM) AbbVie Inc. AbbVie is a health care company that delivers innovative medicines. In it, AbbVie posted worldwide GAAP net revenues of $13.01 billion, an increase of 51% on a reported basis. ABBV stock has been up by over 30% since November. | Top Dividend Stocks To Buy [Or Avoid] Now AbbVie Inc. (NYSE: ABBV) Brookfield Renewable Partners (NYSE: BEP) Exxon Mobil Corporation (NYSE: XOM) AbbVie Inc. AbbVie is a health care company that delivers innovative medicines. ABBV stock has been up by over 30% since November. Since the company’s inception in 2013, AbbVie has increased its dividend by 225%. | Top Dividend Stocks To Buy [Or Avoid] Now AbbVie Inc. (NYSE: ABBV) Brookfield Renewable Partners (NYSE: BEP) Exxon Mobil Corporation (NYSE: XOM) AbbVie Inc. AbbVie is a health care company that delivers innovative medicines. ABBV stock has been up by over 30% since November. Since the company’s inception in 2013, AbbVie has increased its dividend by 225%. |
24039.0 | 2021-06-22 00:00:00 UTC | 2 Dividend Stocks That Could Be Paying You 10% Within 5 Years | ABBV | https://www.nasdaq.com/articles/2-dividend-stocks-that-could-be-paying-you-10-within-5-years-2021-06-22 | nan | nan | Income investors often shy away from high-yielding dividend stocks because of the risk. If a stock is paying 10% or more, it's not likely that the dividend will remain at that yield for too long. But if you are patient, it isn't impossible to earn back that high of a percentage of your original investment. Dividend growth stocks pay more over time and can help you get to that level.
Two top income stocks that you should consider today are AbbVie (NYSE: ABBV) and Enbridge (NYSE: ENB). They already pay better than the S&P 500 average of 1.4% and have solid track records for dividend growth. And within just five years, you could be making more than 10% on them -- just in dividends.
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1. AbbVie
Investors who buy shares of AbbVie today will earn $1.30 per share in quarterly dividends for each share they own. That's a yield of 4.6% and would already earn you an impressive $1,150 per year on a $25,000 investment. The payout ratio might look worrisome at first; the company's earnings per share over the trailing 12 months came in at $2.69, while its annual dividend would be $5.20 at the current rate. But the company is expecting to come bouncing back in 2021, with its diluted EPS coming in between $7.27 and $7.47; that would put its payout ratio at no higher than 72%.
Now that its acquisition of Botox-maker Allergan is complete, AbbVie's business is larger, more diverse, and in a better position to take advantage of a strong U.S. economy that is looking to get back to normal this year.
Five years ago, the healthcare stock was paying a quarterly dividend of $0.57. Its payouts have gone on to increase by 128% since then, averaging a compound annual growth rate (CAGR) of 17.9%. If the company were to continue to raise its payouts at that rate over the next five years, the dividend could rise to $2.96. By then, on that $25,000 investment -- which would net you approximately 221 shares of AbbVie -- you could be earning more than $2,600, or slightly more than 10%.
AbbVie is a top income stock that is also a Dividend Aristocrat, and it can make for a safe investment that you can hold in your portfolio for many years.
2. Enbridge
Another Dividend Aristocrat that you will want to consider is pipeline company Enbridge. While some investors may worry about the uncertainty of the oil and gas sector, that shouldn't deter you from what could be a great long-term investment. The demand for transporting oil isn't going away anytime soon, and Enbridge benefits from having long-term contracts in place to provide its business with stability.
Over the trailing 12 months, it has generated 7 billion Canadian dollars in profit on revenue of CA$39 billion, for a net margin of 17%. Its EPS of CA$3.13 doesn't appear strong enough to support its quarterly dividend, which at CA$0.835 would total CA$3.34 over a full year. But Enbridge and other oil and gas companies use distributable cash flow (DCF) to assess their ability to pay dividends. DCF excludes noncontrolling interests, maintenance-related capital expenditures, and other items that are not relevant in evaluating a company's day-to-day operations. And on a per-share basis, Enbridge forecasts that for 2021, its DCF will fall between CA$4.70 and CA$5, putting its payout ratio at no higher than 71%.
You could expect to earn $1,700 per year on a $25,000 investment, as the stock currently yields 6.8%. But over time, those payments will likely continue to rise in value. Enbridge has been boosting its dividend payments since 1995 by an average CAGR of 10%. If the company were simply to maintain that rate, then five years from now its quarterly payout would be CA$1.34 -- 60% higher than it is now. Under that scenario, the dividend income would increase to more than $2,700 and would represent close to 11% of your original investment.
Enbridge remains one of the safer oil and gas stocks to buy and hold. With plenty of stability and a top yield, it makes for a great investment to hold if you're looking for some strong recurring income.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Now that its acquisition of Botox-maker Allergan is complete, AbbVie's business is larger, more diverse, and in a better position to take advantage of a strong U.S. economy that is looking to get back to normal this year. Two top income stocks that you should consider today are AbbVie (NYSE: ABBV) and Enbridge (NYSE: ENB). AbbVie Investors who buy shares of AbbVie today will earn $1.30 per share in quarterly dividends for each share they own. | AbbVie Investors who buy shares of AbbVie today will earn $1.30 per share in quarterly dividends for each share they own. Two top income stocks that you should consider today are AbbVie (NYSE: ABBV) and Enbridge (NYSE: ENB). Now that its acquisition of Botox-maker Allergan is complete, AbbVie's business is larger, more diverse, and in a better position to take advantage of a strong U.S. economy that is looking to get back to normal this year. | AbbVie Investors who buy shares of AbbVie today will earn $1.30 per share in quarterly dividends for each share they own. AbbVie is a top income stock that is also a Dividend Aristocrat, and it can make for a safe investment that you can hold in your portfolio for many years. Two top income stocks that you should consider today are AbbVie (NYSE: ABBV) and Enbridge (NYSE: ENB). | AbbVie is a top income stock that is also a Dividend Aristocrat, and it can make for a safe investment that you can hold in your portfolio for many years. Two top income stocks that you should consider today are AbbVie (NYSE: ABBV) and Enbridge (NYSE: ENB). AbbVie Investors who buy shares of AbbVie today will earn $1.30 per share in quarterly dividends for each share they own. |
24040.0 | 2021-06-21 00:00:00 UTC | Does The Valuation Gap Between Merck Stock And Zoetis Make Sense? | ABBV | https://www.nasdaq.com/articles/does-the-valuation-gap-between-merck-stock-and-zoetis-make-sense-2021-06-22 | nan | nan | Zoetis stock (NYSE:ZTS) has risen 2x from levels of $92 that it was at on March 23, 2020, when broader markets made a bottom, to levels of $184 now, while Merck’s stock (NYSE:MRK) has underperformed and gained only 26% of its value. Looking at valuation, Merck stock trades at about 4x trailing revenues, compared to around 13x for Zoetis. This underperformance doesn’t make sense in our view. While there are investor concerns over Merck’s diabetes portfolio of Januvia and Janumet (accounts for 12% of Merck’s total sales), which will likely see a slowdown in sales going forward, as it nears the end of the exclusivity period, it does not explain the large underperformance, both as compared to broader markets (S&P 500 up 89%) as well as to Zoetis.
However, as we look forward, we believe Merck stock will likely fare better than Zoetis because of its valuation, restructuring initiatives, and expansion of Keytruda. Specifically, Merck has spun-off its low-growth women’s health and older drugs portfolio and it is now focused on high-growth products. Keytruda, in particular, remains the biggest asset for Merck with sales of over $14 billion (roughly 30% of total revenues) in 2020, and it will likely continue to gain market share. These initiatives will likely aid Merck’s revenues as well as margins over the coming years.
Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating income and operating margin growth. Our dashboard Merck vs. Zoetis: MRK stock looks undervalued compared to ZTS stock has more details on this. Parts of the analysis are summarized below.
1. Revenue Growth
Between 2018 and 2020, Merck’s revenues grew by about 13%, from around $42.3 billion to $48.0 billion, primarily led by its oncology drug, Keytruda, which saw its sales double from $7.1 billion to $14.4 billion over the same period. Looking at Zoetis, total revenue grew 16% from $5.8 billion in 2018 to $6.7 billion in 2020. Zoetis has seen steady top-line growth, even in 2020, due to higher demand for parasiticide products for companion animals, while the sales for the livestock segment has seen a slight decline over the recent years. Looking forward, Merck’s revenues are expected to rise in low single-digits, while Zoetis may see a top-line growth in low-teens in 2021. Note that Merck’s sales will be impacted by its recent spin-off of its women’s health and older drugs business.
2. Operating Income
Merck’s operating income grew from $8.3 billion in 2018 to $11.6 billion in 2019, before falling to $8.0 billion in 2020. The decline in 2020 can largely be attributed to a contraction in margins from 19.6% in 2018 to 16.5% in 2020. Merck increased its investments into R&D in 2020, impacting its overall margins. R&D expenses as a percentage of revenue grew over 500 bps from 23.1% in 2018 to 28.2% in 2020. Looking at Zoetis, the operating income has seen a gradual rise from $1.9 billion in 2018 to $2.2 billion in 2020. Zoetis’ operating margins have seen a modest rise from 32.5% to 33.4% between 2018 and 2020.
The Net of It All
It is evident that Zoetis’ historical revenue growth, operating margins, as well as operating income growth, all compare favorably with Merck. However, as we look forward, Merck will likely see steady revenue growth led by market share gains for Keytruda, and it will also benefit from its robust pipeline, which includes expansion of existing drugs, such as Keytruda, Lynparaza, and Lenvima for other treatments.
Barring the increased R&D investments in 2020, Merck’s operating margins have actually been on an upward trajectory, and it will likely trend higher going forward. Now that Merck has completed its restructuring with the divestiture of women’s health and the older drugs business, the company can look forward to much better margins over the coming years, implying stronger earnings growth. As such, we think the difference in valuation for Merck versus Zoetis will likely narrow going forward in favor of more attractively priced candidate, implying better returns for Merck.
While MRK stock may see a rise, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Hasbro vs. AbbVie.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, you’ll be surprised how counter-intuitive the stock valuation is for Hasbro vs. AbbVie. Keytruda, in particular, remains the biggest asset for Merck with sales of over $14 billion (roughly 30% of total revenues) in 2020, and it will likely continue to gain market share. Zoetis has seen steady top-line growth, even in 2020, due to higher demand for parasiticide products for companion animals, while the sales for the livestock segment has seen a slight decline over the recent years. | For example, you’ll be surprised how counter-intuitive the stock valuation is for Hasbro vs. AbbVie. The Net of It All It is evident that Zoetis’ historical revenue growth, operating margins, as well as operating income growth, all compare favorably with Merck. However, as we look forward, Merck will likely see steady revenue growth led by market share gains for Keytruda, and it will also benefit from its robust pipeline, which includes expansion of existing drugs, such as Keytruda, Lynparaza, and Lenvima for other treatments. | For example, you’ll be surprised how counter-intuitive the stock valuation is for Hasbro vs. AbbVie. While there are investor concerns over Merck’s diabetes portfolio of Januvia and Janumet (accounts for 12% of Merck’s total sales), which will likely see a slowdown in sales going forward, as it nears the end of the exclusivity period, it does not explain the large underperformance, both as compared to broader markets (S&P 500 up 89%) as well as to Zoetis. Revenue Growth Between 2018 and 2020, Merck’s revenues grew by about 13%, from around $42.3 billion to $48.0 billion, primarily led by its oncology drug, Keytruda, which saw its sales double from $7.1 billion to $14.4 billion over the same period. | For example, you’ll be surprised how counter-intuitive the stock valuation is for Hasbro vs. AbbVie. However, as we look forward, we believe Merck stock will likely fare better than Zoetis because of its valuation, restructuring initiatives, and expansion of Keytruda. Revenue Growth Between 2018 and 2020, Merck’s revenues grew by about 13%, from around $42.3 billion to $48.0 billion, primarily led by its oncology drug, Keytruda, which saw its sales double from $7.1 billion to $14.4 billion over the same period. |
24041.0 | 2021-06-21 00:00:00 UTC | Dual-antibody drugs effective against COVID-19 variants in animal study | ABBV | https://www.nasdaq.com/articles/dual-antibody-drugs-effective-against-covid-19-variants-in-animal-study-2021-06-21 | nan | nan | By Dania Nadeem
June 21 (Reuters) - COVID-19 therapies made from a cocktail of two types of antibodies were effective against a wide range of variants of the coronavirus in a mice and hamster study, the Washington University School of Medicine in St. Louis reported on Monday.
Antibodies are used to treat cases of COVID-19, often early in the process. Former U.S. President Donald Trump was treated by an antibody cocktail by Regeneron Pharmaceuticals REGN.O in October after he tested positive for COVID-19.
The latest study included three of the four variants that have been designated "variants of concern" by the World Health Organization, including Alpha, first identified in the UK, Beta, first found in South Africa and Gamma found in Brazil, as well as an emerging variant from India similar to the Delta variant of concern.
The U.S. Food and Drug Administration in April revoked the emergency use authorization of Eli Lilly's LLY.N single antibody therapy, bamlanivimab, saying there was increased circulation of variants resistant to the therapy when used alone.
Other studies have previously shown that some antibody combination therapies remained potent against those emerging variants of the coronavirus that were resistant to single antibody therapies.
The latest study found that combinations of two antibodies often retained potency against variants even when one of the two antibodies lost some or all ability to neutralize the variant in lab studies.
The study, which was conducted in mice and hamsters, tested all single and combination antibody therapies authorized for emergency use by the FDA against emerging international and U.S. variants of the virus.
The researchers evaluated the FDA authorized combination therapies made by Regeneron, Eli Lilly LLY.Nand a single antibody therapy, sotrovimab, by Vir Biotechnology Inc VIR.O and GlaxoSmithKline PlcGSK.L.
They also assessed the antibodies currently in clinical trials by AbbVie Inc ABBV.N, Vir and AstraZeneca AZN.L.
"Resistance arose with some of the monotherapies, but never with combination therapy," study co-author Jacco Boon wrote.
(Reporting by Dania Nadeem in Bengaluru; Editing by Lisa Shumaker)
((Dania.Nadeem@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They also assessed the antibodies currently in clinical trials by AbbVie Inc ABBV.N, Vir and AstraZeneca AZN.L. By Dania Nadeem June 21 (Reuters) - COVID-19 therapies made from a cocktail of two types of antibodies were effective against a wide range of variants of the coronavirus in a mice and hamster study, the Washington University School of Medicine in St. Louis reported on Monday. Former U.S. President Donald Trump was treated by an antibody cocktail by Regeneron Pharmaceuticals REGN.O in October after he tested positive for COVID-19. | They also assessed the antibodies currently in clinical trials by AbbVie Inc ABBV.N, Vir and AstraZeneca AZN.L. The U.S. Food and Drug Administration in April revoked the emergency use authorization of Eli Lilly's LLY.N single antibody therapy, bamlanivimab, saying there was increased circulation of variants resistant to the therapy when used alone. The study, which was conducted in mice and hamsters, tested all single and combination antibody therapies authorized for emergency use by the FDA against emerging international and U.S. variants of the virus. | They also assessed the antibodies currently in clinical trials by AbbVie Inc ABBV.N, Vir and AstraZeneca AZN.L. Other studies have previously shown that some antibody combination therapies remained potent against those emerging variants of the coronavirus that were resistant to single antibody therapies. The latest study found that combinations of two antibodies often retained potency against variants even when one of the two antibodies lost some or all ability to neutralize the variant in lab studies. | They also assessed the antibodies currently in clinical trials by AbbVie Inc ABBV.N, Vir and AstraZeneca AZN.L. By Dania Nadeem June 21 (Reuters) - COVID-19 therapies made from a cocktail of two types of antibodies were effective against a wide range of variants of the coronavirus in a mice and hamster study, the Washington University School of Medicine in St. Louis reported on Monday. Other studies have previously shown that some antibody combination therapies remained potent against those emerging variants of the coronavirus that were resistant to single antibody therapies. |
24042.0 | 2021-06-21 00:00:00 UTC | Notable ETF Inflow Detected - XLV, ABBV, CVS, ANTM | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-xlv-abbv-cvs-antm-2021-06-21 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $272.0 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 220,320,000 to 222,520,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.8%, CVS Health Corporation (Symbol: CVS) is up about 1.5%, and Anthem Inc (Symbol: ANTM) is higher by about 1.6%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $96.84 per share, with $125.66 as the 52 week high point — that compares with a last trade of $124.58. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.8%, CVS Health Corporation (Symbol: CVS) is up about 1.5%, and Anthem Inc (Symbol: ANTM) is higher by about 1.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $272.0 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 220,320,000 to 222,520,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.8%, CVS Health Corporation (Symbol: CVS) is up about 1.5%, and Anthem Inc (Symbol: ANTM) is higher by about 1.6%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $96.84 per share, with $125.66 as the 52 week high point — that compares with a last trade of $124.58. Free Report: Top 7%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.8%, CVS Health Corporation (Symbol: CVS) is up about 1.5%, and Anthem Inc (Symbol: ANTM) is higher by about 1.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $272.0 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 220,320,000 to 222,520,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $96.84 per share, with $125.66 as the 52 week high point — that compares with a last trade of $124.58. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.8%, CVS Health Corporation (Symbol: CVS) is up about 1.5%, and Anthem Inc (Symbol: ANTM) is higher by about 1.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $272.0 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 220,320,000 to 222,520,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $96.84 per share, with $125.66 as the 52 week high point — that compares with a last trade of $124.58. |
24043.0 | 2021-06-20 00:00:00 UTC | This Is Warren Buffett's Best Dividend Stock by Far | ABBV | https://www.nasdaq.com/articles/this-is-warren-buffetts-best-dividend-stock-by-far-2021-06-20 | nan | nan | It might seem that Warren Buffett doesn't like dividends. After all, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has never paid a dividend. Even with the company sitting on a cash stockpile of $145 billion, the legendary investor still hasn't hinted at any inclination to use some of the money to pay shareholders via dividends.
However, Buffett actually likes dividends quite a bit. There are more stocks in Berkshire's portfolio that pay dividends than ones that don't. Admittedly, some of them pay out measly dividends. However, others offer juicy dividends that most income investors would love.
What's the best dividend stock of all among Berkshire's holdings? In my view, there's one stock that clearly stands out.
Image source: The Motley Fool.
A coronation on the way
AbbVie (NYSE: ABBV) is only one dividend hike away from becoming a Dividend King. In case you're not familiar with the hierarchy of dividend nobility, Dividend Kings are members of the S&P 500 with 50 or more consecutive dividend increases. AbbVie has increased its dividend for 49 years in a row. That qualifies the stock as a Dividend Aristocrat. The threshold for that status is 25 consecutive dividend hikes.
Will AbbVie be able to keep its streak alive to receive a dividend coronation? I think it's a near certainty. The company used nearly $8.3 billion to pay dividends last year. It expects to make more than $13 billion in profit in 2021.
Not only does AbbVie have a great track record of dividend increases, but it also offers a yield that just might make some income-seeking investors drool. As of now, the drugmaker's dividend yield stands at 4.5%.
The yield came pretty close to hitting 6% in October 2020. However, it has fallen since then with AbbVie's shares rising more than 40%. That's a great "problem" to have.
But what about...
I believe that AbbVie is Buffett's best dividend stock, by far. However, I realize that there are a few other worthy contenders for the honor.
You might wonder why I didn't select Johnson & Johnson (NYSE: JNJ). After all, the healthcare giant is already a Dividend King with 59 years of consecutive dividend increases under its belt. I do like J&J, but its dividend yield doesn't come close to AbbVie's.
What about Chevron (NYSE: CVX)? Its dividend yields nearly 4.9%. That's certainly higher than AbbVie's yield. Chevron is also a Dividend Aristocrat with 34 years in a row of dividend hikes. I think that Chevron is a good pick for income investors.
My view, though, is that AbbVie's long-term growth prospects are much better than Chevron's. Fossil fuels might not go the way of the dinosaur over the next decade, but they're likely to gradually diminish in importance.
Buffett himself mentioned in his most recent letter to shareholders that Berkshire has averaged a whopping $775 million annually from Apple's (NASDAQ: AAPL) dividend payments. As impressive as that number is, though, it's due to Berkshire's massive stake in the technology leader. Apple's dividend yield of less than 1% isn't so impressive.
Buffett's blunder
I don't think there's any question that AbbVie offers an attractive dividend. It's also a relative bargain. Shares currently trade at only 9.3 times expected earnings. That's significantly cheaper than the forward earnings multiples for Apple, Chevron, Johnson & Johnson, and even Berkshire itself.
With AbbVie's great story, you might expect that Buffett would be scooping up more shares of the healthcare stock. Instead, Berkshire sold around 10% of its stake in AbbVie in the latest quarter.
I'm not sure why this decision was made. Maybe it's because AbbVie's overall revenue will almost certainly dip in 2023 with its top-selling drug Humira facing biosimilar competition in the U.S. However, AbbVie's sales should quickly rebound in 2024. The company projects strong revenue growth through the rest of the decade, thanks to several newer drugs with fast-climbing sales.
I think Buffett made an uncharacteristic blunder by selling some of Berkshire's AbbVie shares. That's a mistake that other investors don't have to make.
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Keith Speights owns shares of AbbVie, Apple, Berkshire Hathaway (B shares), and Chevron. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Not only does AbbVie have a great track record of dividend increases, but it also offers a yield that just might make some income-seeking investors drool. A coronation on the way AbbVie (NYSE: ABBV) is only one dividend hike away from becoming a Dividend King. AbbVie has increased its dividend for 49 years in a row. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Apple, Berkshire Hathaway (B shares), and Chevron. A coronation on the way AbbVie (NYSE: ABBV) is only one dividend hike away from becoming a Dividend King. AbbVie has increased its dividend for 49 years in a row. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Apple, Berkshire Hathaway (B shares), and Chevron. A coronation on the way AbbVie (NYSE: ABBV) is only one dividend hike away from becoming a Dividend King. AbbVie has increased its dividend for 49 years in a row. | I believe that AbbVie is Buffett's best dividend stock, by far. With AbbVie's great story, you might expect that Buffett would be scooping up more shares of the healthcare stock. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Apple, Berkshire Hathaway (B shares), and Chevron. |
24044.0 | 2021-06-20 00:00:00 UTC | How This Pharma Company Can Benefit From Its Competitors | ABBV | https://www.nasdaq.com/articles/how-this-pharma-company-can-benefit-from-its-competitors-2021-06-20 | nan | nan | The race is on among pharmaceutical companies to obtain approval from the U.S. Food and Drug Administration (FDA) for new products serving the atopic dermatitis (AD, otherwise known as severe and chronic eczema) market. One of those companies, Incyte (NASDAQ: INCY), is coming off successful phase 3 trials of its ruxolitinib cream, but is now facing challenges brought on by delays in FDA approval.
The company anticipated a ruling from the FDA in June of this year, but that has since been backed up until Sept. 21. This makes for the second FDA delay involving a drug from Incyte. In April, its collaborative effort with Eli Lilly, olumiant, also received a delay for approval in use as an AD treatment, with news now expected in late summer.
Image source: Getty Images.
Concerns about side effects
This most recent delay is not necessarily Incyte's fault. The FDA has recently placed increased focus on the potential side effects of JAK inhibitors such as ruxolitinib, which belong to a family of treatments called DMARDs (disease-modifying antirheumatic drugs). JAK inhibitors are used to help reduce inflammation by limiting an overactive immune system, but a weakened immune system can have serious side effects -- such as cancerous tumors, anemia, tuberculosis, and shingles.
A lengthening lead
As a result of all this, go-to-market dates for JAK inhibitor-based products from Incyte, Eli Lilly (olumiant), Pfizer (abrocitinib), and AbbVie (rinvoq) as treatments for ADcould all be affected. That, in turn, could provide an excellent opportunity for market-leading Dupixent, the already approved AD cream from Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN), to potentially lengthen its lead over the competition.
The key difference for Dupixent in avoiding FDA safety scrutiny is that it is not a JAK inhibitor. Dupixent is an IL-4 and IL-13 inhibitor, and it does not have the safety risks associated with JAK inhibitors.
Dupixent, offered as both a cream for AD and an injectable for asthma, was responsible for more than $1.25 billion for Sanofi during the first quarter. That marked a 45% quarterly gain year over year, including a 16% gain in prescriptions new to the brand. The company stated during its first-quarter results that high demand was generated from the AD market in adults, adolescents, and children ages 6-11. This is an important takeaway, because AD is common in children, at a rate of 10.7% in the U.S., with 33% of those being considered moderate to severe cases.
On top of those strong first-quarter results and competitor delays, Sanofi is making the most of the FDA delays of competitors' products in an attempt to pull away from the pack. According to data from real-time TV ad tracker iSpot.tv, Dupixent took over the top spot in pharma TV ad spending during the month of May. During the month, Sanofi and Regeneron spent $24 million on 10 spots, up from $20 million in April. Of the 10 ad spots, six were dedicated to AD, while four were focused on asthma.
What's at stake?
The atopic dermatitis market comprises an estimated 18 million people, and a total of 31 million have some form of eczema. There are treatments such as Dupixent, but currently no known cure. As Dupixent continues its reign, and competitors await FDA rulings, there is a potential $34 billion market value to be had by 2026, based on an estimated compound annual growth rate between 7.8% to 10.4%.
Right now it looks as though the collaboration between Sanofi and Regeneron is on its way to victory in this space, and the AD market could be a gold mine in the near future. However, if favorable FDA rulings come through in the third quarter, the AD cream space could become crowded quickly. If Incyte gets good news and is the first to market with its product, I would consider a small investment, but not before then. If the FDA denies approvals or requires additional support data, Sanofi might be the smarter play.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A lengthening lead As a result of all this, go-to-market dates for JAK inhibitor-based products from Incyte, Eli Lilly (olumiant), Pfizer (abrocitinib), and AbbVie (rinvoq) as treatments for ADcould all be affected. The race is on among pharmaceutical companies to obtain approval from the U.S. Food and Drug Administration (FDA) for new products serving the atopic dermatitis (AD, otherwise known as severe and chronic eczema) market. The FDA has recently placed increased focus on the potential side effects of JAK inhibitors such as ruxolitinib, which belong to a family of treatments called DMARDs (disease-modifying antirheumatic drugs). | A lengthening lead As a result of all this, go-to-market dates for JAK inhibitor-based products from Incyte, Eli Lilly (olumiant), Pfizer (abrocitinib), and AbbVie (rinvoq) as treatments for ADcould all be affected. The FDA has recently placed increased focus on the potential side effects of JAK inhibitors such as ruxolitinib, which belong to a family of treatments called DMARDs (disease-modifying antirheumatic drugs). That, in turn, could provide an excellent opportunity for market-leading Dupixent, the already approved AD cream from Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN), to potentially lengthen its lead over the competition. | A lengthening lead As a result of all this, go-to-market dates for JAK inhibitor-based products from Incyte, Eli Lilly (olumiant), Pfizer (abrocitinib), and AbbVie (rinvoq) as treatments for ADcould all be affected. The race is on among pharmaceutical companies to obtain approval from the U.S. Food and Drug Administration (FDA) for new products serving the atopic dermatitis (AD, otherwise known as severe and chronic eczema) market. That, in turn, could provide an excellent opportunity for market-leading Dupixent, the already approved AD cream from Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN), to potentially lengthen its lead over the competition. | A lengthening lead As a result of all this, go-to-market dates for JAK inhibitor-based products from Incyte, Eli Lilly (olumiant), Pfizer (abrocitinib), and AbbVie (rinvoq) as treatments for ADcould all be affected. This makes for the second FDA delay involving a drug from Incyte. In April, its collaborative effort with Eli Lilly, olumiant, also received a delay for approval in use as an AD treatment, with news now expected in late summer. |
24045.0 | 2021-06-18 00:00:00 UTC | Daily Dividend Report: ABBV,BMY,UDR,EQR,MEI | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-abbvbmyudreqrmei-2021-06-18 | nan | nan | The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. The cash dividend is payable August 16, 2021 to stockholders of record at the close of business on July 15, 2021. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
Bristol Myers Squibb today announced that its Board of Directors has declared a quarterly dividend of forty-nine cents per share on the $.10 par value common stock of the company. The dividend is payable on August 2, 2021 to stockholders of record at the close of business on July 2, 2021.
UDR, a leading multifamily real estate investment trust, today announced that its Board of Directors declared a regular quarterly dividend on its common stock for the second quarter of 2021 in the amount of $0.3625 per share, payable in cash, on August 2, 2021 to UDR common stock shareholders of record as of July 12, 2021. The August 2, 2021 dividend will be the 195th consecutive quarterly dividend paid by the Company on its common stock.
Equity Residential today announced that its Board of Trustees declared quarterly dividends on the Company's common and preferred shares. A regular common share dividend for the second quarter of $0.6025 per share will be paid on July 9, 2021 to shareholders of record on June 28, 2021.
Methode Electronics, a leading global supplier of custom-engineered solutions for user interface, LED lighting system, and power distribution applications, announced today that its board of directors has declared a quarterly dividend of $0.14 per share to be paid on July 30, 2021 to common stockholders of record at the close of business on July 16, 2021. The amount represents a 27 percent increase from the previously declared dividend and is further evidence of the company's commitment to a balanced capital allocation strategy.
VIDEO: Daily Dividend Report: ABBV,BMY,UDR,EQR,MEI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. |
24046.0 | 2021-06-18 00:00:00 UTC | This Safe 5-Stock Healthcare Portfolio Yields 5.5% | ABBV | https://www.nasdaq.com/articles/this-safe-5-stock-healthcare-portfolio-yields-5.5-2021-06-18 | nan | nan | Healthcare--along with consumer staples ("buying stuff") and utilities ("keeping the lights on")--provide portfolio stability. Plus, they usually pay dividends, too!
Of the three safety sectors, healthcare is a steady growth market, too. Consider these stats from the Centers for Medicare & Medicaid Services:
National health spending is projected to grow at an average annual rate of 5.4% for 2019-28 and to reach $6.2 trillion by 2028.
National health expenditures are projected to grow 1.1 percentage points faster than gross domestic product per year during that same time period.
Between 2019 and 2028, healthcare's share of the economy will rise from 17.7% to 19.7%.
Price growth for medical goods and services (as measured by the personal health care deflator) is projected to accelerate, averaging 2.4% per year for 2019-28.
This isn't new. We all feel that growing pinch year after year. But like it or loathe it, that pain in our pockets has translated into big profits for the healthcare sector, which has not only performed exceedingly well over the long term, but has kept volatility down for shareholders, too.
Healthcare Stocks: Respectable Performance, Cool Composure
Source: Morningstar. Return ranks based on best performance; 1 = best. Beta ranks based on lowest beta; 1 = lowest beta.
Better still, healthcare is responsible for some of the most reliable dividends on the planet, with several sector names boasting Dividend Aristocracy, but it's also not difficult to find fat yielders too, throwing off payouts north of 5%.
Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come:
AbbVie (ABBV)
Dividend Yield: 4.5%
AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. The original Dividend Aristocrat maintained its lines of med-tech devices and other healthcare products, while the latter would hold biopharmaceutical products such as Humira, AndroGel and Tricor.
And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT.
AbbVie Has Been Yielding 4%-Plus Since 2019
You can't discuss AbbVie without discussing Humira--its blockbuster drug that treats Crohn's disease, rheumatoid arthritis, psoriasis and other diseases, and that brings in more than a third of total revenues.
What's worth talking about nowadays, however, is that the slice of revenues it generates is thinning. During the final quarter of 2019, Humira sales made up nearly 60% of the total pie. But patent expirations, as they do, are eating into its areas of opportunity not just in the U.S., but overseas.
Fortunately, AbbVie is offsetting that with immunology treatments Skyrizi and Rinvoq, as well as oncology treatments such as Imbruvica and Venclexta. It's also trying to grow through acquisitions; last year, it completed a $63 billion buyout of Botox maker Allergan.
Unlike many companies, AbbVie didn't really miss a beat in 2020. Revenues jumped 37.7% to $45.8 billion, while adjusted earnings were up 18.1% to $10.56 per share. The pros are expecting another strong year in 2021, with revenues up 22% and profits 19% better than in 2020.
Meanwhile, the dividend, in normal years, is backed by roughly twice the cash flow necessary to cover it. That makes ABBV one of the few traditional 4%+ yielding blue chips you don't need to lose sleep over.
National Health Investors (NHI)
Dividend Yield: 5.4%
While many healthcare stocks provide better dividends than the market average, to get truly substantial income, you need to veer into the real estate space.
National Health Investors (NHI) is a real estate investment trust (REIT) that manages 242 properties across 34 states--primarily senior housing and skilled nursing facilities, with a sprinkling of medical office buildings and other healthcare properties.
Senior care once seemed like a can't-miss business. The aging of the Baby Boomers was sure to eventually pack these facilities, leading to literally decades of higher cash flows. NHI seemed to be reflecting that track, with dividends growing every year since 2001.
But things have changed.
Several of NHI's tenants are feeling the stress of the COVID downturn, which has shaken the general thesis around senior-care facilities. Recently, National Health Investors made a lease-deferral agreement with independent living facility operator Holiday Retirement, forcing the pros to downgrade their estimates for FFO (funds from operations, which are a vital measure of a REIT's profitability).
More immediately, the Holiday deferment, as well as uncertainty among other tenants, forced NHI to cut its quarterly payout by 18.4% to 90 cents per share. While the yield is still more than 5% regardless, investors should avoid this particular REIT until the smoke clears.
As the Dividend Goes, So Goes NHI Shares
Sabra Health Care REIT (SBRA)
Dividend Yield: 6.7%
Sabra Health Care REIT (SBRA) is a similar play that took its dividend lumps last year.
Sabra boasts 426 properties nationwide, two-thirds of which are skilled nursing and transitional care. Another 25% is either leased or managed senior housing facilities, and the remainder are spread amongst specialty hospitals and other healthcare buildings.
Like many other firms that cut their payouts in 2020, Sabra announced its dividend cut in the spring, long before the actual damage from COVID was known. SBRA announced in March 2020 that it would pull back its payout by 33% to 30 cents per share--a move expected to save the firm $30 million in cash quarterly.
"It is impossible to predict the ultimate impact on our operators. We believe that reducing the quarterly dividend is an appropriate response to enhance the company's management of this pandemic," CEO Rick Matros said at the time.
Sabra Faced the Music Early
Sabra is far from pretty right now, and shares still haven't recovered to pre-pandemic levels. However, its early dividend cut did, in fact, help pad the balance sheet, putting the REIT on firmer ground as its tenants' operations recover. In fact, you could argue that this nearly 7% yield is going on the cheap, with SBRA trading at a hair less than 11 times 2021 estimates for FFO.
Global Medical REIT (GMRE)
Dividend Yield: 5.3%
Lest you think every healthcare REIT is cutting dividends, let's take a look at Global Medical REIT (GMRE), which improved its payout earlier this year.
The "Global Medical" moniker is a bit of a tease, as this healthcare REIT is entirely U.S.-centric. GMRE leases out 145 buildings to 117 tenants across 29 states, with an occupancy rate slightly above 99%. More than 60% of the firm's properties are medical office buildings, inpatient rehab facilities make up another 20%, 7% are surgical hospitals and the remainder is scattered among other types of healthcare buildings.
GMRE has been a serial acquirer since its 2016 initial public offering, with the portfolio growing by 74% annually to its current $1.1 billion in gross investments. But it also grows its profits organically, building in annual rent escalations of roughly 2% on average.
Global Medical REIT experienced a smaller COVID slide than many in its industry due to its particular building mix, and it has rebounded more quickly. Indeed, the company's financial situation allowed it to finally improve its payout for the first time since its IPO, albeit by a mere 2.5% to 20.5 cents per share.
The Start of a More Generous GMRE?
What I like more is the fact that GMRE managed to reduce its leverage at the same time, paying off debt with most of the proceeds of a public share offering in Q1. Existing shareholders might not have liked the dilution, but buyers clearly aren't being deterred.
LTC Properties (LTC)
Dividend Yield: 5.8%
We can get juicy monthly dividends out of healthcare too, if we know where to look.
LTC Properties (LTC) is a senior housing and healthcare REIT that invests in such properties through mortgage financing, sale-leaseback and other methods. It currently boasts 177 investments across 30 partners in 27 states.
LTC's tenant mix is roughly 50-50 senior housing and skilled nursing, putting it smack-dab in the eye of the COVID storm. Last March, the company was forced to nix a share buyback plan it had announced just a couple of weeks earlier (though it managed to maintain its monthly dividend), and the bear-market turn pulled LTC shares by as much as 40% lower at the depths.
LTC Remains in Recovery Mode
Like with NHI, LTC continues to feel COVID's effects. The company's most recent quarterly results missed the mark (64 cents per share of FFO versus expectations for 68 cents) thanks to a nonpayment by tenant Senior Lifestyle Corporation (SLC), as well as lowered rent escalations to troubled operators. In fact, SLC hasn't paid rent for seven months, and NHI has recently transitioned nearly a dozen SLC properties to other senior living operators.
