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24200.0 | 2021-02-22 00:00:00 UTC | 3 Stocks to Buy with Dividends Yielding More than 4% | ABBV | https://www.nasdaq.com/articles/3-stocks-to-buy-with-dividends-yielding-more-than-4-2021-02-22 | nan | nan | Income investors are frustrated by low dividend yields in today's market, but there are still some high yields if you know where to look. With the S&P 500 average yield below 1.6%, many of the usual suspects and Dividend Aristocrats have been bid down by investors desperate for safe cash flow streams. A deep dive and a measured approach to risk reveal that the market has left some strong dividend stocks behind, even though they still have plenty of room to sustain and even grow their distributions to shareholders.
AbbVie
AbbVie (NYSE: ABBV) is the seventh-largest branded pharmaceutical maker in the world by revenue, with well-known drugs including Humira, Botox, Venclexta, and Imbruvica in its portfolio. It is also a Dividend Aristocrat with 47 consecutive years of dividend growth. It would seem that this status is in doubt because the market has allowed AbbVie's forward yield to hit 5%, while most of its peers pay substantially lower yields.
AbbVie's heavy sales concentration in a small number of drugs has been a risk for the company for some time. Investors are worried about Humira's impending loss of exclusivity in the U.S. in 2023. It is AbbVie's top-selling product, and its U.S. sales accounted for 35% of the company's total revenue in 2020. The onset of generic competition usually cuts branded drug sales in half, and revenues generally fall more than 80% within the first few years after exclusivity is lost. This is no secret to the company's executive team, who are predicting falling sales for the year following the introduction of Humira's generic competition.
Image sources: Getty Images.
However, AbbVie is bullish about its growth prospects in other categories, including cancer drugs, Skyrizi for plaque psoriasis, Ubrelvy for migraines, and Rinvoq for rheumatoid arthritis. The company forecasts a return to growth in 2025 and calls for 5% to 10% compounding annual sales growth for the next decade. If this narrative holds true, then AbbVie's dividend should be sustainable. The 180% payout ratio is misleading because accounting profits were drastically reduced by non-cash and non-recurring expenses. The forward dividend per share was only 49% of 2020's adjusted EPS, which provides a wide berth for temporary profit declines. If you believe in AbbVie's future portfolio, then this is a great opportunity.
CareTrust
CareTrust REIT (NASDAQ: CTRE) owns 191 net-leased healthcare facilities for seniors, most of which are housing and centers for skilled nursing. The REIT's key growth drivers are demographics, strategic acquisitions, and reimbursement rates from Medicare and private insurers. Dividend investors prefer stable cash generators to riskier high-growth stocks, and CareTrust is well-positioned to be exactly that. The U.S. elderly population is expected to swell in the coming decades, so expect continued strong demand for the services provided by CareTrust's tenants.
Coronavirus created uncertainty across the real estate sector, and REIT performance has suffered over the past year as a result. Value investors often recognize these situations as opportunities, and that's certainly at play here. The pandemic will certainly cause ongoing disruptions for CareTrust, but the REIT collected more than 99% of contract rents in 2020. That's extremely reassuring. Underlining this stability, the company's earnings guidance calls for similar results in 2021. CareTrust pays a $1.00 annualized dividend per share, which is well within the $1.40 of FFO per share it reported last year. I see no reason to presume that the dividend will stagnate or shrink, so that 4.3% yield is enticing.
MPLX
MPLX (NYSE: MPLX) is a master limited partnership (MLP) that operates the midstream infrastructure assets for Marathon Petroleum (NYSE: MPC). This infrastructure includes pipelines, storage facilities, terminals, and processing equipment for crude oil and natural gas.
The entire energy sector experienced challenges in 2020 following a collapse in crude oil prices. The pandemic compounded existing issues by reducing demand for fuel and petroleum products, and many production facilities went offline or drastically reduced volume in response. The midstream portion of the sector is known for relative stability in operational cash flows, but lower volumes of crude transport hurt midstream revenues in 2020. As a result, MPLX share prices took a dive with the rest of the energy stocks, and they still haven't recovered as the rest of the market has.
MPLX's earnings reports show a company that has weathered a storm and made some adjustments to stay stable. The MLP achieved a leaner structure through some cost reduction measures, and they scaled back growth capital expenditure plans to focus exclusively on high ROI projects. By the fourth quarter, the company's operating revenue was only down 5.8% year over year. MPLX was able to generate $4.3 billion in distributable cash flow, which is nearly 150% of the dividend. Company management is so comfortable with those cash flows that it is resuming a unit repurchase program, which is analogous to share repurchases you would see with regular stocks. The dividend looks high and sustainable, and MPLX is a candidate to appreciate if energy prices rise. The risks can't be casually ignored, but the upside potential looks great under the current conditions.
10 stocks we like better than 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. | However, AbbVie is bullish about its growth prospects in other categories, including cancer drugs, Skyrizi for plaque psoriasis, Ubrelvy for migraines, and Rinvoq for rheumatoid arthritis. AbbVie AbbVie (NYSE: ABBV) is the seventh-largest branded pharmaceutical maker in the world by revenue, with well-known drugs including Humira, Botox, Venclexta, and Imbruvica in its portfolio. It would seem that this status is in doubt because the market has allowed AbbVie's forward yield to hit 5%, while most of its peers pay substantially lower yields. | AbbVie AbbVie (NYSE: ABBV) is the seventh-largest branded pharmaceutical maker in the world by revenue, with well-known drugs including Humira, Botox, Venclexta, and Imbruvica in its portfolio. It would seem that this status is in doubt because the market has allowed AbbVie's forward yield to hit 5%, while most of its peers pay substantially lower yields. AbbVie's heavy sales concentration in a small number of drugs has been a risk for the company for some time. | AbbVie AbbVie (NYSE: ABBV) is the seventh-largest branded pharmaceutical maker in the world by revenue, with well-known drugs including Humira, Botox, Venclexta, and Imbruvica in its portfolio. It would seem that this status is in doubt because the market has allowed AbbVie's forward yield to hit 5%, while most of its peers pay substantially lower yields. AbbVie's heavy sales concentration in a small number of drugs has been a risk for the company for some time. | It is AbbVie's top-selling product, and its U.S. sales accounted for 35% of the company's total revenue in 2020. AbbVie AbbVie (NYSE: ABBV) is the seventh-largest branded pharmaceutical maker in the world by revenue, with well-known drugs including Humira, Botox, Venclexta, and Imbruvica in its portfolio. It would seem that this status is in doubt because the market has allowed AbbVie's forward yield to hit 5%, while most of its peers pay substantially lower yields. |
24201.0 | 2021-02-21 00:00:00 UTC | Billionaire Ray Dalio Places Bet on 3 “Strong Buy” Stocks | ABBV | https://www.nasdaq.com/articles/billionaire-ray-dalio-places-bet-on-3-strong-buy-stocks-2021-02-21 | nan | nan | When billionaire financier Ray Dalio makes a move, Wall Street pays attention. Dalio, who got his start working on the floor of the New York Stock Exchange trading commodity futures, founded the world’s largest hedge fund, Bridgewater Associates, in 1975. With the firm managing about $140 billion in global investments and Dalio’s own net worth coming at $17 billion, he has earned legendary status on Wall Street.
Summing up his success, Dalio has three pieces of advice for investors. First, diversify. Keeping a wide range of stocks in the portfolio, from multiple sectors, is the surest way to invest well. Second, don’t think that rising markets will rise forever. This is Dalio’s variation on an old saw that past performance does not guarantee future returns. Dalio will tell you that all strong past returns really guarantee are current high prices. And finally, Dalio tells investors, “Do the opposite of what your instincts are.” Or put another way, don’t follow the herd, as such thinking frequently leads to suboptimal results.
Looking to Dalio for investing inspiration, we used TipRanks’ database to find out if three stocks the billionaire recently added to the fund represent compelling plays. According to the platform, the analyst community believes they do, with all of the picks earning “Strong Buy” consensus ratings.
Linde PLC (LIN)
The first new position is in Linde, the world’s largest industrial gas production company, whether counting by revenues or market share. Linde produces a range of gasses for industrial use, and is the dominant supplier of argon, nitrogen, oxygen, and hydrogen, along with niche gasses like carbon dioxide for the soft drink industry. The company also produces gas storage and transfer equipment, welding equipment, and refrigerants. In short, Linde embodies Dalio’s ‘diversify’ dictum.
Linde’s industry leadership and essential products helped the company bounce back from the corona crisis. The company’s revenues slipped in 1H20, but grew in the second half, reaching pre-corona levels in Q3 and exceeding those levels in Q4.
In a sign of confidence, the company held its dividend steady through the ‘corona year,’ at 96 cents per common share – and in its recent Q1 declaration, Linde raised the payment to $1.06 per share. This annualizes to $4.24 and gives a yield of 1.7%. The key point here is not the modest yield, but the company’s confidence in the security of its positions, allowing it to keep a steady dividend at a time when many peers are cutting profit sharing.
It’s no wonder, then, that an investor like Dalio would take an interest in a company like Linde. The billionaire’s fund snapped up 20,149 shares during the fourth quarter, worth $5.05 million at current prices.
Assessing Linde for BMO, analyst John McNulty expresses his confidence in Linde’s current performance.
"LIN continues to execute on its growth strategy to drive solid double-digit earnings growth, notably without requiring a further macro improvement. In our view, management's 11-13% guide for 2021 remains conservative driven by its on coming projects, continued pricing, efficiency gains, and solid buybacks with its strong balance sheet and cash flows. Further, the solid FCF position provides them plenty of dry powder for M&A, de-caps, etc. We believe LIN is poised to continue to surprise investors and outperform the broader group even in a cyclical market. the largest global industrial gas company," McNulty opined.
In line with his bullish comments, McNulty rates LIN as a Buy, and his $320 price target implies an upside of ~28% for the coming year. (To watch McNulty's track record, click here)
Wall Street’s analysts are in broad agreement on the quality of Linde’s stock, as shown by the 15 Buy reviews overbalancing the 3 Holds. This gives the stock its Strong Buy analyst consensus rating. Shares are priced at $250.88, and their $295.73 average price target suggests they have ~18% growth ahead. (See LIN stock analysis on TipRanks)
BlackRock (BLK)
Next up is the world’s largest asset manager. BlackRock has over $8.67 trillion in assets under management. The company is one of the dominant index funds in the US financial scene, and saw $16.2 billion revenue last year, with a net income of $4.9 billion.
BlackRock’s recent Q4 report shows its strength, as far as numbers can. EPS came in at $10.02 per share, a 12% sequential gain and a 20% year-over-year gain. Quarterly revenues of $4.8 billion were up 17% yoy. The full-year top line was up 11% from 2019. BlackRock achieved all of this even as the corona crisis flattened the economy in 1H20.
In the first quarter of this year, BlackRock declared its regular quarterly dividend, and raised the payment by 13% to $4.13 per common share. At an annualized payment of $16.52, this gives a yield of 2.3%. The company has kept the dividend reliable for the past 12 years.
Not wanting to miss out on a compelling opportunity, Dalio's fund pulled the trigger on 19,917 shares, giving it a new position in BLK. The value of this new addition? More than $14 million.
Covering BLK for Deutsche Bank, analyst Brian Bedell writes, “We view 4Q results as very good with strong long-term net inflows across its products which we expect to continue despite a one-time, $55bn pension fund outflow of low-fee equity index assets expected in 1H21 which mgmt. said would have a minimal impact on base fee revenue. Additionally, total net inflows drove annualized organic base management fee growth of 13%, a quarterly record, on annualized long-term organic AuM growth of 7%. We expect organic base fee growth to exceed organic AuM growth coming into 2021 driven by a flow mix skewed toward higher fee-rate products for now.”
To this end, Bedell rates BLK a Buy and his $837 price target suggests the stock has ~18% upside ahead of it. (To watch Bedell’s track record, click here)
The analyst consensus tells a very similar story. BLK has received 6 Buy ratings in the last three months, against a single Hold – a clear sign that analysts are impressed with the company’s potential. Shares sell for $710.11, and the average price target of $832.17 gives the stock a 17% upside potential. (See BLK stock analysis on TipRanks)
AbbVie, Inc. (ABBV)
AbbVie is a major name in the pharma industry. The company is the maker of Humira, an anti-inflammatory used in the treatment of a wide range of chronic illnesses including rheumatoid arthritis, Crohn’s disease, and psoriasis. The company’s other immunology drugs, Skyrizi and Rinvoq, were approved by the FDA in 2019 as treatments for psoriasis and rheumatoid arthritis, respectively, and saw combined sales of $2.3 billion last year. AbbVie expects that these drugs will ‘fill the gap’ in profits when the Humira patents expire in 2023, with up to $15 billion in sales by 2025.
Humira is currently the main driver of AbbVie’s immunology portfolio, and provides $19.8 billion of the portfolio’s $22.2 billion in annual revenues, and a significant part of the company’s total sales. For the full year 2020, across all divisions, AbbVie saw $45.8 billion in revenues, with an adjusted diluted EPS of $10.56.
In addition to its high-profile anti-inflammatory line, AbbVie also has a ‘stable’ of long-established drugs on the market. As an example, the company owns Depakote, a common anti-seizure medication. AbbVie also maintains an active research pipeline, with scores of drug candidates undergoing studies in the disciplines of immunology, neuroscience, oncology, and virology.
For investors, AbbVie has a long-standing commitment to returning profits to shareholders. The company has an 8-year history of keeping a reliable – and growing – dividend. In the most recent declaration, made this month for a payment to go out in May, AbbVie raised the dividend 10% to $1.30 per common share. At $5.20 annualized, this gives a yield of 4.9%.
Once again, we are looking at stock that embodies some of Dalio’s advice. Pulling the trigger on ABBV in the fourth quarter, Dalio’s firm purchased 25,294 shares. At current valuation, this is worth $2.66 million.
Leerink analyst Geoffrey Porges covers ABBV, and is impressed with the way that the company is preparing in advance for the loss of US exclusivity on its best-selling product.
“Between ABBV’s ex-Humira portfolio’s growth trajectory and a broad portfolio of catalysts across early-, mid-, and late-stage assets, it is hard to find a biopharma company that is better positioned, even with their looming LOE. ABBV is prepared for 2023, and has growth drivers to drive better than industry average top- and bottom-line growth in the period before (2021-2022) and after (2024-2028) 2023,” Porges opined.
Porges gives ABBV an Outperform (i.e. Buy) rating, and sets a $140 price target that indicates room for a 33% one-year upside. (To watch Porges’ track record, click here)
Overall, there are 10 reviews on ABBV shares, and 9 of those are to Buy – a margin that makes the analyst consensus rating a Strong Buy. The stock is trading for $105.01 and has an average price target of $122.60. This suggests an upside of ~17% over the next 12 months. (See ABBV stock analysis on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (See BLK stock analysis on TipRanks) AbbVie, Inc. (ABBV) AbbVie is a major name in the pharma industry. AbbVie expects that these drugs will ‘fill the gap’ in profits when the Humira patents expire in 2023, with up to $15 billion in sales by 2025. Humira is currently the main driver of AbbVie’s immunology portfolio, and provides $19.8 billion of the portfolio’s $22.2 billion in annual revenues, and a significant part of the company’s total sales. | (See BLK stock analysis on TipRanks) AbbVie, Inc. (ABBV) AbbVie is a major name in the pharma industry. AbbVie expects that these drugs will ‘fill the gap’ in profits when the Humira patents expire in 2023, with up to $15 billion in sales by 2025. Humira is currently the main driver of AbbVie’s immunology portfolio, and provides $19.8 billion of the portfolio’s $22.2 billion in annual revenues, and a significant part of the company’s total sales. | (See BLK stock analysis on TipRanks) AbbVie, Inc. (ABBV) AbbVie is a major name in the pharma industry. AbbVie expects that these drugs will ‘fill the gap’ in profits when the Humira patents expire in 2023, with up to $15 billion in sales by 2025. Humira is currently the main driver of AbbVie’s immunology portfolio, and provides $19.8 billion of the portfolio’s $22.2 billion in annual revenues, and a significant part of the company’s total sales. | Humira is currently the main driver of AbbVie’s immunology portfolio, and provides $19.8 billion of the portfolio’s $22.2 billion in annual revenues, and a significant part of the company’s total sales. (See BLK stock analysis on TipRanks) AbbVie, Inc. (ABBV) AbbVie is a major name in the pharma industry. AbbVie expects that these drugs will ‘fill the gap’ in profits when the Humira patents expire in 2023, with up to $15 billion in sales by 2025. |
24202.0 | 2021-02-21 00:00:00 UTC | Is It Too Late to Buy AbbVie Stock? | ABBV | https://www.nasdaq.com/articles/is-it-too-late-to-buy-abbvie-stock-2021-02-21 | nan | nan | Investors often have reservations about buying stock in a company that's trading at (or near) its all-time highs. And with a bull market that continues to trend upward, this is the dilemma many of us have faced for almost a year now. But there is one stock in particular that I think is cheap, easy to understand, and capable of rewarding shareholders with ample returns in the future: AbbVie (NYSE: ABBV).
There's one investing mantra I always try to live by: "It's a market of stocks, not a stock market." This essentially means that whatever "the market" overall is doing, bullish or bearish, you can always find individual companies trading at attractive prices. While many of the businesses on the market today don't have the earnings or the growing cash flows to justify their valuations, AbbVie is a different story. Here's why it is not too late to buy AbbVie stock right now.
Image Source: Getty Images.
A cash-flow generator time and time again
AbbVie is one of the newer pharmaceutical companies on the market. It was spun off from Abbott Labs in 2013 into a competitive landscape that included the likes of Johnson & Johnson, Pfizer, Merck, and Bristol Myers Squibb. However, management wasted no time developing breakthrough drugs and driving sales to generate huge returns for shareholders. Since its spin-off, AbbVie has been at the forefront of the creation of new drugs as well as a leader in overall sales.
AbbVie's front-line products, including Humira (for Crohn's disease and other indications), Skyrizi (for psoriasis), and Rinvoq (for rheumatoid arthritis) have all helped drive returns of nearly 350% since inception. (Humira was the world's best-selling drug in 2019, with revenue of nearly $20 billion.) Such blockbuster drugs have contributed to compound annual revenue growth of 13.5%. Additionally, shareholders have seen tremendous dividend growth, with the current payout of $1.30 per share representing a 225% increase from 2013.
Fears of Humira's patent expiration are overblown
Some investors may be staying away from the stock because of concerns that AbbVie relies too much on its flagship drug, Humira. But I believe those fears are unwarranted. Humira remains AbbVie's best-selling drug, accounting for about $5 billion of the company's $13.8 billion in sales during the fourth quarter of 2020. In 2020 alone, we saw its domestic sales numbers continue to increase by 13.7%, and there's no sign yet of significant competition to erode market share.
In fact, Humira has remained dominant in Europe even after going off-patent in the EU, managing to retain 70% of its patients. This was possible thanks to the company's ability to discount the price to discourage competition. Given that Humira's U.S. patents begin to expire in 2023, some investors have worried that AbbVie will take a big hit. But the company has already shown that it's willing to cut prices to deter competition -- and that competition may not be compelling anyway. The biosimilars that have been approved so far have failed to lower costs or make therapy more accessible for patients. Ultimately, doctors and pharmacists have not seen the new biosimilars proven out yet, and if Humira can compete with their prices, it is hard to see many physicians shifting away from the highly successful drug.
As a whole, AbbVie is much more than Humira. The company's acquisition of Botox maker Allergan in 2020 brought a whole new line of industry-leading products -- Botox has a 66% market share, according to the company, and other offerings including Juvederm (fillers), CoolSculpting (body contouring), Natrelle (implants), and AlloDerm (regenerative tissue) are all No. 1 in their spaces, too. AbbVie also expects its two new drugs, Skyrizi and Rinvoq, which together have already done 2.2 billion in 2020, to account for a combined 15 billion in global sales by 2025.
A great time to buy
In today's market, overvaluation is the norm. But this stock proves that there are still bargains to be found. It generates superb cash flows and offers a 5% dividend yield to reward investors -- in fact, the stock price was up 20% recently after management's most recent (10%) dividend raise. With the continued success of Humira, Skyrizi, and Rinvoq, I expect Abbvie to grow revenue at 10% annually -- or more -- until at least 2023. Over time, stock prices correlate with earnings, so AbbVie can easily rise 10% or more per year from here. At a price-to-earnings ratio of less than 10 (compared with its average of about 13), AbbVie is currently on sale. This stock satisfies investors with a variety of goals. Whether you want to beat the market or add extra dividend income, AbbVie is the stock to buy.
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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. | But there is one stock in particular that I think is cheap, easy to understand, and capable of rewarding shareholders with ample returns in the future: AbbVie (NYSE: ABBV). AbbVie's front-line products, including Humira (for Crohn's disease and other indications), Skyrizi (for psoriasis), and Rinvoq (for rheumatoid arthritis) have all helped drive returns of nearly 350% since inception. While many of the businesses on the market today don't have the earnings or the growing cash flows to justify their valuations, AbbVie is a different story. | Humira remains AbbVie's best-selling drug, accounting for about $5 billion of the company's $13.8 billion in sales during the fourth quarter of 2020. With the continued success of Humira, Skyrizi, and Rinvoq, I expect Abbvie to grow revenue at 10% annually -- or more -- until at least 2023. But there is one stock in particular that I think is cheap, easy to understand, and capable of rewarding shareholders with ample returns in the future: AbbVie (NYSE: ABBV). | Fears of Humira's patent expiration are overblown Some investors may be staying away from the stock because of concerns that AbbVie relies too much on its flagship drug, Humira. Humira remains AbbVie's best-selling drug, accounting for about $5 billion of the company's $13.8 billion in sales during the fourth quarter of 2020. But there is one stock in particular that I think is cheap, easy to understand, and capable of rewarding shareholders with ample returns in the future: AbbVie (NYSE: ABBV). | Fears of Humira's patent expiration are overblown Some investors may be staying away from the stock because of concerns that AbbVie relies too much on its flagship drug, Humira. As a whole, AbbVie is much more than Humira. With the continued success of Humira, Skyrizi, and Rinvoq, I expect Abbvie to grow revenue at 10% annually -- or more -- until at least 2023. |
24203.0 | 2021-02-21 00:00:00 UTC | Ready to Supercharge Your Passive Income? 3 Dividend Stocks You Can't Go Wrong With | ABBV | https://www.nasdaq.com/articles/ready-to-supercharge-your-passive-income-3-dividend-stocks-you-cant-go-wrong-with-2021-02 | nan | nan | Investing in the stock market can help you build long-term wealth, but it can take years or even decades to see substantial returns.
With dividend-paying stocks, however, you'll not only earn long-term returns on your investments, but you'll also receive dividend payments each year or quarter. Every time you receive dividends, you can either reinvest that money to buy more shares of stock or you can cash them out to create a source of passive income.
It's important to invest wisely when choosing dividend stocks. Not all stocks are created equal, and some investments are better than others. While each of these three companies have experienced setbacks, they consistently pay high dividends -- making them a smart choice for many investors.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) is a biopharmaceutical company with a strong dividend track record. It's a member of the Dividend Aristocrats, which is a group of S&P 500 stocks that have each increased their dividend payment for at least 25 consecutive years.
AbbVie has been a favorite among dividend investors for years, as it's known for its high dividend yield and for increasing its dividend consistently. One potential red flag is that its best-selling drug Humira is losing exclusivity in the U.S. in 2023, which could result in Humira sales plummeting. However, the company already has several other drugs generating strong revenue growth, which could make up for the potential losses from Humira. For this reason, AbbVie is still in a strong position and should continue increasing its dividend.
The stock has a relatively high annual dividend payment of $1.30 per quarter, which amounts to $5.20 per year. It's also priced at around $106 per share as of this writing. If you invested, say, $5,000 in AbbVie stock, that amounts to roughly 47 shares. In this scenario, you'd be earning around $244 per year in dividend income.
Of course, $244 per year is hardly enough to pay the bills. But keep in mind that investing is a long-term strategy. The more you invest, the more you'll earn. If you reinvest your dividends to buy more shares, that can turbocharge your dividend payments.
2. IBM
IBM (NYSE: IBM) has been paying dividends since 1913, making it one of the longest-paying dividend stocks in existence. Although the company experienced a difficult quarter at the end of 2020, it's expected to rebound this year by focusing more on its cloud software solutions. This is a good sign for long-term investors willing to wait it out, because this restructuring could result in greater growth potential.
The company also boasts a hefty $1.63 quarterly dividend payment (or $6.52 per year), and currently trades at $120 per share.If you were to invest $5,000 in IBM stock right now, you'd own around 41 shares. With a dividend of $6.52 per year, that investment would earn you around $267 each year in dividend payments.
Also, keep in mind that as companies increase their dividends, that will also increase your annual payments -- even if you don't invest more money. By investing in strong companies that increase their dividends each year, you can boost your passive income with zero effort.
3. ExxonMobil
ExxonMobil (NYSE: XOM) is another member of the Dividend Aristocrats, having raised its dividend each year for 37 consecutive years. It has a slightly lower dividend payment of $0.87 per quarter ($3.48 per year), but it also has a lower stock price of just $53 per share as of this writing.
This stock is on the riskier side, because the company has had a rough year as oil prices dropped in 2020. In the past, ExxonMobil has tried hard to protect its dividend, choosing to take on more debt to avoid cutting dividend payments. But if the company continues to struggle, the dividend could be at risk.
However, the company is currently being pressured to focus more heavily on renewable energy, and it's reportedly considering making changes to its board of directors and investing more in sustainable energy. This could result in stronger long-term growth, which is a good sign for investors.
Currently, investing $5,000 in ExxonMobil would buy you 94 shares. At $3.48 per share in dividends, you'd be earning $327 per year in dividend payments. If you're a risk-averse investor, this stock may not be the best option. But if you're willing to bet on the company making a comeback, it could potentially be a profitable decision.
As you're choosing dividend stocks, focus primarily on the overall health of the company. Organizations that are consistently paying dividends and making moves to increase revenue growth are more likely to be solid-long term investments. And investing for the long term is key to generating wealth with dividend stocks.
10 stocks we like better than ExxonMobil
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 ExxonMobil 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 November 20, 2020
Katie Brockman has no position in any of the stocks mentioned. 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. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company with a strong dividend track record. AbbVie has been a favorite among dividend investors for years, as it's known for its high dividend yield and for increasing its dividend consistently. For this reason, AbbVie is still in a strong position and should continue increasing its dividend. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company with a strong dividend track record. AbbVie has been a favorite among dividend investors for years, as it's known for its high dividend yield and for increasing its dividend consistently. For this reason, AbbVie is still in a strong position and should continue increasing its dividend. | AbbVie has been a favorite among dividend investors for years, as it's known for its high dividend yield and for increasing its dividend consistently. AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company with a strong dividend track record. For this reason, AbbVie is still in a strong position and should continue increasing its dividend. | AbbVie AbbVie (NYSE: ABBV) is a biopharmaceutical company with a strong dividend track record. AbbVie has been a favorite among dividend investors for years, as it's known for its high dividend yield and for increasing its dividend consistently. For this reason, AbbVie is still in a strong position and should continue increasing its dividend. |
24204.0 | 2021-02-20 00:00:00 UTC | It's Already Doubled in 2021, and This Healthcare Juggernaut Is Just Getting Started | ABBV | https://www.nasdaq.com/articles/its-already-doubled-in-2021-and-this-healthcare-juggernaut-is-just-getting-started-2021-02 | nan | nan | Skin cancer detection company Dermtech (NASDAQ: DMTK) has seen a spree of good news lately. The company is reimagining the way skin cancer is detected, using stickers rather than scalpels to remove cells for testing. With several factors pushing the stock to double so far this year, its ascent may be just beginning.
The clinical data for its melanoma detection sticker, which is called the Pigmented Lesion Assay (PLA), is promising, with the sticker demonstrating superiority to a traditional scalpel-wielding biopsy. Just how much better is it? Standard biopsies miss about 17% of melanoma cases; the PLA misses just 1%. It's also more efficient -- for every 25 biopsies performed, only one melanoma will be found, compared with one melanoma for every 2.7 PLA tests. All of this is a big win for patients -- but the positive news for this small cap doesn't stop there.
Image Source: Getty Images.
Last year was a good one ...
The PLA test for melanoma has already found its way into National Comprehensive Cancer Network (NCCN) guidelines. NCCN is a nonprofit alliance of 30 premier cancer centers throughout the United States that develops clinical practice guidelines in oncology with a particular focus on complex, aggressive, or uncommon cancers. NCCN's guidelines suggest that non-invasive testing that evaluates a patient's DNA for damage and signs of cancer -- such as the PLA test -- can help guide a doctor's decision on whether to perform a biopsy.
Dermtech opened 2020 with a big win in February, when Medicare decided to cover PLA for melanoma. This was crucial, as Medicare insures about half of the biopsy market according to Dermtech's most recent investor presentation. Since then, insurance companies have taken notice, and Dermtech has racked up agreements with Blue Cross and Blue Shield of Texas (and its approximately 6 million covered members), Blue Cross and Blue Shield of Illinois (8.1 million members), and Blue Shield of California (3.7 million members).
Additionally, Geisinger Health Plans in Pennsylvania issued a statement acknowledging positive benefit for PLA, which suggests Geisinger would cover the test for its 580,000 members. Such commercial insurance carrier agreements are crucial because they tend to mean higher reimbursement rates for Dermtech and for clinicians performing the procedure -- meaning investors can likely expect increased future profit margins as commercial insurance pays for a higher percentage of tests performed.
... and this year looks even better
Dermtech is clearly growing; in Q4 2020, the number of tests it was able to bill for hit approximately 8,300, a 69% increase over the same period a year ago and a 24% sequential increase from Q3. Test revenue of $1.2 million marked a 220% increase over Q3 2019 and a 90% sequential increase over Q2 2020. In hopes of expanding the company's relatively small base quickly, management is exploring partnerships on a PLA home collection kit with various entities -- including telemedicine providers.
This may prove fruitful, as according to medical staffing and consulting firm Merritt Hawkins, the average wait time to see a dermatologist in a metro area has steadily increased since 2009 to an average of about 32 days. This number is likely even higher in more rural communities with fewer dermatology providers. The ease of a sticker-based process, which can be done at a primary care office or via telemedicine, may enhance access to care, increase early detection, and save lives.
In addition to PLA's growth potential, Dermtech has other shots on goal. When its Luminate sticker test is approved -- currently predicted for the first half of 2022 -- the company will seek to market it directly to consumers, avoiding the need for insurance reimbursement. Luminate is an at-home test that quantifies UV damage at the molecular level in skin that appears normal to the eye. Should the test be approved, its results could help patients become better informed about skin health and determine possible action plans. Lastly, Dermtech has nine partnerships and collaborations ongoing with big names including AbbVie, Johnson & Johnson, AstraZeneca, and L'Oreal. All of these are in phase 2 or phase 3 clinical trials, and eventual approval could provide further fuel for future growth.
Valuation concerns may be overblown
While Dermtech's current price-to-sales valuation of nearly 500 may cause some sticker shock, we can look to a similar company, Exact Sciences (Nasdaq: EXAS), for comparison. In 2016, the first full year of sales for Exact's Cologuard at-home colon cancer tests, that company was similarly priced; sales were in the seven-figure range, and its market cap was almost $3 billion. That's compared to a market cap today of less than $2 billion for Dermtech and its currently similar sales. True, Dermtech has a smaller total addressable market size than Exact Sciences -- about $2.5 billion versus about $8 billion. However, it also has more levers to pull than one-trick pony Exact Sciences did in 2016 -- and from 2016 through 2019, Exact's stock price went up fourfold. In this context, it looks reasonable that Dermtech could go up five times in value in five years; to know whether that's happening, investors will want to keep an eye on the growing rate of billable samples, the company's revenue growth, and continued increases in the number of doctors utilizing the PLA test.
Dermtech grew volume by 86% in the third quarter despite a pandemic, and management is looking to pull some additional levers, including telemedicine dermatology solutions to drive PLA testing, Luminate's potential approval in late 2022, and multiple late-stage partnerships. Given all these future growth drivers, it is possible that Dermtech could approach a similar growth rate to Exact Sciences at its outset -- roughly 120% year over year. A five-bagger from here is possible, and if you're a growth-oriented healthcare investor looking for a way to get into oncology without gambling on all-or-nothing clinical trials, Dermtech looks like an opportunity for you.