The "A" Squad: Monthly Payers Doling Out 7% Yields
The yield is nice, at nearly 6%, and it's especially nice to have that cash paid out monthly. But LTC's future still looks hazy, and a valuation of 15 times FFO estimates is hardly enticing enough.
If you're looking for a long-term income solution that will pay you each and every month, you can do better--in fact, right now, you can get roughly 7% on average on investments that are swimming with the current, not against it.
My "7% Monthly Payer Portfolio" is an elite set of high-income, high-frequency dividend payers that, at current prices, are smack-dab in the middle of our ideal "buy zone." And as the name suggests, these 7% dividends are paid out to investors each and every month.
Many of the picks in my "7% Monthly Payer Portfolio" leverage the power of steady-Eddie holdings to generate not just massive yields, but shockingly aggressive price performance. That allows us to do the unthinkable from an income strategy: double our money much more quickly than traditional blue-chips-and-mutual-funds portfolios.
These dividends aren't just good.
They're not just great, either.
They're downright life-changing.
If you drop $500K--less than half what most financial gurus suggest you need to retire--into this powerful portfolio now, you'd kick-start a $36,000 annual income stream. That's more than $3,000 a month in regular income checks!
The time to get in is now, while you can still buy these names at bargain prices. Click here to get everything you need--names, tickers, complete dividend histories and more--instantly!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come: AbbVie (ABBV) Dividend Yield: 4.5% AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT. AbbVie Has Been Yielding 4%-Plus Since 2019 | Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come: AbbVie (ABBV) Dividend Yield: 4.5% AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT. AbbVie Has Been Yielding 4%-Plus Since 2019 | Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come: AbbVie (ABBV) Dividend Yield: 4.5% AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT. AbbVie Has Been Yielding 4%-Plus Since 2019 | Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come: AbbVie (ABBV) Dividend Yield: 4.5% AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT. AbbVie Has Been Yielding 4%-Plus Since 2019 |
24047.0 | 2021-06-18 00:00:00 UTC | Next Market Crash 101: 2 Top Growth Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/next-market-crash-101%3A-2-top-growth-stocks-to-buy-right-now-2021-06-18 | nan | nan | The state of the stock market in recent weeks hasn't been for the faint of heart. Whether the volatility investors are currently seeing actually foreshadows another market crash is anyone's guess, and trying to time the market to predict the best windows for buying stocks can be a recipe for disaster.
No matter how worried you may be about a crash, it's always a great time to invest in high-quality stocks that generate wealth-building portfolio returns. To that end, let's take a look at two top stocks that can help your portfolio navigate the next market storm and provide meaningful sources of growth for years to come.
Image source: Getty Images.
1. Facebook
Facebook (NASDAQ: FB) is hardly a new choice for long-term investors, but it's the type of stock you can add more of to your portfolio time and time again. The popular FAANG stock has gained approximately 25% since the beginning of 2021, and is up an eye-popping 41% compared to the same time last year.
Facebook continues to control a massive share of the social media industry. According to Statista, "Facebook accounted for nearly 71.8% of all social media site visits in the United States in May 2021." The company's ever-increasing market share is also driving exponential balance sheet growth.
2020 was just another strong year in the books for Facebook, during which its total revenues increased 22% and its net income rose 58%. But Facebook's financial performance in the first quarter of 2021 left these figures in the dust. The company reported that its revenues surged 48% year over year during the three-month period.
Facebook's net income grew by an even higher percentage -- a whopping 94% from the year-ago stretch. In addition, Facebook reported that its "daily active users" (what it calls daily Facebook users) and "daily active people" (what it calls daily users of any of Facebook's suite of products) surged by respective rates of 8% and 15% in the month of March alone.
If you're wondering whether it's too late to buy Facebook on account of its upside potential, the answer is a resounding no. Facebook has plenty of juice left in it for long-term investors. And analysts currently estimate that the company can consistently deliver more than 20% average annual earnings growth for at least the next five years.
After nearly two decades in business, Facebook continues to expand its market share and reassert its dominance of the social media sphere. This is a premium stock you can hold onto through both market highs and lows, one that can generate consistent growth and maximize your portfolio returns.
2. AbbVie
Healthcare stock AbbVie (NYSE: ABBV) is another golden egg to have in your basket before the next market crash rolls around. AbbVie spun off from Abbott Laboratories in 2013, and its former parent company is a veteran member of the elite stock club known as Dividend Aristocrats.
Stocks that snag the title of Dividend Aristocrats must raise their dividend for 25 consecutive years, and Abbott has done so for nearly 50. As a spinoff of Abbott, AbbVie is also considered a member of the Dividend Aristocrat club. It yields a robust 4.5% for investors at the time of this writing.
The biggest concern some investors have about AbbVie is the looming loss of U.S. patent protection for its blockbuster drug Humira in 2023. Humira is an immunosuppressive drug used to treat a range of conditions from arthritis to Crohn's disease. It raked in more sales than any other drug in the entire world in 2020 -- amassing total net revenues just shy of $20 billion during the 12-month period.
There's no doubt that AbbVie's balance sheet will reflect the loss of Humira's patent exclusivity in the U.S. in a few years. We need only look to AbbVie's loss of patent exclusivity in Europe -- which largely took effect in October 2018 -- as an example of this.
Case in point: International sales of Humira were down 14% in 2020, but still totaled nearly $4 billion. In short, heightened competition in the U.S. will certainly detract from Humira's sales come 2023, but that doesn't mean that sales of the drug can't still inject healthy growth into AbbVie's balance sheet over the long term.
It's also important to note that AbbVie has a rock-star portfolio of top-selling drugs besides Humira. These include plaque psoriasis drug Skyrizi, cancer drugs Imbruvica and Venclexta, and rheumatoid arthritis drug Rinvoq. Moreover, AbbVie's acquisition of Allergan last year ushered well-known product names like Botox into its portfolio of lucrative products.
AbbVie's first-quarter 2021 revenues of $13 billion represented a huge 51% increase from the year-ago period. Breaking AbbVie's first-quarter performance down by its top business segments -- immunology, hematologic oncology, aesthetics (which includes Botox Cosmetic), and neuroscience (which includes Botox Therapeutic) -- these four divisions marked respective year-over-year revenue growth of 13%, 8%, 35%, and 100%.
If you're looking for steady portfolio growth and attractive dividend income to anchor your portfolio in the next market storm, AbbVie offers shareholders the unbeatable combination of both.
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Rachel Warren has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool owns shares of and recommends Facebook. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie spun off from Abbott Laboratories in 2013, and its former parent company is a veteran member of the elite stock club known as Dividend Aristocrats. AbbVie Healthcare stock AbbVie (NYSE: ABBV) is another golden egg to have in your basket before the next market crash rolls around. As a spinoff of Abbott, AbbVie is also considered a member of the Dividend Aristocrat club. | There's no doubt that AbbVie's balance sheet will reflect the loss of Humira's patent exclusivity in the U.S. in a few years. If you're looking for steady portfolio growth and attractive dividend income to anchor your portfolio in the next market storm, AbbVie offers shareholders the unbeatable combination of both. AbbVie Healthcare stock AbbVie (NYSE: ABBV) is another golden egg to have in your basket before the next market crash rolls around. | AbbVie Healthcare stock AbbVie (NYSE: ABBV) is another golden egg to have in your basket before the next market crash rolls around. AbbVie spun off from Abbott Laboratories in 2013, and its former parent company is a veteran member of the elite stock club known as Dividend Aristocrats. As a spinoff of Abbott, AbbVie is also considered a member of the Dividend Aristocrat club. | AbbVie's first-quarter 2021 revenues of $13 billion represented a huge 51% increase from the year-ago period. AbbVie Healthcare stock AbbVie (NYSE: ABBV) is another golden egg to have in your basket before the next market crash rolls around. AbbVie spun off from Abbott Laboratories in 2013, and its former parent company is a veteran member of the elite stock club known as Dividend Aristocrats. |
24048.0 | 2021-06-17 00:00:00 UTC | 2 Top Dividend Stocks You Can Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/2-top-dividend-stocks-you-can-buy-and-hold-forever-2021-06-17 | nan | nan | Dividend stocks can be a great source of passive income, and fortunately, there is no shortage of dividend-paying companies in the stock market. However, finding those whose businesses -- and payouts -- will remain intact through bull and bear markets can be a bit of a challenge. After all, many companies slash, or outright suspend, their dividends once the economy stops working in their favor. If you are looking for dividend stocks that can pay you for the rest of your life, rest assured: They exist. Two that I think fall seamlessly into this group are healthcare giants AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN).
Both of these drugmakers have been around for quite some time. AbbVie split from its former parent company, Abbott Laboratories, in January 2013. When considering its run under Abbott, AbbVie has been around for several decades. The same applies to Amgen, which was founded in 1980. The fact that these companies have been able to remain in business for this long doesn't guarantee them a bright future. Still, it is worth noting that they do have a solid and proven history.
And with the need for innovative medicine always increasing, especially given our aging worldwide population, both have an opportunity to continue profiting from their (thus far) successful business models for many years to come. With this backdrop in mind, let's take a closer look at each of these companies.
Image source: Getty Images.
1. AbbVie
Dividend-seeking investors tend to look for companies with the ability to continue generating growing revenue and profits. AbbVie looks well positioned to do just that. The drugmaker's lineup features several medicines whose sales are growing fast. For instance, there is plaque psoriasis medicine Skyrizi and rheumatoid arthritis (RA) treatment Rinvoq. During its first quarter ending March 31, AbbVie's revenue from Skyrizi jumped by 91% year over year to $574 million.
Meanwhile, sales of Rinvoq were $303 million, more than doubling compared to the year-ago period. Both of these drugs will be important for AbbVie's future as the company looks to make up for the declining sales of Humira in Europe. Revenue from the RA drug has been dropping abroad due to competition from biosimilars. Still, sales of Humira continue to climb in the U.S.
In the first quarter, Humira's U.S. sales grew by 6.9% year over year to $3.9 billion; its total sales for the period increased by 3.5% year over year to $4.9 billion. By the time biosimilars hit the U.S. market (probably in 2023), the company will rely less on Humira. That's not to mention the suite of products AbbVie got its hands on thanks to its May 2020 acquisition of Allergan in a cash-and-stock transaction valued at $63 billion.
Allergan's Botox franchise -- the most important of its product lines -- will help AbbVie keep its revenue growing. Further, AbbVie's pipeline boasts several dozen clinical programs. Something else to consider for income-seeking investors before buying shares of the drugmaker is its dividend yield. AbbVie's current yield of 4.29% compares favorably to the 1.37% yield of the S&P 500 (as of May 31). That, coupled with a reasonable cash payout ratio of 46.5%, make the company look like a dividend investor's dream.
AbbVie has raised its payouts by 128.1% in the past five years, and the pharma company is likely to continue rewarding shareholders in this way for many years to come.
Image source: Getty Images.
2. Amgen
At first glance, biotech giant Amgen may not look like a stock worth buying, especially given its poor financial results during the first quarter. Overall, the company's sales dropped to $5.9 billion, 4% lower than the year-ago period. Many of Amgen's best-selling medicines saw declining sales, including RA drug Enbrel, whose sales dropped by 20% year over year to $924 million. However, investors -- particularly income-seeking ones -- should look past these issues.
For one, the company's top-line problems are due in part to the coronavirus pandemic. The outbreak has affected both patient visits and new diagnoses, according to Amgen. The company is confident that once these headwinds subside, its financial performance will pick up. It is also worth noting that in late May, the U.S. Food and Drug Administration (FDA) approved Amgen's Lumakras, a treatment for advanced or metastatic non-small cell lung cancer (NSCLC).
Lumakras specifically targets NSCLC patients with a mutation of the illness called the KRAS G12C mutation, which occurs in about 13% of those with the disease. Lumakras is the first FDA-approved medicine for NSCLC to target this mutation. Given that lung cancer is one of the most common cancers, there will be a large market for Amgen's newly approved medicine.
Further, much like AbbVie, Amgen has a long list of pipeline programs. The company can count on new approvals every year, which will also help its revenue and earnings growth in the long run. Amgen's dividend yield of 2.8% and its modest cash payout ratio of 38.9% speak to its ability to sustain dividend increases year after year. The company has increased its payouts by 76% in the past five years. Investors looking for solid dividend stocks to buy and hold for a long time would do well to add shares of this biotech stock to their portfolios.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Dividend-seeking investors tend to look for companies with the ability to continue generating growing revenue and profits. Two that I think fall seamlessly into this group are healthcare giants AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN). AbbVie split from its former parent company, Abbott Laboratories, in January 2013. | Two that I think fall seamlessly into this group are healthcare giants AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN). AbbVie split from its former parent company, Abbott Laboratories, in January 2013. When considering its run under Abbott, AbbVie has been around for several decades. | AbbVie has raised its payouts by 128.1% in the past five years, and the pharma company is likely to continue rewarding shareholders in this way for many years to come. Two that I think fall seamlessly into this group are healthcare giants AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN). AbbVie split from its former parent company, Abbott Laboratories, in January 2013. | Two that I think fall seamlessly into this group are healthcare giants AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN). AbbVie split from its former parent company, Abbott Laboratories, in January 2013. When considering its run under Abbott, AbbVie has been around for several decades. |
24049.0 | 2021-06-13 00:00:00 UTC | 3 Health Care Stocks To Watch Right Now | ABBV | https://www.nasdaq.com/articles/3-health-care-stocks-to-watch-right-now-2021-06-13 | nan | nan | Are These The Best Health Care Stocks To Buy This Week?
As the world continues to deal with the global coronavirus pandemic, investors could still be eyeing health care stocks. While they may not be the most active stocks in the stock market today, health care stocks would be a safe haven for some. After all, investors are likely dealing with the market volatility caused by meme stocks to some extent now. For those looking to make more defensive plays, some would argue that the health care industry is a viable bet.
Regardless, the industry remains one of, if not the most important sectors of business and research globally today. Notably, health care companies are in the business of improving our general quality of life. Given the plethora of diseases and conditions we face today, there remains plenty of room for health care players to innovate and serve. Accordingly, investors prioritizing long-term growth potential may be looking at the top health care stocks in the stock market now.
Evidently, it appears that even tech companies are well aware of the health care industry’s merits. Earlier this week, tech giant Amazon (NASDAQ: AMZN) provided another update on its telehealth service, Amazon Care. Namely, Amazon Care is currently working to enlist several companies to supplement its virtual health care services now. Elsewhere, Johnson & Johnson (NYSE: JNJ) CEO Alex Gorsky recently set the stage for coronavirus vaccines moving forward. According to Gorsky, we may have to receive coronavirus booster shots together with flu shots for the next few years. In theory, this would mean that the top coronavirus stocks could still have room to run moving forward as well. Given all of this, here are three top health care stocks making headlines now.
Top Health Care Stocks To Watch In June
AbbVie Inc. (NYSE: ABBV)
Moderna Inc. (NASDAQ: MRNA)
Clover Health Investments Corporation (NASDAQ: CLOV)
AbbVie Inc.
Right off the bat, we will be looking at AbbVie Inc. For the uninitiated, the Illinois-based company is a major player in the biopharmaceutical industry now. Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. Now, the company’s developmental pipeline consists of potential treatments across numerous key therapeutic areas. These include but are not limited to immunology, oncology, virology, and eye care. For a sense of scale, AbbVie is currently evaluating over 20 investigational cancer medicines in over 300 clinical trials globally.
Now, ABBV stock would be in investors’ sights as the company continues to make tremendous breakthroughs. Just this month, AbbVie continues to see significant results in its cancer and arthritis portfolios. For starters, the company’s Chronic Lymphocytic Leukemia (CLL) treatment, VENCLEXTA, continues to perform. Earlier today, AbbVie announced that a four-year analysis of the drug showed longer progression-free survival (PFS) and higher rates of undetectable minimal residual disease. Overall, the company saw that a majority of CLL patients treated with its drug have and continue to remain without relapse three years after.
If that wasn’t enough, AbbVie also provided another positive update in its other CLL drug candidate, ibrutinib, on June 4. According to the company, the drug exhibits the potential to achieve extended PFS and overall survival “when used as a first-line therapy”. Danelle James, the development lead on the drug said, “These latest data from the RESONATE-2 study further reinforce IMBRUVICA as a standard of care that can help patients live longer without chemotherapy.” Because of all this, would you say that all this mark exciting times ahead for ABBV stock now?
Source: TD Ameritrade TOS
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Moderna Inc.
Next up, we have coronavirus vaccine superstar Moderna Inc. Indeed, this biotech company would be a household name now given its role in fighting the current pandemic. The company’s products serve to boost the human immune system using modified messenger RNAs. Given Moderna’s lead in the vaccine market, investors looking to bet on coronavirus stocks would turn to MRNA stock now. As it stands, the company’s shares are currently sitting on massive gains of over 250% in the past year. While it remains a key player in the fight to vaccinate the world, could it have more room to grow?
If anything, Moderna is not resting on its laurels in the least bit. To begin with, the company is now seeking FDA approval for its COVID-19 vaccine to be administered to teens. Yesterday, Moderna cited the significantly positive results from its previous study which included over 3,700 adolescents aged 12 to 17. According to the company, zero positive cases were detected from the treatment group that received two doses of its vaccine.
In theory, this would suggest a 100% efficacy rate for the current target age group. Now, Moderna appears confident of its current findings. So much so that it is also currently filing for authorization with Health Canada and the European Medicines Agency. While the U.S. may be a frontrunner in terms of vaccination rates, many parts of the globe are still behind. Seeing as the potential applications for Moderna’s vaccine continues to grow, the company could be looking at busy times ahead. By extension, some would argue that MRNA stock could be in the same position. All in all, would you consider adding it to your portfolio now?
Source: TD Ameritrade TOS
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Clover Health Investments Corporation
Another health care company that is in the spotlight now would be Clover Health Investments Corporation (CLOV). Now, for those keeping up with the recentstock market news CLOV stock was a meme stock. At one point, the company’s shares doubled in value during intraday trading on Tuesday this week. Since then, however, the stock has dipped by 35%. Before dismissing the company, investors may want to take a closer look at its operations. In brief, CLOV operates as a Medicare Advantage insurer. It does so via its proprietary software platform, the Clover Assistant. With the current emphasis on health, especially amongst the elderly, Clover’s services would be in demand.
On one hand, the company provides America’s seniors with affordable health care plans. On the other hand, CLOV also aids physicians on the big-data front. The company can do so via its data-driven personalized insights, courtesy of its platform as well. With its current offerings, the company is looking to improve clinical decision-making and outcomes. As such, investors looking to bet on the health care industry, in general, would be turning to CLOV stock now.
While CLOV stock may be winding down from its meme stock frenzy, the company is not sitting idly by. At the moment, CLOV is planning to scale its in-home primary care program, Clover Home Care (CHC). Specifically, it will be doing so via the U.S. Centers for Medicare and Medicaid Services’ new Direct Contracting model. According to CLOV, this would serve to make the Medicare program more financially sustainable for clients while enhancing care and outcomes. With the company seemingly firing on all cylinders now, will you be investing in CLOV stock?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier today, AbbVie announced that a four-year analysis of the drug showed longer progression-free survival (PFS) and higher rates of undetectable minimal residual disease. Danelle James, the development lead on the drug said, “These latest data from the RESONATE-2 study further reinforce IMBRUVICA as a standard of care that can help patients live longer without chemotherapy.” Because of all this, would you say that all this mark exciting times ahead for ABBV stock now? Top Health Care Stocks To Watch In June AbbVie Inc. (NYSE: ABBV) Moderna Inc. (NASDAQ: MRNA) Clover Health Investments Corporation (NASDAQ: CLOV) AbbVie Inc. | Top Health Care Stocks To Watch In June AbbVie Inc. (NYSE: ABBV) Moderna Inc. (NASDAQ: MRNA) Clover Health Investments Corporation (NASDAQ: CLOV) AbbVie Inc. Right off the bat, we will be looking at AbbVie Inc. For the uninitiated, the Illinois-based company is a major player in the biopharmaceutical industry now. Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. | Top Health Care Stocks To Watch In June AbbVie Inc. (NYSE: ABBV) Moderna Inc. (NASDAQ: MRNA) Clover Health Investments Corporation (NASDAQ: CLOV) AbbVie Inc. Right off the bat, we will be looking at AbbVie Inc. For the uninitiated, the Illinois-based company is a major player in the biopharmaceutical industry now. Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. | Top Health Care Stocks To Watch In June AbbVie Inc. (NYSE: ABBV) Moderna Inc. (NASDAQ: MRNA) Clover Health Investments Corporation (NASDAQ: CLOV) AbbVie Inc. Right off the bat, we will be looking at AbbVie Inc. For the uninitiated, the Illinois-based company is a major player in the biopharmaceutical industry now. Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. |
24050.0 | 2021-06-13 00:00:00 UTC | How Big Is Bristol Myers Squibb's Latest FDA Approval? | ABBV | https://www.nasdaq.com/articles/how-big-is-bristol-myers-squibbs-latest-fda-approval-2021-06-13 | nan | nan | Bristol Myers Squibb (NYSE: BMY) recently picked up another U.S. Food and Drug Administration (FDA) approval for Zeposia in treating ulcerative colitis. In this Motley Fool Live video recorded on June 2, Motley Fool contributors Keith Speights and Brian Orelli discuss just how big this FDA win is for Bristol Myers Squibb.
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Keith Speights: The FDA recently approved Bristol Myers Squibb's Zeposia. It's also known as ozanimod. This approval was for treating ulcerative colitis. This is Bristol Myers Squibb's first win in a gastrointestinal indication. Brian, how big is this for the company?
Brian Orelli: Yes. This is Celgene's old multiple sclerosis drug and it had some issues with the FDA. The FDA gave it a Refuse to File, you recall, because they had some issues with the breakdown products. They hadn't characterized the products that gets broken down once it goes into the humans. It did eventually get approved for multiple sclerosis in March of 2020.
Now in ulcerative colitis, I think it's going to have a lot of competition. There are quite a few drugs that are approved for that indication. There's three different TNF inhibitors; Remicade and Simponi from Johnson & Johnson, and Humira from AbbVie, and then Takeda and Johnson & Johnson also have other biologics that are approved for ulcerative colitis.
That's just the biologics. This is progressive disease, and patients would start on generic anti-inflammatory drug, and then move up maybe to small molecule branded drugs, something like Xeljanz from Pfizer.
I think between the competition and then also the class of drugs that Bristol Myers' drug is in has had some hard side effects. I think that's going to cause the drug probably to be a last-line treatment. I think that that could cause some serious problems in terms of getting any reasonable amount of sales from this drug.
Some doctors will use it, and it definitely worked in the clinical trials, although they only tested it against placebo. I think if they had tested it head-to-head against some other drug in the class and it had beat that drug, then you could see doctors rushing to it more. But right now, I think it'll probably be a wait-and-see and only use it in patients who aren't responding to a lot of the other drugs.
Speights: Back in the day before Celgene was acquired by Bristol Myers Squibb, Celgene was predicting that Zeposia, or at the time, ozanimod, could reach peak sales of $4 to $6 billion dollars. I don't think that rosy of an outlook is applicable, and now, for some of the reasons you just mentioned, Brian, you still think this drug might be a blockbuster for Bristol Myers Squibb?
Orelli: I think that probably between multiple sclerosis and ulcerative colitis, I think it probably could be a blockbuster, but certainly not coming out of the gate. It will probably be toward the end of its patent life, it could hit blockbuster status probably.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie, Bristol Myers Squibb, and Pfizer. The Motley Fool owns shares of and recommends Bristol Myers Squibb. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | There's three different TNF inhibitors; Remicade and Simponi from Johnson & Johnson, and Humira from AbbVie, and then Takeda and Johnson & Johnson also have other biologics that are approved for ulcerative colitis. Keith Speights owns shares of AbbVie, Bristol Myers Squibb, and Pfizer. Bristol Myers Squibb (NYSE: BMY) recently picked up another U.S. Food and Drug Administration (FDA) approval for Zeposia in treating ulcerative colitis. | Keith Speights owns shares of AbbVie, Bristol Myers Squibb, and Pfizer. There's three different TNF inhibitors; Remicade and Simponi from Johnson & Johnson, and Humira from AbbVie, and then Takeda and Johnson & Johnson also have other biologics that are approved for ulcerative colitis. In this Motley Fool Live video recorded on June 2, Motley Fool contributors Keith Speights and Brian Orelli discuss just how big this FDA win is for Bristol Myers Squibb. | There's three different TNF inhibitors; Remicade and Simponi from Johnson & Johnson, and Humira from AbbVie, and then Takeda and Johnson & Johnson also have other biologics that are approved for ulcerative colitis. Keith Speights owns shares of AbbVie, Bristol Myers Squibb, and Pfizer. Bristol Myers Squibb (NYSE: BMY) recently picked up another U.S. Food and Drug Administration (FDA) approval for Zeposia in treating ulcerative colitis. | There's three different TNF inhibitors; Remicade and Simponi from Johnson & Johnson, and Humira from AbbVie, and then Takeda and Johnson & Johnson also have other biologics that are approved for ulcerative colitis. Keith Speights owns shares of AbbVie, Bristol Myers Squibb, and Pfizer. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights: The FDA recently approved Bristol Myers Squibb's Zeposia. |
24051.0 | 2021-06-13 00:00:00 UTC | 3 Top Dividend Stocks to Buy in June | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-to-buy-in-june-2021-06-13 | nan | nan | If you're retired or approaching retirement, you'll definitely want to consider including high-quality dividend stocks in your portfolio. These stocks provide steady income that you can count on. Some of them even offer attractive growth prospects as well. Even if retirement isn't on the horizon for a long time to come, you might still like the security of owning solid dividend stocks.
It's possible, though, that you could experience a case of "analysis paralysis" in choosing these stocks. Nearly 4,000 stocks traded on U.S. stock exchanges pay dividends. Don't worry if you don't have time to sift through all of them. Here are three top dividend stocks that are great picks to buy in June.
Image source: Getty Images.
AbbVie
Arguably the most important thing to know about AbbVie's (NYSE: ABBV) pedigree is that it's a Dividend Aristocrat. The big drugmaker has increased its dividend for 49 consecutive years. You'll also be glad to know that AbbVie offers a juicy dividend yield of 4.5%.
But how reliable will AbbVie's dividend be going forward? After all, sales of the company's top-selling drug, Humira, are likely to plunge beginning in 2023. That's when new biosimilars to the blockbuster autoimmune disease drug hit the U.S. market.
I don't think there's any reason to be worried. AbbVie has known for years that it was only a matter of time before Humira lost U.S. exclusivity. The company has developed its own pipeline candidates as well as completed strategic acquisitions with the goal of keeping its momentum going after Humira's sales fade.
AbbVie's strategy should work pretty well. Although the company expects overall revenue will fall in 2023 as Humira faces biosimilar rivals, it projects a quick return to modest growth the following year with robust revenue growth throughout the rest of the decade. The bottom line is that AbbVie seems likely to keep its streak of dividend hikes going for a long time to come.
Brookfield Renewable
You have a couple of ways to invest in Brookfield Renewable (NYSE: BEP) (NYSE: BEPC). Both of them provide great dividends. Brookfield Renewable Partners, which trades under the ticker BEP, is a limited partnership (LP) with a dividend yield of just north of 3%. Brookfield Renewable Corporation, whose ticker is BEPC, sports a dividend yield of 2.9%.
Brookfield Renewable was originally formed as an LP but decided to create a new stock for investors to eliminate the tax headaches that can come with buying and selling LPs. There's only one underlying business -- and that business is exceptionally strong.
Investing in renewable energy stocks is a smart move right now, with Brookfield Renewable ranking among the best in the group. Brookfield Renewable operates a major renewable energy platform with hydroelectric, wind, solar, and storage facilities spread across four continents.
The demand for renewable energy is practically a slam-dunk to increase over the next decade and beyond as countries and corporations strive to reduce their carbon emissions. Brookfield Renewable appears to be in a strong position to capitalize on this rising demand with a development pipeline capacity that's significantly larger than its current installed capacity.
Easterly Government Properties
I can't think of many dividend stocks that are as rock-solid as Easterly Government Properties (NYSE: DEA). The real estate investment trust (REIT) pays a mouth-watering dividend that currently yields more than 4.8%. More importantly, the company's dividend is as dependable as they come.
Easterly's name gives away its business model. The company focuses on buying properties and leasing them to the U.S. government. As of March 31, 2021, Easterly owned 82 properties with all but two of them leased to U.S. government agencies. Since then, the REIT has acquired two additional properties that it leased to federal agencies.
Darrell Crate, chairman of Easterly's board of directors, stated in the company's Q1 update, "The fundamentals of our business are strong, our pipeline is robust, and the credit quality of our underlying tenant, with leases backed by the full faith and credit of the U.S. government, remains the best of any public REIT out there." He was right. And he provided a compelling reason why Easterly Government Properties is a top dividend stock to buy right now.
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Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. The Motley Fool recommends Easterly Government Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Arguably the most important thing to know about AbbVie's (NYSE: ABBV) pedigree is that it's a Dividend Aristocrat. You'll also be glad to know that AbbVie offers a juicy dividend yield of 4.5%. But how reliable will AbbVie's dividend be going forward? | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie Arguably the most important thing to know about AbbVie's (NYSE: ABBV) pedigree is that it's a Dividend Aristocrat. You'll also be glad to know that AbbVie offers a juicy dividend yield of 4.5%. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie Arguably the most important thing to know about AbbVie's (NYSE: ABBV) pedigree is that it's a Dividend Aristocrat. You'll also be glad to know that AbbVie offers a juicy dividend yield of 4.5%. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. AbbVie Arguably the most important thing to know about AbbVie's (NYSE: ABBV) pedigree is that it's a Dividend Aristocrat. You'll also be glad to know that AbbVie offers a juicy dividend yield of 4.5%. |
24052.0 | 2021-06-11 00:00:00 UTC | 3 Absurdly Cheap Stocks to Buy in a Ridiculously Expensive Market | ABBV | https://www.nasdaq.com/articles/3-absurdly-cheap-stocks-to-buy-in-a-ridiculously-expensive-market-2021-06-11 | nan | nan | Stocks are so expensive that revered value investor Benjamin Graham might be spinning in his grave. The S&P 500's cyclically adjusted price-to-earnings (CAPE) ratio is at its highest level since early 2000 -- right before the dot-com bubble burst. It's even higher than the level in 1929, the year of the infamous stock market crash that was followed by the Great Depression.
There's no question that many stocks now have nosebleed valuations. However, there are some exceptions. Here are three absurdly cheap stocks you can still buy in this ridiculously expensive market.
Image source: Getty Images.
AbbVie
AbbVie's (NYSE: ABBV) shares currently trade at only nine times expected earnings. That's less than half the forward-earnings multiple of the S&P 500.
Why is AbbVie stock so cheap? Many investors are worried about the inevitability of a steep sales decline for its top-selling drug Humira. The blockbuster autoimmune disease drug faces biosimilar competition in the U.S. beginning in 2023.
My view is that those worries are overblown. Sure, AbbVie will experience a sales decline in a couple of years. However, the company should quickly return to delivering solid revenue growth, thanks to several other drugs with tremendous momentum, notably including the successors to Humira, Rinvoq and Skyrizi.
AbbVie also offers one of the most attractive dividends around. Its dividend yield stands at 4.6%. The company is also only one dividend hike away from becoming a Dividend King -- an elite group of S&P 500 members that have increased their dividends for at least 50 consecutive years.
Bristol Myers Squibb
If you think AbbVie's valuation looks appealing, you'll definitely want to check out Bristol Myers Squibb (NYSE: BMY), as well. The big drugmaker's forward price-to-earnings ratio of 8.5 makes BMS one of the cheapest healthcare stocks on the market.
Like AbbVie, BMS faces the prospects of declining sales for its top product. In this case, blood cancer drug Revlimid will face generic competition starting next year. The good news is that only limited volumes of these generics will be allowed on the market at first due to contractual agreements. However, BMS will almost certainly take a hit to its top line.
BMS' lineup, though, includes several blockbusters with solid sales growth. Blood thinner Eliquis, autoimmune disease drug Orencia, and cancer immunotherapy Yervoy top the list. The company also has a promising group of newer drugs with tremendous potential, including Zeposia in treating multiple sclerosis and ulcerative colitis and cancer cell therapies Abecma and Breyanzi.
Most investors won't turn their noses up at BMS' dividend, either, which currently yields nearly 3.1%. The company has boosted its dividend payout by almost 50% over the last 10 years.
Viatris
I've saved the most absurdly cheap stock for last. Viatris' (NASDAQ: VTRS) shares trade at 4.6 times expected earnings. That dirt cheap valuation was even more attractive earlier this year before the stock rocketed higher in May, thanks to better-than-expected Q1 results.
Viatris stock is inexpensive in part because investors view its business as boring and slow-growing. The company was formed late last year with the merger of Pfizer's Upjohn unit and Mylan. Upjohn was home to Pfizer's older drugs that have lost exclusivity and its biosimilars. Mylan was best known for its generic drugs and EpiPen epinephrine auto-injector.
Stronger growth could be on the way, though, within a few years. Viatris expects to launch many new generics and biosimilars throughout this decade. These include programs that will copy enormously successful blockbuster drugs such as Botox and Eylea.
In the meantime, Viatris now offers a solid dividend after recently initiating its first dividend, with a yield of 2.8%. The company should be able to increase its dividend on an annual basis.
Boring might not be such a bad thing after all.
10 stocks we like better than Viatris Inc.
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Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. The Motley Fool owns shares of and recommends Bristol Myers Squibb. The Motley Fool recommends Viatris Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie's (NYSE: ABBV) shares currently trade at only nine times expected earnings. Why is AbbVie stock so cheap? Sure, AbbVie will experience a sales decline in a couple of years. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie AbbVie's (NYSE: ABBV) shares currently trade at only nine times expected earnings. Why is AbbVie stock so cheap? | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie AbbVie's (NYSE: ABBV) shares currently trade at only nine times expected earnings. Why is AbbVie stock so cheap? | AbbVie AbbVie's (NYSE: ABBV) shares currently trade at only nine times expected earnings. Why is AbbVie stock so cheap? Sure, AbbVie will experience a sales decline in a couple of years. |
24053.0 | 2021-06-11 00:00:00 UTC | AbbVie: 4-year Follow-up Analysis Of Phase 3 Venetoclax Trial Continues To Show Longer PFS In CLL | ABBV | https://www.nasdaq.com/articles/abbvie%3A-4-year-follow-up-analysis-of-phase-3-venetoclax-trial-continues-to-show-longer-pfs | nan | nan | (RTTNews) - AbbVie (ABBV) announced Friday results from a four-year follow-up analysis of the Phase 3 CLL14 trial. The new data shows that AbbVie's VENCLYXTO/VENCLEXTA fixed duration combination demonstrates sustained progression-free survival or PFS in chronic lymphocytic leukemia or CLL patients after three years off treatment.
CLL is a slow-growing form of leukemia, or blood cancer, in which too many immature lymphocytes are found predominantly in the blood and bone marrow.
The data showed that previously untreated patients with CLL with coexisting conditions who were treated with VENCLYXTO/VENCLEXTA (venetoclax) plus obinutuzumab continued to show longer PFS and higher rates of undetectable minimal residual disease or MRD compared to patients receiving a standard of care chemoimmunotherapy regimen of obinutuzumab and chlorambucil.
The data were presented for the first time during the virtual 26th European Hematology Association Annual Congress.
Mohamed Zaki, vice president and head, global oncology development, AbbVie, "The CLL14 trial results observed after four years of follow-up with treatment of venetoclax plus obinutuzumab show that these patients can experience long-lasting responses without disease progression, years after stopping treatment."
The most frequently occurring serious adverse reactions in patients receiving venetoclax in combination with obinutuzumab were pneumonia, sepsis, febrile neutropenia, and TLS.