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Patrick Bafuma owns shares of Dermtech. 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. | Lastly, Dermtech has nine partnerships and collaborations ongoing with big names including AbbVie, Johnson & Johnson, AstraZeneca, and L'Oreal. In hopes of expanding the company's relatively small base quickly, management is exploring partnerships on a PLA home collection kit with various entities -- including telemedicine providers. In this context, it looks reasonable that Dermtech could go up five times in value in five years; to know whether that's happening, investors will want to keep an eye on the growing rate of billable samples, the company's revenue growth, and continued increases in the number of doctors utilizing the PLA test. | Lastly, Dermtech has nine partnerships and collaborations ongoing with big names including AbbVie, Johnson & Johnson, AstraZeneca, and L'Oreal. Since then, insurance companies have taken notice, and Dermtech has racked up agreements with Blue Cross and Blue Shield of Texas (and its approximately 6 million covered members), Blue Cross and Blue Shield of Illinois (8.1 million members), and Blue Shield of California (3.7 million members). In 2016, the first full year of sales for Exact's Cologuard at-home colon cancer tests, that company was similarly priced; sales were in the seven-figure range, and its market cap was almost $3 billion. | Lastly, Dermtech has nine partnerships and collaborations ongoing with big names including AbbVie, Johnson & Johnson, AstraZeneca, and L'Oreal. Such commercial insurance carrier agreements are crucial because they tend to mean higher reimbursement rates for Dermtech and for clinicians performing the procedure -- meaning investors can likely expect increased future profit margins as commercial insurance pays for a higher percentage of tests performed. ... and this year looks even better Dermtech is clearly growing; in Q4 2020, the number of tests it was able to bill for hit approximately 8,300, a 69% increase over the same period a year ago and a 24% sequential increase from Q3. | Lastly, Dermtech has nine partnerships and collaborations ongoing with big names including AbbVie, Johnson & Johnson, AstraZeneca, and L'Oreal. It's also more efficient -- for every 25 biopsies performed, only one melanoma will be found, compared with one melanoma for every 2.7 PLA tests. However, it also has more levers to pull than one-trick pony Exact Sciences did in 2016 -- and from 2016 through 2019, Exact's stock price went up fourfold. |
24205.0 | 2021-02-19 00:00:00 UTC | EOLS Stock: The Big News That Has Evolus Shares Skyrocketing Today | ABBV | https://www.nasdaq.com/articles/eols-stock%3A-the-big-news-that-has-evolus-shares-skyrocketing-today-2021-02-19 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Evolus (NASDAQ:EOLS) stock was on the rise Friday following news that it’s no longer dealing with lawsuits from AbbVie (NYSE:ABBV) and Medytox.
Source: Bukhta Yurii / Shutterstock.com
The legal battle between the companies was over Evolus selling Jeuveau. This is a prescription drug that is injected into muscles to temporarily reduce severe lines around the eyes. The allegations claimed that Evolus misused trade secrets for Jeuveau.
The news today is that AbbVie and Medytox are dropping all claims made against Evolus in their lawsuits. However, that doesn’t come without some stipulations. That includes Evolus now having to send royalty and milestone payments to the two companies.
Other conditions of the dropped charges include Evolus issuing shares of EOLS stock to Medytox. To go along with this, AbbVie and Medytox are granting it the right to continue selling Jeuveau in the U.S. It can also sell Nuceiva, Jeuveau’s name outside the U.S., in other regions.
The end of these lawsuits means new life for EOLS stock. Previously, the lawsuits were going to ban it from selling Jeuveau in the U.S. for 21 months. That would have been detrimental to Evolus as it’s the company’s only product.
7 Overvalued Stocks Investors Just Don’t Get Tired Of
EOLS investors are reacting positively to the news with increased trading to shares. As of this writing, more than 33 million shares of the stock have traded hands. To put that in perspective, its daily average trading volume is roughly 844,000 shares.
EOLS stock closed out trading on Friday up 71.7%.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post EOLS Stock: The Big News That Has Evolus Shares Skyrocketing Today 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. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Evolus (NASDAQ:EOLS) stock was on the rise Friday following news that it’s no longer dealing with lawsuits from AbbVie (NYSE:ABBV) and Medytox. The news today is that AbbVie and Medytox are dropping all claims made against Evolus in their lawsuits. To go along with this, AbbVie and Medytox are granting it the right to continue selling Jeuveau in the U.S. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Evolus (NASDAQ:EOLS) stock was on the rise Friday following news that it’s no longer dealing with lawsuits from AbbVie (NYSE:ABBV) and Medytox. The news today is that AbbVie and Medytox are dropping all claims made against Evolus in their lawsuits. To go along with this, AbbVie and Medytox are granting it the right to continue selling Jeuveau in the U.S. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Evolus (NASDAQ:EOLS) stock was on the rise Friday following news that it’s no longer dealing with lawsuits from AbbVie (NYSE:ABBV) and Medytox. The news today is that AbbVie and Medytox are dropping all claims made against Evolus in their lawsuits. To go along with this, AbbVie and Medytox are granting it the right to continue selling Jeuveau in the U.S. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Evolus (NASDAQ:EOLS) stock was on the rise Friday following news that it’s no longer dealing with lawsuits from AbbVie (NYSE:ABBV) and Medytox. The news today is that AbbVie and Medytox are dropping all claims made against Evolus in their lawsuits. To go along with this, AbbVie and Medytox are granting it the right to continue selling Jeuveau in the U.S. |
24206.0 | 2021-02-19 00:00:00 UTC | AbbVie, Evolus, Medytox Agree To Resolve Intellectual Property Litigation | ABBV | https://www.nasdaq.com/articles/abbvie-evolus-medytox-agree-to-resolve-intellectual-property-litigation-2021-02-19 | nan | nan | (RTTNews) - AbbVie (ABBV), Evolus (EOLS) and Medytox have reached settlement agreements to fully resolve all outstanding litigation, including the United States International Trade Commission or ITC case regarding the sale of Jeuveau, between the companies. A California court case filed by Medytox against Evolus will be dismissed.
As per the terms of the settlement, AbbVie and Medytox will release all claims against Evolus related to the alleged misappropriation of Medytox's trade secrets and grant a license to Evolus to continue to commercialize Jeuveau in the United States and Nuceiva in all other territories in which Evolus has licensing rights.
AbbVie and Medytox will receive milestone and royalty payments from Evolus. In addition, Evolus will issue common stock to Medytox.
As Daewoong Pharmaceutical is not a party to the settlement agreements, this settlement does not affect any legal rights, positions, or proceedings between Medytox and Daewoong in Korea and other countries.
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), Evolus (EOLS) and Medytox have reached settlement agreements to fully resolve all outstanding litigation, including the United States International Trade Commission or ITC case regarding the sale of Jeuveau, between the companies. AbbVie and Medytox will receive milestone and royalty payments from Evolus. As per the terms of the settlement, AbbVie and Medytox will release all claims against Evolus related to the alleged misappropriation of Medytox's trade secrets and grant a license to Evolus to continue to commercialize Jeuveau in the United States and Nuceiva in all other territories in which Evolus has licensing rights. | (RTTNews) - AbbVie (ABBV), Evolus (EOLS) and Medytox have reached settlement agreements to fully resolve all outstanding litigation, including the United States International Trade Commission or ITC case regarding the sale of Jeuveau, between the companies. As per the terms of the settlement, AbbVie and Medytox will release all claims against Evolus related to the alleged misappropriation of Medytox's trade secrets and grant a license to Evolus to continue to commercialize Jeuveau in the United States and Nuceiva in all other territories in which Evolus has licensing rights. AbbVie and Medytox will receive milestone and royalty payments from Evolus. | (RTTNews) - AbbVie (ABBV), Evolus (EOLS) and Medytox have reached settlement agreements to fully resolve all outstanding litigation, including the United States International Trade Commission or ITC case regarding the sale of Jeuveau, between the companies. As per the terms of the settlement, AbbVie and Medytox will release all claims against Evolus related to the alleged misappropriation of Medytox's trade secrets and grant a license to Evolus to continue to commercialize Jeuveau in the United States and Nuceiva in all other territories in which Evolus has licensing rights. AbbVie and Medytox will receive milestone and royalty payments from Evolus. | (RTTNews) - AbbVie (ABBV), Evolus (EOLS) and Medytox have reached settlement agreements to fully resolve all outstanding litigation, including the United States International Trade Commission or ITC case regarding the sale of Jeuveau, between the companies. As per the terms of the settlement, AbbVie and Medytox will release all claims against Evolus related to the alleged misappropriation of Medytox's trade secrets and grant a license to Evolus to continue to commercialize Jeuveau in the United States and Nuceiva in all other territories in which Evolus has licensing rights. AbbVie and Medytox will receive milestone and royalty payments from Evolus. |
24207.0 | 2021-02-19 00:00:00 UTC | Own Big Stock Winners? Handle Them the Warren Buffett Way | ABBV | https://www.nasdaq.com/articles/own-big-stock-winners-handle-them-the-warren-buffett-way-2021-02-19 | nan | nan | Many regard Warren Buffett as the greatest investor of all time. The long-term track record of his insurance conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is nearly unparalleled, and few still alive have the breadth of experience that the 90-year-old Omaha native has about all things Wall Street.
Earlier this week, investors found out the latest moves that Buffett has made with Berkshire's stock portfolio. Once again, Berkshire revealed that its biggest holding by far was Apple (NASDAQ: AAPL), but the company made some modest moves in handling what's been a huge winner for the insurance company. Below, we'll look more closely at exactly how Buffett has managed his portfolio's biggest stock winner and what it can teach you in handling your own investments.
A brief history of Buffett and Apple
Berkshire first bought shares of Apple in early 2016. Buffett started with a modest position of about 39 million shares (adjusted for subsequent splits), which grew to 61 million the following quarter. By the end of 2016, the Berkshire CEO had 229 million shares of Apple.
Apple iPhones. Image source: Apple.
The following two years saw even more buying. Berkshire held 661 million shares by the end of 2017, and its holdings topped the 1 billion share mark at year-end 2018. During 2019, share counts rose and fell gradually but stayed around 1 billion shares.
All this time, Apple's stock price was on the rise. With shares worth $29 at the end of 2016, Berkshire's total position was worth about $6.6 billion. 2017 brought a nearly 50% rise in the stock to $42 per share, and the growth in Berkshire's holdings sent the total value to nearly $28 billion. By the end of 2019, a further combination of rising Apple stock prices and expanded share holdings meant that Buffett held roughly $73 billion in Apple stock.
Letting winners ride -- mostly
Over the course of 2020, Buffett started to trim back his stake in Apple. A modest sale announced in the first quarter of 2020 was followed by further reductions in subsequent quarters. By the end of the year, Berkshire was down to 887 million shares of Apple stock.
However, once again, Apple shares have soared. At its closing price around $130 per share on Feb. 18, the value of Berkshire's stake has risen to $115 billion.
Buffett's sales have been interesting because they've essentially freed up cash that he's used in other places to diversify his portfolio. In the third quarter of 2020, he concentrated on pharma stocks like AbbVie and Bristol-Myers Squibb. In the fourth quarter, he added substantial positions in Dow stocks Verizon Communications and Chevron.
Yet the trimming hasn't actually reduced the dollar amount invested in Apple. Because the iPhone maker has continued to rise, Buffett's total Apple holdings have stayed relatively constant in dollar terms.
How to handle your winners
Many individual investors run into the same issues that Buffett has with Apple. If you pick a stock that does extremely well, it can make up an ever-increasing portion of your portfolio. Eventually, you can end up with such a large concentration that it creates immense risk. If something happens to reverse that stock's fortunes, you can suffer huge losses.
Yet selling your entire position prevents you from getting any further gains. It also means a big tax hit if you own your stock in a taxable account. That's true for Buffett, as well, as Berkshire pays taxes on capital gains from selling his positions.
A happy medium is to use big winners as a source of cash for new stock ideas. If the stock keeps rising at least 5% or 10% per year, then trimming 5% to 10% of your position each year should keep your value invested in that stock stable. Ideally, you can then find even bigger winners to deploy the proceeds and keep your portfolio performing as well as possible.
Handling winning stock positions can be a tricky balancing act between fear and greed. Buffett's approach with Apple is one that any investor can follow to provide peace of mind along with the potential for continued strong future returns.
10 stocks we like better than Apple
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Dan Caplinger owns shares of Apple and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Bristol Myers Squibb. The Motley Fool recommends Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 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. | In the third quarter of 2020, he concentrated on pharma stocks like AbbVie and Bristol-Myers Squibb. Below, we'll look more closely at exactly how Buffett has managed his portfolio's biggest stock winner and what it can teach you in handling your own investments. Because the iPhone maker has continued to rise, Buffett's total Apple holdings have stayed relatively constant in dollar terms. | In the third quarter of 2020, he concentrated on pharma stocks like AbbVie and Bristol-Myers Squibb. Once again, Berkshire revealed that its biggest holding by far was Apple (NASDAQ: AAPL), but the company made some modest moves in handling what's been a huge winner for the insurance company. By the end of 2019, a further combination of rising Apple stock prices and expanded share holdings meant that Buffett held roughly $73 billion in Apple stock. | In the third quarter of 2020, he concentrated on pharma stocks like AbbVie and Bristol-Myers Squibb. By the end of 2019, a further combination of rising Apple stock prices and expanded share holdings meant that Buffett held roughly $73 billion in Apple stock. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Dan Caplinger owns shares of Apple and Berkshire Hathaway (B shares). | In the third quarter of 2020, he concentrated on pharma stocks like AbbVie and Bristol-Myers Squibb. By the end of the year, Berkshire was down to 887 million shares of Apple stock. How to handle your winners Many individual investors run into the same issues that Buffett has with Apple. |
24208.0 | 2021-02-18 00:00:00 UTC | Daily Dividend Report: MTB,SHW,WMT,WCN,HUM,ABBV | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-mtbshwwmtwcnhumabbv-2021-02-18 | nan | nan | M&T Bank announced that it has declared a quarterly cash dividend of $1.10 per share on its common stock. The dividend will be payable March 31, 2021 to shareholders of record at the close of business on March 1, 2021.
The Board of Directors of Sherwin-Williams today announced a regular quarterly dividend of $1.65 per common share, an increase of 23.1% over the $1.34 paid in the same quarter in 2020, payable on March 12, 2021, to shareholders of record on March 1, 2021. This increase follows 42 consecutive years of dividend increases.
The Board of Directors of Walmart approved an annual cash dividend for fiscal year 2022 of $2.20 per share, an increase of approximately 2 percent from the $2.16 per share paid for the last fiscal year. The fiscal year 2022 annual dividend of $2.20 per share will be paid in four quarterly installments of $0.55 per share. The next dividend will be payable April 5, 2021 to shareholders of record at the close of business on March 19, 2021.
Waste Connections today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.205 U.S. per common share of the Company. The regular quarterly cash dividend will be paid on March 17, 2021 to shareholders of record at the close of business on March 3, 2021. The Board intends to review the quarterly dividend each October, with a long-term objective of increasing the amount of the dividend.
Humana announced today that its Board of Directors has declared a cash dividend to stockholders of $0.70 per share payable on April 30, 2021 to stockholders of record as of the close of business on March 31, 2021.
The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. The cash dividend is payable May 14, 2021 to stockholders of record at the close of business on April 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.
VIDEO: Daily Dividend Report: MTB,SHW,WMT,WCN,HUM,ABBV
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. |
24209.0 | 2021-02-18 00:00:00 UTC | Here Are All 10 Stocks Warren Buffett Has Been Buying | ABBV | https://www.nasdaq.com/articles/here-are-all-10-stocks-warren-buffett-has-been-buying-2021-02-18 | nan | nan | Warren Buffett and the rest of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) investing team typically don't discuss the stocks they buy and sell, so we have to rely on the quarterly glimpses of the portfolio we get from Berkshire's SEC filings.
Berkshire just posted its most recent 13-F filing, which shows a snapshot of the stocks it held as of Dec. 31, 2020. Berkshire added a few new positions, built some of its existing ones, and sold some stocks as well. Here's a complete rundown of all of the moves Berkshire made.
Image source: The Motley Fool.
4 new stocks in Berkshire's portfolio
Buffett and his team added a few stocks during the fourth quarter:
COMPANY (SYMBOL)
SHARES BOUGHT
MARKET VALUE
Verizon (NYSE: VZ)
146,716,496
$8.62 billion
Chevron (NYSE: CVX)
48,498,965
$4.10 billion
Marsh & McLennan (NYSE: MMC)
4,267,825
$499 million
EW Scripps (NYSE: SSP)
23,076,923
$364 million
Data source: Berkshire Hathaway 13-F. Market values as of 2/17/21.
We already knew about the Scripps investment, which technically took place in January, but since it's a new position to the portfolio, it's still worth noting.
The Verizon and Chevron buys were the two biggest stories of the quarter by far. It's unusual for Buffett to buy such large positions right away, so it looks like the Oracle of Omaha is quite confident in these choices.
However, neither decision is too surprising. Verizon, in particular, is a rock-solid income stock trading for a reasonable valuation and could have quite a bit of upside potential during the wide-scale rollout of 5G technology in the coming years.