VENCLYXTO/VENCLEXTA is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The new data shows that AbbVie's VENCLYXTO/VENCLEXTA fixed duration combination demonstrates sustained progression-free survival or PFS in chronic lymphocytic leukemia or CLL patients after three years off treatment. (RTTNews) - AbbVie (ABBV) announced Friday results from a four-year follow-up analysis of the Phase 3 CLL14 trial. Mohamed Zaki, vice president and head, global oncology development, AbbVie, "The CLL14 trial results observed after four years of follow-up with treatment of venetoclax plus obinutuzumab show that these patients can experience long-lasting responses without disease progression, years after stopping treatment." | The new data shows that AbbVie's VENCLYXTO/VENCLEXTA fixed duration combination demonstrates sustained progression-free survival or PFS in chronic lymphocytic leukemia or CLL patients after three years off treatment. Mohamed Zaki, vice president and head, global oncology development, AbbVie, "The CLL14 trial results observed after four years of follow-up with treatment of venetoclax plus obinutuzumab show that these patients can experience long-lasting responses without disease progression, years after stopping treatment." (RTTNews) - AbbVie (ABBV) announced Friday results from a four-year follow-up analysis of the Phase 3 CLL14 trial. | The new data shows that AbbVie's VENCLYXTO/VENCLEXTA fixed duration combination demonstrates sustained progression-free survival or PFS in chronic lymphocytic leukemia or CLL patients after three years off treatment. Mohamed Zaki, vice president and head, global oncology development, AbbVie, "The CLL14 trial results observed after four years of follow-up with treatment of venetoclax plus obinutuzumab show that these patients can experience long-lasting responses without disease progression, years after stopping treatment." (RTTNews) - AbbVie (ABBV) announced Friday results from a four-year follow-up analysis of the Phase 3 CLL14 trial. | The new data shows that AbbVie's VENCLYXTO/VENCLEXTA fixed duration combination demonstrates sustained progression-free survival or PFS in chronic lymphocytic leukemia or CLL patients after three years off treatment. Mohamed Zaki, vice president and head, global oncology development, AbbVie, "The CLL14 trial results observed after four years of follow-up with treatment of venetoclax plus obinutuzumab show that these patients can experience long-lasting responses without disease progression, years after stopping treatment." (RTTNews) - AbbVie (ABBV) announced Friday results from a four-year follow-up analysis of the Phase 3 CLL14 trial. |
24054.0 | 2021-06-11 00:00:00 UTC | iShares Russell 1000 ETF Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/ishares-russell-1000-etf-experiences-big-outflow-2021-06-11 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $119.2 million dollar outflow -- that's a 0.4% decrease week over week (from 123,250,000 to 122,750,000). Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Walmart Inc (Symbol: WMT) is up about 0.2%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average:
Looking at the chart above, IWB's low point in its 52 week range is $163.99 per share, with $239.04 as the 52 week high point — that compares with a last trade of $238.70. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Walmart Inc (Symbol: WMT) is up about 0.2%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $163.99 per share, with $239.04 as the 52 week high point — that compares with a last trade of $238.70. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Walmart Inc (Symbol: WMT) is up about 0.2%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $163.99 per share, with $239.04 as the 52 week high point — that compares with a last trade of $238.70. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Walmart Inc (Symbol: WMT) is up about 0.2%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $119.2 million dollar outflow -- that's a 0.4% decrease week over week (from 123,250,000 to 122,750,000). For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $163.99 per share, with $239.04 as the 52 week high point — that compares with a last trade of $238.70. | Among the largest underlying components of IWB, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Walmart Inc (Symbol: WMT) is up about 0.2%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $119.2 million dollar outflow -- that's a 0.4% decrease week over week (from 123,250,000 to 122,750,000). For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $163.99 per share, with $239.04 as the 52 week high point — that compares with a last trade of $238.70. |
24055.0 | 2021-06-10 00:00:00 UTC | Notable Thursday Option Activity: MO, AMC, ABBV | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-mo-amc-abbv-2021-06-10 | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Altria Group Inc (Symbol: MO), where a total of 30,993 contracts have traded so far, representing approximately 3.1 million underlying shares. That amounts to about 49.1% of MO's average daily trading volume over the past month of 6.3 million shares. Especially high volume was seen for the $55 strike call option expiring January 20, 2023, with 4,082 contracts trading so far today, representing approximately 408,200 underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $55 strike highlighted in orange:
AMC Entertainment Holdings Inc. (Symbol: AMC) options are showing a volume of 1.4 million contracts thus far today. That number of contracts represents approximately 144.9 million underlying shares, working out to a sizeable 47.6% of AMC's average daily trading volume over the past month, of 304.5 million shares. Especially high volume was seen for the $40 strike put option expiring June 11, 2021, with 68,295 contracts trading so far today, representing approximately 6.8 million underlying shares of AMC. Below is a chart showing AMC's trailing twelve month trading history, with the $40 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,546 contracts thus far today. That number of contracts represents approximately 3.4 million underlying shares, working out to a sizeable 47.3% of ABBV's average daily trading volume over the past month, of 7.1 million shares. Especially high volume was seen for the $117 strike call option expiring June 11, 2021, with 7,513 contracts trading so far today, representing approximately 751,300 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $117 strike highlighted in orange:
For the various different available expirations for MO options, AMC options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $117 strike call option expiring June 11, 2021, with 7,513 contracts trading so far today, representing approximately 751,300 underlying shares of ABBV. Below is a chart showing AMC's trailing twelve month trading history, with the $40 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,546 contracts thus far today. That number of contracts represents approximately 3.4 million underlying shares, working out to a sizeable 47.3% of ABBV's average daily trading volume over the past month, of 7.1 million shares. | That number of contracts represents approximately 3.4 million underlying shares, working out to a sizeable 47.3% of ABBV's average daily trading volume over the past month, of 7.1 million shares. Below is a chart showing AMC's trailing twelve month trading history, with the $40 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,546 contracts thus far today. Especially high volume was seen for the $117 strike call option expiring June 11, 2021, with 7,513 contracts trading so far today, representing approximately 751,300 underlying shares of ABBV. | Below is a chart showing AMC's trailing twelve month trading history, with the $40 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,546 contracts thus far today. That number of contracts represents approximately 3.4 million underlying shares, working out to a sizeable 47.3% of ABBV's average daily trading volume over the past month, of 7.1 million shares. Especially high volume was seen for the $117 strike call option expiring June 11, 2021, with 7,513 contracts trading so far today, representing approximately 751,300 underlying shares of ABBV. | Especially high volume was seen for the $117 strike call option expiring June 11, 2021, with 7,513 contracts trading so far today, representing approximately 751,300 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $117 strike highlighted in orange: For the various different available expirations for MO options, AMC options, or ABBV options, visit StockOptionsChannel.com. Below is a chart showing AMC's trailing twelve month trading history, with the $40 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,546 contracts thus far today. |
24056.0 | 2021-06-10 00:00:00 UTC | 2 Top Healthcare Stocks to Buy in a Market Crash | ABBV | https://www.nasdaq.com/articles/2-top-healthcare-stocks-to-buy-in-a-market-crash-2021-06-10 | nan | nan | Are you ready for the next market crash? You had better be because the next one is always just around the corner.
Short-term minded investors tend to dump their stocks at the first sign of a market crash and it's a surefire way to underperform over the long run. Successful investors, though, know that dips, corrections, and crashes create bargain opportunities.
Products from AbbVie (NYSE: ABBV) and subscriptions to Veeva Systems (NYSE: VEEV) generate strong cash flows in good economic times and bad. Here's why patient investors will want to scoop up their shares the next time the broad market takes a dive.
Image source: Getty Images.
1. AbbVie
You might not realize it, but new drug patents are usually good for just 25 years. Half of this time usually gets chewed up by pre-commercial-stage development, leaving a relatively short window to generate significant profits. AbbVie is a top stock for long-term investors to buy on the dips because the company keeps coming up with ways to extend market exclusivity for treatments that are both popular and expensive.
In 2013, Abbott spun AbbVie out into a separate company to shield its relatively steady cash flows from incoming biosimilar competition for Humira. The FDA approved the first of six low-cost biosimilar versions of Humira beginning in 2016, but a thicket of patent protections continues to protect AbbVie's hold on market exclusivity in the U.S.
Despite launching 20 years ago, global sales of the rheumatoid arthritis treatment came in at an annualized $19.6 billion in the first quarter. Biosimilar versions of Humira are widely expected to launch in the U.S. next year. Despite the dour outlook, I wouldn't be surprised if AbbVie reports significant Humira revenue for another decade.
At first glance, the acquisition of Allergan and its Botox brand of botulinum toxin made AbbVie seem like a glutton for punishment. Botox earned its first FDA approval in 1989 but it's been around for much longer.
Over the years, Allergan and AbbVie have bolstered Botox's position in the market for cosmetic procedures and that's not all. Botox has also been approved to prevent migraine headaches and severe muscle spasms. Botox sales hit an annualized $4 billion in the first quarter and could continue climbing indefinitely.
Botox, Humira, and the rest of AbbVie's product lineup delivered a whopping $17.8 billion in free cash flow to AbbVie's bottom line over the past year. That's more than enough to fund a quarterly payout that offers a 4.4% dividend yield at recent prices.
Image source: Getty Images.
Veeva Systems
To this company, drugmakers like AbbVie are valuable clients. Veeva Systems sells subscriptions to cloud-based services tailored to the life science industry and other businesses that need to record lots of details for government regulators.
In the days before electronic filing, new drug applications could fill a small office from floor to ceiling with reams of paper. The amount of data drugmakers need to keep tabs on hasn't stopped growing, and neither has demand for Veeva Systems' services. Some competing software vendors offer sales support and others facilitate the clinical development process, but Veeva Systems is the only cloud service provider that covers all the bases for life sciences businesses regardless of their size.
Veeva Systems' client list includes six of the world's 20 largest pharmaceutical companies, and it's growing by leaps and bounds. Veeva's relatively new suite of quality control tools had a big quarter that allowed the company to add 59 new clients in the fiscal first quarter. That was a company record that drove Veeva's total client count past 1,000 for the first time.
VEEV Revenue (TTM) data by YCharts
Veeva plows large sums into refining its popular services and developing new ones that make it harder and harder for clients to walk away, but those investments are getting easier to manage. It didn't happen overnight, but Veeva has reached a size that allows the company to stay several steps ahead of the competition without sacrificing profitability.
The stock is trading at a valuation of 83 times forward earnings expectations, but those earnings are rising fast. During Veeva Systems' fiscal first quarter, which ended on April 30, 2021, operating income jumped 47% higher on revenue that rose 29% year over year.
Take your pick
Steady sales of Humira coupled with a product line dotted with rising stars have allowed AbbVie to triple its dividend payout since the stock began trading in 2013. Investors getting closer to retirement will appreciate the large and growing income stream their AbbVie shares produce, especially if they can be purchased at a steep discount to their recent price.
Shares of Veeva Systems are so highly valued at the moment that the stock could tank down the road if investors think it can't keep growing at a breakneck pace. As a much smaller company, though, Veeva's in a position to provide much stronger gains than AbbVie over the long run.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Veeva Systems. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is a top stock for long-term investors to buy on the dips because the company keeps coming up with ways to extend market exclusivity for treatments that are both popular and expensive. Take your pick Steady sales of Humira coupled with a product line dotted with rising stars have allowed AbbVie to triple its dividend payout since the stock began trading in 2013. Products from AbbVie (NYSE: ABBV) and subscriptions to Veeva Systems (NYSE: VEEV) generate strong cash flows in good economic times and bad. | Products from AbbVie (NYSE: ABBV) and subscriptions to Veeva Systems (NYSE: VEEV) generate strong cash flows in good economic times and bad. In 2013, Abbott spun AbbVie out into a separate company to shield its relatively steady cash flows from incoming biosimilar competition for Humira. Take your pick Steady sales of Humira coupled with a product line dotted with rising stars have allowed AbbVie to triple its dividend payout since the stock began trading in 2013. | Products from AbbVie (NYSE: ABBV) and subscriptions to Veeva Systems (NYSE: VEEV) generate strong cash flows in good economic times and bad. AbbVie is a top stock for long-term investors to buy on the dips because the company keeps coming up with ways to extend market exclusivity for treatments that are both popular and expensive. Botox, Humira, and the rest of AbbVie's product lineup delivered a whopping $17.8 billion in free cash flow to AbbVie's bottom line over the past year. | AbbVie You might not realize it, but new drug patents are usually good for just 25 years. Botox, Humira, and the rest of AbbVie's product lineup delivered a whopping $17.8 billion in free cash flow to AbbVie's bottom line over the past year. Products from AbbVie (NYSE: ABBV) and subscriptions to Veeva Systems (NYSE: VEEV) generate strong cash flows in good economic times and bad. |
24057.0 | 2021-06-09 00:00:00 UTC | 2 High-Yield Dividend Stocks for 2021 | ABBV | https://www.nasdaq.com/articles/2-high-yield-dividend-stocks-for-2021-2021-06-09 | nan | nan | John D. Rockefeller once said, "Do you know the only thing that gives me pleasure? It's to see my dividends coming in." But not all dividends are created equal. High-yielding dividend stocks may not always be a safe investment, as an unusually high yield might signal a company in trouble or an impending dividend cut.
Still, there are a few safe and attractive high-yield dividend stocks in today's market, two of them being AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). These stocks are capable of returning significant income to shareholders while offering reliable payouts, so you don't have to worry about whether you'll receive a check every quarter.
Here's why you might consider picking these high-quality, high-yield dividend stocks to add to your portfolio.
Image source: Getty Images.
1. AbbVie
AbbVie arrived on the scene back in 2013 after being spun off from Abbott Laboratories. The company brought in lots of profits very early, mainly from its blockbuster immunosuppressant, Humira. Humira did more than $19 billion in 2020 revenue and was able to bring in $3.9 billion in the first quarter of 2021. But all good things come to an end, and so is Humira's patent protection; it has already gone off-patent in Europe and, just recently, Canada. Humira will lose patent protection here in the U.S in 2023, and given the drug's superstar status, investors might be concerned about whether AbbVie can sustain revenues and if the dividend is safe.
The short answer is yes. Beyond Humira, AbbVie has a whole host of products in its portfolio that will keep revenue steady: Skyrizi (for plaque psoriasis), Rinvoq (for rheumatoid arthritis), Imbruvica (for lymphoma), and Venclexta (for leukemia). The company sees lots of potential in Skyrizi and Rinvoq, whose 2020 sales were up by 91% and 600%, respectively, from the year before. Imbruvica and Venclexta sales rose by 9.8% and 46%, respectively, as well. CEO Rick Gonzalez informed investors during the fourth-quarter conference call that revenue from both Skyrizi and Rinvoq should double in 2021, saying that by 2025, they expect the drugs to pull in a combined $15 billion in annual revenue. Imbruvica and Venclexta are expected to bring in $5.7 billion and $1.8 billion in 2021, respectively, with management expecting future growth in the double digits, driven by more illnesses that these drugs will be able to treat.
Skyrizi and Rinvoq combined to bring in about $2.3 billion in sales for 2020, only 14% of the $16 billion Humira notched for the year. Imbruvica and Venxeleta were able to bring in $5.1 billion for the year, meaning that these four drugs combined were able to make 46% of Humira's 2020 revenue. Given management's predictions, that number could increase to $22 billion by 2025. This will more than make up for the $16 billion Humira brought in during 2020, helping the company financially as one of the best-selling drugs in history goes off-patent.
With a plan in place to cover the revenue gap that is going to be left by Humira, AbbVie's dividend should look a lot safer to investors. AbbVie currently offers a 4.6% yield, which has been growing at a spectacular rate. Over the past five years, AbbVie's dividend is up 18.09%, tremendously outperforming the 5.84% seen by the sector overall. Even though it's only been around for eight years, AbbVie is a Dividend Aristocrat -- its time as part of Abbott Labs counts toward its consistently increasing payouts for more than 25 years. Investors interested in a fantastically high yield and a long and reliable history of dividend payments should consider a place for AbbVie in their portfolio.
2. Pfizer
While much older than AbbVie, Pfizer has not lost its step. The 172-year-old business is hard at work, most recently completing a successful COVID-19 vaccine as a joint venture with German partner BioNTech.
The company has been thriving financially, as sales from the vaccine and its key drugs are both doing well. Just in the first quarter of 2021, Pfizer made $3.46 billion from its COVID-19 vaccine. In the Q1 earnings report, management noted that revenues from the COVID-19 vaccine could be about $26 billion for the entire 2021 fiscal year.
As mentioned, the vaccine isn't the only bright spot for Pfizer; growth from its key drugs is very encouraging, too. Certain of those -- including Eliquis (an anticoagulant), Vyndamax (for heart issues) , and Xeljanz (for rheumatoid arthritis) -- saw sales rise by 25%, 88%, and 18% year-over-year respectively in Q1. These three drugs combined brought in more than $2.5 billion for Pfizer in just the first quarter. The company expects to make $70 billion in 2021, a 73% increase from the $41 billion brought in during 2020.
Despite all the success Pfizer has experienced over the past few months, the stock remains one of the better deals for investors looking for income in this market. Currently offering a 4% dividend yield, the company recently gave investors a small raise for 2021, lifting its dividend by 3% in December 2020. Pfizer is currently paying out 42% of its earnings. This is a safe payout ratio, offering investors reliable dividend payments as well as a high yield. With the U.S Treasury offering 1.56% to invest in 10-year treasury bonds, Pfizer's yield of 4% is more than double that, making the stock attractive for investors looking to investments to provide more current income.
10 stocks we like better than AbbVie
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Anirudh Shankar owns shares of AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Humira will lose patent protection here in the U.S in 2023, and given the drug's superstar status, investors might be concerned about whether AbbVie can sustain revenues and if the dividend is safe. Beyond Humira, AbbVie has a whole host of products in its portfolio that will keep revenue steady: Skyrizi (for plaque psoriasis), Rinvoq (for rheumatoid arthritis), Imbruvica (for lymphoma), and Venclexta (for leukemia). Still, there are a few safe and attractive high-yield dividend stocks in today's market, two of them being AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). | Still, there are a few safe and attractive high-yield dividend stocks in today's market, two of them being AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie AbbVie arrived on the scene back in 2013 after being spun off from Abbott Laboratories. Humira will lose patent protection here in the U.S in 2023, and given the drug's superstar status, investors might be concerned about whether AbbVie can sustain revenues and if the dividend is safe. | Humira will lose patent protection here in the U.S in 2023, and given the drug's superstar status, investors might be concerned about whether AbbVie can sustain revenues and if the dividend is safe. Still, there are a few safe and attractive high-yield dividend stocks in today's market, two of them being AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie AbbVie arrived on the scene back in 2013 after being spun off from Abbott Laboratories. | Even though it's only been around for eight years, AbbVie is a Dividend Aristocrat -- its time as part of Abbott Labs counts toward its consistently increasing payouts for more than 25 years. Still, there are a few safe and attractive high-yield dividend stocks in today's market, two of them being AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). AbbVie AbbVie arrived on the scene back in 2013 after being spun off from Abbott Laboratories. |
24058.0 | 2021-06-08 00:00:00 UTC | AbbVie To Present At The Goldman Sachs Global Healthcare Conference; Webcast At 9:40 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-to-present-at-the-goldman-sachs-global-healthcare-conference-webcast-at-9%3A40-am-et | nan | nan | (RTTNews) - AbbVie (ABBV) will participate in the Goldman Sachs 42nd Annual Global Healthcare Conference.
The event is scheduled to begin at 9:40 AM ET on June 8, 2021.
To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will participate in the Goldman Sachs 42nd Annual Global Healthcare Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 9:40 AM ET on June 8, 2021. | (RTTNews) - AbbVie (ABBV) will participate in the Goldman Sachs 42nd Annual Global Healthcare Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 9:40 AM ET on June 8, 2021. | (RTTNews) - AbbVie (ABBV) will participate in the Goldman Sachs 42nd Annual Global Healthcare Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 9:40 AM ET on June 8, 2021. | (RTTNews) - AbbVie (ABBV) will participate in the Goldman Sachs 42nd Annual Global Healthcare Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 9:40 AM ET on June 8, 2021. |
24059.0 | 2021-06-07 00:00:00 UTC | AbbVie Says Health Canada OKs RINVOQ For Adults With Active Psoriatic Arthritis | ABBV | https://www.nasdaq.com/articles/abbvie-says-health-canada-oks-rinvoq-for-adults-with-active-psoriatic-arthritis-2021-06-07 | nan | nan | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) said Monday that Canadian regulator Health Canada has approved RINVOQ for the treatment of adults with active psoriatic arthritis or PsA.
RINVOQ (upadacitinib, 15 mg), an oral, once-daily selective and reversible JAK inhibitor was administered to adults with active PsA who have had an inadequate response or intolerance to methotrexate or other Disease-Modifying Anti-Rheumatic Drugs or DMARDs.
The company said the approval is backed by efficacy and safety data of two pivotal Phase 3 studies and that the safety profile of RINVOQ in psoriatic arthritis was consistent with previously reported results across the Phase 3 rheumatoid arthritis clinical trial program, with no new significant safety risks detected.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) said Monday that Canadian regulator Health Canada has approved RINVOQ for the treatment of adults with active psoriatic arthritis or PsA. RINVOQ (upadacitinib, 15 mg), an oral, once-daily selective and reversible JAK inhibitor was administered to adults with active PsA who have had an inadequate response or intolerance to methotrexate or other Disease-Modifying Anti-Rheumatic Drugs or DMARDs. The company said the approval is backed by efficacy and safety data of two pivotal Phase 3 studies and that the safety profile of RINVOQ in psoriatic arthritis was consistent with previously reported results across the Phase 3 rheumatoid arthritis clinical trial program, with no new significant safety risks detected. | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) said Monday that Canadian regulator Health Canada has approved RINVOQ for the treatment of adults with active psoriatic arthritis or PsA. RINVOQ (upadacitinib, 15 mg), an oral, once-daily selective and reversible JAK inhibitor was administered to adults with active PsA who have had an inadequate response or intolerance to methotrexate or other Disease-Modifying Anti-Rheumatic Drugs or DMARDs. The company said the approval is backed by efficacy and safety data of two pivotal Phase 3 studies and that the safety profile of RINVOQ in psoriatic arthritis was consistent with previously reported results across the Phase 3 rheumatoid arthritis clinical trial program, with no new significant safety risks detected. | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) said Monday that Canadian regulator Health Canada has approved RINVOQ for the treatment of adults with active psoriatic arthritis or PsA. The company said the approval is backed by efficacy and safety data of two pivotal Phase 3 studies and that the safety profile of RINVOQ in psoriatic arthritis was consistent with previously reported results across the Phase 3 rheumatoid arthritis clinical trial program, with no new significant safety risks detected. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Biopharmaceutical company AbbVie (ABBV) said Monday that Canadian regulator Health Canada has approved RINVOQ for the treatment of adults with active psoriatic arthritis or PsA. RINVOQ (upadacitinib, 15 mg), an oral, once-daily selective and reversible JAK inhibitor was administered to adults with active PsA who have had an inadequate response or intolerance to methotrexate or other Disease-Modifying Anti-Rheumatic Drugs or DMARDs. The company said the approval is backed by efficacy and safety data of two pivotal Phase 3 studies and that the safety profile of RINVOQ in psoriatic arthritis was consistent with previously reported results across the Phase 3 rheumatoid arthritis clinical trial program, with no new significant safety risks detected. |
24060.0 | 2021-06-03 00:00:00 UTC | IWV, NFLX, CRM, ABBV: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/iwv-nflx-crm-abbv%3A-large-inflows-detected-at-etf-2021-06-03 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $125.5 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 46,150,000 to 46,650,000). Among the largest underlying components of IWV, in trading today Netflix Inc (Symbol: NFLX) is down about 1.6%, Salesforce.com Inc (Symbol: CRM) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average:
Looking at the chart above, IWV's low point in its 52 week range is $171.89 per share, with $252.17 as the 52 week high point — that compares with a last trade of $249.24. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IWV, in trading today Netflix Inc (Symbol: NFLX) is down about 1.6%, Salesforce.com Inc (Symbol: CRM) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $171.89 per share, with $252.17 as the 52 week high point — that compares with a last trade of $249.24. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IWV, in trading today Netflix Inc (Symbol: NFLX) is down about 1.6%, Salesforce.com Inc (Symbol: CRM) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $171.89 per share, with $252.17 as the 52 week high point — that compares with a last trade of $249.24. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of IWV, in trading today Netflix Inc (Symbol: NFLX) is down about 1.6%, Salesforce.com Inc (Symbol: CRM) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $125.5 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 46,150,000 to 46,650,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $171.89 per share, with $252.17 as the 52 week high point — that compares with a last trade of $249.24. | Among the largest underlying components of IWV, in trading today Netflix Inc (Symbol: NFLX) is down about 1.6%, Salesforce.com Inc (Symbol: CRM) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $125.5 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 46,150,000 to 46,650,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $171.89 per share, with $252.17 as the 52 week high point — that compares with a last trade of $249.24. |
24061.0 | 2021-06-02 00:00:00 UTC | Senate Finance Committee launches probe into AbbVie's tax practices | ABBV | https://www.nasdaq.com/articles/senate-finance-committee-launches-probe-into-abbvies-tax-practices-2021-06-02 | nan | nan | June 2 (Reuters) - Senate Finance Committee Chairman Ron Wyden has launched an investigation into AbbVie's ABBV.N international tax practices, saying the drugmaker has avoided paying taxes on U.S. prescription drug sales by shifting its profit overseas.
In a letter addressed to AbbVie's chief executive officer, Richard Gonzalez, on Wednesday, Wyden noted that the company has consistently reported a net loss in the United States and net income overseas, despite being headquartered in the country.
AbbVie is already under scrutiny for its drug pricing practices, which U.S. lawmakers questioned last month, accusing the company of profiting from Americans by repeatedly raising U.S. prices on its widely-used rheumatoid arthritis drug, Humira, while cutting prices abroad.
Wyden said in the letter that AbbVie reported a domestic pretax loss of $4.5 billion last year, while reporting a foreign pretax profit of $7.9 billion.
"It appears that AbbVie shifts profits offshore while reporting a domestic loss in the United States to avoid paying U.S. corporate income taxes, and that the current U.S. international tax system seems to encourage that," the letter said.
Among other things, Wyden asked Gonzalez to explain how the provisions of the 2017 tax law allowed AbbVie to reduce its effective tax rate to an average of just 9.5% for tax years 2018 to 2020, from about 20% prior to the law.
Abbvie did not immediately respond to Reuters' request for comment.
Former U.S. President Donald Trump passed a law in 2017 that cut the overall corporate tax rate to 21% from 35%, and allowed income from overseas to be taxed at about half that rate. (https://reut.rs/34KSfWk)
UPDATE 3-Lawmakers say AbbVie exploits U.S. patents to protect Humira profits, price hikes
(Reporting by Manojna Maddipatla in Bengaluru; Editing by Amy Caren Daniel)
((manojna.kalyani@thomsonreuters.com; +91 8061822700;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | June 2 (Reuters) - Senate Finance Committee Chairman Ron Wyden has launched an investigation into AbbVie's ABBV.N international tax practices, saying the drugmaker has avoided paying taxes on U.S. prescription drug sales by shifting its profit overseas. In a letter addressed to AbbVie's chief executive officer, Richard Gonzalez, on Wednesday, Wyden noted that the company has consistently reported a net loss in the United States and net income overseas, despite being headquartered in the country. (https://reut.rs/34KSfWk) UPDATE 3-Lawmakers say AbbVie exploits U.S. patents to protect Humira profits, price hikes (Reporting by Manojna Maddipatla in Bengaluru; Editing by Amy Caren Daniel) ((manojna.kalyani@thomsonreuters.com; +91 8061822700;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a letter addressed to AbbVie's chief executive officer, Richard Gonzalez, on Wednesday, Wyden noted that the company has consistently reported a net loss in the United States and net income overseas, despite being headquartered in the country. Wyden said in the letter that AbbVie reported a domestic pretax loss of $4.5 billion last year, while reporting a foreign pretax profit of $7.9 billion. "It appears that AbbVie shifts profits offshore while reporting a domestic loss in the United States to avoid paying U.S. corporate income taxes, and that the current U.S. international tax system seems to encourage that," the letter said. | June 2 (Reuters) - Senate Finance Committee Chairman Ron Wyden has launched an investigation into AbbVie's ABBV.N international tax practices, saying the drugmaker has avoided paying taxes on U.S. prescription drug sales by shifting its profit overseas. "It appears that AbbVie shifts profits offshore while reporting a domestic loss in the United States to avoid paying U.S. corporate income taxes, and that the current U.S. international tax system seems to encourage that," the letter said. Among other things, Wyden asked Gonzalez to explain how the provisions of the 2017 tax law allowed AbbVie to reduce its effective tax rate to an average of just 9.5% for tax years 2018 to 2020, from about 20% prior to the law. | AbbVie is already under scrutiny for its drug pricing practices, which U.S. lawmakers questioned last month, accusing the company of profiting from Americans by repeatedly raising U.S. prices on its widely-used rheumatoid arthritis drug, Humira, while cutting prices abroad. "It appears that AbbVie shifts profits offshore while reporting a domestic loss in the United States to avoid paying U.S. corporate income taxes, and that the current U.S. international tax system seems to encourage that," the letter said. June 2 (Reuters) - Senate Finance Committee Chairman Ron Wyden has launched an investigation into AbbVie's ABBV.N international tax practices, saying the drugmaker has avoided paying taxes on U.S. prescription drug sales by shifting its profit overseas. |
24062.0 | 2021-06-02 00:00:00 UTC | AbbVie Announces Positive Results From Late-stage Study Of Crohn's Disease Treatment | ABBV | https://www.nasdaq.com/articles/abbvie-announces-positive-results-from-late-stage-study-of-crohns-disease-treatment-2021 | nan | nan | (RTTNews) - AbbVie (ABBV) Wednesday announced positive results from a late-stage study of its treatment for Crohn's disease.
AbbVie announced that risankizumab 360 mg achieved the co-primary endpoints of endoscopic response and clinical remission at one year in adult patients with moderate to severe Crohn's disease.
In the study, patients who responded to 12 weeks of risankizumab intravenous induction treatment were re-randomized to receive risankizumab 180 mg, risankizumab 360 mg or withdrawal from risankizumab treatment.
After one year, 47 percent of patients receiving risankizumab 360 mg achieved endoscopic response compared with 22 percent of patients in the induction-only control group. Significantly more patients receiving risankizumab 360 mg achieved clinical remission, with 52 percent on risankizumab 360 mg achieving clinical remission versus 41 percent in the induction-only control group.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) Wednesday announced positive results from a late-stage study of its treatment for Crohn's disease. AbbVie announced that risankizumab 360 mg achieved the co-primary endpoints of endoscopic response and clinical remission at one year in adult patients with moderate to severe Crohn's disease. Significantly more patients receiving risankizumab 360 mg achieved clinical remission, with 52 percent on risankizumab 360 mg achieving clinical remission versus 41 percent in the induction-only control group. | (RTTNews) - AbbVie (ABBV) Wednesday announced positive results from a late-stage study of its treatment for Crohn's disease. AbbVie announced that risankizumab 360 mg achieved the co-primary endpoints of endoscopic response and clinical remission at one year in adult patients with moderate to severe Crohn's disease. In the study, patients who responded to 12 weeks of risankizumab intravenous induction treatment were re-randomized to receive risankizumab 180 mg, risankizumab 360 mg or withdrawal from risankizumab treatment. | (RTTNews) - AbbVie (ABBV) Wednesday announced positive results from a late-stage study of its treatment for Crohn's disease. AbbVie announced that risankizumab 360 mg achieved the co-primary endpoints of endoscopic response and clinical remission at one year in adult patients with moderate to severe Crohn's disease. In the study, patients who responded to 12 weeks of risankizumab intravenous induction treatment were re-randomized to receive risankizumab 180 mg, risankizumab 360 mg or withdrawal from risankizumab treatment. | (RTTNews) - AbbVie (ABBV) Wednesday announced positive results from a late-stage study of its treatment for Crohn's disease. AbbVie announced that risankizumab 360 mg achieved the co-primary endpoints of endoscopic response and clinical remission at one year in adult patients with moderate to severe Crohn's disease. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
24063.0 | 2021-06-01 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABBV | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2021-06-01 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65%
Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75%
AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20%
Target Corp (Symbol: TGT) $226.92 $239.47 5.53%
National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83%
Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18%
AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79%
Target Corp (Symbol: TGT) 1.20% 5.53% 6.73%
National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34%
Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00%
AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22%
Target Corp (Symbol: TGT) $2.64 $2.72 3.03%
National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65% Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75% AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20% Target Corp (Symbol: TGT) $226.92 $239.47 5.53% National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83% Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18% AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79% Target Corp (Symbol: TGT) 1.20% 5.53% 6.73% National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22% Target Corp (Symbol: TGT) $2.64 $2.72 3.03% National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30% These five stocks are part of our full Dividend Aristocrats List. | Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65% Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75% AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20% Target Corp (Symbol: TGT) $226.92 $239.47 5.53% National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83% Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18% AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79% Target Corp (Symbol: TGT) 1.20% 5.53% 6.73% National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22% Target Corp (Symbol: TGT) $2.64 $2.72 3.03% National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30% These five stocks are part of our full Dividend Aristocrats List. | Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65% Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75% AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20% Target Corp (Symbol: TGT) $226.92 $239.47 5.53% National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83% Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18% AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79% Target Corp (Symbol: TGT) 1.20% 5.53% 6.73% National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22% Target Corp (Symbol: TGT) $2.64 $2.72 3.03% National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30% These five stocks are part of our full Dividend Aristocrats List. | Church & Dwight Co Inc (Symbol: CHD) $85.73 $94.00 9.65% Donaldson Co. Inc. (Symbol: DCI) $61.59 $65.75 6.75% AbbVie Inc (Symbol: ABBV) $113.20 $120.21 6.20% Target Corp (Symbol: TGT) $226.92 $239.47 5.53% National Fuel Gas Co. (Symbol: NFG) $51.89 $54.50 5.03% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Church & Dwight Co Inc (Symbol: CHD) 1.18% 9.65% 10.83% Donaldson Co. Inc. (Symbol: DCI) 1.43% 6.75% 8.18% AbbVie Inc (Symbol: ABBV) 4.59% 6.20% 10.79% Target Corp (Symbol: TGT) 1.20% 5.53% 6.73% National Fuel Gas Co. (Symbol: NFG) 3.43% 5.03% 8.46% Another consideration with dividend growth stocks is just how much the dividend is growing. Church & Dwight Co Inc (Symbol: CHD) $0.936 $0.986 5.34% Donaldson Co. Inc. (Symbol: DCI) $0.84 $0.84 0.00% AbbVie Inc (Symbol: ABBV) $4.5 $4.96 10.22% Target Corp (Symbol: TGT) $2.64 $2.72 3.03% National Fuel Gas Co. (Symbol: NFG) $1.74 $1.78 2.30% These five stocks are part of our full Dividend Aristocrats List. |
24064.0 | 2021-05-31 00:00:00 UTC | 6 Top Dividend Stocks To Watch For Your Retirement Plan | ABBV | https://www.nasdaq.com/articles/6-top-dividend-stocks-to-watch-for-your-retirement-plan-2021-05-31 | nan | nan | Are These The Best Dividend Stocks To Help You Build Retirement Wealth?
There’s no question that we all need income to live on, and that’s where dividend stocks come into the picture. And the great news here is, you don’t need to have a lot of money to begin investing in the stock market. If you don’t believe me, just look at Warren Buffett. The Oracle of Omaha certainly didn’t start with a lot of money.
Of course, if there’s one thing investors want, it’s top dividend stocks that can produce a steady income stream that can sustain them throughout their life. But that’s usually not quite possible unless you are investing in the millions. However, if you are looking to buy a dividend stock that could sustain your retirement life now, or if you are simply planning a few decades ahead, here are some of the best dividend stocks to buy in the stock market today.
Top Dividend Stocks For Your June Watchlist
Innovative Industrial Properties Inc. (NYSE: IIPR)
Realty Income Corporation (NYSE: O)
Lumen Technologies (NYSE: LUMN)
Coca-Cola Co. (NYSE: KO)
Abbvie Inc. (NYSE: ABBV)
Chevron Corporation (NYSE: CVX)
Innovative Industrial Properties
First up, we have Innovative Industrial Properties Inc. (IIPR). Here, we are looking at a leading pick-and-shovel play on the U.S. marijuana industry. The real estate investment trust (REIT) focuses on the medical cannabis industry.
The REIT reported strong-first quarter 2021 results earlier in May. In it, revenue and operating income came in 103% and 125% higher respectively year-over-year.
Few companies are going to give you the kind of growth that IIPR offers. At the pace that the company is snapping up more properties and leasing them to the medical cannabis operators, don’t be surprised if IIPR could double its number of properties within the next five years. Sure, its dividend yield of around 2.9% isn’t exactly exciting. But that’s because IIPR stock price has skyrocketed at a faster pace, keeping its dividend yield from rising.
[Read More] The 11 Sectors Of The Stock Market & Their Biggest ETFs
Realty Income
No list of top dividend stocks is complete without Realty Income. While several REITs pay monthly dividends, this company’s monthly payout is a crucial part of its identity. In fact, the company actually trademarked “The Monthly Dividend Company” as its official nickname. Look no further if you want a safe and consistent payout for your portfolio. The REIT even boasts on its homepage its 609 consecutive monthly dividends paid and 4.4% annualized dividend growth since 1994.
What’s making Realty Income a compelling investment is its portfolio of strong clientele. After all, it has top tenants like Walmart (NYSE: WMT) and Dollar General (NYSE: DG). And these tenants should continue to do well and bring in a stable revenue stream for the company.
Considering the fact that the economy is slowly reopening, Realty Income’s most affected tenants such as cinema operators and gyms should enjoy a nice recovery. Thus, would you add O stock to your portfolio?
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Lumen Technologies
If you’re looking for a company with a fat dividend yield, you might want to consider Lumen Technologies. Previously known as CenturyLink, Lumen Technologies is a telecommunications company that pays a big dividend yield. As it stands, the company has a dividend yield of more than 7%. The company has been struggling with its legacy internet landline services.
As a result, this has prompted Lumen to invest in high-performance fiber-optics networks. And the great news is that the new investment is generating strong cash flows. Following this momentum, there’s a chance that margins could significantly improve as the company continues its pivot to fiber and enterprise services.
Also, Lumen Technologies hosted an Analyst Day presentation, where it showcased exciting company developments to shareholders. From the presentation, the company highlighted partnerships with VMWare (NYSE: VMW), IBM Cloud (NYSE: IBM), and T-Mobile (NASDAQ: TMUS). Admittedly, no one can be sure what the future holds for the company with these strings of partnerships. But things certainly could play out well if Lumen hits off with one of these partners. If you believe that the company could bump up its revenue growth through these partnerships, would you include LUMN stock on your watchlist today?
Coca-Cola
Coca-Cola is a multinational beverage corporation that operates a franchised distribution system. Its products are sold in more than 200 countries and territories. Also, the company’s portfolio of brands includes Coca-Cola, Sprite, Dasani, and Minute Maid among others. Coca-Cola is also a dividend company that paid $7 billion to shareowners in 2020 alone.
The beverage giant is also Berkshire Hathaway’s (NYSE: BRK.A) longest-tenured holding. It also makes up a significant portion of Buffett’s annual dividend income. As it stands, Coca-Cola has a dividend yield of around 3%.
From its first-quarter report, net revenue came in 5% higher year-over-year to $9 billion. The company also posted an earnings per share of $0.52. Coca-Cola also ended the quarter with $1.4 billion in cash. In addition, it also cited that volume trends are steadily improving each month throughout the quarter. This would be driven by a recovery in markets where coronavirus-related uncertainty has abated. March volume for instance has already reached 2019 levels. With signs of improvement already beginning to surface, will you add KO stock into your portfolio?
[Read More] 5 Tech Stocks To Watch In June 2021
AbbVie
Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. The research-based pharmaceutical company boasts a wide healthcare portfolio, tackling the world’s most prominent illnesses. According to AbbVie, more than 52 million patients in over 175 countries rely on its treatments annually. AbbVie’s dividend yield currently stands at around 4.7%.
From its first quarterly report, total revenue for the quarter came in 50.95% higher year-over-year, adding up to over $13 billion. This was followed by a sizable 18% bump in net income over the same time.
On top of that, AbbVie also ended the quarter with over $9.7 billion in cash on hand. The bullish thesis for the company is based on the prospects for several drugs under its belt. In particular, the company is counting on its autoimmune disease drugs for tremendous growth. With AbbVie seemingly firing on all cylinders, is ABBV stock worth investing in now?
[Read More] Best Cheap Stocks To Buy Now? 4 Consumer Discretionary Stocks In Focus
Chevron
Chevron Corporation is one of the leading integrated oil and gas companies in the United States. Many investors, including Warren Buffett, love CVX stock because it has a strong balance sheet and good growth prospects. After all, we are talking about a company with a history of 140 years. And more importantly, it has an attractive dividend yield of around 5%. Sure, oil and gas stocks ain’t exactly the best investment in the stock market right now. But the company is keeping up with the times through its initiatives in hydrogen to support the green economy.
Of course, fossil fuels will almost certainly be increasingly replaced by renewable energy sources over the long run. Such remarks appear to give the notion that the best days of the oil and gas industry are behind us. But what they didn’t know is, the next big energy transition can’t happen without fossil fuels.
Even the electric vehicle boom we see in thestock market todayis dependent on fossil fuels. Why? Because nearly half of the materials are made up of plastics from the petrochemicals industry. Considering the importance of oil in the foreseeable future, would you say that CVX stock is still a good dividend stock to buy now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Dividend Stocks For Your June Watchlist Innovative Industrial Properties Inc. (NYSE: IIPR) Realty Income Corporation (NYSE: O) Lumen Technologies (NYSE: LUMN) Coca-Cola Co. (NYSE: KO) Abbvie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) Innovative Industrial Properties First up, we have Innovative Industrial Properties Inc. (IIPR). [Read More] 5 Tech Stocks To Watch In June 2021 AbbVie Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. | Top Dividend Stocks For Your June Watchlist Innovative Industrial Properties Inc. (NYSE: IIPR) Realty Income Corporation (NYSE: O) Lumen Technologies (NYSE: LUMN) Coca-Cola Co. (NYSE: KO) Abbvie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) Innovative Industrial Properties First up, we have Innovative Industrial Properties Inc. (IIPR). [Read More] 5 Tech Stocks To Watch In June 2021 AbbVie Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. | Top Dividend Stocks For Your June Watchlist Innovative Industrial Properties Inc. (NYSE: IIPR) Realty Income Corporation (NYSE: O) Lumen Technologies (NYSE: LUMN) Coca-Cola Co. (NYSE: KO) Abbvie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) Innovative Industrial Properties First up, we have Innovative Industrial Properties Inc. (IIPR). [Read More] 5 Tech Stocks To Watch In June 2021 AbbVie Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. | Top Dividend Stocks For Your June Watchlist Innovative Industrial Properties Inc. (NYSE: IIPR) Realty Income Corporation (NYSE: O) Lumen Technologies (NYSE: LUMN) Coca-Cola Co. (NYSE: KO) Abbvie Inc. (NYSE: ABBV) Chevron Corporation (NYSE: CVX) Innovative Industrial Properties First up, we have Innovative Industrial Properties Inc. (IIPR). [Read More] 5 Tech Stocks To Watch In June 2021 AbbVie Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. |
24065.0 | 2021-05-30 00:00:00 UTC | Is Viatris a Good Stock to Buy for 2021? | ABBV | https://www.nasdaq.com/articles/is-viatris-a-good-stock-to-buy-for-2021-2021-05-30 | nan | nan | The volatility that's shaken the markets over the past few weeks has woken some investors up, sending them out shopping to look for cheap stocks. Finding quality, inexpensive stocks can be difficult -- but there are bargains out there.
One cheap stock worth considering is drugmaker Viatris (NASDAQ: VTRS). It trades at a ridiculously low price-to-earnings ratio of 4.2 and recently announced its first quarterly results and dividend payment. Viatris looks incredibly attractive at these levels, and its business is beginning to show signs of stability. Let me show you why you might want to consider buying Viatris stock this year.
Image source: Getty Images.
The merger
Viatris was formed in November via the merger of pharma company Mylan and Pfizer's Upjohn business unit, which manufactured off-patent generic drugs. While Mylan did bring a catalog with some specialty medications to the deal, the new company will largely produce generics and legacy-branded drugs -- those that are no longer patented, so they have generic competition, but have enough name recognition that they're able to compete well with their generic counterparts.
Viatris reported its first-ever quarter of earnings after the merger on May 10, and the report offered a number of takeaways that should be of keen interest to shareholders and potential investors. The biggest of those was that the company declared a quarterly dividend of $0.11, and set a benchmark of delivering ongoing dividends in line with 25% of free cash flow. At current share prices, Viatris' payout yields 2.87% -- more than double the 1.3% average yield of the S&P 500.
Another promising sign for the future comes from the company's debt-reduction plan. Management intends to cut its debt load by $6.5 billion by 2023. The company currently has in excess of $24 billion in debt on the books. Viatris in the first quarter showed that it is a cash cow, bringing in $4.4 billion in revenue and almost $800 million in free cash flow. If the company sustains this level of free cash flow for the entire year, bringing in an estimated $3.2 billion, management can definitely meet its debt reduction goals by 2023.
Some of its most popular products include both generics and legacy-branded drugs. These include the EpiPen and its generic counterpart (to treat anaphylaxis), Lyrica (for nerve pain), and Viagra (for erectile dysfunction). Demand for these incredibly popular products is not expected to decline throughout the next few years. The company also has 30 total drugs in its pipeline, with 12 nearing approval. Some notable biosimilars in this pipeline include analogues to AbbVie's Humira and Amgen's Enbrel. Humira has been the world's best-selling drug in years past, and Viatris will likely be able to generate sizable revenue by marketing its own biosimilar to treat a variety of indications.
The future
Viatris's new management includes executives from both Mylan and Pfizer's Upjohn division, meaning the team has a tremendous amount of experience navigating the generic and legacy-brand drug market. The company has a dominant market share in the EpiPen and its generic counterpart, as well as Viagra -- a lucrative position given that the global erectile dysfunction market is expected to reach $2.6 billion by 2026. While it is a legacy-brand drug that faces competition from generic alternatives, Viagra nonetheless remains the most distributed medication for this condition and is expected to account for 27% of market share, bringing its projected sales to $700 million by 2026, maintaining a greater market share over all generics that have been developed so far.
As mentioned before, biosimilars for Humira and Enbrel should be heading to market here in the U.S., and the company has in fact already launched a Humira biosimilar in Canada. Humira brought in nearly $1 billion in Canadian sales for the 12 months ending Oct. 31 -- a sizable market in which Viatris could gather sales.
One thing that tells us the stock is cheap is its price-to-earnings ratio. Currently, Viatris trades at a forward P/E of just 4.2, making it one of the cheapest stocks on the market today. The consensus among analysts on Wall Street is that the stock will rise by 50% over the next year. With demand for generic drugs expected to rise, investors with long-term time horizons should take a close look at Viatris stock now.
10 stocks we like better than Viatris Inc.
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Anirudh Shankar has no position in any of the stocks mentioned. The Motley Fool recommends Viatris Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some notable biosimilars in this pipeline include analogues to AbbVie's Humira and Amgen's Enbrel. If the company sustains this level of free cash flow for the entire year, bringing in an estimated $3.2 billion, management can definitely meet its debt reduction goals by 2023. Humira has been the world's best-selling drug in years past, and Viatris will likely be able to generate sizable revenue by marketing its own biosimilar to treat a variety of indications. | Some notable biosimilars in this pipeline include analogues to AbbVie's Humira and Amgen's Enbrel. Viatris in the first quarter showed that it is a cash cow, bringing in $4.4 billion in revenue and almost $800 million in free cash flow. If the company sustains this level of free cash flow for the entire year, bringing in an estimated $3.2 billion, management can definitely meet its debt reduction goals by 2023. | Some notable biosimilars in this pipeline include analogues to AbbVie's Humira and Amgen's Enbrel. While it is a legacy-brand drug that faces competition from generic alternatives, Viagra nonetheless remains the most distributed medication for this condition and is expected to account for 27% of market share, bringing its projected sales to $700 million by 2026, maintaining a greater market share over all generics that have been developed so far. With demand for generic drugs expected to rise, investors with long-term time horizons should take a close look at Viatris stock now. | Some notable biosimilars in this pipeline include analogues to AbbVie's Humira and Amgen's Enbrel. Let me show you why you might want to consider buying Viatris stock this year. Some of its most popular products include both generics and legacy-branded drugs. |
24066.0 | 2021-05-29 00:00:00 UTC | Got $5,000? Buy These 2 Stocks Instead of Dogecoin | ABBV | https://www.nasdaq.com/articles/got-%245000-buy-these-2-stocks-instead-of-dogecoin-2021-05-29 | nan | nan | If you love lottery tickets, Dogecoin (CRYPTO: DOGE) is right up your alley. Especially in recent months, the adorably puckish cryptocurrency is a dramedy of rocketship gains and cartoonishly steep losses. But its volatility and unpredictability mean that it isn't a great investment for everyone.
The issue with Dogecoin as an investment is that its value isn't anchored to any fundamentals. There are no landmarks like revenue by which the market could navigate toward a price. Instead, it's driven by the capricious winds of trader sentiment, which is a nice way of saying hype. So, it's actually quite easy to find a safer and less volatile place for your money to grow, and today, I'll be discussing two of the many options that fit the bill.
Image source: Getty Images.
1. Novavax
You might already be familiar with Novavax (NASDAQ: NVAX) thanks to its coronavirus vaccine program. Although the stock sank 25% after announcing a delay in that program, it's still a better growth investment than Dogecoin. In short, Novavax is making things that people will need, and its vaccine technology is paving the way.
Unlike Dogecoin, Novavax's value in the future will be higher than its value today, thanks to its revenue as well as its expected revenue growth. In the last 12 months, it made more than $919 million from development collaborations and vaccine preorders. That's quite a chunk of change, but the company is just getting started.
If its coronavirus vaccine is actually approved by regulators, it'll start making new sales and realizing (or refuting) the initial set of expectations about its future revenue. Revenue from vaccine sales will likely grow over time as Novavax increases its manufacturing capacity and signs new deals with buyers. At all times, the pace of its growth will be a goalpost that the market will use to find a price for the stock. As the company scales up its efforts, it should start to report profits. It could eventually use these profits to buy back its stock, thereby increasing the price directly.
Further into the future, maturing initiatives will start to deliver fresh sources of revenue. In particular, the commercialization of Novavax's NanoFlu vaccine for seasonal influenza in older adults will be a major driver. At some point in the future, the company will likely combine NanoFlu and its coronavirus jab into one product, which will be quite a convenient product for healthcare systems to administer. Similarly, it could make another coronavirus vaccine jab to help deal with viral variants. Either way, I think Novavax is positioned to grow.
In short, Novavax is better than Dogecoin because there's a clear roadmap for how its value will increase over time. Even if its efforts stumble, it can't stumble so much that it becomes fundamentally disconnected from reality.
2. AbbVie
AbbVie (NYSE: ABBV) is a particularly appealing option for investors who like to see cash flows from their holdings. As a pharma giant with more than $50 billion in trailing revenue and $24.53 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), AbbVie's portfolio of drugs delivers highly reliable income. That's why it can afford to pay its shareholders a dividend that currently yields around 4.4%.
Needless to say, Dogecoin doesn't pay a dividend. Nor does it have the insulation from volatility that a dividend can contribute to. Because AbbVie's dividend payments come like clockwork every quarter and increase gradually over time, the market has an undeniable yardstick for its financial strength.
If its stock price were to drop as a result of a crash or a piece of bad news, its dividend payment would remain the same, thereby driving the yield upward. When the dividend yield spikes as a result of the price dropping with the dividend payment remaining constant, the stock becomes a much more attractive purchase for long-term holders, as they have the chance to lock in the higher yield without paying as much as before.
So, its price has a mechanism that can help it to recover faster. But a dividend also encourages investors to hold onto their shares during turbulence, making the prospect of a sharp drop less likely. Finally, AbbVie's regular increases of its dividend payment mean that the people who hold it the longest end up getting the highest return. While some people might try to argue that Dogecoin's return is also linked to holding it for a long time, most investors will probably find it much less stressful to buy AbbVie's stock instead.
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*Stock Advisor returns as of May 11, 2021
Alex Carchidi owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While some people might try to argue that Dogecoin's return is also linked to holding it for a long time, most investors will probably find it much less stressful to buy AbbVie's stock instead. AbbVie AbbVie (NYSE: ABBV) is a particularly appealing option for investors who like to see cash flows from their holdings. As a pharma giant with more than $50 billion in trailing revenue and $24.53 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), AbbVie's portfolio of drugs delivers highly reliable income. | See the 10 stocks *Stock Advisor returns as of May 11, 2021 Alex Carchidi owns shares of AbbVie. AbbVie AbbVie (NYSE: ABBV) is a particularly appealing option for investors who like to see cash flows from their holdings. As a pharma giant with more than $50 billion in trailing revenue and $24.53 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), AbbVie's portfolio of drugs delivers highly reliable income. | While some people might try to argue that Dogecoin's return is also linked to holding it for a long time, most investors will probably find it much less stressful to buy AbbVie's stock instead. AbbVie AbbVie (NYSE: ABBV) is a particularly appealing option for investors who like to see cash flows from their holdings. As a pharma giant with more than $50 billion in trailing revenue and $24.53 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), AbbVie's portfolio of drugs delivers highly reliable income. | While some people might try to argue that Dogecoin's return is also linked to holding it for a long time, most investors will probably find it much less stressful to buy AbbVie's stock instead. AbbVie AbbVie (NYSE: ABBV) is a particularly appealing option for investors who like to see cash flows from their holdings. As a pharma giant with more than $50 billion in trailing revenue and $24.53 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), AbbVie's portfolio of drugs delivers highly reliable income. |
24067.0 | 2021-05-27 00:00:00 UTC | 2 Stocks to Buy With Dividends Yielding More Than 3% | ABBV | https://www.nasdaq.com/articles/2-stocks-to-buy-with-dividends-yielding-more-than-3-2021-05-27 | nan | nan | The increasing volatility we're seeing in stocks signals to some we may be approaching a market peak. Even with the economy chugging back to life toward a summer of near-normalcy in the U.S., there are indications investors may want to be a bit more defensive.
Buying dividend-paying stocks is a smart strategy regardless of the environment -- but in a potentially down market, income-generating stocks are a particularly good play. Plus, the two stocks below give investors hope for a bit of growth.
Image source: Getty Images.
1. AbbVie
The brilliance of an investment in pharmaceutical giant AbbVie (NYSE: ABBV) has been the growth of its rheumatoid arthritis treatment, Humira, the global best-selling drug for the past two decades. Still the single biggest contributor to the pharma company's revenue, it generated $19.8 billion for AbbVie in 2020, or 43% of its total $45.8 billion.
Of course, now that some of the important patents protecting Humira have expired, the drug is facing biosimilar competition in Europe and will begin facing it in the U.S. in 2023. Yet as the clock ticks down on Humira's exclusivity, investors should be comforted that AbbVie hasn't sat still. The business has a portfolio of robust therapies available, including Humira's successor, ABBV-3373, which my Foolish colleague Brian Orelli has described as "Humira on steroids (literally)."
Management recently announced they would be showcasing just how deep their bench is regarding rheumatology with a presentation to be delivered to the EULAR 2021 Virtual Congress of Rheumatology in the first week of June. There seems little reason to fear that AbbVie will relinquish its position atop the field.
AbbVie's annual dividend of $45.20 per share currently yields 5.4% and looks to remain as safe as ever. When other companies have cut or suspended their dividends, AbbVie's payout remained intact. It increased the payout by more than 10% to kick off 2021, and has raised the dividend by an average compounded rate of 18% annually for the past five years.
With a payout ratio of less than 50%, the pharmaceutical stock has plenty of safety and room for future dividend hikes.
2. Amcor
Packaging specialist Amcor (NYSE: AMCR) is not a stock that immediately jumps to mind when thinking of downside protection in a volatile market.
The maker of rigid and flexible packaging for food, beverages, pharmaceuticals, and personal care products is in an industry that may not be sexy, but it's vital: Especially in a reopened economy, its products cut across huge swaths of the market and should be in high demand.
Its fiscal third-quarter earnings reported earlier this month indicate that seems to be the case, with year-to-date revenue rising 1% to $9.4 billion, but adjusted earnings per share jumping 16% from the year ago period. Amcor also raised its guidance for full-year per-share earnings to rise 14% to 15% from its previous outlook of 10% to 14% gains.
Amcor isn't a stock for investors looking for a stratospheric expansion of value, but rather one of steady, stable increases. Its stock did plunge during the COVID-19 outbreak, but it regained all the kost ground within weeks -- its business wasn't impacted all that much because the markets it sells into are essential ones themselves.
Amcor is looking to its 2019 acquisition of fellow plastic packaging and products maker Bemis to drive future growth. It gave the U.K.-based Amcor an extensive U.S. manufacturing base while also generating significant cost synergies, some $55 million this year so far. Amcor expects the acquisition to deliver at least $180 million worth by the end of the next fiscal year.
The packaging specialist pays a dividend yielding 4% annually, and has raised the payout every year for 25 consecutive years, making Amcor a Dividend Aristocrat, a bit of extra security for investors looking for stocks to tide them over periods of uncertainty.
10 stocks we like better than AbbVie
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Rich Duprey owns shares of Amcor plc. The Motley Fool owns shares of and recommends Amcor Limited. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie The brilliance of an investment in pharmaceutical giant AbbVie (NYSE: ABBV) has been the growth of its rheumatoid arthritis treatment, Humira, the global best-selling drug for the past two decades. Still the single biggest contributor to the pharma company's revenue, it generated $19.8 billion for AbbVie in 2020, or 43% of its total $45.8 billion. Yet as the clock ticks down on Humira's exclusivity, investors should be comforted that AbbVie hasn't sat still. | AbbVie The brilliance of an investment in pharmaceutical giant AbbVie (NYSE: ABBV) has been the growth of its rheumatoid arthritis treatment, Humira, the global best-selling drug for the past two decades. Still the single biggest contributor to the pharma company's revenue, it generated $19.8 billion for AbbVie in 2020, or 43% of its total $45.8 billion. Yet as the clock ticks down on Humira's exclusivity, investors should be comforted that AbbVie hasn't sat still. | AbbVie The brilliance of an investment in pharmaceutical giant AbbVie (NYSE: ABBV) has been the growth of its rheumatoid arthritis treatment, Humira, the global best-selling drug for the past two decades. Still the single biggest contributor to the pharma company's revenue, it generated $19.8 billion for AbbVie in 2020, or 43% of its total $45.8 billion. Yet as the clock ticks down on Humira's exclusivity, investors should be comforted that AbbVie hasn't sat still. | * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! AbbVie The brilliance of an investment in pharmaceutical giant AbbVie (NYSE: ABBV) has been the growth of its rheumatoid arthritis treatment, Humira, the global best-selling drug for the past two decades. Still the single biggest contributor to the pharma company's revenue, it generated $19.8 billion for AbbVie in 2020, or 43% of its total $45.8 billion. |
24068.0 | 2021-05-27 00:00:00 UTC | 5 Stocks Warren Buffett Is Selling That You Should Be Buying | ABBV | https://www.nasdaq.com/articles/5-stocks-warren-buffett-is-selling-that-you-should-be-buying-2021-05-27 | nan | nan | When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett speaks, Wall Street and retail investors listen. That's because Berkshire Hathaway's share price has risen by an annual average of 20% since the mid-1960s under his leadership.
Last week, the Oracle of Omaha's company filed a Form 13F with the Securities and Exchange Commission. This required quarterly filing serves as a snapshot of what Buffett's company bought and sold during the first quarter. All told, Berkshire Hathaway initiated or added to five positions and completely sold or reduced 13 holdings.
Though Buffett's track record speaks for itself, he's not perfect. Of the 13 stocks that were reduced or exited completely, five stand out as intriguing values that investors should be buying, not selling.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Merck
In general, Buffett has never been a big fan of pharmaceutical stocks. He simply doesn't have the time or drive to keep up with clinical trial results and patent exclusivity timelines. This means Berkshire Hathaway's push into Big Pharma over the past year has probably been influenced by Buffett's investment lieutenants, Todd Combs and Ted Weschler.
In the first quarter, Berkshire dumped 10.8 million shares of drugmaker Merck (NYSE: MRK). This doesn't seem wise, especially with shares valued at a very reasonable 11 times forward-year earnings, based on Wall Street's consensus earnings-per-share estimate.
Merck's superstar continues to be cancer immunotherapy Keytruda, which has been given the green light by the U.S. Food and Drug Administration for two dozen indications. Last year, during the worst economic downturn in decades, Keytruda delivered 30% growth and $14.4 billion in sales. With Keytruda benefiting from label expansion opportunities, improved cancer-screening diagnostics, longer duration of use, and strong pricing power, it could become the world's top-selling drug within a few years.
Also, don't overlook Merck's animal health division, which grew sales by a blazing 17% in the first quarter. Livestock may be the biggest revenue generator within animal health for the time being, but the fastest growth is coming from companion animal therapies. Pet owners will spend big bucks to keep their four-legged family members healthy.
Image source: Sirius XM.
Sirius XM
Cue the Rodney Dangerfield standup comedy special, because satellite-radio operator Sirius XM (NASDAQ: SIRI) can't get any respect. In the first quarter, Buffett's company unloaded around 6.3 million shares, or 12% of its previous holdings.
Although the satellite radio space isn't the high-growth trend it once was, Sirius XM offers a couple of strategic advantages that make it a high-quality stock to own. For instance, Sirius XM is in a much better position to navigate its way through inevitable economic contractions and recessions than its peers. Whereas the bulk of terrestrial and online radio operators lean almost exclusively on advertising for revenue, ad sales dry up quickly when recessions occur. Sirius XM generated 78% of its revenue in the first quarter from subscriptions. History has shown that subscribing customers are unlikely to cancel during temporary economic disruptions.
What's more, Sirius XM also benefits from a number of relatively fixed or only slightly variable costs. As an example, it doesn't matter how many net new subscribers sign up, the company will still be paying the same transmission fees and have, more or less, the same equipment costs. Though royalty and talent acquisition costs can vary, this operating model is set up for margin expansion over the long run.
Image source: Getty Images.
AbbVie
High-yield drug stock AbbVie (NYSE: ABBV) was yet another healthcare stock to get reduced in the first quarter. Berkshire Hathaway cut its holdings in the company by 10% (close to 2.7 million shares) from the sequential fourth quarter. But sticking with the theme, I don't believe this was a smart idea.
There's no question that AbbVie will face challenges in its future. It currently has the top-selling drug in the world in its portfolio, Humira. This well-known anti-inflammatory brought in $19.8 billion in sales in 2020 and accounted for about 43% of AbbVie's total revenue. Beginning in 2023, biosimilars to Humira will begin hitting pharmacy shelves in the U.S., potentially hurting sales. Yet, Humira is such a well-known drug with multiple label indications that it can remain a cash cow for many years to come.
AbbVie has done a good job of diversifying its product portfolio via acquisitions, as well. Last year, AbbVie purchased Allergan, which brought new therapeutics into the fold, improved its global distribution, and is expected to result in more than $2 billion in annual cost synergies.
The point is this: AbbVie generated more than $18 billion in operating cash flow over the trailing year and it can be scooped up for a reasonable nine times forward-year earnings.
The Cadillac XT4 (2021 model pictured) has been a significant growth driver in China. Image source: General Motors.
General Motors
Warren Buffett and his team also pumped the brakes on auto stock General Motors (NYSE: GM). Berkshire's 13F shows 5.5 million shares were sold, which reduced the remaining stake in GM to 67 million shares.
The primary buzz surrounding GM, and the reason it remains a stock to own in the auto industry, is the company's push into electric vehicles (EVs) and autonomous driving technology. Previously, the company had laid out plans to spend $20 billion through 2025 on alternative energy technology. But in November 2020, General Motors upped its commitment to $27 billion through mid-decade. In total, it plans to launch 30 EVs worldwide. This is a company with over a century of history behind its brand, meaning it should have no trouble entertaining a global audience for its EVs.
Equally encouraging is the momentum GM has seen in China, the world's largest auto market. Despite losing U.S. market share, GM's stake in the Asia/Pacific, Middle East, and Africa segment rose 70 basis points in the first quarter to 7.5%. Sales of Cadillac more than doubled in the region to 60,000 vehicles, with Buick vehicle sales up 73% to 225,000. By 2035, around half of all new vehicle sales in China could be electric, which marks a massive opportunity for GM.
It remains a bargain at a tad over eight times Wall Street's forward-year consensus profit estimate.
Image source: Getty Images.
Bristol Myers Squibb
To round things out, we have what might be the most attractive value stock of all that Buffett and his team have been selling: Big Pharma Bristol Myers Squibb (NYSE: BMY). During the first quarter, Berkshire Hathaway jettisoned 2.3 million shares, which reduced its total holdings in the company by 6% to about 31 million shares.
The thing to really appreciate about Bristol Myers is that it's growing organically and inorganically. Speaking of the former, it has the world's leading oral anticoagulant (Eliquis) in its portfolio, and is likely to see another bump in sales growth from cancer immunotherapy Opdivo. Even though Opdivo's sales stalled out at $7 billion in 2020, it's being tested in dozens of clinical trials as a monotherapy and combination treatment. If just a small fraction of these are successful, Opdivo will still offer significant sales growth potential.
As noted, Bristol Myers Squibb has done an excellent job of padding its bottom line with acquisitions, too. The November 2019 buyout of Celgene should generate serious cash flow through mid-decade. That's because this acquisition brought prized multiple myeloma drug Revlimid into Bristol's portfolio. Revlimid has grown sales annually by a double-digit percentage for more than a decade. It's had its label expanded on multiple instances and has benefited from longer duration of use.
It's mind-boggling that a company this profitable can be valued at a multiple of only eight times Wall Street's projected forward-year earnings.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb. The Motley Fool recommends Sirius XM Radio and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short June 2021 $240 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie High-yield drug stock AbbVie (NYSE: ABBV) was yet another healthcare stock to get reduced in the first quarter. There's no question that AbbVie will face challenges in its future. This well-known anti-inflammatory brought in $19.8 billion in sales in 2020 and accounted for about 43% of AbbVie's total revenue. | AbbVie High-yield drug stock AbbVie (NYSE: ABBV) was yet another healthcare stock to get reduced in the first quarter. There's no question that AbbVie will face challenges in its future. This well-known anti-inflammatory brought in $19.8 billion in sales in 2020 and accounted for about 43% of AbbVie's total revenue. | AbbVie High-yield drug stock AbbVie (NYSE: ABBV) was yet another healthcare stock to get reduced in the first quarter. There's no question that AbbVie will face challenges in its future. This well-known anti-inflammatory brought in $19.8 billion in sales in 2020 and accounted for about 43% of AbbVie's total revenue. | AbbVie High-yield drug stock AbbVie (NYSE: ABBV) was yet another healthcare stock to get reduced in the first quarter. There's no question that AbbVie will face challenges in its future. This well-known anti-inflammatory brought in $19.8 billion in sales in 2020 and accounted for about 43% of AbbVie's total revenue. |
24069.0 | 2021-05-26 00:00:00 UTC | Notable ETF Inflow Detected - ESGU, NEE, CRM, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-esgu-nee-crm-abbv-2021-05-26 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares ESG Aware MSCI USA ETF (Symbol: ESGU) where we have detected an approximate $157.9 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 180,150,000 to 181,800,000). Among the largest underlying components of ESGU, in trading today NextEra Energy Inc (Symbol: NEE) is down about 0.2%, Salesforce.com Inc (Symbol: CRM) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average:
Looking at the chart above, ESGU's low point in its 52 week range is $66.85 per share, with $96.63 as the 52 week high point — that compares with a last trade of $95.84. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ESGU, in trading today NextEra Energy Inc (Symbol: NEE) is down about 0.2%, Salesforce.com Inc (Symbol: CRM) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average: Looking at the chart above, ESGU's low point in its 52 week range is $66.85 per share, with $96.63 as the 52 week high point — that compares with a last trade of $95.84. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of ESGU, in trading today NextEra Energy Inc (Symbol: NEE) is down about 0.2%, Salesforce.com Inc (Symbol: CRM) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average: Looking at the chart above, ESGU's low point in its 52 week range is $66.85 per share, with $96.63 as the 52 week high point — that compares with a last trade of $95.84. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of ESGU, in trading today NextEra Energy Inc (Symbol: NEE) is down about 0.2%, Salesforce.com Inc (Symbol: CRM) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares ESG Aware MSCI USA ETF (Symbol: ESGU) where we have detected an approximate $157.9 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 180,150,000 to 181,800,000). For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average: Looking at the chart above, ESGU's low point in its 52 week range is $66.85 per share, with $96.63 as the 52 week high point — that compares with a last trade of $95.84. | Among the largest underlying components of ESGU, in trading today NextEra Energy Inc (Symbol: NEE) is down about 0.2%, Salesforce.com Inc (Symbol: CRM) is up about 0.6%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares ESG Aware MSCI USA ETF (Symbol: ESGU) where we have detected an approximate $157.9 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 180,150,000 to 181,800,000). For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average: Looking at the chart above, ESGU's low point in its 52 week range is $66.85 per share, with $96.63 as the 52 week high point — that compares with a last trade of $95.84. |
24070.0 | 2021-05-26 00:00:00 UTC | 5 Reasons Not to Sell During a Market Crash | ABBV | https://www.nasdaq.com/articles/5-reasons-not-to-sell-during-a-market-crash-2021-05-26 | nan | nan | When volatility surges and chaos reigns in the market, the temptation to sell your stocks is quite acute. Especially if you love to get minute-by-minute price updates from your phone, seeing a torrent of notifications about your cherished stocks plummeting gets old very quickly. All the while, the allure of a rapid escape is tantalizingly near -- just liquidate your positions by pressing a few buttons.
But the promise of salvation through panicked selling is a false one that will harm your financial future if you allow it to control you. So, let's take a look at five reasons why you should keep your stocks just the way they are during a crash.
Image source: Getty Images.
1. Selling realizes your losses permanently
Perhaps the most immediate reason not to sell your holdings during a market crash is that selling chisels your losses indelibly into your portfolio. If you invested $1,000 into a stock then sold it for $750 after a collapse in the market the next day, you're tangibly deprived of that $250 forever. In such a case, your other investments would need to grow to make up the difference in your portfolio, or you'd need to invest that much more to get back to where you were before.
In the very long run of the American stock market so far, crashes haven't ever led to a permanently lower price level. After the sharp correction of late 2018 and the coronavirus crash of 2020, the market rebounded to surpass its previous highs before a full year had passed. Selling during the fall would have made investors miss out on future gains in both cases.
There's no guarantee that your stocks will grow again to reach their prior level, but if your portfolio is sufficiently diversified, you can bet that the show will go on after a major dip. So, it's best to stay the course by not selling and give your stocks a chance to recover.
2. There's nothing different about your companies
As an intelligent and empowered investor, you should be making the decision to buy or sell based on the financial strength and competitive capabilities of the businesses that underlie stocks. That means keeping your attention focused on fundamentals like revenue, profitability, management, and competitive advantages relative to other companies in the same industry. For the most part, the movement of the market has nothing to do with any of those factors, regardless of whether there's a juicy feast for bears or a wild bull run.
Unless one of your companies is desperately in need of a high stock price to support a future round of share issuance and fundraising -- in which case it might not be a good investment to begin with -- a crash changes nothing. So, it doesn't make much sense to sell, because the company can still compete successfully after a correction (assuming it ever did).
If that doesn't seem right to you, take a look at AbbVie's (NYSE: ABBV) price behavior during and after the 2020 collapse. It fell, but recovered to its prior high in less than a quarter's time because it was still just as good of a business afterward as it was before.
ABBV data by YCharts
3. You'll miss out on dividends
Dividends are a key component of a stock's total shareholder return. If you dump your shares, you don't get the regular dividend payments that you were previously entitled to. In the case of a strong dividend stock like AbbVie, you could be missing out on a yield of around 4.5% per year, which grows quite quickly over time. That's a problem because it means that your portfolio will compound more slowly.
Of course, you'll also miss out on special dividend payments, which can sometimes be quite substantial. Companies like Costco (NASDAQ: COST) are known for surprising shareholders with extra cash, and there's simply no chance for such a pleasant event if you don't own the stock anymore.
^SPX data by YCharts
4. You could get taxed on the sale
Paying taxes is part of being a responsible citizen, and shrewd investors understand that paying some taxes on their capital gains is necessary for society to function. But you should try to avoid incurring unnecessary tax burdens by panic selling.
If a stock was worth more than you bought it for when you sold it, you'll probably owe taxes on the sale. The fact that the market crashed isn't relevant. The amount that the holding dropped isn't relevant either, as long as it's higher than your entry point.
If you held the stock for less than a year before the surreptitious selling, you could owe a short-term capital gains tax rate of up to 37% on the transaction. That could seriously chip away at your portfolio's value.
5. It's a bad habit
Emotions are a happy inevitability both in human life and in investing. But you shouldn't get into the habit of letting your anxiety or euphoria run the show. Your emotions are often intense and reactive to dynamic short-term events like a market crash. They can lead you astray by suggesting that selling your holdings is a solution to the anxiety that's caused by falling prices.
Did I say lead you astray? Actually, the emotional proposition can be entirely correct: Selling your stocks will indeed make your anxiety go away somewhat. But it'll also make your portfolio's prospects of recovery very much diminished. Nip the bad habit in the bud by exercising your long-term thinking when the market is falling and anxiety is knocking.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If that doesn't seem right to you, take a look at AbbVie's (NYSE: ABBV) price behavior during and after the 2020 collapse. ABBV data by YCharts 3. In the case of a strong dividend stock like AbbVie, you could be missing out on a yield of around 4.5% per year, which grows quite quickly over time. | See the 10 stocks Stock Advisor returns as of 2/1/20 Alex Carchidi owns shares of AbbVie. If that doesn't seem right to you, take a look at AbbVie's (NYSE: ABBV) price behavior during and after the 2020 collapse. ABBV data by YCharts 3. | If that doesn't seem right to you, take a look at AbbVie's (NYSE: ABBV) price behavior during and after the 2020 collapse. ABBV data by YCharts 3. In the case of a strong dividend stock like AbbVie, you could be missing out on a yield of around 4.5% per year, which grows quite quickly over time. | In the case of a strong dividend stock like AbbVie, you could be missing out on a yield of around 4.5% per year, which grows quite quickly over time. If that doesn't seem right to you, take a look at AbbVie's (NYSE: ABBV) price behavior during and after the 2020 collapse. ABBV data by YCharts 3. |
24071.0 | 2021-05-26 00:00:00 UTC | 2 Smart Stocks to Pick During a Market Correction | ABBV | https://www.nasdaq.com/articles/2-smart-stocks-to-pick-during-a-market-correction-2021-05-26 | nan | nan | The U.S. equity market has been highly volatile in the past few days. The April 2021 consumer price index (CPI) came in at 4.2 (a metric used to gauge inflation), which was far higher than the Federal Reserve's average inflation target of 2%. This made the market justifiably jittery about the possibility of tightening monetary policy adversely affecting stocks.