6 stocks Berkshire bought more of
In addition to the new purchases, Berkshire added to some of its existing investments. There are no surprises here. Buffett began building positions in several pharmaceutical stocks in the third quarter, as well as in T-Mobile U.S. These moves are just continuations of those purchases.
COMPANY (SYMBOL)
SHARES BOUGHT
MARKET VALUE OF NEW SHARES
AbbVie (NYSE: ABBV)
4,268,766
$455 million
Merck (NYSE: MRK)
6,294,333
$477 million
Bristol Myers Squibb (NYSE: BMY)
3,364,822
$204 million
Kroger (NYSE: KR)
8,555,578
$291 million
RH (NYSE: RH)
24,200
$11 million
T-Mobile U.S. (NASDAQ: TMUS)
2,824,844
$343 million
Data source: Berkshire Hathaway 13-F. Market values as of 2/17/21.
6 stocks Berkshire reduced
While Buffett says that his "favorite holding period is forever," Berkshire sells stocks quite regularly. In the fourth quarter, we learned that Berkshire reduced six of its stock positions.
COMPANY (SYMBOL)
SHARES SOLD
MARKET VALUE OF SHARES SOLD
Apple (NASDAQ: AAPL)
57,160,000
$7.44 billion
U.S. Bancorp (NYSE: USB)
823,834
$40 million
General Motors (NYSE: GM)
7,500,000
$397 million
Wells Fargo (NYSE: WFC)
74,956,573
$2.76 billion
Suncor Energy (NYSE: SU)
5,352,318
$100 million
Liberty Latin America (NASDAQ: LILAK)
146,177
$1.7 million
Data source: Berkshire Hathaway 13-F. Market values as of 2/17/21.
The two largest reductions by far were Apple and Wells Fargo, but neither was a huge shock. Apple has been an incredibly successful investment for Berkshire, but with the stake representing over one-fifth of Berkshire's entire market cap, it was due for a trim. Wells Fargo is a stock Buffett has been reducing for some time.
5 stock positions Berkshire exited completely
Berkshire has been unloading most of its bank stocks that aren't called Bank of America (NYSE: BAC) in recent quarters, and the fourth quarter was no exception. In fact, Berkshire completely sold out of five stock positions in the quarter, three of which were banks.
COMPANY (SYMBOL)
SHARES SOLD
MARKET VALUE OF SHARES SOLD
PNC Financial (NYSE: PNC)
1,919,827
$321 million
JPMorgan Chase (NYSE: JPM)
967,267
$140 million
M&T Bank (NYSE: MTB)
2,919,613
$431 million
Barrick Gold (NYSE: GOLD)
12,000,000
$250 million
Pfizer (NYSE: PFE)
3,912,216
$137 million
Data source: Berkshire Hathaway 13-F. Market values as of 2/17/21.
What it all means to you
We don't know why Buffett and his team decided to buy or sell these stocks. We can speculate, but Buffett is notoriously tight-lipped when it comes to moves in Berkshire's stock portfolio.
Keep in mind that this is a snapshot of Berkshire's portfolio at the end of 2020. With the exception of E.W. Scripps, which was reported in January, we have no idea what Berkshire has done in the past month and a half.
Investors should take this information with a big grain of salt. It's generally not a great idea to buy or sell any stock just because a billionaire did, even if that billionaire is Warren Buffett. There's nothing wrong with using this information as a starting point for your owninvestment research but it's still important to do your due diligence.
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Matthew Frankel, CFP owns shares of Apple, Bank of America, Berkshire Hathaway (B shares), General Motors, US Bancorp, and Wells Fargo and has the following options: short February 2021 $140 calls on Apple. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Bristol Myers Squibb. The Motley Fool recommends RH, T-Mobile US, and Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 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 (NYSE: ABBV) 4,268,766 $455 million Merck (NYSE: MRK) 6,294,333 $477 million Bristol Myers Squibb (NYSE: BMY) 3,364,822 $204 million Kroger (NYSE: KR) 8,555,578 $291 million Verizon, in particular, is a rock-solid income stock trading for a reasonable valuation and could have quite a bit of upside potential during the wide-scale rollout of 5G technology in the coming years. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B shares) wasn't one of them! | AbbVie (NYSE: ABBV) 4,268,766 $455 million Merck (NYSE: MRK) 6,294,333 $477 million Bristol Myers Squibb (NYSE: BMY) 3,364,822 $204 million Kroger (NYSE: KR) 8,555,578 $291 million Apple (NASDAQ: AAPL) 57,160,000 $7.44 billion U.S. Bancorp (NYSE: USB) 823,834 $40 million General Motors (NYSE: GM) 7,500,000 $397 million Wells Fargo (NYSE: WFC) 74,956,573 $2.76 billion Suncor Energy (NYSE: SU) 5,352,318 $100 million Liberty Latin America (NASDAQ: LILAK) 146,177 $1.7 million Data source: Berkshire Hathaway 13-F. Market values as of 2/17/21. PNC Financial (NYSE: PNC) 1,919,827 $321 million JPMorgan Chase (NYSE: JPM) 967,267 $140 million M&T Bank (NYSE: MTB) 2,919,613 $431 million Barrick Gold (NYSE: GOLD) 12,000,000 $250 million Pfizer (NYSE: PFE) 3,912,216 $137 million Data source: Berkshire Hathaway 13-F. Market values as of 2/17/21. | AbbVie (NYSE: ABBV) 4,268,766 $455 million Merck (NYSE: MRK) 6,294,333 $477 million Bristol Myers Squibb (NYSE: BMY) 3,364,822 $204 million Kroger (NYSE: KR) 8,555,578 $291 million Apple (NASDAQ: AAPL) 57,160,000 $7.44 billion U.S. Bancorp (NYSE: USB) 823,834 $40 million General Motors (NYSE: GM) 7,500,000 $397 million Wells Fargo (NYSE: WFC) 74,956,573 $2.76 billion Suncor Energy (NYSE: SU) 5,352,318 $100 million Liberty Latin America (NASDAQ: LILAK) 146,177 $1.7 million Data source: Berkshire Hathaway 13-F. Market values as of 2/17/21. 5 stock positions Berkshire exited completely Berkshire has been unloading most of its bank stocks that aren't called Bank of America (NYSE: BAC) in recent quarters, and the fourth quarter was no exception. | AbbVie (NYSE: ABBV) 4,268,766 $455 million Merck (NYSE: MRK) 6,294,333 $477 million Bristol Myers Squibb (NYSE: BMY) 3,364,822 $204 million Kroger (NYSE: KR) 8,555,578 $291 million Warren Buffett and the rest of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) investing team typically don't discuss the stocks they buy and sell, so we have to rely on the quarterly glimpses of the portfolio we get from Berkshire's SEC filings. 4 new stocks in Berkshire's portfolio Buffett and his team added a few stocks during the fourth quarter: |
24210.0 | 2021-02-17 00:00:00 UTC | Here's What Caused Royalty Pharma's Mixed Results in Q4 | ABBV | https://www.nasdaq.com/articles/heres-what-caused-royalty-pharmas-mixed-results-in-q4-2021-02-17 | nan | nan | Most investors would view Royalty Pharma (NASDAQ: RPRX) as a disappointment. The company conducted its much-heralded initial public offering (IPO) last year. Shares ended 2020 up only 12%, well below the major market indexes. Its stock is in negative territory so far this year.
Royalty Pharma announced its fourth-quarter results before the market opened on Wednesday. And it didn't completely disappoint investors even though the healthcare stock slipped a little after the update. Here are the highlights from Royalty Pharma's Q4 results.
Image source: Getty Images.
By the numbers
Royalty Pharma reported Q4 revenue of $572 million, a 25% increase from the $457 million reported in the same quarter of the previous year. This result trounced the average analysts' revenue estimate of $480.7 million.
The company generated net income in the fourth quarter of $171 million based on generally accepted accounting principles (GAAP). This reflected a steep decline from GAAP earnings of $1.4 billion posted in the prior-year period. GAAP earnings per share (EPS) in Q4 came in at $0.29, well below the average analysts estimate of $0.69.
Royalty Pharma ended the fourth quarter with cash and cash equivalents of $2 billion. Its long-term debt totaled $5.8 billion.
Behind the numbers
The company's name provides a good hint at its business model. Royalty Pharma ranks as the largest buyer of royalties from biopharmaceutical companies. Unsurprisingly, its revenue stems from royalties generated by the sales of drugs for which it has conducted transactions.
Royalty Pharma's biggest moneymaker in Q4 was Vertex Pharmaceuticals' (NASDAQ: VRTX) cystic fibrosis (CF) franchise, with royalty receipts jumping 37% year over year to $159 million. Biogen's multiple sclerosis drug Tysabri made Royalty Pharma $93 million in the fourth quarter, a 10% year-over-year increase.
A couple of other drugs weren't too far behind Tysabri. Blockbuster cancer drug Imbruvica, which is marketed by AbbVie and Johnson & Johnson, brought in royalties totaling $85 million, up 12% from the prior-year period. Gilead Sciences' HIV franchise kicked in another $78 million in royalty receipts, a 10% year-over-year increase.
Merck's diabetes drugs, Pfizer's prostate cancer drug Xtandi, and Novartis' bone marrow stimulant Promacta each generated close to $40 billion in royalties for Royalty Pharma in Q4. The rest of the company's receipts were spread across a large number of drugs.
Why did Royalty Pharma's bottom line decline year over year despite its strong revenue growth? The main culprit was a big boost from a provision for changes in expected cash flows from royalties in the prior-year period of $919 million.
Looking ahead
Royalty Pharma projects adjusted cash receipts will be between $1.91 million and $1.96 million for full-year 2021. Over the longer period through 2025, the company expects adjusted cash receipts will increase by a compound annual growth rate (CAGR) of 7% to 10%. That's an increase from the previous outlook of CAGR between 6% and 9%.
One key thing to watch this year is Vertex's continued launch of CF drug Kaftrio in Europe. The U.S. launch of the drug (under the brand name Trikafta) has been a huge success. However, Vertex's guidance given in its Q4 update anticipates a significant slowdown in growth in 2021. If that forecast proves to be overly pessimistic (which seems possible), it will be great news for Royalty Pharma.
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Keith Speights owns shares of AbbVie, Pfizer, and Vertex Pharmaceuticals. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Biogen, Johnson & Johnson, 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. | Blockbuster cancer drug Imbruvica, which is marketed by AbbVie and Johnson & Johnson, brought in royalties totaling $85 million, up 12% from the prior-year period. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Pfizer, and Vertex Pharmaceuticals. The company generated net income in the fourth quarter of $171 million based on generally accepted accounting principles (GAAP). | Blockbuster cancer drug Imbruvica, which is marketed by AbbVie and Johnson & Johnson, brought in royalties totaling $85 million, up 12% from the prior-year period. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Pfizer, and Vertex Pharmaceuticals. By the numbers Royalty Pharma reported Q4 revenue of $572 million, a 25% increase from the $457 million reported in the same quarter of the previous year. | Blockbuster cancer drug Imbruvica, which is marketed by AbbVie and Johnson & Johnson, brought in royalties totaling $85 million, up 12% from the prior-year period. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Pfizer, and Vertex Pharmaceuticals. By the numbers Royalty Pharma reported Q4 revenue of $572 million, a 25% increase from the $457 million reported in the same quarter of the previous year. | Blockbuster cancer drug Imbruvica, which is marketed by AbbVie and Johnson & Johnson, brought in royalties totaling $85 million, up 12% from the prior-year period. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Pfizer, and Vertex Pharmaceuticals. By the numbers Royalty Pharma reported Q4 revenue of $572 million, a 25% increase from the $457 million reported in the same quarter of the previous year. |
24211.0 | 2021-02-17 00:00:00 UTC | 2 Top Stocks to Buy for a Post-Pandemic World | ABBV | https://www.nasdaq.com/articles/2-top-stocks-to-buy-for-a-post-pandemic-world-2021-02-17 | nan | nan | The COVID-19 pandemic is still ongoing, but there is a real possibility that we could go back to some semblance of pre-coronavirus life sometime this year. The U.S. Food and Drug Administration (FDA) has granted Emergency Use Authorization to two vaccines for the SARS-CoV-2 virus, which causes COVID-19. If all goes well, much of the U.S. population could have access to these vaccines within the next six months (or so).
Drugmakers played an important role in the fight against COVID-19, and many of them benefited from these efforts. But for investors, it's essential to invest in companies that will perform well once the pandemic subsides. Merck (NYSE: MRK) and Pfizer (NYSE: PFE) are two pharma giants with a bright future regardless of what happens next. Read on to find out why both of these companies are worth investing in.
MRK data by YCharts
1. Merck
This pharma giant hasn't performed well over the past 12 months: The company's stock is down by 9.26%, compared with gains of 16.41% for the S&P 500. But Merck's poor showing over the past year also means its stock is currently trading at relatively attractive levels. The company's forward price-to-earnings (P/E) ratio is 11.63, compared with a forward P/E of 25.35 for the S&P 500.
Meanwhile, Merck's price-to-earnings growth (PEG) ratio is 0.68 -- anything less than 1 is generally considered undervalued. The coronavirus outbreak and the ensuing stay-at-home orders led to reduced access to healthcare products such as vaccines and medicines, which negatively impacted Merck's business. However, there are excellent reasons to think its performance will improve as the world progressively shifts back to something resembling pre-pandemic days.
Arguably the most important is the company's Keytruda, a drug approved to treat various types of cancer. During its fiscal year 2020, which ended on Dec. 31, Merck's sales were up a meager 2% year over year to $48 billion. However, Keytruda sales jumped by 30% year over year to $14.4 billion. And the cancer medicine still has a bright future ahead; it's currently undergoing more than a dozen phase 3 clinical trials, and it should be able to add at least a handful of indications within another couple of years or so.
Image Source: Getty Images.
Research firm Evaluate Pharma projects that Keytruda will be the world's best-selling drug by 2024. And Merck is working on many other programs, including 31 in phase 2 trials and 25 in phase 3. These will help the company enrich its lineup even beyond Keytruda. Merck's animal health business, which develops and markets veterinary pharmaceutical products, is also performing well. Last year, sales from this segment increased by 7% year over year to $4.7 billion.
During the company's fourth-quarterearnings call CFO Rob Davis said the growth of the animal health segment is "best-in-class." This market is projected to expand at a good clip in the coming years, and it will continue to be an important key growth driver for Merck. Overall, Merck looks like a solid healthcare stock to bet on moving forward thanks to its oncology and animal health businesses. The company's shares may not remain on the cheap side for that much longer.
2. Pfizer
Pfizer has been grabbing scores of headlines thanks to its efforts to develop a vaccine for COVID-19 in collaboration with BioNTech. These efforts have, thus far, been successful: The company's candidate was the first to receive Emergency Use Authorization from the FDA. Although Pfizer will have to share the spoils with BioNTech, this vaccine will have a measurable impact on its top line.
But there are other reasons to consider adding shares of Pfizer to your portfolio. In November, the pharma giant spun off its off-patent medicine unit, Upjohn, to Mylan. The combined entity became a brand new company called Viatris, which started trading on the market on Nov. 17.
Why was this move important? Upjohn was becoming a serious drag on Pfizer's top-line growth. During the nine-month period ending Sept. 30, revenue from Upjohn dropped by 30% year over year to $5.9 billion. The decline was due to lower sales volume caused by competitive pressure for such products as pain medicine Lyrica.
Image source: Getty Images.
Meanwhile, sales from its biopharma segment rose by 6% to $30 billion, despite some headwinds caused by the pandemic. For the full fiscal year 2020, which ended on Dec. 31, Pfizer's biopharma revenue jumped by 7% year over year to $41.9 billion. Moving forward, Pfizer will be able to focus on this better-performing business.
One of the company's best-selling drugs is anticoagulant Eliquis, with worldwide sales for fiscal 2020 of $4.9 billion, a 17% increase over 2019. Then there is cancer drug Ibrance, which posted revenue for the same period of roughly $5.4 billion, a 9% year-over-year increase. Rheumatoid arthritis (RA) treatment Xeljanz is also no slouch; its $2.4 billion in revenue last year also represented a 9% increase over 2019.
It is worth noting that Pfizer recently reported results from a post-marketing study for Xeljanz. The study compared the safety profile of Xeljanz versus that of TNF inhibitors (drugs such as AbbVie's Humira that treat autoimmune disorders) on RA patients who were at least 50 and had at least one additional cardiovascular risk factor. The data showed that patients on Xeljanz had higher rates of cardiovascular events and malignancies.
No doubt this was a blow to Pfizer, but in my view, the company's prospects remain more or less intact. The FDA might opt to put more restrictions on the drug, but Pfizer can count on its coronavirus vaccine to make up some of the revenue it would lose as a result. Also, the company has more than 90 programs it is currently working on (including 24 phase 3 studies), and some of them are bound to strengthen its lineup.