In an April 27–28 Federal Open Market Committee meeting, several officials suggested the need for plan to tapering the pace of asset purchases to control increasing inflation. While this might not be happening immediately on the back of slowing job growth in April 2021, sooner or later, the Fed will have to intervene. This could result in a prolonged stock market correction.
However, these uncertain times can also prove to be an attractive opportunity for retail investors to pick up high-quality stocks such as Tesla (NASDAQ: TSLA) and Johnson & Johnson (NYSE: JNJ), which are well positioned to thrive in a reopening economy, and can get your portfolio through market ups and downs.
Image source: Getty Images.
1. Tesla
Tesla remains a force to be reckoned with in the global electric vehicle (EV) landscape. In the first quarter, the company's total vehicle deliveries were up 110% to 184,800, while vehicle production increased by 76% year over year to 180,338. The company has guided for a 50% year-over-year increase in deliveries for 2021, which amounts to 800,000 vehicles.
Although increasing competition from Volkswagen (OTC: VWAGY) and GM (NYSE: GM) has stolen some of Tesla's thunder, Tesla is still very much a dominant force in the EV space. Tesla's Model 3 has already become the best-selling midsized premier sedan, surpassing longtime leader BMW 3 Series. The company now expects Model Y to become the best-selling car or truck by 2022. And Tesla's supercharger network now covers 25,000 supercharger stalls across 2,700 stations -- a huge footprint to cater to the charging needs of Tesla users.
Tesla is focused on building new factories in Berlin, Texas, and China. The company is also working on improving the artificial intelligence (AI) algorithm backing its much-awaited full-self-driving functionality. With 1 million vehicles on the road collecting real-world driving data, including several extremes-of-use cases, the company expects to build real-world vision AI capabilities to further improve its autonomous vehicle (AV) technology. If successful, these developments will not only add to the company's top line, but also boost its margins.
Tesla's first-quarter revenue soared 74% year over year to $10.4 billion. The company reported a non-GAAP net income of $1.05 billion, free cash flow of $300 million, and repaid debt worth $1 billion.
However, a few legitimate concerns haunt Tesla's stock. Analysts and investors were unimpressed with the company's first-quarter results, especially after excluding the sale of regulatory credits. Sentiment further soured after reports highlighted a 27% sequential decline in the sale of Tesla's China-made vehicles from 35,479 units in March to 25,845 units in April.
Investors are also concerned about the California Department of Motor Vehicles' investigating Tesla for its potentially misleading "full self-driving capability" claim. This probe seems to have been triggered by the death of a Model 3 Tesla driver operating on autopilot on a freeway in California. The recent hit to the stock came after Scion Asset Management's Michael Burry revealed a heavy short position on Tesla.
Finally, Tesla stock is trading at 15.5 times sales, which is quite expensive for any capital-intensive company.
While these risks cannot be ignored, investors also cannot deny the immense growth potential and branding power of the company. Tesla's share price is currently down almost 36% from its all-time high in January. A pullback of this magnitude in a company that's well positioned to benefit from secular tailwinds could prove to be an excellent entry point for retail investors.
2. Johnson & Johnson
The largest healthcare company in the world by market capitalization, Johnson & Johnson produces a range of pharmaceutical drugs, medical devices, and consumer health products. Thanks to the Standard & Poor's AAA credit rating and a history of increasing quarterly dividends for 59 years in a row, this Dividend King (a company that has increased dividends for at least 50 years in a row) has long been known as a safe and resilient investment in any market condition.
Johnson & Johnson's current dividend yield of 2.48% is significantly higher than the S&P 500's 1.38%, makes it an attractive bet for income investors. With a trailing-12-month (TTM) dividend payout ratio of 46.5% and TTM free cash flow of $20.8 billion, the company has sufficient financial strength and flexibility to continue its generous dividend policy in the coming years.
In the first quarter (ending April 4), Johnson & Johnson's revenues rose by 7.9% year over year to $22.3 billion, while net income rose by 6.9% year over year to $6.2 billion. Both metrics handsomely surpassed analysts' consensus estimates, which is admirable with the global economy still reeling from the pandemic. Increased momentum in the pharmaceutical and medical device segments, which together accounted for around 83% of the company's first-quarter sales, were the major growth drivers. The company is also benefiting from the steady pace of reopening in the U.S. economy, considering that it earns 50% of its revenues from the U.S. market.
Johnson & Johnson expects fiscal 2021 adjusted operational sales to grow year over year by 8.7% to 9.9%, a hike from the previous guidance of 8.0% to 9.5%. The company has also guided for fiscal 2021 adjusted diluted EPS of $9.42 to $9.57. These metrics are easily achievable in light of the ongoing demand for the company's blockbuster drugs such as Darzalex for treating blood malignancies, and Stelara and Tremfya for treating autoimmune conditions.
The medical devices segment is also witnessing a solid recovery driven by demand for vision surgery, contact lenses, orthopedic surgery, and general surgery. These trends are expected to strengthen in the second and third quarters as patients forced to delay elective procedures during the pandemic gradually regain the confidence to visit hospitals. Johnson & Johnson is also investing in opportunities such as telehealth, robotic surgery, and advanced diagnostics.
Investors, however, should remain cognizant of the company's litigation risks. Johnson & Johnson, Teva Pharmaceuticals (NYSE: TEVA), AbbVie (NYSE: ABBV), and Endo International (NASDAQ: ENDP) are currently facing a trial wherein several California counties have sued the businesses for $50 billion for their role in the U.S. opioid epidemic. The chances of a court decision in favor of the California counties remain high, considering that Johnson & Johnson has already been fined $465 million for its role in escalating Oklahoma's opioid epidemic. The company is also facing similar lawsuits in several other states.
While I am not underestimating this risk, Johnson & Johnson is still very much an attractive investment opportunity for retail investors based on its diversified product portfolio, scale, global presence, solid cash flows, and robust dividend policy.
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Manali Bhade has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Johnson & Johnson, Teva Pharmaceuticals (NYSE: TEVA), AbbVie (NYSE: ABBV), and Endo International (NASDAQ: ENDP) are currently facing a trial wherein several California counties have sued the businesses for $50 billion for their role in the U.S. opioid epidemic. In an April 27–28 Federal Open Market Committee meeting, several officials suggested the need for plan to tapering the pace of asset purchases to control increasing inflation. Investors are also concerned about the California Department of Motor Vehicles' investigating Tesla for its potentially misleading "full self-driving capability" claim. | Johnson & Johnson, Teva Pharmaceuticals (NYSE: TEVA), AbbVie (NYSE: ABBV), and Endo International (NASDAQ: ENDP) are currently facing a trial wherein several California counties have sued the businesses for $50 billion for their role in the U.S. opioid epidemic. The company reported a non-GAAP net income of $1.05 billion, free cash flow of $300 million, and repaid debt worth $1 billion. In the first quarter (ending April 4), Johnson & Johnson's revenues rose by 7.9% year over year to $22.3 billion, while net income rose by 6.9% year over year to $6.2 billion. | Johnson & Johnson, Teva Pharmaceuticals (NYSE: TEVA), AbbVie (NYSE: ABBV), and Endo International (NASDAQ: ENDP) are currently facing a trial wherein several California counties have sued the businesses for $50 billion for their role in the U.S. opioid epidemic. However, these uncertain times can also prove to be an attractive opportunity for retail investors to pick up high-quality stocks such as Tesla (NASDAQ: TSLA) and Johnson & Johnson (NYSE: JNJ), which are well positioned to thrive in a reopening economy, and can get your portfolio through market ups and downs. Johnson & Johnson The largest healthcare company in the world by market capitalization, Johnson & Johnson produces a range of pharmaceutical drugs, medical devices, and consumer health products. | Johnson & Johnson, Teva Pharmaceuticals (NYSE: TEVA), AbbVie (NYSE: ABBV), and Endo International (NASDAQ: ENDP) are currently facing a trial wherein several California counties have sued the businesses for $50 billion for their role in the U.S. opioid epidemic. However, these uncertain times can also prove to be an attractive opportunity for retail investors to pick up high-quality stocks such as Tesla (NASDAQ: TSLA) and Johnson & Johnson (NYSE: JNJ), which are well positioned to thrive in a reopening economy, and can get your portfolio through market ups and downs. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Manali Bhade has no position in any of the stocks mentioned. |
24072.0 | 2021-05-25 00:00:00 UTC | Roche : EU Oks Venclyxto-based Combinations For Adults With Newly Diagnosed Acute Myeloid Leukaemia | ABBV | https://www.nasdaq.com/articles/roche-%3A-eu-oks-venclyxto-based-combinations-for-adults-with-newly-diagnosed-acute-myeloid | nan | nan | (RTTNews) - The European Commission has approved Venclyxto or venetoclax in combination with hypomethylating agents, azacitidine and decitabine, for the treatment of adult patients with newly diagnosed acute myeloid leukaemia or AML who are ineligible for intensive chemotherapy, AbbVie (ABBV) and Roche (RHHBY) said in a statement on Tuesday.
The approval was based on the results of two studies, phase III VIALE-A and phase I/II M14-358, of Venclyxto in combination with hypomethylating agents in adults with newly diagnosed AML, who are ineligible for intensive chemotherapy.
Results from the VIALE-A study showed Venclyxto plus azacitidine significantly reduced the risk of death by 34%, compared to azacitidine alone. The median overall survival was 14.7 months in the Venclyxto group and 9.6 months in the control group. The Venclyxto combination more than doubled the complete responses (CRs), with a CR rate of 37% compared to 18% in the comparator arm.
The Venclyxto plus azacitidine combination also led to higher rates of composite complete remission at 66% compared to 28% with azacitidine alone.
Results from the M14-358 study demonstrated that patients receiving Venclyxto in combination with decitabine achieved a CR + CRi rate of 74%. The most frequently reported serious adverse reactions (=5%) were febrile neutropenia, pneumonia, bacteraemia and sepsis.
Venclexta/Venclyxto is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the US, and commercialised by AbbVie outside of the US.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - The European Commission has approved Venclyxto or venetoclax in combination with hypomethylating agents, azacitidine and decitabine, for the treatment of adult patients with newly diagnosed acute myeloid leukaemia or AML who are ineligible for intensive chemotherapy, AbbVie (ABBV) and Roche (RHHBY) said in a statement on Tuesday. Venclexta/Venclyxto is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the US, and commercialised by AbbVie outside of the US. | (RTTNews) - The European Commission has approved Venclyxto or venetoclax in combination with hypomethylating agents, azacitidine and decitabine, for the treatment of adult patients with newly diagnosed acute myeloid leukaemia or AML who are ineligible for intensive chemotherapy, AbbVie (ABBV) and Roche (RHHBY) said in a statement on Tuesday. Venclexta/Venclyxto is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the US, and commercialised by AbbVie outside of the US. | (RTTNews) - The European Commission has approved Venclyxto or venetoclax in combination with hypomethylating agents, azacitidine and decitabine, for the treatment of adult patients with newly diagnosed acute myeloid leukaemia or AML who are ineligible for intensive chemotherapy, AbbVie (ABBV) and Roche (RHHBY) said in a statement on Tuesday. Venclexta/Venclyxto is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the US, and commercialised by AbbVie outside of the US. | (RTTNews) - The European Commission has approved Venclyxto or venetoclax in combination with hypomethylating agents, azacitidine and decitabine, for the treatment of adult patients with newly diagnosed acute myeloid leukaemia or AML who are ineligible for intensive chemotherapy, AbbVie (ABBV) and Roche (RHHBY) said in a statement on Tuesday. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the US, and commercialised by AbbVie outside of the US. Venclexta/Venclyxto is being developed by AbbVie and Roche. |
24073.0 | 2021-05-25 00:00:00 UTC | 3 Strong Stocks for Your Income Tax Return | ABBV | https://www.nasdaq.com/articles/3-strong-stocks-for-your-income-tax-return-2021-05-25 | nan | nan | Congratulations on getting some money back in your income tax return! Now, put it to work. The following medical stocks are an ideal place to invest that cash because of their consistent total returns.
Owens & Minor (NYSE: OMI), AbbVie (NYSE: ABBV), and PerkinElmer (NYSE: PKI) all have diverse revenue streams that make them less susceptible to an economic downturn. They offer strong demonstrated revenue growth over the past few years and appear well-priced based on their valuations.
Image source: Getty Images.
Owens & Minor will benefit from a return to normalcy
Owens & Minor stock is up more than 335% over the past 12 months and more than 17% this year, and I believe it may still be underpriced. The company sells medical products and services to the healthcare field, from surgical gloves and exam room supplies to sterilization products and logistics. The pandemic-induced dip in elective procedures last year slowed the company down in 2020. Now that the pandemic may be ebbing, this is an excellent time to buy Owens & Minor.
In the first quarter, the company's revenue was $2.3 billion, up 10% year over year, and its net income was $69.6 million, compared to a loss of $8.9 million in the same quarter in 2020. The company also raised its full-year guidance to between $3.75 and $4.25 per share, up from its earlier estimates of between $3 and $3.50 a share.
The company paid down debt last year, and the likely rise in elective procedures this year along with a continued high use of personal protective equipment (PPE) should help the company's bottom line.
AbbVie's size, scope will help it push past Humira patent cliff
AbbVie's stock is up more than 25% over the past 12 months and more than 9% this year. The company has plenty of growth but it's also a value play, as its dividend pays $1.30 per share per quarter, which gives it a yield of 4.44%.
The company is off to a fast start this year. In the first quarter, it reported revenue of $13.01 billion, up 51% year over year, and operating earnings of $4.1 billion, up 13.8% over the same period in 2020. The only thing that has kept the company's stock in check is the concern about how the company will replace the revenue it will lose in 2023 when Humira loses its patent protection in the U.S. That's not a small concern. In the first quarter alone, the drug pulled in $4.8 billion in revenue.
On top of that, AbbVie is facing pressure from Congress regarding the company's drug prices. On Tuesday, a report by the House Oversight and Reform Committee found that AbbVie had inflated its prices for Humira, which is used to treat rheumatoid arthritis and other autoimmune diseases, and for Imbruvica, which is a therapy for mantle cell lymphoma and other cancers.
But those are potential worries. The reality is AbbVie is a big, diversified pharmaceutical company with a huge stable of drugs that should easily survive once Humira-type biosimilars are allowed in the U.S. three years from now. Imbruvica brought in $1.268 billion in revenue and the company had several other therapies that pulled in more than $400 million in the quarter, including Botox therapeutic ($532 million), Botox cosmetic ($477 million), plaque psoriasis treatment Skyrizi ($574 million) and hepatitis C drug Mavyret ($415 million).
PerkinElmer, flush with cash, is on a growth spurt
PerkinElmer's stock is up more than 55% over the past year, though flat so far this year. The company had tremendous growth last year that continued into the first quarter, and it is setting itself up for the future with a balanced revenue stream.
PerkinElmer has two segments: discovery and analytical solutions, and diagnostics. The first segment involves industrial, environmental, and food applications while the second is focused on applied genomics, reproductive health, and emerging market diagnostics and includes sales of high-end laboratory equipment. In addition to this diversity, the company also has a geographical balance with 40% of its revenue coming from the Americas, 30% from Europe, and 30% from Asia.
In the first quarter, PerkinElmer reported revenue of $1.3 billion, up 100% year over year. Earnings per share were $3.37, compared to $0.30 in the same period in 2020. The driving force for that revenue was the company's diagnostics segment (which included its lucrative COVID-19 test). The diagnostics segmented brought in $853 million in the first quarter -- compared to $254 million in the first quarter of 2020.
The company developed one of the most accurate assays for COVID-19 and is using the money from that test to fund some key recent acquisitions. The company just initiated the purchase of Immunodiagnostic Systems, a British company that tests for autoimmune disorders, endocrinology, and infections diseases. The $155 million deal, expected to be completed in the third quarter of 2021, is on top of the company's $383 million all-cash purchase of Horizon Discovery in November, which beefs up its life science portfolio with CRISPR and gene-editing capabilities.
OMI PE Ratio (Forward) data by YCharts
Still a good time to buy these stocks
While these healthcare stocks have risen over the past 12 months, I still see them as a good use of your income tax return. Looking at their forward price-to-earnings (P/E) ratios, Owens & Minor sits at 8.2, AbbVie is only 9.2, and PerkinElmer trades around 15.3. All of them are trading at less than half that of a typical pharmaceutical or medical products company, suggesting they aren't overvalued (yet).
Of the three, I like the direction PerkinElmer is headed in the most. The company has increased its return on equity, and its total return over the past 10 years of 388% is the best of the bunch. It is doing a good job of using a strong year to grow the company through complementary acquisitions.
AbbVie's combination of an outstanding dividend and its stable of drugs behind Humira shows me the company will likely continue to benefit loyal stockholders. Owens & Minor is also poised to do well this year, with elective procedures likely to increase.
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Jim Halley owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On Tuesday, a report by the House Oversight and Reform Committee found that AbbVie had inflated its prices for Humira, which is used to treat rheumatoid arthritis and other autoimmune diseases, and for Imbruvica, which is a therapy for mantle cell lymphoma and other cancers. The reality is AbbVie is a big, diversified pharmaceutical company with a huge stable of drugs that should easily survive once Humira-type biosimilars are allowed in the U.S. three years from now. Owens & Minor (NYSE: OMI), AbbVie (NYSE: ABBV), and PerkinElmer (NYSE: PKI) all have diverse revenue streams that make them less susceptible to an economic downturn. | Owens & Minor (NYSE: OMI), AbbVie (NYSE: ABBV), and PerkinElmer (NYSE: PKI) all have diverse revenue streams that make them less susceptible to an economic downturn. AbbVie's size, scope will help it push past Humira patent cliff AbbVie's stock is up more than 25% over the past 12 months and more than 9% this year. On top of that, AbbVie is facing pressure from Congress regarding the company's drug prices. | Owens & Minor (NYSE: OMI), AbbVie (NYSE: ABBV), and PerkinElmer (NYSE: PKI) all have diverse revenue streams that make them less susceptible to an economic downturn. AbbVie's size, scope will help it push past Humira patent cliff AbbVie's stock is up more than 25% over the past 12 months and more than 9% this year. On top of that, AbbVie is facing pressure from Congress regarding the company's drug prices. | Owens & Minor (NYSE: OMI), AbbVie (NYSE: ABBV), and PerkinElmer (NYSE: PKI) all have diverse revenue streams that make them less susceptible to an economic downturn. AbbVie's size, scope will help it push past Humira patent cliff AbbVie's stock is up more than 25% over the past 12 months and more than 9% this year. On top of that, AbbVie is facing pressure from Congress regarding the company's drug prices. |
24074.0 | 2021-05-24 00:00:00 UTC | Will the COVID Vaccine Companies Fall off the Patent Cliff? | ABBV | https://www.nasdaq.com/articles/will-the-covid-vaccine-companies-fall-off-the-patent-cliff-2021-05-24 | nan | nan | On May 5 the Biden administration announced that the government would support the removal of patent protections for COVID-19 vaccines at the World Trade Organization. "The Administration believes strongly in intellectual property protections, but in service of ending this pandemic, supports the waiver of those protections for COVID-19 vaccines," U.S. Trade Ambassador Katherine Tai said in a statement. "We will actively participate in text-based negotiations at the World Trade Organization (WTO) needed to make that happen."
Negotiations at the WTO can take months, or even years, because all 164 countries have to agree on the language that is used. So it's perhaps unlikely that the WTO will abolish the patent protections. But it could be bad news for vaccine companies like Moderna (NASDAQ: MRNA) and Novavax (NASDAQ: NVAX).
In this Motley Fool Live video, recorded on May 14, Corinne Cardina, bureau chief of healthcare and cannabis at Fool.com, and Fool.com contributor Taylor Carmichael discuss the "patent cliff" that sometimes hurts pharmaceutical stocks.
Taylor Carmichael: You will see sometimes when a very big drug goes off-patent, the stock gets hammered. They call that the patent cliff. The reason it gets hammered is because generics are going to come in and make those drugs for a lot cheaper and it's going to cost you a lot of money.
Corinne Cardina: We saw that happened with Humira, which is owned by AbbVie. Of course, that's a biologic drug, so it's not called a generic, it's called a biosimilar. But it's the same idea. AbbVie has been losing its patent protection for Humira and they are scrambling to make that up elsewhere because they are heading toward the patent cliff. I think the fears here are that if Moderna and Pfizer and BioNTech lose their protection, will they be facing a patent cliff? We're going to talk a little bit more about what that might look like, but let's talk about who has the power to take away these IP rights.
Carmichael: Yeah, it's a government protection. Governments protect property rights. I don't know if I should use the word socialist. But if they go a little bit like, "We need these drugs, we're going to take them from you," they can. They just seize your property. When that happens, obviously that's awful for companies. To lose your patent is a very big deal. Governments can and do take patents. They can prolong patents. Governments are heavily invested in the whole patent thing. They create it, they protect it and they can dissolve it. It's like FDA approval, too. The government, for better or for worse, is heavily involved in the healthcare industry and pharmaceuticals.
10 stocks we like better than Moderna Inc.
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Corinne Cardina owns shares of Moderna Inc. Taylor Carmichael owns shares of Novavax. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Corinne Cardina: We saw that happened with Humira, which is owned by AbbVie. AbbVie has been losing its patent protection for Humira and they are scrambling to make that up elsewhere because they are heading toward the patent cliff. On May 5 the Biden administration announced that the government would support the removal of patent protections for COVID-19 vaccines at the World Trade Organization. | Corinne Cardina: We saw that happened with Humira, which is owned by AbbVie. AbbVie has been losing its patent protection for Humira and they are scrambling to make that up elsewhere because they are heading toward the patent cliff. On May 5 the Biden administration announced that the government would support the removal of patent protections for COVID-19 vaccines at the World Trade Organization. | AbbVie has been losing its patent protection for Humira and they are scrambling to make that up elsewhere because they are heading toward the patent cliff. Corinne Cardina: We saw that happened with Humira, which is owned by AbbVie. In this Motley Fool Live video, recorded on May 14, Corinne Cardina, bureau chief of healthcare and cannabis at Fool.com, and Fool.com contributor Taylor Carmichael discuss the "patent cliff" that sometimes hurts pharmaceutical stocks. | Corinne Cardina: We saw that happened with Humira, which is owned by AbbVie. AbbVie has been losing its patent protection for Humira and they are scrambling to make that up elsewhere because they are heading toward the patent cliff. So it's perhaps unlikely that the WTO will abolish the patent protections. |
24075.0 | 2021-05-23 00:00:00 UTC | The Best Dividend Aristocrats to Buy With $500 Right Now | ABBV | https://www.nasdaq.com/articles/the-best-dividend-aristocrats-to-buy-with-%24500-right-now-2021-05-23 | nan | nan | Having a low budget doesn't necessarily mean you have to go with low quality. This is true for nearly anything you buy -- including dividend stocks.
The highest-quality dividend stocks have excellent track records of growing their dividends over time. Dividend Aristocrats rank as the cream of the crop. These are S&P 500 members that have increased their dividends for at least 25 consecutive years.
You don't have to have a lot of money to invest in these great dividend stocks. A few hundred dollars is all you need to pick up shares of several longtime winners. Here are the best Dividend Aristocrats to buy with $500 right now.
Image source: Getty Images.
Abbott Laboratories
Abbott Laboratories (NYSE: ABT) has increased its dividend for an impressive 49 years in a row. The healthcare giant has paid a dividend every quarter since 1924. Its dividend yield currently tops 1.5%.
You can buy one share of Abbott right now for a little under $120. And you won't just get a dependable dividend for that amount. Abbott has also delivered fantastic share appreciation, with the stock more than tripling over the last five years.
Much of Abbott's recent growth has been fueled by its COVID-19 tests. The sizzling growth over the last few quarters is likely to taper off somewhat as worries about the pandemic fade. However, Abbott still has several long-term growth drivers, notably including its FreeStyle Libre continuous glucose monitoring system.
AbbVie
If you like Abbott's dividend track record, you're going to like AbbVie (NYSE: ABBV) as well. The big drugmaker was spun off from Abbott in 2013. AbbVie has raised its dividend by 225% since then, with its streak of dividend hikes extending to 49 years just like Abbott. However, AbbVie claims a much juicier dividend yield of over 4.4%.
Coincidentally, AbbVie's share price is very close to Abbott's. You'll need less than $120 to scoop up a share of the large biotech. While AbbVie hasn't delivered as great of a return as its parent company has over the last five years, it's still performed pretty well, with the stock nearly doubling.
AbbVie's top-selling drug Humira faces biosimilar competition in the U.S. beginning in 2023. That will temporarily cause its revenue to dip. However, the company expects to quickly bounce back with strong revenue growth throughout the second half of this decade.
Lowe's
Lowe's (NYSE: LOW) isn't just a Dividend Aristocrat; it's also a Dividend King. This even more elite group consists of S&P 500 members with 50 or more years of consecutive dividend increases. Lowe's has increased its dividend for 58 consecutive years and has paid a dividend every quarter since the company went public in 1961. The home improvement retailer's dividend yield currently stands at a little over 1.2%.
You'll have to shell out nearly $200 to buy one share of Lowe's. The relatively higher share price should be worth it: Lowe's has delivered a return of more than 140% over the last five years. Its stock is up 65% over the last 12 months.
The pandemic has driven much of that recent growth. But can Lowe's keep the momentum going? Probably so. Even if its growth slows a little as COVID-19 becomes less of an issue, the home improvement trend is one that is likely to continue for years to come.
Coca-Cola
After buying Abbott, AbbVie, and Lowe's, you'll have less than $70 remaining from your initial $500. While there aren't many Dividend Aristocrats you can buy for that amount, there's one that especially stands out: Coca-Cola (NYSE: KO). One share of the giant beverage maker costs only around $55 right now.
Like Lowe's, Coca-Cola reigns as both a Dividend Aristocrat and a Dividend King. The company has increased its dividend payout for 59 consecutive years. Coke's dividend yields nearly 3.1%.
Coca-Cola hasn't been a huge winner for investors recently, with its stock rising by only 25% over the last five years. Things are looking up for the company now, though. Coke reported surprisingly good first-quarter results. As more people return to dining in restaurants, the company's beverage sales should grow.
This stock still probably won't generate the strong returns that the others on our list will. However, Coca-Cola continues to be a great long-term pick for income-seeking investors.
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Keith Speights owns shares of AbbVie. The Motley Fool recommends Lowes. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While AbbVie hasn't delivered as great of a return as its parent company has over the last five years, it's still performed pretty well, with the stock nearly doubling. AbbVie If you like Abbott's dividend track record, you're going to like AbbVie (NYSE: ABBV) as well. AbbVie has raised its dividend by 225% since then, with its streak of dividend hikes extending to 49 years just like Abbott. | AbbVie If you like Abbott's dividend track record, you're going to like AbbVie (NYSE: ABBV) as well. AbbVie has raised its dividend by 225% since then, with its streak of dividend hikes extending to 49 years just like Abbott. However, AbbVie claims a much juicier dividend yield of over 4.4%. | AbbVie has raised its dividend by 225% since then, with its streak of dividend hikes extending to 49 years just like Abbott. AbbVie If you like Abbott's dividend track record, you're going to like AbbVie (NYSE: ABBV) as well. However, AbbVie claims a much juicier dividend yield of over 4.4%. | AbbVie If you like Abbott's dividend track record, you're going to like AbbVie (NYSE: ABBV) as well. AbbVie has raised its dividend by 225% since then, with its streak of dividend hikes extending to 49 years just like Abbott. However, AbbVie claims a much juicier dividend yield of over 4.4%. |
24076.0 | 2021-05-22 00:00:00 UTC | These Top 3 Healthcare Dividend Stocks Will Carry You Through Any Market Mood | ABBV | https://www.nasdaq.com/articles/these-top-3-healthcare-dividend-stocks-will-carry-you-through-any-market-mood-2021-05-22 | nan | nan | In the Ice Age, mammoths were fabulous beasts of their time -- so much so that some geneticists are pursuing their revival by using new technology, such as writing DNA, to clone them back into existence. But whether or not literal mammoths are returning to a tundra near you, certain "mammoths" of the healthcare space never left.
As mammoths of the healthcare industry, AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and UnitedHealth Group (NYSE: UNH) have been paying dividends for more than 10 consecutive years each (two of them for more than 45 years!). They also boast high five-year and one-year annual average dividend growth, and current stock prices are at or just shy of 52-week highs. It's not a bad place to be during a market that can sometimes be moody.
Now might be a good time for you, as an investor, to take a closer look at these fabulous healthcare dividend payers for your investment portfolio.
Image Source: Getty Images.
The leader
The leader of this group, based on its current annual dividend and average one-year dividend increases, is AbbVie. The research-based biopharma, which spun off from Abbott Laboratories in 2013, is probably best known for its (and the world's) top-selling drug, Humira, which treats arthritis, Crohn's disease, and ulcerative colitis. Humira brought in $19.8 billion in revenue during 2020.
The company currently pays out a dividend of $5.20 per share annually, at a yield of 4.44%. Its average annual dividend increase is also top-notch, at 28%. Basically, if you made an initial purchase of $3,000 worth of AbbVie stock at today's prices, you would get 25 shares. At the current rate of a 28% annual increase, your initial investment of $3,000 would be worth $4,110 after five years, including a 15% dividend tax rate, for a gain of 36%. That is based on the per-share stock price value remaining unchanged from the date of purchase.
AbbVie's stock price is also moving in the right direction, hitting a new 52-week high in the past week, a dime shy of $118. After a solid 2020 in which the company celebrated an increase in net revenue of 37%, management is providing guidance suggesting a 17% increase in earnings per share for 2021 at the midpoint.
One obstacle to keep an eye on is recent negative news related to the pricing of Humira. A few lawmakers are asking the U.S. Food and Drug Administration to make an inquiry into the possibility that the company had a hand in delaying cheaper competitor products. In June 2020, a Chicago district court ruled in favor of AbbVie's patent strategy (basically, creating layers of patents), saying it does not violate antitrust laws. This makes it difficult for less expensive generics to enter the market.
Currently, AbbVie has nine settlements with manufacturers for launch of generic versions of Humira in 2023; that said, some of the patents extend to 2034, meaning other manufacturers would need to work with AbbVie in order to launch new candidates. This could actually work in investors' favor if a share price drop is short-term -- it's a better buy-the-dip opportunity to get a few more shares while still enjoying an excellent dividend. This will be one to keep an eye on for any news related to patent litigation.
Getting better with age
Johnson & Johnson (J&J) might be seen as the older and wiser of the three businesses. Having been around for over 130 years, the company started with the first mass-produced antiseptic. In 2020, management turned its focus to the coronavirus pandemic, leading to one of three primary vaccinations approved for COVID-19.
Throughout all of those years, J&J has rewarded its shareholders. The company currently pays out a healthy dividend of $4.04 per share, equating to a 2.37% yield. The numbers are similar to those of its peers in the healthcare sector, with the average being 2.28%. And for healthcare companies in the S&P 500, J&J tops the average of 1.75%.
The only downside, if you can consider it that, is in comparing it to the other two mammoths in this group. J&J's modest 6.6% annual dividend increase amounts to the group low of 19.88% over the past three years. But to its credit, the company has been increasing the payouts, so that's a good thing.
As far as stock price goes, J&J is standing toe-to-toe with the group. It's currently just short of a 52-week high, set recently. And if the 2021 outlook and results from the first quarter are any indication, the company should be in line to match the one-year target price of $187, setting up for an additional 10% gain from the current price. Add in a nice little chunk of change from dividends, and it should keep investors happy.
United we stand
The last of this group of healthcare mammoths is UnitedHealth Group (United Health). Although United Health is still a baby compared with the rest of the group, it has been around as a public company for over 35 years, and can boast the largest employee base of 330,000. It offers a little more than a 22% average annual increase in dividend, for a total of 68% over three years and a current annual dividend of $5.
The company's stock price is down 4% from its recent 52-week high, at a price of $408. And its P/E ratio is at a healthcare sector average of 23, lower than J&J's 29 and AbbVie's 37. With an average one-year target price of $435, the expectation is that it may have another 6% or so in room to run.
The company is calling for an increased earnings outlook for 2021, primarily driven by higher COVID-19 treatment and testing, as well as higher than expected elective care. In 2020, elective care procedures across the U.S. declined due to the pandemic. Based on the first-quarter numbers, the company is now seeing that demand come back. The first quarter also saw revenue increase by 9% and earnings by 35% on a year-over-year basis.
Don't call it a comeback
These three dividend mammoths have had their payouts firmly in place for quite some time. Now might be a good time for investors to give them a spot in their portfolios as well. You probably won't go wrong with adding any of these three stocks. But if it's stability and dividend increases you're looking for, from a stock price that off a bit more from its 52-week high, and a good 2021 outlook, you might like UnitedHealth as a top option.
10 stocks we like better than Johnson & Johnson
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Jeff Little has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As mammoths of the healthcare industry, AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and UnitedHealth Group (NYSE: UNH) have been paying dividends for more than 10 consecutive years each (two of them for more than 45 years!). The leader The leader of this group, based on its current annual dividend and average one-year dividend increases, is AbbVie. Basically, if you made an initial purchase of $3,000 worth of AbbVie stock at today's prices, you would get 25 shares. | As mammoths of the healthcare industry, AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and UnitedHealth Group (NYSE: UNH) have been paying dividends for more than 10 consecutive years each (two of them for more than 45 years!). The leader The leader of this group, based on its current annual dividend and average one-year dividend increases, is AbbVie. Basically, if you made an initial purchase of $3,000 worth of AbbVie stock at today's prices, you would get 25 shares. | As mammoths of the healthcare industry, AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and UnitedHealth Group (NYSE: UNH) have been paying dividends for more than 10 consecutive years each (two of them for more than 45 years!). The leader The leader of this group, based on its current annual dividend and average one-year dividend increases, is AbbVie. Basically, if you made an initial purchase of $3,000 worth of AbbVie stock at today's prices, you would get 25 shares. | As mammoths of the healthcare industry, AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and UnitedHealth Group (NYSE: UNH) have been paying dividends for more than 10 consecutive years each (two of them for more than 45 years!). The leader The leader of this group, based on its current annual dividend and average one-year dividend increases, is AbbVie. Basically, if you made an initial purchase of $3,000 worth of AbbVie stock at today's prices, you would get 25 shares. |
24077.0 | 2021-05-22 00:00:00 UTC | 3 Solid Stocks That Can Be Smart Picks Even in Choppy Markets | ABBV | https://www.nasdaq.com/articles/3-solid-stocks-that-can-be-smart-picks-even-in-choppy-markets-2021-05-22 | nan | nan | The U.S. equity market has been quite volatile over the past few weeks. The first three days of last week saw tech stocks falling on fears of increasing inflation and a faster-than-anticipated tightening monetary policy. Then, on May 13, Federal Reserve officials played down the risk of a tightening policy and claimed that the rising prices in the reopening economy were only temporary. On May 14, the market bounced back on this newly injected optimism. Worries over whether temporary price surges aren't, in fact, temporary, have continued to be borne out in daily market swings.
While no one can predict the short-term direction of the market, retail investors can convert this period of uncertainty into opportunity by investing in fundamentally strong and resilient stocks such as AT&T (NYSE: T), Apple (NASDAQ: AAPL), and AbbVie (NYSE: ABBV). These companies have the potential to sail through any market condition.
Image Source: Getty Images.
1. AT&T
AT&T's stock has mostly languished in the past decade. However, things may take a turn for the better in the coming years. The company surpassed both top-line and bottom-line consensus estimates in the first quarter ending March 31.
On May 17, AT&T announced its decision to spinoff WarnerMedia and combine it with Discovery's (NASDAQ: DISCA) (NASDAQ: DISCK) nonfiction, international entertainment, and sports business assets to form a stand-alone global entertainment company. The deal has been finalized at $43 billion which includes cash, debt securities, and WarnerMedia retaining a portion of AT&T's debt. AT&T will control a 71% stake in the new company.
Subsequent to deal completion, AT&T plans to reduce its annual dividend payout from the current $15 billion to a range of $8 billion to $9 billion. Since a majority of the company's investors have preferred the slow-growing company mainly for income generation, it is not surprising that this change in dividend policy has left many of them embittered.