Pfizer's forward P/E is currently a respectable 10.33, while its PEG is 0.90, making its stock reasonably valued. While it has underperformed the broader market of late, Pfizer's COVID-19 vaccine and its biopharma business have set it up for long-term success, leaving the company well positioned to turn its recent stock performance around -- particularly for investors willing to be patient.
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Prosper Junior Bakiny 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. | The study compared the safety profile of Xeljanz versus that of TNF inhibitors (drugs such as AbbVie's Humira that treat autoimmune disorders) on RA patients who were at least 50 and had at least one additional cardiovascular risk factor. The coronavirus outbreak and the ensuing stay-at-home orders led to reduced access to healthcare products such as vaccines and medicines, which negatively impacted Merck's business. While it has underperformed the broader market of late, Pfizer's COVID-19 vaccine and its biopharma business have set it up for long-term success, leaving the company well positioned to turn its recent stock performance around -- particularly for investors willing to be patient. | The study compared the safety profile of Xeljanz versus that of TNF inhibitors (drugs such as AbbVie's Humira that treat autoimmune disorders) on RA patients who were at least 50 and had at least one additional cardiovascular risk factor. Merck (NYSE: MRK) and Pfizer (NYSE: PFE) are two pharma giants with a bright future regardless of what happens next. Merck This pharma giant hasn't performed well over the past 12 months: The company's stock is down by 9.26%, compared with gains of 16.41% for the S&P 500. | The study compared the safety profile of Xeljanz versus that of TNF inhibitors (drugs such as AbbVie's Humira that treat autoimmune disorders) on RA patients who were at least 50 and had at least one additional cardiovascular risk factor. During its fiscal year 2020, which ended on Dec. 31, Merck's sales were up a meager 2% year over year to $48 billion. For the full fiscal year 2020, which ended on Dec. 31, Pfizer's biopharma revenue jumped by 7% year over year to $41.9 billion. | The study compared the safety profile of Xeljanz versus that of TNF inhibitors (drugs such as AbbVie's Humira that treat autoimmune disorders) on RA patients who were at least 50 and had at least one additional cardiovascular risk factor. However, Keytruda sales jumped by 30% year over year to $14.4 billion. Last year, sales from this segment increased by 7% year over year to $4.7 billion. |
24212.0 | 2021-02-17 00:00:00 UTC | 3 Top Healthcare Stocks That Can Make You Richer in 2021 (and Beyond) | ABBV | https://www.nasdaq.com/articles/3-top-healthcare-stocks-that-can-make-you-richer-in-2021-and-beyond-2021-02-17 | nan | nan | The path to wealth is long, but every step in the right direction counts. That's why it's important to pack your portfolio with stocks that have the long-term stability and shareholder returns that you'll need to make consistent progress over time. Don't confuse stability for being boring, though -- it's often the more stable companies that are quietly making money hand over fist.
The companies I'll discuss today are profitable, growing quickly, and they also pay dividends. More importantly, their business models are already proven, so they won't be as risky as other fast-growing companies, but they'll still pull through for your portfolio.
Image source: Getty Images.
1. Simulations Plus
As its name implies, Simulations Plus (NASDAQ: SLP) makes simulation software for drug discovery. In the context of the ongoing biotechnology gold rush, you can think of the business as selling a very specific type of shovel that helps research groups develop their ideas for new therapies before they hit the lab and conduct (often very expensive and time-consuming) experiments. By using simulations first, researchers can cut down on some of the wasted effort that they might otherwise experience from dead ends in the process. So, it makes sense that everyone from academic research laboratories to big pharma has an interest in the company's products.
Since it derives nearly half of its revenue from consulting services and the other half from software subscriptions, the company's revenue is highly recurring overall. 89% of its customers renewed their software subscription in FY2020, and its consulting services are increasingly in demand too. That's great news for investors seeking sustainable growth. To sweeten the pot even more, total revenue grew by 22% in the 2020 fiscal year to reach $41.6 million, its largest yet.
There's just one caveat to keep in mind: don't expect this stock to go to the moon overnight. Even though the company is reporting solid revenue growth, it isn't a start-up anymore.
2. Premier
Providing healthcare is expensive in the U.S., and Premier (NASDAQ: PINC) is flourishing by helping healthcare systems to make more money. In short, Premier offers a mind-boggling plethora of services, like group purchasing contracts, direct sourcing, logistics analytics, capital planning, regulatory support, and supply chain optimization to name just a few. The uniting theme of these services is that they help customers cut costs and improve their margins. To accomplish this goal, it uses an army of supply chain experts and consultants equipped with enterprise resource planning (ERP) software.
Premier's customer base is more than 4,100 hospitals and healthcare systems strong, many of whom are eager to save money amid the economic strain of the pandemic. So, it's no surprise that its consolidated net revenue grew by 32% in the most recent quarter of FY2021, reaching $422.8 million. Most of the company's revenue comes from its supply chain services, which hospitals need in perpetuity. In sum, its business is quite safe from disruption in the short term.
If this sounds like it might be a good fit for your portfolio, you're in luck. Right now, Premier's stock is likely undervalued, as its trailing price to earnings (P/E) ratio of 13.7 is low compared to the average of the healthcare information and technology industry, which is around 163.
3. AbbVie
Pharma giant AbbVie (NYSE: ABBV) is an excellent option for anyone interested in getting direct financial exposure to the drug development process. AbbVie's lineup includes Humira, which is one of the world's best selling drugs, netting it nearly $20 billion in 2019 alone. But, it also has plenty of other projects in the works, some of which will be heading to commercialization in the next few years if everything goes according to plan. Most recently, it got a pair of new regulatory approvals from the European Commission for Rinvoq, an arthritis drug. Thus, its near-term growth prospects are good, especially considering that other approvals are on the way.
In the long term, the company's success with Humira will likely be supplanted by a mosaic of other revenue streams, including further development of drugs like Rinvoq. That isn't to say that investors will need to wait for AbbVie's projects to advance before they see the stock grow, though. Its quarterly revenue grew by a stunning 59.2% year over year per its latest earnings report. And, since it also makes in-demand treatments like Botox, it's safe to say that it isn't going anywhere anytime soon.
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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 Pharma giant AbbVie (NYSE: ABBV) is an excellent option for anyone interested in getting direct financial exposure to the drug development process. AbbVie's lineup includes Humira, which is one of the world's best selling drugs, netting it nearly $20 billion in 2019 alone. That isn't to say that investors will need to wait for AbbVie's projects to advance before they see the stock grow, though. | AbbVie Pharma giant AbbVie (NYSE: ABBV) is an excellent option for anyone interested in getting direct financial exposure to the drug development process. AbbVie's lineup includes Humira, which is one of the world's best selling drugs, netting it nearly $20 billion in 2019 alone. That isn't to say that investors will need to wait for AbbVie's projects to advance before they see the stock grow, though. | AbbVie Pharma giant AbbVie (NYSE: ABBV) is an excellent option for anyone interested in getting direct financial exposure to the drug development process. AbbVie's lineup includes Humira, which is one of the world's best selling drugs, netting it nearly $20 billion in 2019 alone. That isn't to say that investors will need to wait for AbbVie's projects to advance before they see the stock grow, though. | That isn't to say that investors will need to wait for AbbVie's projects to advance before they see the stock grow, though. AbbVie Pharma giant AbbVie (NYSE: ABBV) is an excellent option for anyone interested in getting direct financial exposure to the drug development process. AbbVie's lineup includes Humira, which is one of the world's best selling drugs, netting it nearly $20 billion in 2019 alone. |
24213.0 | 2021-02-15 00:00:00 UTC | These 4 Dividend ETFs Are a Retiree's Best Friend | ABBV | https://www.nasdaq.com/articles/these-4-dividend-etfs-are-a-retirees-best-friend-2021-02-15 | nan | nan | Whoever said that dogs are man's best friend probably wasn't retired. Sure, it's great to have Fido around for company, but he can't pay the bills as well as a dividend ETF can. In this era of low bond yields, dividend ETFs are an increasingly attractive alternative for retirees who need a reliable stream of income to supplement their Social Security.
The trade-off of dividend investing over fixed income investing, of course, is the added risk associated with equities. Share prices and even dividend payments can fluctuate in the short term. As a retiree, you want to minimize those ups and downs, particularly with respect to your income. You can do that by selecting dividend ETFs that focus on quality as well as yield. Here are four that fit that mold.
Image source: Getty Images.
1. Vanguard Dividend Appreciation ETF (NYSEMKT: VIG)
VIG tracks the NASDAQ U.S. Dividend Achievers Select Index, which includes companies that have increased their dividend annually for 10 consecutive years (excluding limited partnerships and REITs). The index is weighted by market capitalization, so larger companies have a proportionally greater influence. VIG holds all 212 companies within the index, including Microsoft, Walmart, and Proctor & Gamble.
Its expense ratio is 0.06% with a dividend yield of 1.67%. That is on the lower side, but you can chalk that up to the cost of quality. While all four of the funds on this list incorporate some type of quality screen, only VIG limits its holding to companies that have increased dividends for at least 10 years consecutively.
2. iShares Core Dividend Growth ETF (NYSEMKT: DGRO)
DGRO's portfolio includes companies that have paid dividends for at least five consecutive years. That criteria on its own isn't very restrictive, but the fund also screens out companies that may have unsustainable payouts. These include companies with payout ratios greater than 75% and those in the top decile of dividend yield. High yield is great for shareholders, but if it's the result of a falling share price, it could signal an upcoming dividend cut as well.
The fund tracks the U.S. Morningstar Dividend Growth Index, but it doesn't hold every position in the index. Instead, the portfolio is a representative sample of companies that mimic the index's behavior. Major holdings include Johnson & Johnson, JPMorgan Chase, and Apple.
DGRO has an expense ratio of 0.08% and its dividend yield is 2.27%.
3. Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD)
SCHD tracks the Dow Jones U.S. Dividend 100 Index. Included companies have 10 or more years of consecutive dividend payments and also rank well on cash flow, return on equity, dividend yield, and dividend growth. As with VIG, REITs are not eligible. The fund holds all 100 companies in the index, including Coca-Cola, Pepsi, Texas Instruments, and 3M.
SCHD has an expense ratio of 0.06% and a strong dividend yield of 3.45%.
4. First Trust Morningstar Dividend Leaders Index Fund (NYSEMKT: FDL)
FDL replicates the Morningstar Dividend Leaders Index. The index is yield focused, but dividend sustainability and consistency are also inclusion criteria. The fund includes all 100 companies in the index, and they're weighted according to shares outstanding and dividend size. AT&T, AbbVie, Philip Morris, and Verizon are top holdings.
FDL is less efficient than the other three funds with an expense ratio of 0.45%, but the yield of 4.32% is about the highest you'll find without sacrificing too much on quality.
Choose quality for peace of mind
When it comes to choosing a dividend ETF to provide retirement income, quality is a primary consideration. Think through how much fluctuation in income and share price you can handle. If your risk tolerance is low, choose a more conservative fund like VIG. If you can handle less consistency and want a higher payout, FDL may have a place in your portfolio.
Yield is nice, but so is your peace of mind. Go with a dividend ETF that delivers both.
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Catherine Brock has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple and Microsoft. The Motley Fool owns shares of Texas Instruments and Vanguard Dividend Appreciation ETF. The Motley Fool recommends 3M, Johnson & Johnson, and Verizon Communications. 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. | AT&T, AbbVie, Philip Morris, and Verizon are top holdings. In this era of low bond yields, dividend ETFs are an increasingly attractive alternative for retirees who need a reliable stream of income to supplement their Social Security. While all four of the funds on this list incorporate some type of quality screen, only VIG limits its holding to companies that have increased dividends for at least 10 years consecutively. | AT&T, AbbVie, Philip Morris, and Verizon are top holdings. Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) VIG tracks the NASDAQ U.S. Dividend Achievers Select Index, which includes companies that have increased their dividend annually for 10 consecutive years (excluding limited partnerships and REITs). 2. iShares Core Dividend Growth ETF (NYSEMKT: DGRO) DGRO's portfolio includes companies that have paid dividends for at least five consecutive years. | AT&T, AbbVie, Philip Morris, and Verizon are top holdings. Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) VIG tracks the NASDAQ U.S. Dividend Achievers Select Index, which includes companies that have increased their dividend annually for 10 consecutive years (excluding limited partnerships and REITs). 2. iShares Core Dividend Growth ETF (NYSEMKT: DGRO) DGRO's portfolio includes companies that have paid dividends for at least five consecutive years. | AT&T, AbbVie, Philip Morris, and Verizon are top holdings. You can do that by selecting dividend ETFs that focus on quality as well as yield. These include companies with payout ratios greater than 75% and those in the top decile of dividend yield. |
24214.0 | 2021-02-14 00:00:00 UTC | 3 Embarrassingly Cheap Dividend Stocks | ABBV | https://www.nasdaq.com/articles/3-embarrassingly-cheap-dividend-stocks-2021-02-14 | nan | nan | Keeping track of all the market developments over the past year -- including hot IPOs, surging cryptocurrency prices, and a historic short squeeze that dominated the news -- can be exhausting. Investors who chase those headlines might make some money, but they could also be badly burned.
Before investors chase those speculative plays, they should strengthen their core portfolios with undervalued stocks that pay consistent dividends. That might seem difficult as the market and many of the stocks in it hover near all-time highs, but Cisco (NASDAQ: CSCO), AbbVie (NYSE: ABBV), and Philip Morris International (NYSE: PM) all easily fit the bill.
Let's find out a bit more about these three cheap dividend stocks.
Image source: Getty Images.
1. Cisco
Cisco, the world's top maker of networking switches and routers, has disappointed investors over the past year with five straight quarters of year-over-year revenue declines.
Its infrastructure platforms business, which sells switches, routers, and other hardware, struggled as the pandemic disrupted network upgrades at enterprise campuses and data centers. That sluggishness repeatedly offset the stronger growth of its smaller cybersecurity business.
But on the bright side, Cisco expects its revenue to finally rise again in the current (third) quarter, as the pandemic-related headwinds wane and it closes its takeover of Acacia Communications (NASDAQ: ACIA). Analysts expect Cisco's revenue growth to stay roughly flat in fiscal 2021, but increase 4% next year as its infrastructure business stabilizes.
That outlook isn't exciting, but Cisco is paying a forward dividend yield of 3% to patient investors. It spent just 42% of its free cash flow (FCF) on that dividend over the past 12 months, and it's raised its payout every year since its first dividend payment in 2011. The stock's low forward P/E ratio of 14 should also limit its downside potential in this frothy market.
2. AbbVie
AbbVie struggled over the past few years as its blockbuster arthritis drug Humira, which generated 61% of its revenue back in 2015, faced patent expirations and generic competition. Humira still accounted for 43% of AbbVie's top line in 2020, but it already faces competition from biosimilars in Europe, and its U.S. patents will expire in 2023.
Image source: Getty Images.
But AbbVie hasn't been sitting still and waiting for those sales to plunge. It expanded its oncology portfolio by buying Pharmcyclics in 2015 and Stemcentrx in 2016. Last May, it acquired Allergan, the maker of Botox.
AbbVie's purchase of Stemcentrx flopped after its main cancer drug failed, but it still expects its other acquisitions and partnerships to diversify its business away from Humira. Based on these factors, Abbvie expects its sales to continue climbing until 2023, followed by a year-long decline before returning to growth in 2024 and 2025.
That road seems bumpy, but AbbVie is also paying a forward dividend yield of 4.9% to investors who are willing to ride out Humira's patent expiration. Its dividend only used up 47% of its FCF over the past 12 months, and it's raised that payout every year since its spin-off from Abbott Labs (NYSE: ABT) in 2013.
AbbVie's stock also trades at just eight times forward earnings, making it much cheaper than many of its peers in the pharmaceutical sector.
3. Philip Morris International
Philip Morris International, the overseas tobacco giant that was spun off from Altria (NYSE: MO) in 2008, remains a stronger investment than its domestic counterpart, for three simple reasons.
First, PMI is diversified across a broad range of markets, while Altria is completely dependent on the U.S. market, where adult smoking rates have declined over the past five decades. Second, PMI doesn't make reckless investments like Altria, which blew billions of dollars buying stakes in the e-cigarette maker Juul and the cannabis company Cronos Group -- neither of which offset its declining cigarette sales.
Lastly, PMI's iQOS business, which sells heated tobacco devices, generates much stronger growth than its core cigarette business. Altria also sells iQOS products via a partnership with PMI, but they're clumped together with other "smokeless" products like wine and nicotine pouches.
PMI's core strengths, along with its ongoing price hikes to offset declining cigarette shipments, should help it generate stable returns for the foreseeable future. Its growth decelerated last year throughout the pandemic, but analysts expect its revenue and earnings to rise 9% and 16%, respectively, this year -- which are solid growth rates for a stock that trades at 13 times forward earnings.
PMI pays a forward dividend yield of 5.6%, and it's raised that dividend every year since its split with Altria. That streak should continue since it spent just 80% of its FCF on that payout over the past 12 months.
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Leo Sun owns shares of AbbVie and Cisco Systems. 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. | That might seem difficult as the market and many of the stocks in it hover near all-time highs, but Cisco (NASDAQ: CSCO), AbbVie (NYSE: ABBV), and Philip Morris International (NYSE: PM) all easily fit the bill. AbbVie AbbVie struggled over the past few years as its blockbuster arthritis drug Humira, which generated 61% of its revenue back in 2015, faced patent expirations and generic competition. Humira still accounted for 43% of AbbVie's top line in 2020, but it already faces competition from biosimilars in Europe, and its U.S. patents will expire in 2023. | That might seem difficult as the market and many of the stocks in it hover near all-time highs, but Cisco (NASDAQ: CSCO), AbbVie (NYSE: ABBV), and Philip Morris International (NYSE: PM) all easily fit the bill. AbbVie AbbVie struggled over the past few years as its blockbuster arthritis drug Humira, which generated 61% of its revenue back in 2015, faced patent expirations and generic competition. Humira still accounted for 43% of AbbVie's top line in 2020, but it already faces competition from biosimilars in Europe, and its U.S. patents will expire in 2023. | That might seem difficult as the market and many of the stocks in it hover near all-time highs, but Cisco (NASDAQ: CSCO), AbbVie (NYSE: ABBV), and Philip Morris International (NYSE: PM) all easily fit the bill. AbbVie AbbVie struggled over the past few years as its blockbuster arthritis drug Humira, which generated 61% of its revenue back in 2015, faced patent expirations and generic competition. Humira still accounted for 43% of AbbVie's top line in 2020, but it already faces competition from biosimilars in Europe, and its U.S. patents will expire in 2023. | That might seem difficult as the market and many of the stocks in it hover near all-time highs, but Cisco (NASDAQ: CSCO), AbbVie (NYSE: ABBV), and Philip Morris International (NYSE: PM) all easily fit the bill. AbbVie AbbVie struggled over the past few years as its blockbuster arthritis drug Humira, which generated 61% of its revenue back in 2015, faced patent expirations and generic competition. Humira still accounted for 43% of AbbVie's top line in 2020, but it already faces competition from biosimilars in Europe, and its U.S. patents will expire in 2023. |
24215.0 | 2021-02-12 00:00:00 UTC | 8 Growing Dividend Payers (up to 8.2%) You Can Sit on for Decades | ABBV | https://www.nasdaq.com/articles/8-growing-dividend-payers-up-to-8.2-you-can-sit-on-for-decades-2021-02-12 | nan | nan | If we learned anything from 2020, it was the value of a few extra rolls of toilet paper. A close second? The reminder about the value of a reliable dividend.
This lesson has been taught over and over. The dot-com bubble. The Great Recession. The "COVID crash." And sure enough, first-level investors don't learn a thing--they chase one fat yield after another into the ground.
We next-level income investors know better. It's important to consider the business engine under the hood. When we find cash flow machines like the eight dividend payers we're about to discuss, we're talking about decades of payments.
And it's not only about the payouts that are heading into our pockets. Over the long haul, stock prices appreciate along with their dividends. Many 2X, 3X and even 5X and 10X profits are enjoyed over many years as these payouts continually rise, and stocks "chase their dividends higher."
We focus on reliability, and leave dicey dividends to the brave (read: foolish).
Consider this: In the eight-year span between 2012 and 2019, nine S&P 500 companies suspended their dividends. That's virtually one a year. A blip. That's nothing.
S&P Indicated Dividend Rate Changes
Source: Howard Silverblatt, S&P Dow Jones Indices
Then in 2020, we saw forty-four dividends go down. And that was merely within the S&P 500's collection of blue chips!
Of course, no crystal ball will tell any of us when we'll get our next market crash or our next recession. But the right data can give us a pretty concrete idea of which dividends will survive those events.
If you're not yet familiar with the DIVCON system, let me catch you up. This "dividend health" system examines a broad world of stocks, digging into important payout metrics such as free cash flow generation, earnings growth and even money allocated to buybacks, then it rates stocks on an easy-to-understand 1-to-5 scale.
DIVCON levels 1 and 2 represent weak dividends with a higher likelihood of being cut in the future.
DIVCON levels 4 and 5 meanwhile reflect stronger dividends that not only should persist, but should grow higher in time.
Since we put a premium on reliability, we naturally gravitate towards the "fundamentally strong" dividends reflected by DIVCON 4 and 5 ratings. Let's discuss a few, starting with the insurance industry.
These stocks should benefit from a continued rise in long-term interest rates. Here four that have strong cash flows with respect to their payouts already.
The Insurers: Rising Interest Rate Catalyst
DIVCON likes insurers, such as:
Prudential Insurance (PRU): 5.6% yield, DIVCON 4
CNA Financial (CNA): 3.5% yield, DIVCON 4
Fidelity National Insurance (FNF): 3.7% yield, DIVCON 4
Aflac (AFL): 2.9% yield, DIVCON 5
Each one of these firms has plenty of extra cash. The "worst" of the quartet is CNA, which has a still-cushy 173% free cash flow-to-dividend ratio. The rest boast FCF-to-dividends ranging from 670% to 1,030%, which means they can cover their dividends six to ten times over this year.
With plenty of cash coverage, it's no surprise that each of these are reliable dividend growers, too. Aflac, a "Dividend Aristocrat" with four decades of consecutive annual hikes under its belt, is the most well-known. But don't sleep on CNA. The headline yield isn't much at 3.5%, but that doesn't factor in the typically mammoth special dividend. CNA Financial has been doling out $2 "special" payouts for years, which bring its total yield up closer to 8.2%!
CNA is "only" providing an extra 75 cents for this year's special payout to reflect COVID difficulties--a good sign those $2 payouts will return when normalcy does.
These and other insurers finally have finally been getting up off the mat since summer as economic hopes have improved, and more importantly for insurers, interest rates have begun to bounce back.
Firms that write policies smartly--like these four insurers--generate extra "float" which they can invest each year. With long-term rates in the tank, these companies haven't been able to earn much on their idle cash. But as interest rates rise, it will provide them with a nice catalyst for higher profits:
Getting paid a reliable dividend while we wait for a catalyst to kick in is not a bad way to invest. Do pharma payouts look similarly intriguing?
Pharmaceuticals: Booster Shots for Our Portfolio?
Big Pharma and Big Biotech stand out in DIVCON's ratings, too. You've got "Dow Dog" Merck (MRK, 3.5%), which gets a top DIVCON 5 rating. You also have Pfizer (PFE, 4.5%) and AbbVie (ABBV, 4.9%), which are plenty-safe DIVCON 4s and offer more yield.
Few industries offer up safer dividends than pharma stocks. That's good, because once these companies enter mega-cap territory, it's difficult for them to produce much growth.
Typically, these companies must go out and "buy" a promising drug, much as Pfizer did with its virus vaccine. Ironically, Pfizer's stock didn't move at all last year despite the positive headlines for the company. Drug development is a tough business, and dividend growth can often reflect this.
Let's bounce back to the financial world to close out our tour of DIVCON 4+. Here we have a boutique investment banking stock that is bizarrely in the bargain bin.
Investment Banker: A Rare Bargain?
One i-banking firm stands out to me, and that's Jefferies (JEF). Jefferies provides clients with asset management, brokerage services, financial advisory, it has a research arm, it underwrites IPOs.
The market is in go-go mode. That alone helps Jefferies. But a frenzied market also helps the business in another way--by spurring more M&A, which plays into another Jefferies advisory business.
DIVCON gives Jefferies a perfect 5, and it's not hard to see why. The company has a FCF-to-dividend ratio of 1,350%, which is conservative to the point of being downright chintzy.
But at least it's working on it--JEF announced a 33% hike to 20 cents per share quarterly for its 2021 dividends.
Will the "Dividend Magnet" Pull Jefferies Higher?
Hopefully, that will help JEF improve upon what has been mostly rangebound performance over the past few years.
REVEALED: How to Make a PREDICTABLE 20% Gain in 2021 (Bull or Bear!)
These DIVCON stalwarts can help you at least protect your profits, but you want more than that out of a dividend-growth plan.
And you can get more than that out of my "A team."
Riding dividend growers to red-hot total returns is a staple of my investing plan, and if it's not already one of the pillars of your retirement strategy, you need to fix that--today.
Consider this: Right now, I've identified 7 recession-proof dividend growers that look ready to give investors a monster performance in 2021. I call them "recession-proof" because they have the perfect mix of qualities that enable them to deliver reliable, predictable returns of 12% to 20% every year, regardless of whether we're in a bull market or a bear.
This 7-stock "mini-portfolio" puts the power in your hands. Each of these picks checks off the most important boxes for any retirement investment. They can:
Predictably double or triple your investment every few years.
Protect your portfolio from wild swings so you can enjoy a stress-free, secure retirement.
Let you hold them for years without the "can't sleep at night" worries you've no doubt been living with through 2020.
And unlike the stocks above, all 7 of these low-key dividend growers are bargains right now. However, I don't expect that to last for long. The market has started keying in on value after squeezing every drop of profit from growth, so these low-volatility dividends are about to become en vogue again.
Get full details--names, tickers, complete dividend histories, best-buy prices and more--on all 7 of these stout dividend growers now. You have everything to gain and nothing to lose by giving them a look.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | You also have Pfizer (PFE, 4.5%) and AbbVie (ABBV, 4.9%), which are plenty-safe DIVCON 4s and offer more yield. Jefferies provides clients with asset management, brokerage services, financial advisory, it has a research arm, it underwrites IPOs. Riding dividend growers to red-hot total returns is a staple of my investing plan, and if it's not already one of the pillars of your retirement strategy, you need to fix that--today. | You also have Pfizer (PFE, 4.5%) and AbbVie (ABBV, 4.9%), which are plenty-safe DIVCON 4s and offer more yield. This "dividend health" system examines a broad world of stocks, digging into important payout metrics such as free cash flow generation, earnings growth and even money allocated to buybacks, then it rates stocks on an easy-to-understand 1-to-5 scale. The Insurers: Rising Interest Rate Catalyst DIVCON likes insurers, such as: Prudential Insurance (PRU): 5.6% yield, DIVCON 4 CNA Financial (CNA): 3.5% yield, DIVCON 4 Fidelity National Insurance (FNF): 3.7% yield, DIVCON 4 Aflac (AFL): 2.9% yield, DIVCON 5 Each one of these firms has plenty of extra cash. | You also have Pfizer (PFE, 4.5%) and AbbVie (ABBV, 4.9%), which are plenty-safe DIVCON 4s and offer more yield. Many 2X, 3X and even 5X and 10X profits are enjoyed over many years as these payouts continually rise, and stocks "chase their dividends higher." This "dividend health" system examines a broad world of stocks, digging into important payout metrics such as free cash flow generation, earnings growth and even money allocated to buybacks, then it rates stocks on an easy-to-understand 1-to-5 scale. | You also have Pfizer (PFE, 4.5%) and AbbVie (ABBV, 4.9%), which are plenty-safe DIVCON 4s and offer more yield. Many 2X, 3X and even 5X and 10X profits are enjoyed over many years as these payouts continually rise, and stocks "chase their dividends higher." The Insurers: Rising Interest Rate Catalyst DIVCON likes insurers, such as: Prudential Insurance (PRU): 5.6% yield, DIVCON 4 CNA Financial (CNA): 3.5% yield, DIVCON 4 Fidelity National Insurance (FNF): 3.7% yield, DIVCON 4 Aflac (AFL): 2.9% yield, DIVCON 5 Each one of these firms has plenty of extra cash. |
24216.0 | 2021-02-11 00:00:00 UTC | Implied CURE Analyst Target Price: $90 | ABBV | https://www.nasdaq.com/articles/implied-cure-analyst-target-price%3A-%2490-2021-02-11 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Daily Healthcare Bull 3X Shares ETF (Symbol: CURE), we found that the implied analyst target price for the ETF based upon its underlying holdings is $90.21 per unit.
With CURE trading at a recent price near $82.04 per unit, that means that analysts see 9.96% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of CURE's underlying holdings with notable upside to their analyst target prices are Becton, Dickinson & Co (Symbol: BDX), AbbVie Inc (Symbol: ABBV), and Thermo Fisher Scientific Inc (Symbol: TMO). Although BDX has traded at a recent price of $252.90/share, the average analyst target is 11.35% higher at $281.62/share. Similarly, ABBV has 11.00% upside from the recent share price of $104.05 if the average analyst target price of $115.50/share is reached, and analysts on average are expecting TMO to reach a target price of $538.14/share, which is 10.98% above the recent price of $484.88. Below is a twelve month price history chart comparing the stock performance of BDX, ABBV, and TMO:
Combined, BDX, ABBV, and TMO represent 10.43% of the Daily Healthcare Bull 3X Shares ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Daily Healthcare Bull 3X Shares ETF CURE $82.04 $90.21 9.96%
Becton, Dickinson & Co BDX $252.90 $281.62 11.35%
AbbVie Inc ABBV $104.05 $115.50 11.00%
Thermo Fisher Scientific Inc TMO $484.88 $538.14 10.98%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of BDX, ABBV, and TMO: Combined, BDX, ABBV, and TMO represent 10.43% of the Daily Healthcare Bull 3X Shares ETF. Daily Healthcare Bull 3X Shares ETF CURE $82.04 $90.21 9.96% Becton, Dickinson & Co BDX $252.90 $281.62 11.35% AbbVie Inc ABBV $104.05 $115.50 11.00% Thermo Fisher Scientific Inc TMO $484.88 $538.14 10.98% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of CURE's underlying holdings with notable upside to their analyst target prices are Becton, Dickinson & Co (Symbol: BDX), AbbVie Inc (Symbol: ABBV), and Thermo Fisher Scientific Inc (Symbol: TMO). | Three of CURE's underlying holdings with notable upside to their analyst target prices are Becton, Dickinson & Co (Symbol: BDX), AbbVie Inc (Symbol: ABBV), and Thermo Fisher Scientific Inc (Symbol: TMO). Below is a twelve month price history chart comparing the stock performance of BDX, ABBV, and TMO: Combined, BDX, ABBV, and TMO represent 10.43% of the Daily Healthcare Bull 3X Shares ETF. Daily Healthcare Bull 3X Shares ETF CURE $82.04 $90.21 9.96% Becton, Dickinson & Co BDX $252.90 $281.62 11.35% AbbVie Inc ABBV $104.05 $115.50 11.00% Thermo Fisher Scientific Inc TMO $484.88 $538.14 10.98% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, ABBV has 11.00% upside from the recent share price of $104.05 if the average analyst target price of $115.50/share is reached, and analysts on average are expecting TMO to reach a target price of $538.14/share, which is 10.98% above the recent price of $484.88. Three of CURE's underlying holdings with notable upside to their analyst target prices are Becton, Dickinson & Co (Symbol: BDX), AbbVie Inc (Symbol: ABBV), and Thermo Fisher Scientific Inc (Symbol: TMO). Below is a twelve month price history chart comparing the stock performance of BDX, ABBV, and TMO: Combined, BDX, ABBV, and TMO represent 10.43% of the Daily Healthcare Bull 3X Shares ETF. | Below is a twelve month price history chart comparing the stock performance of BDX, ABBV, and TMO: Combined, BDX, ABBV, and TMO represent 10.43% of the Daily Healthcare Bull 3X Shares ETF. Three of CURE's underlying holdings with notable upside to their analyst target prices are Becton, Dickinson & Co (Symbol: BDX), AbbVie Inc (Symbol: ABBV), and Thermo Fisher Scientific Inc (Symbol: TMO). Similarly, ABBV has 11.00% upside from the recent share price of $104.05 if the average analyst target price of $115.50/share is reached, and analysts on average are expecting TMO to reach a target price of $538.14/share, which is 10.98% above the recent price of $484.88. |
24217.0 | 2021-02-11 00:00:00 UTC | Where to Invest $5,000 Right Now | ABBV | https://www.nasdaq.com/articles/where-to-invest-%245000-right-now-2021-02-11 | nan | nan | Do you have $5,000 that you can afford to invest right now? One year ago, if you were to invest that much into shares of AbbVie (NYSE: ABBV), FedEx (NYSE: FDX), or Alibaba Group (NYSE: BABA), you would have made at least $1,000 regardless of which stock you chose. And it's not too late to invest in them today.