However, going beyond dividends, investors need to consider the potential of shareholder value creation. Free from the drag of AT&T's current net debt of $169 billion, WarnerMedia's business will now be valued more in line with its competitors such as Netflix and Disney. AT&T, Netflix, and Disney currently trade at forward price-to-earnings (P/E) multiples of 9.4, 47, and 72, respectively. With the largest content library in the world, the new company is well-positioned to benefit from the already high pace of subscriber acquisition of the HBO Max (streaming business) and HBO (cable) business. In the first quarter, HBO Max and HBO subscriber count grew by 33.5% year-over-year to 44.2 million in the U.S. and has reached 64 million globally. A $43 billion reduction in net debt will also help reduce AT&T's future interest expenses and bring the company's valuation more in line with other telecommunications players such as Verizon and T-Mobile.
Post spinoff, AT&T expects its revenues and adjusted earnings per share (EPS) to grow year over year by a low single-digit percentage and mid-single-digit percentage, respectively, from 2022 to 2024. After spinning off its entertainment business, AT&T will be a pure-play telecommunications and broadband player set to benefit from structural tailwinds such as the rollout of the 5G wireless network and expanding fiber broadband network. In this backdrop, the spinoff of WarnerMedia can actually prove to be the much-needed catalyst in AT&T's turnaround story.
2. Apple
Apple's second-quarter top-line and bottom-line results (for the quarter ending March 27) crushed Wall Street expectations. The largest public company in the world is firing all cylinders -- be it product sales or service revenue.
In the first half of fiscal 2021, iPhone sales soared by 34% year over year to $113.5 billion, mainly due to the increasing popularity of the iPhone 12, Apple's first 5G smartphone. Although the company currently leads the global 5G smartphone market with a 30.2% share, there's still potential left for future growth in the 5G device upgrade cycle.
Apple has also gained significant traction in its high-margin and mostly recurring services business, which includes Apple Music, the App Store, Apple News+, and Apple TV+. In the first half of fiscal 2021, services' net sales were up 25% year over year to $32.7 billion. With an installed base of over 1.65 billion devices, the company is well-positioned to further increase penetration of its services through its very sticky customer base.
Apple is anticipating a $3 billion to $4 billion revenue hit in the third quarter (ending June 2021), due to ongoing chip shortages. The company is also facing risks associated with antitrust investigations in Europe and the U.S. and a legal battle with Epic Games. Adverse developments in any of these cases can result in fines and the loss of future business for Apple.
However, with total cash plus marketable securities worth $204 billion and total debt of only $12 billion, the company's balance sheet is strong enough to withstand any challenges. Despite the company trading at almost 24 times forward earnings, this tech stock can prove to be an attractive long-term investment for retail investors.
3. AbbVie
After a lackluster performance in 2020, biopharmaceutical giant AbbVie's stock seems to be back in the game after releasing solid first-quarter results (for the period ending March 31, 2021). The company handily surpassed top-line and bottom-line consensus estimates. The market is especially impressed with the company lifting its fiscal 2021 adjusted earnings per share (EPS) guidance to $12.37 to $12.57, a bump from its previous profitability guidance of $12.32 to $12.52.
With Humira accounting for 37.7% of AbbVie's first-quarter net sales, investors are justifiably concerned about the drug losing its U.S. patent protection in 2023. While even the company is anticipating 2023 to be a tough year in terms of overall sales, it expects revenues to start recovering as soon as 2024.
AbbVie has been preparing for this big patent cliff for many years by gradually reducing its reliance on the Humira franchise. To replace a major chunk of Humira's lost sales post-patent expiry, the company has already launched two superior immunology drugs, Skyrizi and Rinvoq. AbbVie has also built a strong oncology franchise comprising of blockbuster cancer drugs Imbruvica and Venclexta, which together delivered $1.7 billion in sales in the first quarter. Finally, AbbVie's recent acquisition of Allergan has added a leading aesthetics portfolio comprising of strong brands such as Botox Cosmetics and Juvederm.
AbbVie's current dividend yield is 4.5%, while its trailing-12-month (TTM) dividend payout ratio has been just over 58%. With total cash of $9.8 billion on its balance sheet and TTM free cash flow of $17.8 billion, this S&P Dividend Aristocrat (first as a part of Abbott Laboratories and then as an independent company post spinoff in 2008) seems capable of paying dividends for the foreseeable future.
In November 2020, Berkshire Hathaway started a position worth $1.9 billion in AbbVie. Considering AbbVie's diversified product portfolio, balance-sheet strength, and high dividend yield, the company offers retail investors an attractive risk-reward proposition at a reasonable valuation of just 8.4 times forward earnings.
10 stocks we like better than AT&T
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Manali Bhade has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Netflix, and Walt Disney. The Motley Fool recommends Discovery (C shares), T-Mobile US, and Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Considering AbbVie's diversified product portfolio, balance-sheet strength, and high dividend yield, the company offers retail investors an attractive risk-reward proposition at a reasonable valuation of just 8.4 times forward earnings. While no one can predict the short-term direction of the market, retail investors can convert this period of uncertainty into opportunity by investing in fundamentally strong and resilient stocks such as AT&T (NYSE: T), Apple (NASDAQ: AAPL), and AbbVie (NYSE: ABBV). AbbVie After a lackluster performance in 2020, biopharmaceutical giant AbbVie's stock seems to be back in the game after releasing solid first-quarter results (for the period ending March 31, 2021). | While no one can predict the short-term direction of the market, retail investors can convert this period of uncertainty into opportunity by investing in fundamentally strong and resilient stocks such as AT&T (NYSE: T), Apple (NASDAQ: AAPL), and AbbVie (NYSE: ABBV). AbbVie After a lackluster performance in 2020, biopharmaceutical giant AbbVie's stock seems to be back in the game after releasing solid first-quarter results (for the period ending March 31, 2021). With Humira accounting for 37.7% of AbbVie's first-quarter net sales, investors are justifiably concerned about the drug losing its U.S. patent protection in 2023. | While no one can predict the short-term direction of the market, retail investors can convert this period of uncertainty into opportunity by investing in fundamentally strong and resilient stocks such as AT&T (NYSE: T), Apple (NASDAQ: AAPL), and AbbVie (NYSE: ABBV). AbbVie After a lackluster performance in 2020, biopharmaceutical giant AbbVie's stock seems to be back in the game after releasing solid first-quarter results (for the period ending March 31, 2021). With Humira accounting for 37.7% of AbbVie's first-quarter net sales, investors are justifiably concerned about the drug losing its U.S. patent protection in 2023. | While no one can predict the short-term direction of the market, retail investors can convert this period of uncertainty into opportunity by investing in fundamentally strong and resilient stocks such as AT&T (NYSE: T), Apple (NASDAQ: AAPL), and AbbVie (NYSE: ABBV). AbbVie After a lackluster performance in 2020, biopharmaceutical giant AbbVie's stock seems to be back in the game after releasing solid first-quarter results (for the period ending March 31, 2021). With Humira accounting for 37.7% of AbbVie's first-quarter net sales, investors are justifiably concerned about the drug losing its U.S. patent protection in 2023. |
24078.0 | 2021-05-21 00:00:00 UTC | Best Dividend Stocks To Buy Now? 4 Trending Now | ABBV | https://www.nasdaq.com/articles/best-dividend-stocks-to-buy-now-4-trending-now-2021-05-21 | nan | nan | Top Dividend Stocks To Consider Adding To Your Long-Term Portfolio
Amidst the volatility seen in the stock market recently, more investors could be turning towards dividend stocks. As a result, the highest paying dividend stocks in 2021 could have more room to grow right now. While that may seem like the likely strategy, there are several other key factors to consider when it comes to dividend investing. For starters, companies that focus their resources towards dividends could be lagging in terms of growth projects. This would account for slower stock appreciation over time but provide more predictable income overall. Next, the company’s dividend-paying history would also be another aspect to consider. In this case, consistency and steady increments in a company’s dividends would be important to look out for.
By and large, investing in industry leaders would benefit investors, given that such companies would have more excess funds. For instance, we could look at consumer staples giant PepsiCo (NYSE: PEP). The company has been paying dividends since 1965 with 2021 marking its 49th consecutive annual dividend increase. PEP stock would be a go-to for more conservative dividend investors now. Meanwhile, investors looking to benefit from both stock capital gains and dividends would likely turn towards the tech sector. Sure, the top tech stocks now are experiencing dips and don’t offer the highest yielding dividends, but they remain long-term growth players, nonetheless. Take companies such as Microsoft (NASDAQ: MSFT) for example. Microsoft has been steadily increasing its dividends for the past decade while investing in its fast-growing tech divisions as well.
Having read all of this, you might be keen to invest in some dividend stocks yourself. After all, some would argue that it provides a chance to diversify your portfolio while securing more consistent income. Regardless, here are four making waves in the stock market today.
Top Dividend Stocks To Buy [Or Avoid] Now
Procter & Gamble Company (NYSE: PG)
AT&T Inc. (NYSE: T)
Brookfield Renewable Partners (NYSE: BEP)
AbbVie Inc. (NYSE: ABBV)
Procter & Gamble Company
Procter & Gamble (PG) is a multinational consumer goods corporation. In essence, it specializes in a wide range of personal health/consumer health and hygiene products. Its consumer goods are sold in over 180 countries and territories. From its shaving products Gillette to beauty products like Pantene, chances are you have something in your house that is made by PG. The company’s stock currently trades at $138.27 as of 10:41 a.m. ET. In April, the company announced its third-quarter financials for the fiscal year 2021.
Source: TD Ameritrade TOS
In it, the company reported that net sales for the quarter were $18.1 billion, an increase of 5% year-over-year. Also, PG reported a diluted net earnings per share of $1.26, a 13% increase compared to a year earlier. Operating cash flow was $4.1 billion for the quarter and the company also returned $5 billion of cash to shareholders via $2 billion of dividend payments and $3 billion of common stock purchases.
Earlier in April, the company also announced a 10% increase in quarterly dividends, marking the 65th consecutive year that the company has increased its dividend. Given all of this, will you consider buying PG stock?
[Read More] Stocks To Watch This Week? 4 Entertainment Stocks To Know
AT&T Inc.
AT&T is one of the world’s largest telecommunications companies and providers of mobile telephone services. The company operates mainly through its Communication and WarnerMedia segments. Firstly, its Communication segment provides wireless and wireline telecom, video, and broadband services to customers. Secondly, its WarnerMedia segment develops, produces, and distributes feature films, television, and gaming content. T stock currently trades at $29.94 as of 10:41 a.m. ET.
Source: TD Ameritrade TOS
On Monday, the company announced a definitive agreement to combine WarnerMedia’s entertainment and news assets with Discovery’s content to create a premium global entertainment company. Through this merger, the company will form one of the largest global streaming players in the world. Discovery’s CEO David Zaslav will lead this new company with executives from both companies in key leadership roles.
Impressively, the new company will also have significant scale and investment resources with projected 2023 revenue of approximately $52 billion. It will also bring compelling content to direct-to-consumer subscribers across its portfolio, including HBO Max and the recently launched discovery+. With so much happening to the company, will you consider adding T stock to your portfolio?
Read More
Top Biotech Stocks To Watch In May
Best Stocks To Invest In Right Now? 4 E-Commerce Stocks To Watch
Brookfield Renewable Partners LP
Brookfield is a dividend stock that is also one of the world’s largest publicly traded renewable power platforms. The company’s portfolio is approximately 21,000 MW of capacity. It also boasts nearly 6,000 generating facilities in North America, South America, Europe, and Asia. The company’s goal is to deliver long-term annualized total returns of 12% to 15%. The company is a global leader in hydroelectric power, which comprises approximately 62% of its portfolio.
Source: TD Ameritrade TOS
In early May, the company reported strong first-quarter results. Revenue for the quarter was $1.02 billion. Impressively, the long-term average power generation was 14,099 GWh for the quarter. The company also increased its portfolio by approximately 6,000 MW through construction and advanced stage permitting. It also added nearly 4,500 MW to its development pipeline.
Brookfield also signed 29 agreements for approximately 2,300 GWh of renewable generation with corporate off-takers across all major industries. Also, the company has invested or agreed to invest $1.6 billion of equity across a range of transactions. This includes onshore and offshore wind, utility-scale solar, and distributed generation. Considering all these, is BEP stock a top dividend stock to buy?
[Read More] Top Clean Energy Stocks Buy Now? 5 To Watch
AbbVie Inc.
Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. The research-based pharmaceutical company boasts a wide healthcare portfolio, tackling the world’s most prominent illnesses. Primarily, the company conducts research in the fields of immunology, neuroscience, virology, and oncology. According to AbbVie, more than 52 million patients in over 175 countries rely on its treatments annually. Nevertheless, should investors be relying on ABBV stock for gains right now?
Source: TD Ameritrade TOS
Well, we could take a look at its recent quarter fiscal to get a clearer idea on this. Just last month, AbbVie started 2021 strong, posting solid figures in its first-quarter fiscal. In it, the company saw total revenue for the quarter surge by 50.95% year-over-year, adding up to over $13 billion. This was followed by a sizable 18% bump in net income over the same time. On top of that, AbbVie also ended the quarter with over $9.7 billion in cash on hand.
According to CEO Richard Gonzalez, this growth is thanks to AbbVie’s newest products performing well. Looking forward, Gonzalez also mentioned that the company has over a dozen products up for commercial approvals in the next two years. With AbbVie seemingly firing on all cylinders, would you consider ABBV stock worth investing in now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Dividend Stocks To Buy [Or Avoid] Now Procter & Gamble Company (NYSE: PG) AT&T Inc. (NYSE: T) Brookfield Renewable Partners (NYSE: BEP) AbbVie Inc. (NYSE: ABBV) Procter & Gamble Company Procter & Gamble (PG) is a multinational consumer goods corporation. 5 To Watch AbbVie Inc. Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. | Top Dividend Stocks To Buy [Or Avoid] Now Procter & Gamble Company (NYSE: PG) AT&T Inc. (NYSE: T) Brookfield Renewable Partners (NYSE: BEP) AbbVie Inc. (NYSE: ABBV) Procter & Gamble Company Procter & Gamble (PG) is a multinational consumer goods corporation. 5 To Watch AbbVie Inc. Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. | Top Dividend Stocks To Buy [Or Avoid] Now Procter & Gamble Company (NYSE: PG) AT&T Inc. (NYSE: T) Brookfield Renewable Partners (NYSE: BEP) AbbVie Inc. (NYSE: ABBV) Procter & Gamble Company Procter & Gamble (PG) is a multinational consumer goods corporation. 5 To Watch AbbVie Inc. Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. | 5 To Watch AbbVie Inc. Another top dividend-paying company to know now would be AbbVie Inc. Top Dividend Stocks To Buy [Or Avoid] Now Procter & Gamble Company (NYSE: PG) AT&T Inc. (NYSE: T) Brookfield Renewable Partners (NYSE: BEP) AbbVie Inc. (NYSE: ABBV) Procter & Gamble Company Procter & Gamble (PG) is a multinational consumer goods corporation. In brief, AbbVie is a leading name in the field of biotech today. |
24079.0 | 2021-05-21 00:00:00 UTC | 2 Healthcare Stocks Perfect to Buy Now and Hold Until Retirement | ABBV | https://www.nasdaq.com/articles/2-healthcare-stocks-perfect-to-buy-now-and-hold-until-retirement-2021-05-21 | nan | nan | The best stocks are those you can buy now and hold for the long term. Two healthcare companies that fit the bill are AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN). Neither company is a big participant in the COVID-19 vaccine race. They seem to have stuck to their circles of competence, and have been working to deliver fantastic results for shareholders by growing revenue and increasing dividends.
Here's why both these stocks can deliver fantastic results right now, and well into the future.
Image source: Getty Images.
1. AbbVie
In 2013, AbbVie was spun off from Abbott Laboratories. The new company quickly developed what is currently the best-selling drug on the market, Humira.
AbbVie's product portfolio is not just made up of Humira (for rheumatoid arthritis); it also includes notable products like Imbruvica (lymphoma), Venclexta (leukemia), Zinbryta (multiple sclerosis), and Kaletra (HIV). All these drugs boost AbbVie's sales, and have been big drivers of its tremendous revenue growth over the past few years.
The company has been able to grow revenue at a remarkable pace over the past couple of years. Its five-year average revenue growth, year over year, came in at 13.15%; in just the past year, that number was 47.39%, outperforming its peers by 260%.
AbbVie is also a big dividend payer, yielding nearly 5% for investors at current prices. It has been increasing that payout at substantial rates lately, growing its dividend over the past five years at an average rate of 18.09%.
Believe it or not, AbbVie is a Dividend Aristocrat. Being a part of Abbott Labs and then continuing to pay dividends even after it was spun off kept its streak alive, so the company has now consecutively increased payouts for more than 25 years. AbbVie is as reliable as it comes, and would be a good addition to any investor's long-term portfolio.
2. Amgen
Founded back in 1980 under the name Applied Molecular Genetics, the biotechnology giant now called Amgen is still going strong. It showed very promising results in its most recent quarterly earnings report, which came out on April 27.
Some of its flagship drugs -- which include Prolia (bone loss), Evenity (osteoporosis), Repatha (cardiovascular disease), and Amgevita (arthritis) -- all have been doing tremendously, with year-over-year sales up by 16%, 7%, 25%, and 23%, respectively. All these drugs have been key drivers in Amgen's near-term growth.
Its pipeline is also very promising. The company is researching additional indications for its current set of drugs (to expand sales by being able to treat additional illnesses), and conducting clinical trials on drugs such as Lumakras (lung cancer) and bemarituzumab (gastric cancer) in hopes of getting them approved and on the market..
Amgen is also a very steady grower in terms of revenue and dividends. The company has posted a solid 3.13% growth rate over the last five years, and in 2020 posted year-over-year revenue growth of 5%. Its dividend payouts have been increasing at a very handsome pace. Over the past five years, Amgen has increased its dividend at an average rate of 16.09%, rewarding its shareholders with ever-growing payouts.
Unlike AbbVie, Amgen has only been paying dividends since 2011, so it doesn't have a long track record. However, the company boasts a payout ratio of only 44%, which means its dividends are very well covered by earnings. Amgen is still a growing company, and it's likely to be a safe and reliable stock to buy and hold until you retire.
10 stocks we like better than Amgen
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Anirudh Shankar owns shares of AbbVie. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two healthcare companies that fit the bill are AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN). AbbVie In 2013, AbbVie was spun off from Abbott Laboratories. AbbVie's product portfolio is not just made up of Humira (for rheumatoid arthritis); it also includes notable products like Imbruvica (lymphoma), Venclexta (leukemia), Zinbryta (multiple sclerosis), and Kaletra (HIV). | All these drugs boost AbbVie's sales, and have been big drivers of its tremendous revenue growth over the past few years. Two healthcare companies that fit the bill are AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN). AbbVie In 2013, AbbVie was spun off from Abbott Laboratories. | All these drugs boost AbbVie's sales, and have been big drivers of its tremendous revenue growth over the past few years. Two healthcare companies that fit the bill are AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN). AbbVie In 2013, AbbVie was spun off from Abbott Laboratories. | All these drugs boost AbbVie's sales, and have been big drivers of its tremendous revenue growth over the past few years. Two healthcare companies that fit the bill are AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN). AbbVie In 2013, AbbVie was spun off from Abbott Laboratories. |
24080.0 | 2021-05-18 00:00:00 UTC | AbbVie exploits U.S. patents to protect profits: Congress report | ABBV | https://www.nasdaq.com/articles/abbvie-exploits-u.s.-patents-to-protect-profits%3A-congress-report-2021-05-18-0 | nan | nan | Adds comment from Janssen
WASHINGTON, May 18 (Reuters) - Drugmaker AbbVie ABBV.N exploits the U.S. patent system to push up prices for its Humira rheumatoid arthritis drug and Imbruvica, a cancer drug, according to a U.S. House of Representatives Oversight Committee staff report on Tuesday.
AbbVie Inc's chief executive officer Richard Gonzalez testifies Tuesday about Humira's price, which has increased to $77,000 for a year's supply, and the price of Imbruvica, which now costs $181,529 for a year's supply, said the committee, which called Humira "the highest grossing drug in the world."
AbbVie partners with Johnson & Johnson's Janssen Biotech to make Imbruvica, which treats mantle cell lymphoma and other cancers.
AbbVie made $16 billion from Humira from U.S. patients in 2020, the report said.
"Documents and information obtained by the committee indicate that AbbVie’s senior executives received larger bonuses by raising the price of Humira, Imbruvica, and other drugs," the report said, noting that U.S. patients tended to pay more than patients overseas.
The price increases meant that some U.S patients could not afford the medicines and stopped taking them, the report said.
In the case of Humira, the committee found that AbbVie obtained more than 200 patents on the medicine, sometimes called a patent thicket, to prevent generics from entering the market even though the patent on Humira's active ingredient expired on Dec. 31, 2016.
"AbbVie’s patent strategy is particularly abusive because it seeks to overwhelm potential competitors with the sheer number of patents on Humira regardless of whether individual patents were properly granted under U.S. law. If one patent is invalidated, AbbVie has another patent waiting," the report said.
AbbVie also settled with competitors who wanted to bring a generic to market, which normally brings prices down, to delay their entry, the report said.
AbbVie did not immediately respond to a request for comment.
A spokeswoman for Janssen said it was working with AbbVie to ensure that patients who needed Imbruvica had access to it and that the drug was undergoing a large number of expensive trials.
(Reporting by Diane Bartz; Editing by Chizu Nomiyama and Andrea Ricci)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds comment from Janssen WASHINGTON, May 18 (Reuters) - Drugmaker AbbVie ABBV.N exploits the U.S. patent system to push up prices for its Humira rheumatoid arthritis drug and Imbruvica, a cancer drug, according to a U.S. House of Representatives Oversight Committee staff report on Tuesday. AbbVie Inc's chief executive officer Richard Gonzalez testifies Tuesday about Humira's price, which has increased to $77,000 for a year's supply, and the price of Imbruvica, which now costs $181,529 for a year's supply, said the committee, which called Humira "the highest grossing drug in the world." A spokeswoman for Janssen said it was working with AbbVie to ensure that patients who needed Imbruvica had access to it and that the drug was undergoing a large number of expensive trials. | Adds comment from Janssen WASHINGTON, May 18 (Reuters) - Drugmaker AbbVie ABBV.N exploits the U.S. patent system to push up prices for its Humira rheumatoid arthritis drug and Imbruvica, a cancer drug, according to a U.S. House of Representatives Oversight Committee staff report on Tuesday. AbbVie Inc's chief executive officer Richard Gonzalez testifies Tuesday about Humira's price, which has increased to $77,000 for a year's supply, and the price of Imbruvica, which now costs $181,529 for a year's supply, said the committee, which called Humira "the highest grossing drug in the world." In the case of Humira, the committee found that AbbVie obtained more than 200 patents on the medicine, sometimes called a patent thicket, to prevent generics from entering the market even though the patent on Humira's active ingredient expired on Dec. 31, 2016. | Adds comment from Janssen WASHINGTON, May 18 (Reuters) - Drugmaker AbbVie ABBV.N exploits the U.S. patent system to push up prices for its Humira rheumatoid arthritis drug and Imbruvica, a cancer drug, according to a U.S. House of Representatives Oversight Committee staff report on Tuesday. AbbVie Inc's chief executive officer Richard Gonzalez testifies Tuesday about Humira's price, which has increased to $77,000 for a year's supply, and the price of Imbruvica, which now costs $181,529 for a year's supply, said the committee, which called Humira "the highest grossing drug in the world." In the case of Humira, the committee found that AbbVie obtained more than 200 patents on the medicine, sometimes called a patent thicket, to prevent generics from entering the market even though the patent on Humira's active ingredient expired on Dec. 31, 2016. | AbbVie Inc's chief executive officer Richard Gonzalez testifies Tuesday about Humira's price, which has increased to $77,000 for a year's supply, and the price of Imbruvica, which now costs $181,529 for a year's supply, said the committee, which called Humira "the highest grossing drug in the world." "Documents and information obtained by the committee indicate that AbbVie’s senior executives received larger bonuses by raising the price of Humira, Imbruvica, and other drugs," the report said, noting that U.S. patients tended to pay more than patients overseas. In the case of Humira, the committee found that AbbVie obtained more than 200 patents on the medicine, sometimes called a patent thicket, to prevent generics from entering the market even though the patent on Humira's active ingredient expired on Dec. 31, 2016. |
24081.0 | 2021-05-18 00:00:00 UTC | After a Blowout Quarter, Is AbbVie Stock a Buy? | ABBV | https://www.nasdaq.com/articles/after-a-blowout-quarter-is-abbvie-stock-a-buy-2021-05-18 | nan | nan | Pharmaceutical giant AbbVie (NYSE: ABBV) reported earnings recently, beating estimates on revenue and earnings per share. The current state of the company is very impressive and future growth looks promising. The stock might have rallied by 40% in the last year, but let me show you why you should still consider buying into AbbVie at these prices.
Exceeding expectations
AbbVie, along with other major pharmaceutical companies such as Bristol Myers Squibb, Merck, and Pfizer, reported quarterly results recently; it stood out among its peers, beating analyst expectations. In its Q1 2021 earnings, reported April 30, AbbVie brought in $13.01 billion, growing its first-quarter revenues 51% year over year. It also beat earnings-per-share (EPS) estimates according to generally accepted accounting principles (GAAP) by $0.52, reporting quarterly GAAP EPS of $1.99.
There was tremendous growth across many of AbbVie's business lines, mainly in its immunology and aesthetics segments. Revenue from the former came in at $5.7 billion, an increase of nearly 13% year over year. Sales from immunosuppressant Humira increased 3.5% to $4.86 billion, but the growth really came from its newer immunology products, Skyrizi and Rinvoq, which grew sales year over year by 91.1% and 600%, respectively.
Another stunning growth figure came from the company's aesthetics portfolio, which was a part of AbbVie's Allergan acquisition in 2019. Global revenue from that portfolio came in at $1.14 billion, an increase of nearly 35% year over year. The shining star in the aesthetics business is Botox, which increased sales by 45% year over year to $477 million in the first quarter of 2021.
Finally, AbbVie was able to raise its financial guidance on its GAAP EPS from $6.69 to $7.27, and overall 2021 EPS from $12.32 to $12.37. Its best-selling drug, Humira, already went off-patent in Europe in 2018 and will be going off-patent here in the U.S in 2023.. But in this earnings report, AbbVie has proven it can grow the other parts of its business and diversify away from Humira.
Image source: Getty Images.
Pipeline growth
AbbVie has been busy strengthening its pipeline to offset the loss of revenue when Humira does finally go off-patent. It's been filing to test and apply new indications for some of its existing drugs, including Skyrizi, Rinvoq, Imbruvica (for lymphoma), and Venclexta (for leukemia). So far, it has filed for more than 20 different indications at the phase 3/registration stage across these four drugs. This would mean a lot more possibilities for these drugs to treat a range of diseases and increase sales for the company. The company has at least 70 additional filings across all three phases, spread out among its immunology, oncology, neuroscience, and eye-care business lines.
In addition to extensive in-house work on the pipeline, AbbVie is also looking at growing the business through acquisitions. Just a few weeks back, it reached a deal to possibly acquire biotech company Mitokinin through an option agreement (in which a contract is made between a buyer and seller for the former to possibly buy the business later at a predetermined price).
Mitokinin has developed a technology to increase the activity of the PINK1 compound, which is heavily linked to Parkinson's disease. Increasing the activity of the PINK1 compound increases overall brain activity and synaptic function, thus lowering the risk for developing a disease like Parkinson's. The company has a neurodegenerative disease pipeline of products to treat this disease. AbbVie purchased an option to buy the company if it completes the study of its lead PINK1 compound.
Analysts estimate the Parkinson's disease market could reach $5.69 billion by 2022, and the possible addition of Mitokinin to AbbVie's portfolio could help drive future growth for the pharmaceutical giant.
AbbVie's efforts to diversify its current products as well as expand its pipeline to new areas should provide optimism to investors. Expanding the portfolio beyond Humira will drive growth in the near and long term.
Still a great buy
AbbVie has rallied very strongly over the past 12 months, and it's up nearly 40% from the lows we saw near the end of October 2020. I believe this is mainly thanks to investors buying back the stock upon the realization that the patent-cliff fears on Humira were overblown.
Despite some bad press around Humira's patent status, AbbVie's revenue has continued to grow over the past few years, with an average of 13.1% annualized revenue growth over that time and no signs of slowing down.
Shares are currently priced at about $117, and I believe this stock can still go a lot higher. It was trading at a forward price-to-earnings (P/E) ratio of 10.4 just a few months back, and that metric is currently has come down to just 9.3, meaning the the price of the stock has gotten cheaper in relation to earnings. If the stock reverted back to a 10.4 forward P/E ratio, putting it back in line with its historical averages, and we take the earnings per share estimates for the next fiscal year at $13.83, we are looking at a $143 share price. Thus, buying AbbVie stock right now would give investors a nearly 25% upside.
AbbVie also boasts a very attractive dividend of 4.25%, much higher than the S&P 500's average of about 2%, and the company has been increasing that dividend at an average rate of almost 19% over the past five years. All of this together makes AbbVie one of the best deals on Wall Street, and after a quarter that exceeded a lot of expectations, it's a stock that looks like a buy.
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Anirudh Shankar owns shares of AbbVie, Bristol Myers Squibb, Merck & Co., and Pfizer. The Motley Fool owns shares of and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Analysts estimate the Parkinson's disease market could reach $5.69 billion by 2022, and the possible addition of Mitokinin to AbbVie's portfolio could help drive future growth for the pharmaceutical giant. Pharmaceutical giant AbbVie (NYSE: ABBV) reported earnings recently, beating estimates on revenue and earnings per share. The stock might have rallied by 40% in the last year, but let me show you why you should still consider buying into AbbVie at these prices. | Pharmaceutical giant AbbVie (NYSE: ABBV) reported earnings recently, beating estimates on revenue and earnings per share. Exceeding expectations AbbVie, along with other major pharmaceutical companies such as Bristol Myers Squibb, Merck, and Pfizer, reported quarterly results recently; it stood out among its peers, beating analyst expectations. Analysts estimate the Parkinson's disease market could reach $5.69 billion by 2022, and the possible addition of Mitokinin to AbbVie's portfolio could help drive future growth for the pharmaceutical giant. | The stock might have rallied by 40% in the last year, but let me show you why you should still consider buying into AbbVie at these prices. In its Q1 2021 earnings, reported April 30, AbbVie brought in $13.01 billion, growing its first-quarter revenues 51% year over year. Pharmaceutical giant AbbVie (NYSE: ABBV) reported earnings recently, beating estimates on revenue and earnings per share. | The stock might have rallied by 40% in the last year, but let me show you why you should still consider buying into AbbVie at these prices. Analysts estimate the Parkinson's disease market could reach $5.69 billion by 2022, and the possible addition of Mitokinin to AbbVie's portfolio could help drive future growth for the pharmaceutical giant. Pharmaceutical giant AbbVie (NYSE: ABBV) reported earnings recently, beating estimates on revenue and earnings per share. |
24082.0 | 2021-05-18 00:00:00 UTC | AbbVie exploits U.S. patents to protect profits: Congress report | ABBV | https://www.nasdaq.com/articles/abbvie-exploits-u.s.-patents-to-protect-profits%3A-congress-report-2021-05-18 | nan | nan | WASHINGTON, May 18 (Reuters) - Drugmaker AbbVie ABBV.N exploits the U.S. patent system to push up prices for its Humira rheumatoid arthritis drug and Imbruvica, a cancer drug, according to a U.S. House of Representatives Oversight Committee staff report issued on Tuesday.
AbbVie Inc's chief executive officer Richard Gonzalez is to testify Tuesday about prices for Humira, which have been increased to $77,000 for a year's supply, and Imbruvica, which now costs $181,529 for a year's supply, said the committee, which called Humira "the highest grossing drug in the world."
AbbVie partners with Johnson & Johnson subsidiary Janssen Biotech to make Imbruvica, which treats mantle cell lymphoma and other cancers.
AbbVie made $16 billion from Humira from U.S. patients in 2020, the report said.
"Documents and information obtained by the committee indicate that AbbVie’s senior executives received larger bonuses by raising the price of Humira, Imbruvica, and other drugs," the report said, noting that U.S. patients tended to pay more than patients overseas.
The price increases meant that some U.S patients could not afford the medicines and stopped taking them, the report said.
In the case of Humira, the committee found that AbbVie obtained more than 200 patents on the medicine, sometimes called a patent thicket, and used those to prevent generics from entering the market even though the patent on Humira's active ingredient expired on December 31, 2016.
"AbbVie’s patent strategy is particularly abusive because it seeks to overwhelm potential competitors with the sheer number of patents on Humira regardless of whether individual patents were properly granted under U.S. law. If one patent is invalidated, AbbVie has another patent waiting," the report said.
AbbVie also reached settlements with competitors who wanted to bring a generic to market, a step that normally brings prices sharply down, which delayed their entry, the report said.
(Reporting by Diane Bartz Editing by Chizu Nomiyama)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, May 18 (Reuters) - Drugmaker AbbVie ABBV.N exploits the U.S. patent system to push up prices for its Humira rheumatoid arthritis drug and Imbruvica, a cancer drug, according to a U.S. House of Representatives Oversight Committee staff report issued on Tuesday. AbbVie Inc's chief executive officer Richard Gonzalez is to testify Tuesday about prices for Humira, which have been increased to $77,000 for a year's supply, and Imbruvica, which now costs $181,529 for a year's supply, said the committee, which called Humira "the highest grossing drug in the world." AbbVie partners with Johnson & Johnson subsidiary Janssen Biotech to make Imbruvica, which treats mantle cell lymphoma and other cancers. | WASHINGTON, May 18 (Reuters) - Drugmaker AbbVie ABBV.N exploits the U.S. patent system to push up prices for its Humira rheumatoid arthritis drug and Imbruvica, a cancer drug, according to a U.S. House of Representatives Oversight Committee staff report issued on Tuesday. AbbVie Inc's chief executive officer Richard Gonzalez is to testify Tuesday about prices for Humira, which have been increased to $77,000 for a year's supply, and Imbruvica, which now costs $181,529 for a year's supply, said the committee, which called Humira "the highest grossing drug in the world." In the case of Humira, the committee found that AbbVie obtained more than 200 patents on the medicine, sometimes called a patent thicket, and used those to prevent generics from entering the market even though the patent on Humira's active ingredient expired on December 31, 2016. | WASHINGTON, May 18 (Reuters) - Drugmaker AbbVie ABBV.N exploits the U.S. patent system to push up prices for its Humira rheumatoid arthritis drug and Imbruvica, a cancer drug, according to a U.S. House of Representatives Oversight Committee staff report issued on Tuesday. "Documents and information obtained by the committee indicate that AbbVie’s senior executives received larger bonuses by raising the price of Humira, Imbruvica, and other drugs," the report said, noting that U.S. patients tended to pay more than patients overseas. In the case of Humira, the committee found that AbbVie obtained more than 200 patents on the medicine, sometimes called a patent thicket, and used those to prevent generics from entering the market even though the patent on Humira's active ingredient expired on December 31, 2016. | WASHINGTON, May 18 (Reuters) - Drugmaker AbbVie ABBV.N exploits the U.S. patent system to push up prices for its Humira rheumatoid arthritis drug and Imbruvica, a cancer drug, according to a U.S. House of Representatives Oversight Committee staff report issued on Tuesday. AbbVie Inc's chief executive officer Richard Gonzalez is to testify Tuesday about prices for Humira, which have been increased to $77,000 for a year's supply, and Imbruvica, which now costs $181,529 for a year's supply, said the committee, which called Humira "the highest grossing drug in the world." AbbVie made $16 billion from Humira from U.S. patients in 2020, the report said. |
24083.0 | 2021-05-16 00:00:00 UTC | 3 High-Yield Dividend Stocks I'd Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-id-buy-right-now-2021-05-16 | nan | nan | Look up "yield" in the dictionary. One of the first definitions you'll find is something along the lines of to give up or surrender. Of course, investors have another meaning in mind when they think about yield. They're thinking about the dividends they can receive by buying stocks.
Unfortunately, the investing definition of yield sometimes comes joined at the hip with the surrender definition. Investors can at times feel like they have to give up a lot to gain a high dividend yield. That doesn't have to be the case, though. Here are three high-yield dividend stocks I'd buy right now.
Image source: Getty Images.
AbbVie
You won't have to give up much at all investing in AbbVie (NYSE: ABBV). The big drug stock offers income, value, and growth.
AbbVie's dividend yield currently stands at close to 4.5%. The company has increased its dividend by a whopping 225% since its spin-off from Abbott in 2013. It's also a Dividend Aristocrat with 49 consecutive annual dividend increases.
Many investors would also consider AbbVie a bargain. Its shares trade at a little over nine times expected earnings. That's well below the forward earnings multiple of 13.5 for the pharmaceutical companies in the S&P 500.