These businesses are still growing, and I think their shares can still generate double-digit returns in 2021. With multiple industries covered, they can even be great investments to hold together to help diversify your portfolio. Here's what these companies are up to and why their stocks are still buys.
Image source: Getty Images
1. AbbVie
Healthcare is a reliable sector to invest in because many companies, including AbbVie, sell products that are needs -- not wants -- for millions of people around the world. On Feb. 3, the company released its fourth-quarter results. Net revenue of $13.9 billion for the period ending Dec. 31, 2020, grew 65.9% year over year. The bulk of that growth can be attributed to its acquisition of Botox maker Allergan. But even on a comparative basis and assuming the Allergan transaction closed at the start of 2019 (the actual date was May 8, 2020), the company still generated 6.8% growth. Adjusted diluted earnings per share (EPS) of $2.92 were a 32.1% improvement from the prior-year period. AbbVie forecasts that for 2021, that number will come in between $12.32 and $12.52, which will be an improvement of at least 16.7% from the $10.56 adjusted diluted EPS number that it reported for the full year 2020.
With a portfolio of drugs that now spans immunology, aesthetics, eye care, women's health, and neuroscience, AbbVie has some excellent diversification, making it an ideal stock to hang on to for the long term. And although its current price-to-earnings (P/E) ratio of 37 looks high when compared to the average stock on the SPDR S&P 500 ETF Trust that trades at 28 times earnings, after factoring in future profits, AbbVie's forward P/E falls to less than nine. It's a cheap healthcare stock that can put that $5,000 to work, paying a dividend that yields 4.8% -- well above the S&P 500 average of around 1.6%. The stock has slightly underperformed the markets over the past year, rising 13% while the index is up over 16%.
With a modest valuation, a solid mix of products, and more growth on the way, AbbVie gives investors a great way to earn a strong return (through dividends and capital gains) without taking on much risk.
2. FedEx
In an increasingly online world, a logistics company like FedEx looks to be another great place to invest in right now. Its next earnings report comes out in March, and it could be an exceptional one. Online retail giant Amazon is coming off a spectacular quarter during which not only did its revenue of $125.6 billion beat analyst projections, but its per-share profits were nearly double what Wall Street was expecting.
And where there's online shopping, there's going to be a need for a company like FedEx to move products. In its most recent earnings release, on Dec. 17, 2020, FedEx's sales for the period ending Nov. 30, 2020, totaled $20.6 billion and grew by 19.1%. That month, the company also announced it was beginning to ship coronavirus vaccines from both Moderna and Pfizer to the U.S., which will bring even more business for FedEx in the near future.
While FedEx won't transport every vaccine, it's just another example of why its upcoming quarters could look particularly strong. With a P/E of 28, it's not at a higher valuation than the average S&P 500 stock, and in the past year, its shares have soared 66%. Whether you're looking at the short term or long term, FedEx is a top growth investment you can add to your portfolio that also pays a modest dividend of around 1%.
3. Alibaba
If you're worried about the pandemic, investing in Chinese-based Alibaba could be another solid option for your portfolio. The Chinese economy grew 2.3% in 2020, while other countries around the world were struggling to contain the economic effects of the coronavirus pandemic. And the Chinese economy is on pace for a record-breaking quarter to start the year, with one analyst from Absolute Strategy Research expecting growth to be in the neighborhood of 20%.
Alibaba offers a wide variety of products and services. From its Alipay payment platform to cloud computing and online retail, its business is in a great position to benefit from a strong national economy. It doesn't hurt that it is coming off a strong quarter to end the year. On Feb. 2, Alibaba reported $33.9 billion in sales for the period ending Dec. 31, 2020, which was up 37% from the prior-year period. And its annual active consumers over the trailing 12 months totaled 779 million, which was 22 million more than during the period ending Sept. 30, 2020.
The stock's P/E multiple of around 30 looks cheap when compared to tech giant Alphabet and the 35 times earnings multiple where it currently trades. And while Alibaba doesn't offer a dividend, its 23% returns in the past 12 months could have still generated some great profits for your portfolio. Alibaba makes for a good investment, whether you are looking for a growth stock to add to your portfolio (that isn't trading at an obscene valuation), or just want to diversify your portfolio and draw on gains made outside of the U.S.
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.
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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 portfolio of drugs that now spans immunology, aesthetics, eye care, women's health, and neuroscience, AbbVie has some excellent diversification, making it an ideal stock to hang on to for the long term. And although its current price-to-earnings (P/E) ratio of 37 looks high when compared to the average stock on the SPDR S&P 500 ETF Trust that trades at 28 times earnings, after factoring in future profits, AbbVie's forward P/E falls to less than nine. One year ago, if you were to invest that much into shares of AbbVie (NYSE: ABBV), FedEx (NYSE: FDX), or Alibaba Group (NYSE: BABA), you would have made at least $1,000 regardless of which stock you chose. | One year ago, if you were to invest that much into shares of AbbVie (NYSE: ABBV), FedEx (NYSE: FDX), or Alibaba Group (NYSE: BABA), you would have made at least $1,000 regardless of which stock you chose. AbbVie Healthcare is a reliable sector to invest in because many companies, including AbbVie, sell products that are needs -- not wants -- for millions of people around the world. AbbVie forecasts that for 2021, that number will come in between $12.32 and $12.52, which will be an improvement of at least 16.7% from the $10.56 adjusted diluted EPS number that it reported for the full year 2020. | One year ago, if you were to invest that much into shares of AbbVie (NYSE: ABBV), FedEx (NYSE: FDX), or Alibaba Group (NYSE: BABA), you would have made at least $1,000 regardless of which stock you chose. Alibaba makes for a good investment, whether you are looking for a growth stock to add to your portfolio (that isn't trading at an obscene valuation), or just want to diversify your portfolio and draw on gains made outside of the U.S. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. AbbVie Healthcare is a reliable sector to invest in because many companies, including AbbVie, sell products that are needs -- not wants -- for millions of people around the world. | Alibaba makes for a good investment, whether you are looking for a growth stock to add to your portfolio (that isn't trading at an obscene valuation), or just want to diversify your portfolio and draw on gains made outside of the U.S. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. One year ago, if you were to invest that much into shares of AbbVie (NYSE: ABBV), FedEx (NYSE: FDX), or Alibaba Group (NYSE: BABA), you would have made at least $1,000 regardless of which stock you chose. AbbVie Healthcare is a reliable sector to invest in because many companies, including AbbVie, sell products that are needs -- not wants -- for millions of people around the world. |
24218.0 | 2021-02-10 00:00:00 UTC | Why Editas Medicine Stock Sank Today | ABBV | https://www.nasdaq.com/articles/why-editas-medicine-stock-sank-today-2021-02-10 | nan | nan | What happened
Shares of Editas Medicine (NASDAQ: EDIT) sank 11.4% as of the market close on Wednesday. The big decline came after AbbVie (NYSE: ABBV) announced a partnership with privately held Caribou Biosciences to develop chimeric antigen receptor T cell (CAR-T) therapies.
So what
Why did AbbVie's deal with Caribou cause Editas stock to fall? Probably because the big drugmaker canceled a collaboration with Editas last year to develop a gene-editing therapy. Some investors appear to be viewing AbbVie's new partnership with Caribou as a clear snub of Editas.
Image source: Getty Images.
However, there are a couple of key points to keep in mind. First, Editas originally teamed up with Allergan -- not AbbVie. It was only after AbbVie's acquisition of Allergan in 2020 that the company scrapped its agreement with Editas. Second, the Editas-Allergan partnership focused on a gene-editing therapy targeting a rare eye disease, not a CAR-T therapy.
In the big scheme of things, the AbbVie-Caribou deal doesn't matter for Editas. What does matter is how the biotech's pipeline candidates fare in clinical testing.
Now what
Editas has begun dosing patients for the safety portion of a phase 1 study evaluating EDIT-301 in treating sickle cell anemia. However, the company must obtain U.S. Food and Drug Administration (FDA) approval for an improved potency assay before it can enroll patients in the efficacy phase of the study. Editas' shares could enjoy a bump when it jumps this hurdle.
Also, Editas expects to report initial results by the end of this year from a phase 1/2 study evaluating EDIT-101 in treating rare genetic eye disease Leber congenital amaurosis 10. If those results are positive, it'll almost certainly provide a major catalyst for the biotech stock.
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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. | The big decline came after AbbVie (NYSE: ABBV) announced a partnership with privately held Caribou Biosciences to develop chimeric antigen receptor T cell (CAR-T) therapies. So what Why did AbbVie's deal with Caribou cause Editas stock to fall? Some investors appear to be viewing AbbVie's new partnership with Caribou as a clear snub of Editas. | The big decline came after AbbVie (NYSE: ABBV) announced a partnership with privately held Caribou Biosciences to develop chimeric antigen receptor T cell (CAR-T) therapies. So what Why did AbbVie's deal with Caribou cause Editas stock to fall? Some investors appear to be viewing AbbVie's new partnership with Caribou as a clear snub of Editas. | So what Why did AbbVie's deal with Caribou cause Editas stock to fall? See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie and Editas Medicine. The big decline came after AbbVie (NYSE: ABBV) announced a partnership with privately held Caribou Biosciences to develop chimeric antigen receptor T cell (CAR-T) therapies. | So what Why did AbbVie's deal with Caribou cause Editas stock to fall? See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie and Editas Medicine. The big decline came after AbbVie (NYSE: ABBV) announced a partnership with privately held Caribou Biosciences to develop chimeric antigen receptor T cell (CAR-T) therapies. |
24219.0 | 2021-02-10 00:00:00 UTC | AbbVie, Caribou Biosciences Ink CAR-T Cell Products License Deal For $40 Mln Upfront Payment | ABBV | https://www.nasdaq.com/articles/abbvie-caribou-biosciences-ink-car-t-cell-products-license-deal-for-%2440-mln-upfront | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) and Caribou Biosciences, Inc., a clinical-stage CRISPR genome editing biotechnology company, said Wednesday they have entered into a collaboration and license agreement for the research and development of chimeric antigen receptor (CAR)-T cell therapeutics.
Under the multi-year deal, AbbVie will utilize Caribou's next-generation Cas12a CRISPR hybrid RNA-DNA (chRDNA) genome editing and cell therapy technologies to research and develop two new CAR-T cell therapies directed to targets specified by AbbVie. Caribou will receive an upfront cash payment of $40 million and equity investment, along with up to $300 million in future development, regulatory, and launch milestones. In addition, Caribou may receive additional payments for commercial milestones as well as global tiered royalties.
AbbVie will have exclusive rights to Caribou's next-generation Cas12a chRDNA genome editing and cell therapy technologies for the selected targets.
Caribou will conduct certain pre-clinical research, development, and manufacturing activities for the collaboration programs, while AbbVie will reimburse Caribou for all such activities pursuant to the collaboration.
AbbVie said it will be responsible for all clinical development, commercialization, and manufacturing efforts. In addition, AbbVie has the option to pay a fee to expand the collaboration to include up to an additional two CAR-T cell therapies.
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 Inc. (ABBV) and Caribou Biosciences, Inc., a clinical-stage CRISPR genome editing biotechnology company, said Wednesday they have entered into a collaboration and license agreement for the research and development of chimeric antigen receptor (CAR)-T cell therapeutics. Under the multi-year deal, AbbVie will utilize Caribou's next-generation Cas12a CRISPR hybrid RNA-DNA (chRDNA) genome editing and cell therapy technologies to research and develop two new CAR-T cell therapies directed to targets specified by AbbVie. AbbVie will have exclusive rights to Caribou's next-generation Cas12a chRDNA genome editing and cell therapy technologies for the selected targets. | Under the multi-year deal, AbbVie will utilize Caribou's next-generation Cas12a CRISPR hybrid RNA-DNA (chRDNA) genome editing and cell therapy technologies to research and develop two new CAR-T cell therapies directed to targets specified by AbbVie. AbbVie will have exclusive rights to Caribou's next-generation Cas12a chRDNA genome editing and cell therapy technologies for the selected targets. (RTTNews) - AbbVie Inc. (ABBV) and Caribou Biosciences, Inc., a clinical-stage CRISPR genome editing biotechnology company, said Wednesday they have entered into a collaboration and license agreement for the research and development of chimeric antigen receptor (CAR)-T cell therapeutics. | (RTTNews) - AbbVie Inc. (ABBV) and Caribou Biosciences, Inc., a clinical-stage CRISPR genome editing biotechnology company, said Wednesday they have entered into a collaboration and license agreement for the research and development of chimeric antigen receptor (CAR)-T cell therapeutics. Under the multi-year deal, AbbVie will utilize Caribou's next-generation Cas12a CRISPR hybrid RNA-DNA (chRDNA) genome editing and cell therapy technologies to research and develop two new CAR-T cell therapies directed to targets specified by AbbVie. Caribou will conduct certain pre-clinical research, development, and manufacturing activities for the collaboration programs, while AbbVie will reimburse Caribou for all such activities pursuant to the collaboration. | Under the multi-year deal, AbbVie will utilize Caribou's next-generation Cas12a CRISPR hybrid RNA-DNA (chRDNA) genome editing and cell therapy technologies to research and develop two new CAR-T cell therapies directed to targets specified by AbbVie. Caribou will conduct certain pre-clinical research, development, and manufacturing activities for the collaboration programs, while AbbVie will reimburse Caribou for all such activities pursuant to the collaboration. (RTTNews) - AbbVie Inc. (ABBV) and Caribou Biosciences, Inc., a clinical-stage CRISPR genome editing biotechnology company, said Wednesday they have entered into a collaboration and license agreement for the research and development of chimeric antigen receptor (CAR)-T cell therapeutics. |
24220.0 | 2021-02-07 00:00:00 UTC | 3 Top Dividend Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-to-buy-right-now-2021-02-07 | nan | nan | Investing in dividend stocks boils down to two steps. First, find stocks that pay attractive dividends. Second, eliminate any stocks lacking the strong underlying businesses needed to ensure the dividends keep coming. It's really that simple.
The main drawback to that two-part method is that you'll still have a lot of stocks from which to choose. How do you whittle down the list? That's where other considerations come into play, such as track records of dividend increases and growth prospects.
Your ideal candidates will check off all the boxes. Here are three top dividend stocks to buy right now that achieve that goal.
Image source: Getty Images.
1. AbbVie
If you're looking for an attractive dividend stock, AbbVie (NYSE: ABBV) should be really high on your list. Its dividend yield currently stands at 4.9%. The big drugmaker has increased its dividend for 49 consecutive years, qualifying it as a Dividend Aristocrat (S&P 500 members that have at least 25 years in a row of dividend hikes).
Can AbbVie keep its streak of dividend increases going? The company's top-selling drug, Humira, faces biosimilar competition in the U.S. beginning in 2023. That almost certainly means the drug's sales will sink and negatively impact AbbVie's finances.
However, dividend-seeking investors shouldn't have anything to worry about. The company already markets two autoimmune disease drugs poised to take the baton from Humira. AbbVie expects Rinvoq and Skyrizi will generate combined sales of $15 billion by 2025. Its lineup also includes other products with strong momentum, such as blood cancer drugs Imbruvica and Venclexta.
AbbVie's sales growth should be robust in 2021 and 2022. The company expects that its total revenue will decline in 2023. However, AbbVie thinks it will quickly return to revenue growth in subsequent years.
2. Brookfield Infrastructure Partners
I suspect you'll also like Brookfield Infrastructure Partners' (NYSE: BIP) dividend yield of 3.7%. The company isn't a Dividend Aristocrat like AbbVie because it's only been in business since 2008 and isn't a member of the S&P 500. However, Brookfield Infrastructure's dividend track record is a good one, with a 10% compound annual growth rate for its distribution.
Brookfield Infrastructure runs the kind of businesses that are ideal for generating steady income. Its assets include cell towers, data centers, natural gas pipelines, ports, railroads, and toll roads.
Economic recessions and pandemics don't affect Brookfield Infrastructure all that much. Around 70% of its business is pretty well insulated from macroeconomic disruptions. The company's diversification and long-term contracts help provide a nice safety cushion.
Brookfield Infrastructure's management refers to the company as a "grow-tility." The company is similar to a utility (most of its business consists of utilities). However, it also delivers solid double-digit growth.
3. Innovative Industrial Properties
At first glance, Innovative Industrial Properties' (NYSE: IIPR) dividend yield of 2.4% might not seem all that great, but I think that IIP is actually a dividend investor's dream.