AbbVie should even deliver solid long-term growth. Granted, there will be a blip in 2023 when the company's top-selling drug Humira faces biosimilar rivals in the U.S. However, the company expects a quick rebound with strong revenue growth through the rest of the decade.
Easterly Government Properties
Easterly Government Properties (NYSE: DEA) ranks as one of the best -- and perhaps most boring -- dividend stocks around. It's a real estate investment trust (REIT) with a dividend yield of 5.2%. You can't count on annual dividend hikes with Easterly, but the payout is rock-solid.
As Easterly chairman Darrell Crate said in the company's Q1 conference call, "We're not a complicated story. We keep it simple. We purchase and develop the U.S. government-leased assets and pass along the stable cash flows and superior tenant credit quality to our shareholders, generating strong risk-adjusted returns."
Leasing properties to the U.S. government might not be super-exciting. However, it's super-safe. The rent always gets paid on time. If there's ever a point where Uncle Sam can't make a payment, the world has much bigger things to worry about than dividend yields.
This business model has worked really well for Easterly. The company has increased its funds from operations (FFO) at a compound annual growth rate of around 4% while paying a dividend yield that's typically close to 5%. That's the kind of boring stock that I suspect income-seeking investors will really like.
Enterprise Products Partners
Enterprise Products Partners' (NYSE: EPD) dividend yield of 7.6% is the juiciest of these three stocks. The midstream energy company has increased its distribution for 22 consecutive years, an impressive track record considering that EPD operates in a relatively volatile industry.
Volatility isn't always a negative thing, though. EPD's shares have soared more than 20% year to date with several factors driving fuel prices higher.
But does the shift to clean energy sources jeopardize EPD's prospects? Not anytime soon. The demand for fossil fuels is likely to continue increasing over the next several decades even as renewable energy gains additional traction. EPD views areas such as hydrogen and carbon capture and storage as opportunities rather than threats. The company could expand more into these technologies in the future.
I expect that the stock will remain volatile going forward. That's just the nature of the energy business. However, I also think that investors will be able to count on continued strong distributions from Enterprise Products Partners for years to come.
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Keith Speights owns shares of AbbVie and Enterprise Products Partners. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie You won't have to give up much at all investing in AbbVie (NYSE: ABBV). AbbVie's dividend yield currently stands at close to 4.5%. Many investors would also consider AbbVie a bargain. | AbbVie You won't have to give up much at all investing in AbbVie (NYSE: ABBV). AbbVie's dividend yield currently stands at close to 4.5%. Many investors would also consider AbbVie a bargain. | See the 10 stocks *Stock Advisor returns as of May 11, 2021 Keith Speights owns shares of AbbVie and Enterprise Products Partners. AbbVie You won't have to give up much at all investing in AbbVie (NYSE: ABBV). AbbVie's dividend yield currently stands at close to 4.5%. | AbbVie You won't have to give up much at all investing in AbbVie (NYSE: ABBV). AbbVie's dividend yield currently stands at close to 4.5%. Many investors would also consider AbbVie a bargain. |
24084.0 | 2021-05-14 00:00:00 UTC | iShares MSCI USA Quality Factor ETF Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/ishares-msci-usa-quality-factor-etf-experiences-big-outflow-2021-05-14 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Quality Factor ETF (Symbol: QUAL) where we have detected an approximate $119.9 million dollar outflow -- that's a 0.6% decrease week over week (from 160,900,000 to 159,950,000). Among the largest underlying components of QUAL, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Blackrock Inc (Symbol: BLK) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the QUAL Holdings page » The chart below shows the one year price performance of QUAL, versus its 200 day moving average:
Looking at the chart above, QUAL's low point in its 52 week range is $88.66 per share, with $129.825 as the 52 week high point — that compares with a last trade of $127.48. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of QUAL, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Blackrock Inc (Symbol: BLK) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the QUAL Holdings page » The chart below shows the one year price performance of QUAL, versus its 200 day moving average: Looking at the chart above, QUAL's low point in its 52 week range is $88.66 per share, with $129.825 as the 52 week high point — that compares with a last trade of $127.48. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of QUAL, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Blackrock Inc (Symbol: BLK) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the QUAL Holdings page » The chart below shows the one year price performance of QUAL, versus its 200 day moving average: Looking at the chart above, QUAL's low point in its 52 week range is $88.66 per share, with $129.825 as the 52 week high point — that compares with a last trade of $127.48. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of QUAL, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Blackrock Inc (Symbol: BLK) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Quality Factor ETF (Symbol: QUAL) where we have detected an approximate $119.9 million dollar outflow -- that's a 0.6% decrease week over week (from 160,900,000 to 159,950,000). For a complete list of holdings, visit the QUAL Holdings page » The chart below shows the one year price performance of QUAL, versus its 200 day moving average: Looking at the chart above, QUAL's low point in its 52 week range is $88.66 per share, with $129.825 as the 52 week high point — that compares with a last trade of $127.48. | Among the largest underlying components of QUAL, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Blackrock Inc (Symbol: BLK) is up about 1.8%, and AbbVie Inc (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the QUAL Holdings page » The chart below shows the one year price performance of QUAL, versus its 200 day moving average: Looking at the chart above, QUAL's low point in its 52 week range is $88.66 per share, with $129.825 as the 52 week high point — that compares with a last trade of $127.48. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. |
24085.0 | 2021-05-14 00:00:00 UTC | 3 Dividend Stocks That Pay You Better Than Coca-Cola Does | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-pay-you-better-than-coca-cola-does-2021-05-14 | nan | nan | It's hard to find many chinks in the armor of Coca-Cola's (NYSE: KO) renowned dividend. The company has raised it for 59 consecutive years, and at current share prices, it delivers a yield of 3%, well above the S&P 500's average yield of 1.38%.
However, when you compare it as an income investment to a few of its fellow Dividend Aristocrats such as AbbVie (NYSE: ABBV), Kimberly-Clark (NYSE: KMB), and Chevron (NYSE: CVX), it fizzles out. Each of them boasts a better yield right now than the beverage giant, and each has a stronger record of payout raises over the past three years. I also see more room for their share prices to grow in the coming year.
Image source: Getty Images
1. Chevron is poised to bounce back
Last year was horrible for oil companies, but despite its lagging revenue, Chevron last month announced that it was raising its quarterly dividend by 4% to $1.34 per share, making this the 34th consecutive year that the company has hiked its payout. At Tuesday's closing price of $106.70, the company's dividend yield was 5.02%.
In the past three years, the company, which has worldwide upstream and downstream operations in oil and natural gas, has increased its dividend by 19.64%, more than double Coca-Cola's 7.69% payout growth over that period.
Chevron's Q1 earnings were still down by 47% year over year, but with earnings of $1.37 billion, it was the first quarter since before the pandemic that the company recorded a profit. Its cash flow remained strong at $4.2 billion, down from $4.7 billion a year ago. With the price of crude now around $64 a barrel, more than $40 above where it was a year ago, this looks like a good time to jump in on the stock before it takes off.
Despite the company's sluggish 2020 results, its share price is up by more than 17% over the past year. Chevron's most promising news from last quarter was regarding its upstream operations (the exploration and production of crude oil and natural gas). For that business, the company reported earnings of $941 million compared to $241 million in the same quarter in 2020.
KO Dividend data by YCharts
2. Kimberly-Clark's dividend is on a roll
Consumer goods giant Kimberly-Clark is best-known for brands such as Kleenex tissues, Huggies diapers, and Scott toilet paper. People stocked up on items like those early in the pandemic in surges of panic buying that boosted the company's bottom line then, but as a result, its first-quarter 2021 numbers look low by comparison.
The company posted sales of $4.7 billion in the quarter, down 5% year over year. Net income fell 12% to $584 million. However, if you compare the recently reported quarter to the same period of 2019, it becomes obvious that 2020's numbers were the outliers. In Q1 2019, the company posted $4.6 million in sales, while net income was $454 million, 28% lower than this year's first quarter.
Kimberly-Clark's forecast for the rest of the year is conservative. Management predicts net sales will grow by 3% to 5%, down from an earlier estimate of 4% to 6%. It also said it expects organic sales growth of between 0% and 1%, compared to a prior prediction for growth in the 1% to 2% range.
The stock has only risen 1% over the past three months, so if you're looking for booming share price growth, Kimberly Clark isn't for you. But if you want a solid, well-covered dividend, you've come to the right place. The company raised its quarterly payout by 6.5% to $1.14 per share this year, making 2021 its 49th consecutive year of dividend hikes. At Tuesday's stock price, that dividend yields 3.40%.
Over the past three years, Kimberly Clark has raised its dividend by a solid 14%, and with a cash dividend payout ratio of 66.56% (TTM), it has plenty of room to keep boosting it.
3. AbbVie is looking past the Humira patent cliff
Pharmaceutical company AbbVie has a dividend with a yield of 4.53% at Tuesday's share price. And for its first payment of 2021, it raised its quarterly payout by 10.5% to $1.30 per share. Because it was part of Abbott Laboratories until 2013, it is considered a Dividend Aristocrat with 49 consecutive years of dividend increases. But even if you restrict yourself to counting only from the point at which it was spun off, it has an impressive payout history. AbbVie has raised its dividend by 225% since it hit the market, and over the past three years alone, has raised it by 35.42%.
Many investors are concerned about how the company will fare after its key blockbuster drug, Humira, loses patent protection in 2023, but for now, the popular immunosuppressive continues to rake it in, with $4.8 billion in revenue in the first quarter. However, there are plenty of other profitable drugs in its catalog: AbbVie reported $13 billion in revenue in Q1, up 51% year over year.
Humira may still be the company's biggest earner, but in their first years on the market, two of its other immunology drugs, Skyrizi and Rinvoq, brought in revenues of $574 million and $303 million, respectively. Thanks to the company's purchase of Allergan, it also has a cash cow in Botox: Botox therapeutic booked $532 million in revenue in the first quarter while Botox cosmetic brought in $477 million.
Even with the looming sales decline for Humira after generic versions hit the market, between the company's current catalog and the potential of the candidates in its pipeline, it should keep pulling in the cash. And for now, AbbVie's dividend is the best-covered of the three discussed here, with a 46.52% cash payout ratio (TTM). The stock is up by more than 9% this year.
Making the best choice
All three of these stocks have better dividend yields than Coca-Cola, and better recent records of payout increases.
However, the one that stands out to me is AbbVie. It has the best forward price-to-earnings (P/E) ratio of the group at 9., which indicates that the long-term concerns about Humira's sales decline have been largely priced into the stock. Meanwhile, the company has delivered double-digit percentage dividend hikes for two years running. Chevron also provides a great opportunity, with recent trends pointing toward a rise in oil prices that will help the company and the stock.
Kimberly Clark will no doubt cover its dividend as well, considering its strong cash flow, but it will be hard for the company to match last year's sales, and that could hurt its share price.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, when you compare it as an income investment to a few of its fellow Dividend Aristocrats such as AbbVie (NYSE: ABBV), Kimberly-Clark (NYSE: KMB), and Chevron (NYSE: CVX), it fizzles out. AbbVie is looking past the Humira patent cliff Pharmaceutical company AbbVie has a dividend with a yield of 4.53% at Tuesday's share price. AbbVie has raised its dividend by 225% since it hit the market, and over the past three years alone, has raised it by 35.42%. | However, there are plenty of other profitable drugs in its catalog: AbbVie reported $13 billion in revenue in Q1, up 51% year over year. However, when you compare it as an income investment to a few of its fellow Dividend Aristocrats such as AbbVie (NYSE: ABBV), Kimberly-Clark (NYSE: KMB), and Chevron (NYSE: CVX), it fizzles out. AbbVie is looking past the Humira patent cliff Pharmaceutical company AbbVie has a dividend with a yield of 4.53% at Tuesday's share price. | However, when you compare it as an income investment to a few of its fellow Dividend Aristocrats such as AbbVie (NYSE: ABBV), Kimberly-Clark (NYSE: KMB), and Chevron (NYSE: CVX), it fizzles out. AbbVie is looking past the Humira patent cliff Pharmaceutical company AbbVie has a dividend with a yield of 4.53% at Tuesday's share price. AbbVie has raised its dividend by 225% since it hit the market, and over the past three years alone, has raised it by 35.42%. | However, when you compare it as an income investment to a few of its fellow Dividend Aristocrats such as AbbVie (NYSE: ABBV), Kimberly-Clark (NYSE: KMB), and Chevron (NYSE: CVX), it fizzles out. AbbVie is looking past the Humira patent cliff Pharmaceutical company AbbVie has a dividend with a yield of 4.53% at Tuesday's share price. AbbVie has raised its dividend by 225% since it hit the market, and over the past three years alone, has raised it by 35.42%. |
24086.0 | 2021-05-14 00:00:00 UTC | U.S. House panel to hold May 18 hearing over AbbVie drug pricing | ABBV | https://www.nasdaq.com/articles/u.s.-house-panel-to-hold-may-18-hearing-over-abbvie-drug-pricing-2021-05-14 | nan | nan | WASHINGTON, May 14 (Reuters) - AbbieVie Inc's chief executive officer will testify at a May 18 congressional hearing over the drugmaker's pricing and business practices for its anti-inflammatory drug Humira and its cancer drug Imbruvica, lawmakers said on Friday.
The hearing with CEO Richard Gonzalez will examine prices for Humira, which have been hiked 27 times, and Imbruvica, which saw prices rise nine times, the House Committee on Oversight and Reform Committee said in a statement.
(Reporting by Susan Heavey)
((sheavey@thomsonreuters.com; +1-202-843-6292;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, May 14 (Reuters) - AbbieVie Inc's chief executive officer will testify at a May 18 congressional hearing over the drugmaker's pricing and business practices for its anti-inflammatory drug Humira and its cancer drug Imbruvica, lawmakers said on Friday. The hearing with CEO Richard Gonzalez will examine prices for Humira, which have been hiked 27 times, and Imbruvica, which saw prices rise nine times, the House Committee on Oversight and Reform Committee said in a statement. (Reporting by Susan Heavey) ((sheavey@thomsonreuters.com; +1-202-843-6292;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, May 14 (Reuters) - AbbieVie Inc's chief executive officer will testify at a May 18 congressional hearing over the drugmaker's pricing and business practices for its anti-inflammatory drug Humira and its cancer drug Imbruvica, lawmakers said on Friday. The hearing with CEO Richard Gonzalez will examine prices for Humira, which have been hiked 27 times, and Imbruvica, which saw prices rise nine times, the House Committee on Oversight and Reform Committee said in a statement. (Reporting by Susan Heavey) ((sheavey@thomsonreuters.com; +1-202-843-6292;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, May 14 (Reuters) - AbbieVie Inc's chief executive officer will testify at a May 18 congressional hearing over the drugmaker's pricing and business practices for its anti-inflammatory drug Humira and its cancer drug Imbruvica, lawmakers said on Friday. The hearing with CEO Richard Gonzalez will examine prices for Humira, which have been hiked 27 times, and Imbruvica, which saw prices rise nine times, the House Committee on Oversight and Reform Committee said in a statement. (Reporting by Susan Heavey) ((sheavey@thomsonreuters.com; +1-202-843-6292;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, May 14 (Reuters) - AbbieVie Inc's chief executive officer will testify at a May 18 congressional hearing over the drugmaker's pricing and business practices for its anti-inflammatory drug Humira and its cancer drug Imbruvica, lawmakers said on Friday. The hearing with CEO Richard Gonzalez will examine prices for Humira, which have been hiked 27 times, and Imbruvica, which saw prices rise nine times, the House Committee on Oversight and Reform Committee said in a statement. (Reporting by Susan Heavey) ((sheavey@thomsonreuters.com; +1-202-843-6292;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
24087.0 | 2021-05-12 00:00:00 UTC | The Best Warren Buffett Stocks to Buy With $300 Right Now | ABBV | https://www.nasdaq.com/articles/the-best-warren-buffett-stocks-to-buy-with-%24300-right-now-2021-05-12 | nan | nan | Suppose one of the world's greatest investors told you some of his favorite stock picks. However, there was a problem: You only had $300 to invest, and many of his stocks were too expensive for you to buy. My hunch is that you'd probably be perfectly content to scoop up a share or two of the stocks that you could afford.
This isn't a make-believe scenario, at least the part about a great investor sharing his favorite stock picks. Every quarter, Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) 13F-HR filing to the U.S. Securities and Exchange Commission (SEC) lists all of the conglomerate's holdings. This list is chock-full of legendary-investor Warren Buffett's favorite stocks.
To turn this scenario into reality, all you need is a few hundred bucks to invest. And you don't even have to dig into Berkshire's SEC filings to get ideas. Here are the best Warren Buffett stocks to buy with $300 right now.
Image source: The Motley Fool.
Apple
Probably the best place to start is with Buffett's favorite stock after Berkshire Hathaway itself -- Apple (NASDAQ: AAPL). The company is, by far, the top position in Berkshire's equity portfolio. Buffett stated last year in a CNBC interview that Apple "is probably the best business I know in the world."
Apple's share price currently stands at a little under $130. You're not going to be able to buy another top tech giant with $300 or less. More importantly, the stock should still have plenty of room to run.
The company's iPhone ecosystem is thriving, as evidenced by Apple's blowout Q1 earnings. Its Mac computer sales set a record high. Apple's lucrative services businesses, which include the App Store and Apple Music, continue to gain momentum. Wearables, home, and accessories revenue is also soaring.
Apple reportedly has a foldable iPhone on the way in 2023, which will almost certainly be a huge commercial success. Augmented reality apps and devices also should provide a major new growth market. There's a good chance that Apple will make Buffett -- and many other investors -- a lot richer over the next decade.
AbbVie
AbbVie (NYSE: ABBV) is a relatively recent addition to Buffett's list. Berkshire first bought shares of the big drugmaker last year. Its share price is under $120 right now, which appears to be a bargain considering the stock trades at only 9.3 times expected earnings.
Probably the first thing that jumps out with AbbVie is its dividend. The company ranks as a Dividend Aristocrat, with 49 consecutive years of dividend increases. Its dividend currently yields a mouthwatering 4.5%.
But AbbVie also offers pretty good growth prospects over the long run. You should be aware, though, that there will be a temporary blip in that growth. AbbVie's top-selling drug Humira will face biosimilar competition in the U.S. beginning in 2023. The company anticipates that its total revenue will slip that year.
The good news is that AbbVie has other products with fast-rising sales that should allow it to quickly return to growth. AbbVie projects strong revenue growth beginning in 2025 and extending throughout the rest of the decade.
Bank of America
After buying one share each of Apple and AbbVie, you're only going to have a little over $50 remaining from your initial $300. Don't worry, there's still a great Buffett stock that you can buy with the leftover cash -- Bank of America (NYSE: BAC).
Buffett has been a longtime fan of banks, but Bank of America is without question his favorite bank stock of all. The Oracle of Omaha singled out the stock in his comments at Berkshire's annual shareholder meeting, stating, "I like the Bank of America and I like [Bank of America CEO] Brian Moynihan very much."
There are several good reasons why Bank of America is so high on Buffett's list. The company more than doubled its profit year over year in the first quarter and continues to maintain a strong balance sheet. Bank of America should also benefit as COVID-19 worries fade and the global economy bounces back.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights owns shares of AbbVie, Apple, Bank of America, and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie (NYSE: ABBV) is a relatively recent addition to Buffett's list. Probably the first thing that jumps out with AbbVie is its dividend. But AbbVie also offers pretty good growth prospects over the long run. | Keith Speights owns shares of AbbVie, Apple, Bank of America, and Berkshire Hathaway (B shares). AbbVie AbbVie (NYSE: ABBV) is a relatively recent addition to Buffett's list. Probably the first thing that jumps out with AbbVie is its dividend. | Keith Speights owns shares of AbbVie, Apple, Bank of America, and Berkshire Hathaway (B shares). AbbVie AbbVie (NYSE: ABBV) is a relatively recent addition to Buffett's list. Probably the first thing that jumps out with AbbVie is its dividend. | AbbVie AbbVie (NYSE: ABBV) is a relatively recent addition to Buffett's list. Probably the first thing that jumps out with AbbVie is its dividend. But AbbVie also offers pretty good growth prospects over the long run. |
24088.0 | 2021-05-11 00:00:00 UTC | AbbVie Unit To Acquire Soliton For $550M To Boost Aesthetics Unit | ABBV | https://www.nasdaq.com/articles/abbvie-unit-to-acquire-soliton-for-%24550m-to-boost-aesthetics-unit-2021-05-11 | nan | nan | AbbVie’s (ABBV) Allergan Aesthetics is to acquire Soliton (SOLY) plus its Rapid Acoustic Pulse device, which was recently approved by the U.S. Food and Drug Administration (FDA). The acquisition will expand the company’s body contouring treatment portfolio.
The acquisition is built around Resonic, the Rapid Acoustic Pulse device that uses rapid pulses of acoustic shockwaves to help fade unwanted tattoo ink. It also helps in disintegrating fat deposits for short-term improvement in cellulite appearance. The technology is poised to address a massive unmet need in modifying the appearance of cellulite.
“The addition of this technology complements Allergan Aesthetics' portfolio of body contouring treatments. Health care providers will now have another option to address consumers' aesthetic concerns”, said AbbVie Senior Vice President Carrie Strom.
Under the terms of the deal, the AbbVie unit is to pay $22.60 per share for each Soliton’s outstanding shares, valuing the deal at about $550 million. The two companies’ boards of directors have already approved the transaction. The deal should be sealed upon fulfillment of customary closing conditions.
The acquisition of Soliton comes on the heels of AbbVie's report of impressive Q1 2021 results, with sales and earnings coming in above estimates. Mizuho Securities analyst Vamil Divan has since reiterated a Buy rating on the stock, citing results that beat expectations. (See AbbVie stock analysis on TipRanks).
“With a diversified new product story, robust near-term growth and good visibility into its longer-term growth prospects, we continue to see AbbVie as an especially compelling investment opportunity, especially when one considers the discount it trades at and its robust dividend,” Divan wrote.
Divan has a $128 price target on the stock implying 10.14% upside potential to current levels.
Consensus among analysts on Wall Street is a Strong Buy based on 10 Buys and 2 Holds. The average analyst price target of $126 implies 8.42% upside potential to current levels.
ABBV scores an 8 out of 10 on the TipRanks’ Smart Score rating system, implying it is well-positioned to outperform the overall market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie’s (ABBV) Allergan Aesthetics is to acquire Soliton (SOLY) plus its Rapid Acoustic Pulse device, which was recently approved by the U.S. Food and Drug Administration (FDA). Health care providers will now have another option to address consumers' aesthetic concerns”, said AbbVie Senior Vice President Carrie Strom. Under the terms of the deal, the AbbVie unit is to pay $22.60 per share for each Soliton’s outstanding shares, valuing the deal at about $550 million. | AbbVie’s (ABBV) Allergan Aesthetics is to acquire Soliton (SOLY) plus its Rapid Acoustic Pulse device, which was recently approved by the U.S. Food and Drug Administration (FDA). Health care providers will now have another option to address consumers' aesthetic concerns”, said AbbVie Senior Vice President Carrie Strom. Under the terms of the deal, the AbbVie unit is to pay $22.60 per share for each Soliton’s outstanding shares, valuing the deal at about $550 million. | AbbVie’s (ABBV) Allergan Aesthetics is to acquire Soliton (SOLY) plus its Rapid Acoustic Pulse device, which was recently approved by the U.S. Food and Drug Administration (FDA). Under the terms of the deal, the AbbVie unit is to pay $22.60 per share for each Soliton’s outstanding shares, valuing the deal at about $550 million. Health care providers will now have another option to address consumers' aesthetic concerns”, said AbbVie Senior Vice President Carrie Strom. | (See AbbVie stock analysis on TipRanks). AbbVie’s (ABBV) Allergan Aesthetics is to acquire Soliton (SOLY) plus its Rapid Acoustic Pulse device, which was recently approved by the U.S. Food and Drug Administration (FDA). Health care providers will now have another option to address consumers' aesthetic concerns”, said AbbVie Senior Vice President Carrie Strom. |
24089.0 | 2021-05-10 00:00:00 UTC | Allergan Aesthetics To Buy Soliton For $22.60/Share In Cash - Quick Facts | ABBV | https://www.nasdaq.com/articles/allergan-aesthetics-to-buy-soliton-for-%2422.60-share-in-cash-quick-facts-2021-05-10 | nan | nan | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV) and Soliton (SOLY) announced Monday a definitive agreement under which Allergan Aesthetics will acquire Soliton and Resonic, its Rapid Acoustic Pulse device which recently received U.S. Food and Drug Administration (FDA) 510(k) clearance and is a non-invasive treatment for the short-term improvement in the appearance of cellulite.
Resonic has also received FDA 510(k) clearance for use in conjunction with laser for tattoo removal and has demonstrated clinical results in fibrotic scars.
The acquisition of Soliton expands and complements Allergan Aesthetics' Body Contouring treatment portfolio which includes CoolSculpting Elite.
The novel platform technology uses non-invasive rapid, high-frequency sound waves to disrupt targeted cellular structures and connective tissue, physically impacting the fibrous septae beneath the skin that contribute to the dimpled appearance of cellulite.
Under the terms of the transaction, Allergan Aesthetics will pay $22.60 per share in cash for each outstanding share of Soliton. Soliton's enterprise value for the transaction is approximately $550 million and was approved by the Boards of Directors of both companies.
The transaction is subject to customary closing conditions, including clearance by the U.S. antitrust authorities under the Hart-Scott-Rodino Act and approval of Soliton's shareholders.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV) and Soliton (SOLY) announced Monday a definitive agreement under which Allergan Aesthetics will acquire Soliton and Resonic, its Rapid Acoustic Pulse device which recently received U.S. Food and Drug Administration (FDA) 510(k) clearance and is a non-invasive treatment for the short-term improvement in the appearance of cellulite. The novel platform technology uses non-invasive rapid, high-frequency sound waves to disrupt targeted cellular structures and connective tissue, physically impacting the fibrous septae beneath the skin that contribute to the dimpled appearance of cellulite. The transaction is subject to customary closing conditions, including clearance by the U.S. antitrust authorities under the Hart-Scott-Rodino Act and approval of Soliton's shareholders. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV) and Soliton (SOLY) announced Monday a definitive agreement under which Allergan Aesthetics will acquire Soliton and Resonic, its Rapid Acoustic Pulse device which recently received U.S. Food and Drug Administration (FDA) 510(k) clearance and is a non-invasive treatment for the short-term improvement in the appearance of cellulite. Resonic has also received FDA 510(k) clearance for use in conjunction with laser for tattoo removal and has demonstrated clinical results in fibrotic scars. Under the terms of the transaction, Allergan Aesthetics will pay $22.60 per share in cash for each outstanding share of Soliton. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV) and Soliton (SOLY) announced Monday a definitive agreement under which Allergan Aesthetics will acquire Soliton and Resonic, its Rapid Acoustic Pulse device which recently received U.S. Food and Drug Administration (FDA) 510(k) clearance and is a non-invasive treatment for the short-term improvement in the appearance of cellulite. Under the terms of the transaction, Allergan Aesthetics will pay $22.60 per share in cash for each outstanding share of Soliton. The transaction is subject to customary closing conditions, including clearance by the U.S. antitrust authorities under the Hart-Scott-Rodino Act and approval of Soliton's shareholders. | (RTTNews) - Allergan Aesthetics, an AbbVie company (ABBV) and Soliton (SOLY) announced Monday a definitive agreement under which Allergan Aesthetics will acquire Soliton and Resonic, its Rapid Acoustic Pulse device which recently received U.S. Food and Drug Administration (FDA) 510(k) clearance and is a non-invasive treatment for the short-term improvement in the appearance of cellulite. The novel platform technology uses non-invasive rapid, high-frequency sound waves to disrupt targeted cellular structures and connective tissue, physically impacting the fibrous septae beneath the skin that contribute to the dimpled appearance of cellulite. Under the terms of the transaction, Allergan Aesthetics will pay $22.60 per share in cash for each outstanding share of Soliton. |
24090.0 | 2021-05-10 00:00:00 UTC | Health Care Sector Update for 05/10/2021: VTRS,SOLY,ABBV,PTE,SNGX | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-05-10-2021%3A-vtrssolyabbvptesngx-2021-05-10 | nan | nan | Health care stocks still were mostly higher this afternoon, with the NYSE Health Care Index rising 0.4% while the SPDR Health Care Select Sector ETF also was up 0.4% in late trade.
The Nasdaq Biotechnology index, however, was sinking 1.6%.
In company news, Viatris (VTRS) gained 7% after the drug maker Monday reported a Q1 net loss of $0.86 per share, reversing a $0.04 per share profit during the year-ago quarter, but still beating the Capital IQ consensus looking for a $0.13 per share net loss. Revenue grew 69% year-over-year to $4.43 billion, also exceeding the $4.20 billion Street view.
Soliton (SOLY) rose over 25% to a best-ever $22.55 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share.
PolarityTE (PTE) climbed more than 23% after saying 70% of patients with diabetic foot ulcers treated with its SkinTE regenerative tissue product and the standard of care had wound closures after 12 weeks compared with only 34% of the patients receiving the standard of care alone.
To the downside, Soligenix (SNGX) dropped 19.5% after saying it was scrapping plans to pursue a rolling new drug application for its HyBryte photodynamic therapy to treat cutaneous T-cell lymphoma, citing manufacturing delays linked to the COVID-19 pandemic among other issues, and is now planning to file its NDA during the first half of 2022.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Soliton (SOLY) rose over 25% to a best-ever $22.55 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share. PolarityTE (PTE) climbed more than 23% after saying 70% of patients with diabetic foot ulcers treated with its SkinTE regenerative tissue product and the standard of care had wound closures after 12 weeks compared with only 34% of the patients receiving the standard of care alone. | AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share. Soliton (SOLY) rose over 25% to a best-ever $22.55 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. Health care stocks still were mostly higher this afternoon, with the NYSE Health Care Index rising 0.4% while the SPDR Health Care Select Sector ETF also was up 0.4% in late trade. | Soliton (SOLY) rose over 25% to a best-ever $22.55 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share. Health care stocks still were mostly higher this afternoon, with the NYSE Health Care Index rising 0.4% while the SPDR Health Care Select Sector ETF also was up 0.4% in late trade. | AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share. Soliton (SOLY) rose over 25% to a best-ever $22.55 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. Health care stocks still were mostly higher this afternoon, with the NYSE Health Care Index rising 0.4% while the SPDR Health Care Select Sector ETF also was up 0.4% in late trade. |
24091.0 | 2021-05-10 00:00:00 UTC | Health Care Sector Update for 05/10/2021: SOLY,ABBV,PTE,SNGX | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-05-10-2021%3A-solyabbvptesngx-2021-05-10 | nan | nan | Health care stocks were mostly higher this afternoon, with the NYSE Health Care Index rising 0.7% while the SPDR Health Care Select Sector ETF also was up 0.8%.
The Nasdaq Biotechnology index, however, was sinking 1.1%.
In company news, Soliton (SOLY) rose over 25% to a best-ever $22.53 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share.
PolarityTE (PTE) climbed more than 24% after saying 70% of patients with diabetic foot ulcers treated with its SkinTE regenerative tissue product and the standard of care had wound closures after 12 weeks compared with only 34% of the patients receiving the standard of care alone.
Soligenix (SNGX) dropped 19.58% after saying it was scrapping plans to pursue a rolling new drug application for its HyBryte photodynamic therapy to treat cutaneous T-cell lymphoma, citing manufacturing delays linked to the COVID-19 pandemic among other issues, and is now planning to file its NDA during the first half of 2022.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In company news, Soliton (SOLY) rose over 25% to a best-ever $22.53 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share. PolarityTE (PTE) climbed more than 24% after saying 70% of patients with diabetic foot ulcers treated with its SkinTE regenerative tissue product and the standard of care had wound closures after 12 weeks compared with only 34% of the patients receiving the standard of care alone. | In company news, Soliton (SOLY) rose over 25% to a best-ever $22.53 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share. Health care stocks were mostly higher this afternoon, with the NYSE Health Care Index rising 0.7% while the SPDR Health Care Select Sector ETF also was up 0.8%. | In company news, Soliton (SOLY) rose over 25% to a best-ever $22.53 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share. Health care stocks were mostly higher this afternoon, with the NYSE Health Care Index rising 0.7% while the SPDR Health Care Select Sector ETF also was up 0.8%. | In company news, Soliton (SOLY) rose over 25% to a best-ever $22.53 a share after the medical device company agreed to a $550 million buyout offer from AbbVie's (ABBV) Allergan Aesthetics, which will pay $22.60 in cash for each Soliton share. AbbVie shares were fractionally higher, earlier rising 1.2% to also touch an all-time high of $117.18 a share. Health care stocks were mostly higher this afternoon, with the NYSE Health Care Index rising 0.7% while the SPDR Health Care Select Sector ETF also was up 0.8%. |
24092.0 | 2021-05-09 00:00:00 UTC | 3 Embarrassingly Cheap Dividend Stocks | ABBV | https://www.nasdaq.com/articles/3-embarrassingly-cheap-dividend-stocks-2021-05-09 | nan | nan | What's better than a dividend stock with a solid yield? A cheap dividend stock with a solid yield.
There's a problem, though. With the stock market near all-time highs, most stocks are priced at a premium. Thankfully, that's not true of every stock, though. Here are three embarrassingly cheap dividend stocks.
Image source: Getty Images.
AbbVie
AbbVie's (NYSE: ABBV) shares currently trade at only 9.3 times expected earnings. That's a lot lower than the S&P 500 index's forward earnings multiple of 22. It's also well below the healthcare sector's forward earnings multiple of 16.7.
The big drugmaker also offers one of the most attractive dividends around. AbbVie's dividend yield currently stands at nearly 4.5%. The company ranks as a Dividend Aristocrat with 49 consecutive years of dividend increases.
Why is AbbVie such an embarrassingly cheap dividend stock? It's probably because investors are concerned about the looming sales decline for Humira once the drug loses U.S. patent exclusivity in 2023. Humira generated more than half of AbbVie's total revenue in the first quarter of this year.
However, AbbVie expects to quickly return to revenue growth beginning in 2024. The company has several products that it thinks will help more than offset the sales declines for Humira, including newer autoimmune-disease drugs Rinvoq and Skyrizi and antipsychotic drug Vraylar.
Bristol Myers Squibb
If you like AbbVie's valuation, there's another big pharma stock you'll definitely want to check out. Bristol Myers Squibb's (NYSE: BMY) shares trade at close to 8.7 times expected earnings, even lower than AbbVie's forward earnings multiple.
BMS isn't a Dividend Aristocrat like AbbVie is, but its dividend should be attractive to many investors. Its dividend yield is a little over 3% right now. The company has also increased its dividend payout every year since 2010.
Like AbbVie, BMS will soon face a big headwind. Generic versions of its top-selling drug Revlimid will enter the U.S. market in 2022. Although these generics will only be available in contractually limited volumes at first, they'll still eat into Revlimid's market share.
BMS still thinks that it will be in good shape, though. The company has multiple newer products that have blockbuster potential, including cancer cell therapies Abecma and Breyanzi.
Viatris
Viatris (NASDAQ: VTRS) is, by far, the cheapest of these three stocks. Its shares trade at a super-low forward earnings multiple of 3.9.
Technically, Viatris isn't a dividend stock yet. However, the drugmaker expects to declare a quarterly dividend of $0.11 per share this month. Based on Viatris' current share price, its dividend yield will be a little over 3%. The company has also stated that it plans to increase its dividend on an annual basis going forward.
Don't look for much revenue growth for a while from Viatris, though. The company anticipates that 2021 will be a "trough year" followed by incremental improvement. However, with promising biosimilar candidates in its pipeline, Viatris could begin delivering modest growth within the next few years.
Wall Street analysts think the stock could soar close to 50% within the next 12 months. That could be an overly optimistic estimate, but Viatris probably won't move much lower with its already low valuation. Investors who like bargains and dividends could find this stock attractive.
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Keith Speights owns shares of AbbVie, Bristol Myers Squibb, and Viatris Inc. The Motley Fool owns shares of and recommends Bristol Myers Squibb. The Motley Fool recommends Viatris Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie's (NYSE: ABBV) shares currently trade at only 9.3 times expected earnings. AbbVie's dividend yield currently stands at nearly 4.5%. Why is AbbVie such an embarrassingly cheap dividend stock? | Bristol Myers Squibb's (NYSE: BMY) shares trade at close to 8.7 times expected earnings, even lower than AbbVie's forward earnings multiple. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, and Viatris Inc. AbbVie AbbVie's (NYSE: ABBV) shares currently trade at only 9.3 times expected earnings. | Bristol Myers Squibb's (NYSE: BMY) shares trade at close to 8.7 times expected earnings, even lower than AbbVie's forward earnings multiple. BMS isn't a Dividend Aristocrat like AbbVie is, but its dividend should be attractive to many investors. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, and Viatris Inc. | BMS isn't a Dividend Aristocrat like AbbVie is, but its dividend should be attractive to many investors. AbbVie AbbVie's (NYSE: ABBV) shares currently trade at only 9.3 times expected earnings. AbbVie's dividend yield currently stands at nearly 4.5%. |
24093.0 | 2021-05-08 00:00:00 UTC | Is It Too Late to Buy AbbVie Stock in 2021? | ABBV | https://www.nasdaq.com/articles/is-it-too-late-to-buy-abbvie-stock-in-2021-2021-05-08 | nan | nan | AbbVie (NYSE: ABBV) is one of the newer pharmaceutical companies to take the market by storm. Spun off in 2013 from its parent company, Abbott Labs, it sits at a tremendous market capitalization of a little over $200 billion. The stock has still about 5% off its all-time highs from 2018, and if AbbVie's recent first-quarter earnings tell us anything, it's that the stock can go even higher.
Image source: Getty Images
Earnings beat
AbbVie reported its first-quarter earnings last week, and beat analyst estimates on most metrics. AbbVie outperformed on both non-GAAP and GAAP earnings per share by $0.12 and $0.52, respectively. The company was also up 50.9% from 2020 to 2021 in its Q1 revenue, coming in at a little over $13 billion. Although many analysts are still skeptical of AbbVie because of the patent cliff on its biggest drug Humira, it still managed to blow away earnings. So is the fear really warranted?
Pipeline success
Since its spinoff in 2013, AbbVie has had a lot of success with its pipeline. It currently markets the best-selling drug in the world, Humira, which is used to treat illnesses like Crohn's disease, rheumatoid arthritis, plaque psoriasis, and psoriatic arthritis. Humira has held this market-leading position for the past few years, and brought in $19.8 billion in adjusted net revenue in 2020.
To ease concerns about Humira's patent cliff coming in 2023, AbbVie has made acquisitions as well as developments in its own pipeline to diversify and drive growth. In 2019, AbbVie acquired Allergan and its portfolio of products, including Botox, eye care products, and women's health products.
AbbVie's current immunology portfolio is the biggest driver of annual sales, and includes blockbuster drug Humira as well as up-and-comers Skyrizi to treat plaque psoriasis and Rinvoq to treat rheumatoid arthritis. Both Skyrizi and Rinvoq more than doubled their annual sales from 2019 to 2020.
The company is also diversified across its different business segments, which include immunology, oncology, aesthetics, neuroscience, and eye care. Out of the $34 billion made in 2020, these businesses brought in 52%, 14.6%, 4%, 8.2%, and 4.1%, respectively. Growth from Humira and AbbVie's various businesses has contributed to the recent revenue growth of 47.4% in the last year, as well as an almost 13% revenue growth over the last five years.
The future pipeline for AbbVie includes dozens of filings for indications to treat using drugs Skyrizi and Rinvoq. It also has dozens of other smaller therapeutics being reviewed to treat different types of indications in immunology, oncology, and neuroscience.
The key drivers for AbbVie's future revenue streams will come from Skyrizi and Rinvoq, but products like Imbruvica and Botox will hold steady places in the businesses until those new drugs will be able to drive the bulk of future growth. In a not-too-distant future, AbbVie will not be able to rely solely on Humira to generate a lot of revenue. Its other drugs and businesses look more than ready to carry the company forward.
A buy at these levels
The great numbers AbbVie reported in earnings have contributed to a rise in the stock of almost 7% since the beginning of April. However, AbbVie is still trading at a cheaper valuation than it was a few months back, currently with a forward price-to-earnings (P/E) ratio of just nine. The valuation is much cheaper compared to the nearly 10.4 P/E it was trading for just a few months back.
Taking 2021's projected EPS of $12.52 gives us a share price of $131, offering investors a great opportunity to buy the stock while it's trading at a discount. Growing revenue, pipeline expansion, and a cheap valuation are reasons investors shouldn't wait to pull the trigger on AbbVie. This best-of-breed pharmaceutical company is undervalued at these levels, and with a near 4.3% dividend yield (compared to the SPDR S&P 500 ETF which only yields around 1.32%), investors of all tastes have a reason to buy into AbbVie.
10 stocks we like better than AbbVie
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Anirudh Shankar owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | To ease concerns about Humira's patent cliff coming in 2023, AbbVie has made acquisitions as well as developments in its own pipeline to diversify and drive growth. Growing revenue, pipeline expansion, and a cheap valuation are reasons investors shouldn't wait to pull the trigger on AbbVie. AbbVie (NYSE: ABBV) is one of the newer pharmaceutical companies to take the market by storm. | Image source: Getty Images Earnings beat AbbVie reported its first-quarter earnings last week, and beat analyst estimates on most metrics. AbbVie's current immunology portfolio is the biggest driver of annual sales, and includes blockbuster drug Humira as well as up-and-comers Skyrizi to treat plaque psoriasis and Rinvoq to treat rheumatoid arthritis. The future pipeline for AbbVie includes dozens of filings for indications to treat using drugs Skyrizi and Rinvoq. | AbbVie's current immunology portfolio is the biggest driver of annual sales, and includes blockbuster drug Humira as well as up-and-comers Skyrizi to treat plaque psoriasis and Rinvoq to treat rheumatoid arthritis. Growth from Humira and AbbVie's various businesses has contributed to the recent revenue growth of 47.4% in the last year, as well as an almost 13% revenue growth over the last five years. The key drivers for AbbVie's future revenue streams will come from Skyrizi and Rinvoq, but products like Imbruvica and Botox will hold steady places in the businesses until those new drugs will be able to drive the bulk of future growth. | AbbVie's current immunology portfolio is the biggest driver of annual sales, and includes blockbuster drug Humira as well as up-and-comers Skyrizi to treat plaque psoriasis and Rinvoq to treat rheumatoid arthritis. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares of AbbVie. AbbVie (NYSE: ABBV) is one of the newer pharmaceutical companies to take the market by storm. |
24094.0 | 2021-05-07 00:00:00 UTC | 7 Warren Buffett Stocks to Buy for the Next Decade | ABBV | https://www.nasdaq.com/articles/7-warren-buffett-stocks-to-buy-for-the-next-decade-2021-05-07 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Nowadays, it’s very popular for younger investors to get their advice on social media forums or from YouTube financial gurus. To me, it sounds like the blind leading the blind. Every year, a new hotshot claims to have the inside path to profitable stocks to buy. And more often than not, the market eventually blindsides them. That’s why folks should listen to those who’ve been there before like Warren Buffett.
For one thing, Warren Buffett has been investing in blue-chip stocks since the birth of Christ. He’s lived through multiple economic and market cycles so nothing really surprises him. Yes, the individual stocks to buy may look different but in the end, it comes down to the free market principles of supply and demand. And one of the best teachers of profitability exploiting such dynamics is experience.
Yet we should realize that Warren Buffett was once young too. Born on Aug. 30, 1930, Buffett graduated from high school when he was 17 years old. He never intended to go to college. However, his father insisted that he attend the Wharton Business School at the University of Pennsylvania. But the younger Buffett only stayed two years, “complaining that he knew more than his professors,” according to The Balance contributor Joshua Kennon.
This sounds to me like Warren Buffett was the original YouTube guru. But the difference is that unlike all the junk that you see on the blogosphere, he knew what he was talking about. Eventually, he would amass a financial empire that would allow him to take control of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B). If you read his bio, you’ll find that Buffett wasn’t just great at picking stocks to buy — he was a real OG.
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In my view, if you’re going to learn from somebody, it should be a person like Buffett, a man who was born during the Great Depression, went through his youthful exuberance phase, formed a time-proven investment strategy and still continues to fight like the best of ‘em at 90 freaking years old! Below are some key stocks to buy from the holdings of Berkshire Hathaway.
AbbVie (NYSE:ABBV)
Amazon (NASDAQ:AMZN)
American Express (NYSE:AXP)
Charter Communications (NASDAQ:CHTR)
Chevron (NYSE:CVX)
Itochu Corporation (OTCMKTS:ITOCF)
Verisign (NASDAQ:VRSN)
Now, I should note that despite my high praise for Warren Buffett, he’s not the ultimate arbiter of equity valuations: the market is. Even though these stocks to buy are compelling because they’re on the Berkshire list, nothing is infallible. Maintain money management discipline and a long-term prospective, though, and you should do well in the end.
Stocks to Buy: AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
Berkshire Hathaway has a number of healthcare-related companies on its list. But the one that caught my attention was AbbVie. Yes, I have some personal bias in that I’ve discussed the bullish case for ABBV stock. But well beyond that, I like to think that Warren Buffett and I are on the same wavelength — well, at least as long AbbVie specifically is concerned.
Yes, everybody knows AbbVie as one of the giant pharmaceutical stocks to buy. It’s perhaps most popular for the drug Humira, which has been formulated to treat rheumatoid arthritis, Crohn’s disease and psoriasis, among many other conditions. As well, AbbVie features an extensive list of oncology-related solutions. Should the novel coronavirus outbreak fade out completely, the treatment for long-term diseases should take precedence based on pent-up demand, if you will.
But what may really drive ABBV stock is Botox, which came under the AbbVie umbrella when it acquired Allergan. During the Covid-19 lockdowns, there was little incentive to look good. Now that we’re slowly but surely returning to our normal schedules, we have a “right” to be vainer. Cynically, this is good news for ABBV, making it one of the best Berkshire-held stocks to buy.
Amazon (AMZN)
AMZN) building at night time with logo light up on building" width="300" height="169">
Source: Mike Mareen / Shutterstock.com
Admittedly, Berkshire doesn’t have nearly as much allocation toward Amazon shares as it does many of its other holdings. At only a 0.1% stake, it’s not Buffett’s highest-conviction trade, that’s for sure. Still, a 0.1% stake is a non-zero number, which means AMZN is one of the stocks to buy or at least to consider.
I’m going to get the bad stuff out of the way. Certainly, you can’t deny that AMZN stock has a PR problem. Back during the early days of the Covid-19 crisis, many workers demanded basic dignities, such as paid time off for employees who were sick or displayed Covid-19 symptoms. Not helping matters is that Amazon founder Jeff Bezos consistently swapped places with elite tycoons as the richest person in the world.
Yeah, we can talk all day about free market capitalism but come on — sometimes enough is enough.
Still, despite the troubles, Amazon’s relevance can’t be denied. When the brick and mortars had to shut down based on government mandates, e-commerce filled the gap. And Amazon dominates e-commerce.
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While the percentage of e-commerce sales relative to total retail sales has come down since the peak of the crisis, it’s still very much elevated from pre-pandemic norms. I don’t see this reversing anytime soon, which is why Berkshire includes it on its list of stocks to buy.
Stocks to Buy: American Express (AXP)
AXP) credit card sticking out of someone's pocket" width="300" height="169">
Source: Shutterstock
For me, American Express represents a perhaps delusional notion that in certain circumstances, Warren Buffett and I think alike. Generally speaking, I’m somewhat hesitant on credit cards. Certainly, I can see their appeal in the present context. Throughout most of last year, the Covid-19 crisis deflated consumer sentiment, which naturally boosted the personal saving rate.
Today, with much of the economy reopening, consumers are ready to spend. Further, you have the stimulus checks that former President Donald Trump and incumbent President Joe Biden signed off on. Thank you, gentlemen. But will such measures really boost spending holistically?
Sure, I get the narrative that spending will rise because Americans want to catch up on their retail therapy. But credit cards are debt instruments and consumers historically haven’t shown much restraint with debt instruments. But AXP stock may not suffer from such concerns as the underlying company caters to wealthier individuals.
It seems that the folks at Berkshire Hathaway understand this point very clearly. AXP features an 18.9% stake. In contrast, Mastercard (NYSE:MA) and Visa (NYSE:V) both have a 0.5% stake. So if you’re going to get Buffett-inspired credit card stocks to buy, go for American Express.
Charter Communications (CHTR)
CHTR) logo is displayed on a smartphone screen." width="300" height="169">
Source: Piotr Swat / Shutterstock.com
A classic Warren Buffett move, the inclusion of Charter Communications by Berkshire Hathaway doesn’t surprise me in the least. As a telecommunications and mass-media company under the Charter Spectrum brand name, CHTR was one of the most relevant stocks to buy. Providing high-speed cable and fiber-internet access, along with mobile services, Charter is integral to our modern infrastructure.
But with the Covid-19 crisis, CHTR stock became even more ingrained. With millions of white-collar workers forced to operate out of their living rooms, reliable high-speed internet services commanded a premium. Not that it should bear any influence on whether you should acquire shares of Charter Communications but I personally made the switch to Spectrum and I couldn’t be happier.
While anecdotal, I’ll tell you what makes CHTR compelling among the Buffett-inspired stocks to buy. Yes, Spectrum’s coverage area spans 44 states. But it’s also where they dominate that matters. For instance, Spectrum has the widest coverage in California, Texas and New York. When you combine the GDP of these three states, you’re talking about $6.55 trillion of economic activity.
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Such a combined entity would make it the third-biggest country in the world, usurping Japan. Thus, CHTR is sticking around, which is why Berkshire owns it.
Stocks to Buy: Chevron (CVX)
CVX) logo on blue sign in front of skyscraper building" width="300" height="169">
Source: Jeff Whyte / Shutterstock.com
Chevron might be one of the surprising stocks to buy on the Berkshire Hathaway list, prompting criticism that perhaps Buffett might be losing it. As you know, American consumers have gravitated toward electric vehicles. And that’s not just a “fashion statement.” Millennials care about sustainability and growing evidence suggests that Generation Z is taking cues, increasing the magnitude of holistic awareness.
On the surface, CVX stock doesn’t seem to make much sense. Yes, Chevron and the big oil machinery are relevant today. But tomorrow, the tide will likely turn.
It’s not just millennials that consistently influence current affairs. More significantly, government leadership is also pivoting toward a cleaner, more sustainable future. Obviously, the Biden administration wishes to push its environmental protection agenda. Up and coming politicians will probably carry the torch. Big oil stocks to buy are done for.
Then again, maybe not. I think CVX may represent a case of Buffett’s contrarianism. This is speculation on my part but it’s possible that Buffett and the Berkshire team don’t view the electrification of transportation as economically viable just yet.
Even if it became so, Buffett probably recognizes that oil will be around for a very long time, in part due to the high energy density of fossil fuels. So yeah, CVX is a keeper.
Itochu Corporation (ITOCF)
Source: VladSV / Shutterstock.com
I’m familiar with most of the stocks to buy under the Berkshire umbrella. But the name that caught me by surprise was Itochu Corporation. Frankly, I understand both value and growth investors pivot to Asia. However, this almost always means Chinese companies. On the other hand, Japan hasn’t been making much news aside from deflation-related headlines. So why Itochu?
If somebody would ask that question to Warren Buffett, I’d be most grateful as it would give us all a deeper insight into one of the world’s greatest investors. But if I had to guess, it would be Itochu’s exposure to world-class Japanese manufacturing. Itochu is one of Japan’s biggest general trading companies and thus touches on many relevant sectors. But the underlying theme is manufacturing.
Interestingly, Harvard Business Review did a story on Japan’s manufacturing prowess. Initially, business experts attributed its outperformance to superior methodologies. But later, these same experts noted that Japan’s production attributes were contradictory to commonly held beliefs: “…many Japanese factories practicing lean manufacturing appeared to surpass their U.S. counterparts on several dimensions; they achieved lower cost, higher quality, faster product introductions, and greater flexibility, all at the same time.”
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In other words, there’s something in the water when it comes to Japanese manufacturing. Buffett might be recognizing this, thus explaining the inclusion of ITOCF stock.
Stocks to Buy: Verisign (VRSN)
Source: Jer123 / Shutterstock.com
Warren Buffett is old. But what I really appreciate about him is that he continues to defy stereotypes. Honestly, at 90 years old, he should be referred to in the past tense. But he’s still out there, leading one of the biggest companies in the world. Good for him and it’s a powerful lesson for all of us.
What I especially like is that Buffett isn’t just out there as a charity case. Instead, he’s making bold calls regarding stocks to buy, one of them being Verisign. Well before anyone knew about the SARS-CoV-2 virus, VRSN was an incredibly relevant idea due to its internet network infrastructure operations, including managing the registry for .com and .net domains. That’s serious influence right there.
But Covid-19 has dramatically changed the paradigm of work. Though many employees are heading back to the office, several organizations — including high-level blue chips — remain open-minded about a full return to normal. And a ton of them are not in a hurry to have everyone clocking back in.
There’s also the narrative that many folks who got a taste of the gig worker’s life want to maintain such freedom. To be fair, I’m not sure if companies will allow employees to work 100% from home. Therefore, we could see an increase in independent contract work, which should bolster Verisign’s business. Overall, VRSN stock is one to watch closely as we navigate the post-Covid world.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Warren Buffett Stocks to Buy for the Next Decade appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE:ABBV) Amazon (NASDAQ:AMZN) American Express (NYSE:AXP) Charter Communications (NASDAQ:CHTR) Chevron (NYSE:CVX) Itochu Corporation (OTCMKTS:ITOCF) Verisign (NASDAQ:VRSN) Now, I should note that despite my high praise for Warren Buffett, he’s not the ultimate arbiter of equity valuations: the market is. Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Berkshire Hathaway has a number of healthcare-related companies on its list. But the one that caught my attention was AbbVie. | AbbVie (NYSE:ABBV) Amazon (NASDAQ:AMZN) American Express (NYSE:AXP) Charter Communications (NASDAQ:CHTR) Chevron (NYSE:CVX) Itochu Corporation (OTCMKTS:ITOCF) Verisign (NASDAQ:VRSN) Now, I should note that despite my high praise for Warren Buffett, he’s not the ultimate arbiter of equity valuations: the market is. Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Berkshire Hathaway has a number of healthcare-related companies on its list. But the one that caught my attention was AbbVie. | AbbVie (NYSE:ABBV) Amazon (NASDAQ:AMZN) American Express (NYSE:AXP) Charter Communications (NASDAQ:CHTR) Chevron (NYSE:CVX) Itochu Corporation (OTCMKTS:ITOCF) Verisign (NASDAQ:VRSN) Now, I should note that despite my high praise for Warren Buffett, he’s not the ultimate arbiter of equity valuations: the market is. Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Berkshire Hathaway has a number of healthcare-related companies on its list. But the one that caught my attention was AbbVie. | AbbVie (NYSE:ABBV) Amazon (NASDAQ:AMZN) American Express (NYSE:AXP) Charter Communications (NASDAQ:CHTR) Chevron (NYSE:CVX) Itochu Corporation (OTCMKTS:ITOCF) Verisign (NASDAQ:VRSN) Now, I should note that despite my high praise for Warren Buffett, he’s not the ultimate arbiter of equity valuations: the market is. Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Berkshire Hathaway has a number of healthcare-related companies on its list. But the one that caught my attention was AbbVie. |
24095.0 | 2021-05-05 00:00:00 UTC | IWB, CRM, ABBV, WFC: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/iwb-crm-abbv-wfc%3A-large-outflows-detected-at-etf-2021-05-05 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $93.8 million dollar outflow -- that's a 0.3% decrease week over week (from 121,650,000 to 121,250,000). Among the largest underlying components of IWB, in trading today Salesforce.com Inc (Symbol: CRM) is up about 0.2%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 0.1%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average:
Looking at the chart above, IWB's low point in its 52 week range is $152.40 per share, with $238.05 as the 52 week high point — that compares with a last trade of $234.58. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IWB, in trading today Salesforce.com Inc (Symbol: CRM) is up about 0.2%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 0.1%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $152.40 per share, with $238.05 as the 52 week high point — that compares with a last trade of $234.58. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IWB, in trading today Salesforce.com Inc (Symbol: CRM) is up about 0.2%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 0.1%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $152.40 per share, with $238.05 as the 52 week high point — that compares with a last trade of $234.58. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IWB, in trading today Salesforce.com Inc (Symbol: CRM) is up about 0.2%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $93.8 million dollar outflow -- that's a 0.3% decrease week over week (from 121,650,000 to 121,250,000). For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $152.40 per share, with $238.05 as the 52 week high point — that compares with a last trade of $234.58. | Among the largest underlying components of IWB, in trading today Salesforce.com Inc (Symbol: CRM) is up about 0.2%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $93.8 million dollar outflow -- that's a 0.3% decrease week over week (from 121,650,000 to 121,250,000). For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $152.40 per share, with $238.05 as the 52 week high point — that compares with a last trade of $234.58. |
24096.0 | 2021-05-04 00:00:00 UTC | AbbVie Raises EPS Guidance After 1Q Earnings Beat | ABBV | https://www.nasdaq.com/articles/abbvie-raises-eps-guidance-after-1q-earnings-beat-2021-05-04 | nan | nan | AbbVie (ABBV) is off to a good start going by its impressive 1Q 2021 results. Net revenues increased by 51% year-over-year to $13.01 billion. The drug-maker generated adjusted diluted earnings per share of $2.95 as the adjusted gross margin came in at 83.9%. CEO Richard Gonzalez stated, “Our new products are delivering impressive performance and we are on the cusp of potential commercial approvals for more than a dozen new products or indications over the next two years – including five expected approvals in 2021". AbbVie has made an application for the approval of Skyrizi, a novel treatment for adults with active psoriatic arthritis. The company also delivered positive results from the Phase 3 induction study of Rinvoq to treat moderate to severe ulcerative colitis. (See AbbVie stock analysis on TipRanks) During the quarter, the Food and Drugs Administration (FDA) accepted AbbVie's New Drug Application for an orally administered calcitonin gene-related peptide (CGRP) receptor antagonist (gepant) for migraine treatment in adults. The company also submitted a new drug application (NDA) for pilocarpine 1.25% for the treatment of presbyopia. Following the impressive 1Q results, AbbVie's management raised its guidance for the full year. GAAP diluted EPS is now expected between $7.27 and $7.47, up from the initial guidance of between $6.69 and $6.89. In addition, Mizuho Securities analyst Vamil Divan reiterated a Buy rating on AbbVie following the strong beat in 1Q. Divan told investors, “With a diversified new product story, robust near-term growth and good visibility into its longer-term growth prospects, we continue to see AbbVie as an especially compelling investment opportunity, especially when one considers the discount it trades at and its robust dividend.” The analyst has a $128 price target on AbbVie, implying approximately 11.6% upside potential to current levels. Analysts on Wall Street are optimistic about AbbVie's long-term prospects. Consensus among analysts is a Strong Buy based on 10 Buys and 1 Hold. The average analyst price target of $128.10 implies 11.7% upside potential to current levels. ABBV scores a “Perfect 10” on the TipRanks’ Smart Score rating system, implying it is well-positioned to outperform market expectations. Related News: General Motors To Invest $1B To Produce Electric Cars In Mexico Woven Acquisition To Help Slack Rival Microsoft And Google Verizon Considers Selling Its Media Division For $5B – Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Divan told investors, “With a diversified new product story, robust near-term growth and good visibility into its longer-term growth prospects, we continue to see AbbVie as an especially compelling investment opportunity, especially when one considers the discount it trades at and its robust dividend.” The analyst has a $128 price target on AbbVie, implying approximately 11.6% upside potential to current levels. AbbVie (ABBV) is off to a good start going by its impressive 1Q 2021 results. AbbVie has made an application for the approval of Skyrizi, a novel treatment for adults with active psoriatic arthritis. | In addition, Mizuho Securities analyst Vamil Divan reiterated a Buy rating on AbbVie following the strong beat in 1Q. Divan told investors, “With a diversified new product story, robust near-term growth and good visibility into its longer-term growth prospects, we continue to see AbbVie as an especially compelling investment opportunity, especially when one considers the discount it trades at and its robust dividend.” The analyst has a $128 price target on AbbVie, implying approximately 11.6% upside potential to current levels. AbbVie (ABBV) is off to a good start going by its impressive 1Q 2021 results. | (See AbbVie stock analysis on TipRanks) During the quarter, the Food and Drugs Administration (FDA) accepted AbbVie's New Drug Application for an orally administered calcitonin gene-related peptide (CGRP) receptor antagonist (gepant) for migraine treatment in adults. Divan told investors, “With a diversified new product story, robust near-term growth and good visibility into its longer-term growth prospects, we continue to see AbbVie as an especially compelling investment opportunity, especially when one considers the discount it trades at and its robust dividend.” The analyst has a $128 price target on AbbVie, implying approximately 11.6% upside potential to current levels. AbbVie (ABBV) is off to a good start going by its impressive 1Q 2021 results. | AbbVie has made an application for the approval of Skyrizi, a novel treatment for adults with active psoriatic arthritis. Following the impressive 1Q results, AbbVie's management raised its guidance for the full year. AbbVie (ABBV) is off to a good start going by its impressive 1Q 2021 results. |
24097.0 | 2021-05-03 00:00:00 UTC | This Is Why Humira Isn't AbbVie's Biggest Problem Right Now | ABBV | https://www.nasdaq.com/articles/this-is-why-humira-isnt-abbvies-biggest-problem-right-now-2021-05-03 | nan | nan | Despite launching nearly two decades ago, worldwide sales of AbbVie's (NYSE: ABBV) lead drug, Humira still generates more revenue than most countries. As you can imagine, patent-protected exclusivity expected to expire in the U.S. in 2023 has been a major concern for AbbVie for a long time. In fact, eight years ago, Abbott spun out its biopharmaceutical segment into a separate company to protect the parent from Humira's impending patent cliff.
Overcoming Humira's far-off patent losses has been central to AbbVie's existence for so long that it can be hard to realize problems festering in the present. In case you hadn't noticed, sales of two drugs the company is relying on to offset eventual Humira losses are running into trouble and the worst is still to come.
Image source: Getty Images.
The beginning of Imbruvica's end
In 2015, AbbVie acquired Pharmacyclics for about $21 billion to gain rights to the portion of sales for Imbruvica, a new cancer drug that Johnson & Johnson (NYSE: JNJ) already owned part of. AbbVie's share of Imbruvica sales grew last year to $5.3 billion, which worked out to 12% of the company's total revenue.
Unfortunately for AbbVie, Imbruvica sales will probably get cut to shreds long before Humira begins losing ground to U.S. biosimilar competition in 2023. That's because it's a first-generation Bruton's tyrosine kinase (BTK) inhibitor that isn't nearly as targeted as next-generation BTK inhibitors from AstraZeneca (NASDAQ: AZN) and BeiGene (NASDAQ: BGNE).
Off-target effects make Imbruvica difficult to tolerate and it's already losing ground to new BTK-inhibitors with better safety profiles. Last November, the FDA approved Calquence from AstraZeneca to treat newly diagnosed patients with the most common form of leukemia. As a result, AbbVie reported Imbruvica sales in the first quarter that were 11% lower than during the previous three-month period.
Class effect
Unfortunately for AbbVie, competition for leukemia patients from next-generation BTK inhibitors is about to rise exponentially. Interim phase 3 trial results BeiGene announced in April suggested Beigene's new BTK inhibitor, Brukinsa will wipe the floor with Imbruvica when long-term survival data reads out. During the head-to-head Alpine study, relapsed leukemia patients randomized to receive Brukinsa were significantly more likely to respond to treatment than those given Imbruvica.
Brukinsa earned its first FDA approval in 2019 to treat a rare lymphoma and it's going to be a while before BeiGene can apply for approval to treat first-line leukemia. In the meantime, though, oncologists who saw Brukinsa shrink tumors more often than Imbruvica will be even more likely to reach for available next-generation drugs from this class.
Another negative class effect
Off-target side effects aren't an issue limited to cancer treatments that inhibit out-of-control Bruton's tyrosine kinases. In February, the FDA alerted the public to the increased risk of heart problems and cancer found during a post-marketing safety study with Xeljanz. This is a Janus kinase inhibitor (JAK) from Pfizer (NYSE: PFE) the FDA approved to treat rheumatoid arthritis in 2012.
AbbVie's Rinvoq is a new JAK inhibitor the FDA approved to treat rheumatoid arthritis in 2019. Investors hoping Rinvoq will offset Humira losses should probably brace for disappointment. Xeljanz isn't the only JAK inhibitor out there with a troubled safety profile.
Don't panic
Right now, you can find better pharma stocks to buy than AbbVie, but you shouldn't dump the stock if you're already holding it. While a lot of Humira profits have been funneled into kinase inhibitors, AbbVie's bet on Allergan could produce decades of reliable sales.
It's been years since Botox has been the only brand of botulinum toxin approved by the FDA but the Botox brand still dominates. Botox sales reached an annualized $4 billion in the first quarter and this revenue stream isn't going anywhere but up for the foreseeable future.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Despite launching nearly two decades ago, worldwide sales of AbbVie's (NYSE: ABBV) lead drug, Humira still generates more revenue than most countries. As you can imagine, patent-protected exclusivity expected to expire in the U.S. in 2023 has been a major concern for AbbVie for a long time. Overcoming Humira's far-off patent losses has been central to AbbVie's existence for so long that it can be hard to realize problems festering in the present. | Class effect Unfortunately for AbbVie, competition for leukemia patients from next-generation BTK inhibitors is about to rise exponentially. AbbVie's Rinvoq is a new JAK inhibitor the FDA approved to treat rheumatoid arthritis in 2019. Despite launching nearly two decades ago, worldwide sales of AbbVie's (NYSE: ABBV) lead drug, Humira still generates more revenue than most countries. | The beginning of Imbruvica's end In 2015, AbbVie acquired Pharmacyclics for about $21 billion to gain rights to the portion of sales for Imbruvica, a new cancer drug that Johnson & Johnson (NYSE: JNJ) already owned part of. Don't panic Right now, you can find better pharma stocks to buy than AbbVie, but you shouldn't dump the stock if you're already holding it. Despite launching nearly two decades ago, worldwide sales of AbbVie's (NYSE: ABBV) lead drug, Humira still generates more revenue than most countries. | Class effect Unfortunately for AbbVie, competition for leukemia patients from next-generation BTK inhibitors is about to rise exponentially. Despite launching nearly two decades ago, worldwide sales of AbbVie's (NYSE: ABBV) lead drug, Humira still generates more revenue than most countries. As you can imagine, patent-protected exclusivity expected to expire in the U.S. in 2023 has been a major concern for AbbVie for a long time. |
24098.0 | 2021-05-03 00:00:00 UTC | AbbVie Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-beat-analyst-estimates%3A-see-what-the-consensus-is-forecasting-for-this-year | nan | nan | The quarterly results for AbbVie Inc. (NYSE:ABBV) were released last week, making it a good time to revisit its performance. Revenues were US$13b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.99, an impressive 36% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AbbVie after the latest results.
NYSE:ABBV Earnings and Revenue Growth May 3rd 2021
Taking into account the latest results, the consensus forecast from AbbVie's 20 analysts is for revenues of US$55.7b in 2021, which would reflect a notable 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 160% to US$7.62. Before this earnings report, the analysts had been forecasting revenues of US$55.5b and earnings per share (EPS) of US$8.32 in 2021. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$121, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic AbbVie analyst has a price target of US$144 per share, while the most pessimistic values it at US$97.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of AbbVie'shistorical trends, as the 15% annualised revenue growth to the end of 2021 is roughly in line with the 13% annual revenue growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 15% per year. It's clear that while AbbVie's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AbbVie. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for AbbVie going out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 5 warning signs we've spotted with AbbVie .
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Bottom Line The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AbbVie. The quarterly results for AbbVie Inc. (NYSE:ABBV) were released last week, making it a good time to revisit its performance. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AbbVie after the latest results. | NYSE:ABBV Earnings and Revenue Growth May 3rd 2021 Taking into account the latest results, the consensus forecast from AbbVie's 20 analysts is for revenues of US$55.7b in 2021, which would reflect a notable 11% improvement in sales compared to the last 12 months. It's clear that while AbbVie's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself. The quarterly results for AbbVie Inc. (NYSE:ABBV) were released last week, making it a good time to revisit its performance. | NYSE:ABBV Earnings and Revenue Growth May 3rd 2021 Taking into account the latest results, the consensus forecast from AbbVie's 20 analysts is for revenues of US$55.7b in 2021, which would reflect a notable 11% improvement in sales compared to the last 12 months. We can infer from the latest estimates that forecasts expect a continuation of AbbVie'shistorical trends, as the 15% annualised revenue growth to the end of 2021 is roughly in line with the 13% annual revenue growth over the past five years. The quarterly results for AbbVie Inc. (NYSE:ABBV) were released last week, making it a good time to revisit its performance. | It's clear that while AbbVie's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself. The quarterly results for AbbVie Inc. (NYSE:ABBV) were released last week, making it a good time to revisit its performance. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AbbVie after the latest results. |
24099.0 | 2021-05-02 00:00:00 UTC | Warren Buffett's 3 Highest-Yielding Dividend Stocks | ABBV | https://www.nasdaq.com/articles/warren-buffetts-3-highest-yielding-dividend-stocks-2021-05-02 | nan | nan | Warren Buffett loves dividends. That's true even though his own Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has never initiated a dividend program.
Some of the stocks Berkshire owns don't offer dividends, but many of them do. And a handful of them pay juicy yields that would be attractive to any income investor. Here are Buffett's three highest-yielding dividend stocks.
Image source: Getty Images.
1. Chevron
Chevron (NYSE: CVX) ranks at the top of the list with a dividend yield of over 4.8%. The oil and gas giant is also a Dividend Aristocrat with 34 consecutive years of dividend increases.
Buffett has become increasingly enamored with the energy sector. Berkshire added 48 million Chevron shares to its existing position in the fourth quarter of 2020. Chevron is now the conglomerate's 10th largest holding.
Why does Chevron stand out in Buffett's view? Probably in part because the company's balance sheet is in better shape than most of its peers. Chevron is also in a position to grow with its acquisition of Noble Energy, a move that boosted its proven oil reserves by 1.7 billion barrels.
Sure, fossil fuels will almost certainly be increasingly replaced by renewable energy sources over the long run. For now, though, the world's economy still relies on them. Chevron appears to be in a good position to keep its dividends coming.
2. AbbVie
AbbVie (NYSE: ABBV) is another Dividend Aristocrat in Buffett's Berkshire holdings. The big drugmaker is only one dividend hike away from joining the even more exclusive club of Dividend Kings -- S&P 500 members with at least 50 years of consecutive dividend increases. AbbVie's dividend yield currently stands at nearly 4.7%.
While Buffett likes dividends, he also likes bargains. AbbVie certainly appears to be a bargain right now with its shares trading at only nine times expected earnings. There's one fly in the ointment, though: The company's best-selling drug Humira loses U.S. patent exclusivity in 2023. That will definitely weigh on AbbVie's top and bottom lines.
Buffett doesn't seem to be concerned about Humira, considering that Berkshire added to its stake in AbbVie during the fourth quarter of 2020. Was that a foolhardy move? Probably not. Although AbbVie does expect declining sales for Humira will cause its overall revenue to fall in 2023, the company projects a return to growth the following year.
AbbVie's bullish outlook is based on the prospects for several other drugs in its lineup. In particular, the company is counting on tremendous sales growth for autoimmune disease drugs Rinvoq and Skyrizi and antipsychotic drug Vraylar.
3. Verizon Communications
Verizon Communications (NYSE: VZ) isn't dividend royalty just yet. However, the telecommunications leader has increased its dividend every year since 2007. Its dividend yield of nearly 4.5% is also very attractive.
Like AbbVie, Verizon is cheap relative to many of its S&P 500 peers. The stock trades at only a little over 11 times expected earnings with a similar price-to-free-cash-flow multiple.
Verizon does carry a sizable amount of debt on its balance sheet. It ended the first quarter with total debt of $137.4 billion. However, its net leverage ratio is improving.
The company should have a solid growth opportunity as the adoption of high-speed 5G wireless networks increases. Verizon could even dethrone T-Mobile US as the 5G leader in the U.S. Don't expect the stock to deliver jaw-dropping gains. However, Verizon's great dividend combined with its 5G opportunity makes this high-yielding Warren Buffett stock one that most income investors will probably like.
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Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), and Chevron. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends T-Mobile US and Verizon Communications and recommends the following options: long January 2023 $200.0 calls on Berkshire Hathaway (B shares), short January 2023 $200.0 puts on Berkshire Hathaway (B shares), and short June 2021 $240.0 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although AbbVie does expect declining sales for Humira will cause its overall revenue to fall in 2023, the company projects a return to growth the following year. AbbVie AbbVie (NYSE: ABBV) is another Dividend Aristocrat in Buffett's Berkshire holdings. AbbVie's dividend yield currently stands at nearly 4.7%. | AbbVie AbbVie (NYSE: ABBV) is another Dividend Aristocrat in Buffett's Berkshire holdings. AbbVie's dividend yield currently stands at nearly 4.7%. AbbVie certainly appears to be a bargain right now with its shares trading at only nine times expected earnings. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), and Chevron. AbbVie AbbVie (NYSE: ABBV) is another Dividend Aristocrat in Buffett's Berkshire holdings. AbbVie's dividend yield currently stands at nearly 4.7%. | AbbVie AbbVie (NYSE: ABBV) is another Dividend Aristocrat in Buffett's Berkshire holdings. AbbVie's dividend yield currently stands at nearly 4.7%. AbbVie certainly appears to be a bargain right now with its shares trading at only nine times expected earnings. |
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