First of all, the dividend yield isn't nearly as high it would otherwise be because IIP stock has skyrocketed nearly 700% over the last three years. During the same period, the company's dividend payout nearly quadrupled.
IIP continues to benefit from the boom in the U.S. marijuana market. The company buys properties from medical cannabis operators, then leases the properties back to them. These sale-leaseback deals give IIP steady recurring revenue that continues for years.
The company currently owns 67 properties in 17 states. It should have plenty of room to continue expanding in these states. There are also another 18 states where medical cannabis is legal that IIP could potentially move into down the road. A fast-growing dividend and solid growth prospects make IIP a great dividend stock to buy right now.
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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 If you're looking for an attractive dividend stock, AbbVie (NYSE: ABBV) should be really high on your list. Can AbbVie keep its streak of dividend increases going? That almost certainly means the drug's sales will sink and negatively impact AbbVie's finances. | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Brookfield Infrastructure Partners, and Innovative Industrial Properties. AbbVie If you're looking for an attractive dividend stock, AbbVie (NYSE: ABBV) should be really high on your list. Can AbbVie keep its streak of dividend increases going? | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Brookfield Infrastructure Partners, and Innovative Industrial Properties. AbbVie If you're looking for an attractive dividend stock, AbbVie (NYSE: ABBV) should be really high on your list. Can AbbVie keep its streak of dividend increases going? | AbbVie If you're looking for an attractive dividend stock, AbbVie (NYSE: ABBV) should be really high on your list. The company isn't a Dividend Aristocrat like AbbVie because it's only been in business since 2008 and isn't a member of the S&P 500. Can AbbVie keep its streak of dividend increases going? |
24221.0 | 2021-02-04 00:00:00 UTC | AbbVie a Top Ranked SAFE Dividend Stock With 4.9% Yield (ABBV) | ABBV | https://www.nasdaq.com/articles/abbvie-a-top-ranked-safe-dividend-stock-with-4.9-yield-abbv-2021-02-04 | nan | nan | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.9% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report.
According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.99% of the SPDR S&P Dividend ETF (SDY), which holds $339,891,348 worth of ABBV shares.
AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. 25" list because of these qualities: S. Solid return — hefty yield and strong DividendRank characteristics; A. Accelerating amount — consistent dividend increases over time; F. Flawless history — never a missed or lowered dividend; E. Enduring — at least two decades of dividend payments.
The annualized dividend paid by AbbVie Inc is $5.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/14/2021. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Johnson & Johnson (JNJ), and Novartis (NVS).
Top 25 S.A.F.E. Dividend Stocks Increasing Payments For Decades »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.99% of the SPDR S&P Dividend ETF (SDY), which holds $339,891,348 worth of ABBV shares. | AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.99% of the SPDR S&P Dividend ETF (SDY), which holds $339,891,348 worth of ABBV shares. | According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.99% of the SPDR S&P Dividend ETF (SDY), which holds $339,891,348 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of the iShares S&P 1500 Index ETF (ITOT), and is also an underlying holding representing 1.99% of the SPDR S&P Dividend ETF (SDY), which holds $339,891,348 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. |
24222.0 | 2021-02-03 00:00:00 UTC | EARNINGS SUMMARY: Details of AbbVie Q4 Earnings Report | ABBV | https://www.nasdaq.com/articles/earnings-summary%3A-details-of-abbvie-q4-earnings-report-2021-02-03 | nan | nan | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV):
-Earnings: $38 million in Q4 vs. $2.8 billion in the same period last year. -EPS: $2.92 in Q4 vs. $2.21 in the same period last year. -Analysts projected $2.85 per share -Revenue: $13.86 billion in Q4 vs. $8.7 billion in the same period last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $38 million in Q4 vs. $2.8 billion in the same period last year. -Analysts projected $2.85 per share -Revenue: $13.86 billion in Q4 vs. $8.7 billion in the same period last year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $38 million in Q4 vs. $2.8 billion in the same period last year. -EPS: $2.92 in Q4 vs. $2.21 in the same period last year. -Analysts projected $2.85 per share -Revenue: $13.86 billion in Q4 vs. $8.7 billion in the same period last year. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $38 million in Q4 vs. $2.8 billion in the same period last year. -Analysts projected $2.85 per share -Revenue: $13.86 billion in Q4 vs. $8.7 billion in the same period last year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $38 million in Q4 vs. $2.8 billion in the same period last year. -Analysts projected $2.85 per share -Revenue: $13.86 billion in Q4 vs. $8.7 billion in the same period last year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
24223.0 | 2021-02-03 00:00:00 UTC | AbbVie (ABBV) Q4 2020 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q4-2020-earnings-call-transcript-2021-02-04 | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q4 2020 Earnings Call
Feb 03, 2021, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and thank you for standing by. Welcome to the AbbVie fourth-quarter 2020earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations.
Liz Shea -- Vice President of Investor Relations
Good morning, and thanks for joining us. Also on the call with me today are Rick Gonzalez, chairman of the board and chief executive officer; Michael Severino, vice chairman and president; and Rob Michael, executive vice president and chief financial officer. Joining us for the Q&A portion of the call is Jeff Stewart, executive vice president, commercial operations. Before we get started, I remind you that some statements we make today may be considered forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.
AbbVie cautions that these forward-looking statements are subject to risks and uncertainties, including the impact of the COVID-19 pandemic on AbbVie's operations and financial results that may cause actual results to differ materially from those indicated in the forward-looking statements. Additional information about these risks and uncertainties is included in our 2019 annual report on Form 10-K and in our other SEC filings. AbbVie undertakes no obligation to update these forward-looking statements, except as required by law. On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand AbbVie's ongoing business performance.
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These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website. Unless otherwise noted, our commentary on sales growth is on a comparable basis, which includes full year, full current year, and historical results for Allergan. For this comparison of underlying performance, all historically reported Allergan revenues have been recast to conform to AbbVie's revenue recognition accounting policies and exclude the divestitures of ZENPEP and VIOKACE. References to operational growth further excludes the impact of exchange.
Following our prepared remarks, we'll take your questions. So with that, I'll now turn the call over to Rick.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'll discuss our fourth-quarter and full-year 2020 performance, as well as our expectations for 2021. Mike will then provide an update on recent advancements across our pipeline, and Rob will discuss the quarter and our 2021 guidance in more detail.
Following our remarks, we'll take your questions. We delivered another strong quarter with adjusted earnings per share of $2.92, exceeding the midpoint of our guidance by $0.08. Fourth-quarter total net revenues were up nearly 7% on a comparable operational basis. This performance was driven by robust double-digit sales growth from our immunology, hem/onc, and neuroscience franchises, as well as 9% comparable operational sales growth of BOTOX Cosmetics, which is demonstrating a rapid recovery.
Our fourth-quarter performance tops off another excellent and truly transformational year for AbbVie, which included the successful acquisition and integration of Allergan, creating a stronger and much more diverse AbbVie; with leadership across numerous attractive, high-growth markets; significant contributions from our two new best-in-category immunology medicines, RINVOQ and SKYRIZI, which combined for more than $2.3 billion in 2020 sales, their first full year on the market. We expect the combined contribution from RINVOQ and SKYRIZI to nearly double in 2021 to approximately $4.6 billion, based on their continued strong uptake in RA and psoriasis, as well as RINVOQ's anticipated approvals in PsA, ankylosing spondylitis, and atopic dermatitis later this year. We delivered continued robust growth from our leading hem/onc portfolio, with IMBRUVICA and VENCLEXTA contributing more than $6.6 billion in combined 2020 sales. We expect our hem/onc franchise to grow double digits again in 2021.
We also added two compelling oncology pipeline assets: epcoritamab, a potential best-in-class CD3xCD20 bispecific antibody in development for B-cell malignancies; and lemzoparlimab, an anti-CD47 monoclonal antibody being studied in multiple cancers. These two assets will further support the growth of our hem/onc franchise across our long-range plan. The acquisition of Allergan brought us a substantial neuroscience portfolio with compelling therapies for migraine and psychiatric conditions, augmenting our already existing neuro franchise. The newly combined neuroscience franchise delivered nearly $4.9 billion in comparable 2020 revenue and is expected to grow double digits in 2021.
We also added the leading global Aesthetics franchise, a largely cash paid portfolio with roughly $3.5 billion in comparable 2020 revenues. As I've previously noted, this portfolio has demonstrated a rapid V-shaped recovery, and we view Aesthetics as an extremely attractive long-term growth opportunity. And importantly, we made excellent progress in 2020 with our pipeline. We expect our R&D pipeline advancements to lead to the approval of more than a dozen new products or indications over the next two years, including a total of six additional indications for RINVOQ and SKYRIZI, which will cover all of Humira's major indications plus new significant disease areas, including atopic dermatitis; expanded indications for Venclexta and Vraylar and several new product approvals, including atogepant, for episodic migraine, navitoclax for myelofibrosis and ABBV-951, a potentially transformative next-generation therapy for advanced Parkinson's disease.
These new opportunities will collectively add meaningful revenue growth in advance of the U.S. Humira LoE. We've entered 2021 in a strong position, which is reflected in our revenue and earnings per share guidance. Based on the recent outperformance of our business, we expect full-year 2021 comparable operational sales growth of approximately 9.4%, with total AbbVie sales expected to be approximately $1.7 billion above current consensus.
And we anticipate 2021 adjusted earnings per share of $12.32 to $12.52, representing growth of 17.6% at the midpoint. This level of guidance represents impressive performance with nearly all aspects of our business expected to perform at or above current consensus for 2021. The Allergan integration continues to go very well. The transition has been seamless despite the size of the transaction and the timing of the COVID pandemic.
While we're making excellent progress against our expense synergies, which Rob will cover in more detail here momentarily, it remains increasingly clear to us that there are significant opportunities for long-term revenue contributions across numerous Allergan growth platforms. As we recently disclosed, we believe UBRELVY, the first-to-market and leading oral CGRP for acute migraine, represents a $1 billion-plus peak sales opportunity; atogepant, a potential once-daily oral treatment for the prevention of episodic and chronic migraine also represents a $1 billion-plus peak sales opportunity. We expect Vraylar peak sales to approach $4 billion within its currently approved indications of schizophrenia, bipolar I disorder, and bipolar depression. With major depressive disorder, or MDD, representing a potentially significant incremental growth opportunity.
Aesthetics, which is poised to regain its growth trajectory this year, is expected to generate high single-digit revenue growth over the next decade. We continue to closely monitor the COVID dynamics, which will have an impact on our business again in 2021, predominantly in the first half of the year but significantly moderated from the 2020 impact. And despite the recent COVID resurgence within select geographies, we feel the global healthcare system is much better equipped with COVID treatment protocols and PPE to safely see and treat patients throughout the current year. That said, some therapeutic areas continue to be more impacted than others, like CLL, HCV, certain hospital-based procedures, among others, which we have contemplated in our 2021 guidance.
Overall, we've been pleased with the rate of recovery across our business, a testament to our differentiated product profiles and our commercial execution. So in summary, we've assembled an impressive set of growth assets, and the outlook for AbbVie's business remains strong, with RINVOQ and SKYRIZI expected to contribute more than $15 billion in risk-adjusted sales by 2025, and our expectations for continued robust growth across hem/onc, neuroscience, and Aesthetics. We have a high degree of confidence that we will be able to successfully absorb the Humira LoE impact in 2023 supporting an immediate return to total sales growth in 2024 and produce compelling high single-digit compounded annual total sales growth in 2025 through the remainder of the decade with the diversified portfolio and pipeline that we have today. With that, I'll turn the call over to Mike for additional comments on our R&D programs.
Mike?
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
Thank you, Rick. We've clearly made significant progress with our pipeline over the past few years, particularly our late-stage programs in hematologic oncology with IMBRUVICA and Venclexta and in immunology with RINVOQ and SKYRIZI. Since inception, our R&D organization has delivered an impressive set of new products, which collectively contributed approximately $11 billion in revenue in 2020. We also continue to see significant evolution of our early and mid-stage clinical programs, with many assets expected to transition to late-stage registrational studies over the next several years.
We will continue to replenish our late-stage pipeline with innovative assets that have the potential to drive additional growth for AbbVie in the second half of the decade. At our recent immunology investor event in December, we provided a detailed overview of our immunology programs, highlighting the robust data generated to date for RINVOQ and SKYRIZI across approved and pipeline indications. Included in this event, we presented positive top-line data from two new Phase 3 studies for RINVOQ, results from the first induction study in ulcerative colitis and results from the head-to-head study versus dupilimab and atopic dermatitis. We expect to see results from the second Phase 3 UC induction study later this quarter and from the UC maintenance study in the middle of this year.
With regulatory submissions anticipated in the second half of 2021. Our regulatory applications for RINVOQ in atopic dermatitis are currently under review, and we expect an approval decision in the U.S. in the second quarter based on priority review and in Europe in the second half of the year. We recently received European Commission approval for RINVOQ in psoriatic arthritis and ankylosing spondylitis and expect approval decisions for those indications in the U.S.
in the first half of this year. I want to take a moment to address the topic of safety, specifically MACE and malignancies, following the results from tofacitinib's post-marketing safety study. At present, there are no data to suggest the safety outcomes from their study apply to a specific JAK1 inhibitor such as RINVOQ. We are not aware of any signal for an elevated risk of MACE or malignancies with RINVOQ or any JAK inhibitor other than XELJANZ.
We conducted a pool database analysis across our clinical trials for DVT, MACE, and malignancies at the time of RINVOQ's regulatory submission and have updated it periodically, including up to the present. Rates with RINVOQ have not been elevated relative to comparators or to expected baseline rates. Importantly, there has been no increase or meaningful change in those rates over time. Additionally, we adjudicate events for MACE and DVT, which is considered the highest standard of evidence.
If we look across our long-term database in RA, a population that is at increased risk for MACE events, our rates remain low. At the approved dose in RA, we have followed more than 3,700 treated patients, totaling more than 9,000 patient-years' experience. Our rate of MACE events is 0.4 per 100 patient-years, which compares favorably to the expected rate of 1.0 to 1.7 events per 100 patient-years. In addition, there is no evidence of a dose response between the 15- and 30-milligram doses.
Similarly, the rate of malignancy, excluding non-melanoma skin cancer with similar follow-up, is 0.8 events per 100 patient-years. This rate is also consistent with the expected range of rates of 0.86 to 0.94 per 100 patient-years. And again, we see no evidence of a dose response between 15 and 30 milligrams. Moving now to SKYRIZI.
We also recently reported top-line results from the Phase 3 programs for SKYRIZI in Crohn's disease and psoriatic arthritis. In the two Crohn's induction studies, SKYRIZI demonstrated significant improvements in clinical remission and endoscopic endpoints compared to placebo with symptom improvement seen as early as week 4. Based on the data generated today, we believe SKYRIZI has the potential to become an important new treatment option for patients with moderate to severe Crohn's disease. We expect to see results from the maintenance study in Crohn's disease later this year with regulatory submissions anticipated in the second half of 2021.
We're also very pleased with SKYRIZI's results in the Phase 3 studies in psoriatic arthritis, where we saw significant improvements in disease activity across both skin and joint endpoints compared to placebo. We believe that the activity we have seen on joint disease and the impressive skin clearance that is a hallmark of the SKYRIZI program, make it a compelling offering for patients with mixed joint and skin involvement. We plan to submit our regulatory applications for SKYRIZI in psoriatic arthritis in the first half of this year. We're making good progress with our early and mid-stage immunology programs as well, where we expect several data readouts and phase transitions in 2021.
We expect to begin three new studies for ABBV-154, our TNF steroid conjugate, including a Phase 2b dose-ranging study in RA, as well as Phase 2 studies in Crohn's disease and polymyalgia rheumatica. And we'll see proof-of-concept data in the second quarter for Ravagalimab, our CD40 antagonist in Phase 2 for ulcerative colitis, and for ABBV-157, our oral RORgamma t inhibitor in Phase 1 for psoriasis. Both of these programs experienced slight COVID-related delays with results now expected for both in the second quarter of this year. In oncology, we continue to make significant progress advancing our pipeline with numerous data readouts and regulatory milestones last year, as well as the addition of several new assets brought in through our in-licensing efforts, including Genmab's CD3xCD20 epcoritamab and I-Mab's anti-CD47 lemzoparlimab.
We showcased new data from several programs at the recent ASH meeting, where we presented nearly 40 abstracts from eight different assets. Notable presentations included: data from the Phase 2 CAPTIVATE trial, evaluating IMBRUVICA plus Venclexta in frontline CLL, which showed patients who achieved undetectable MRD following this combination, maintain their deep remission at the one-year mark after stopping therapy with a 95% rate of disease-free survival. We also presented new five-year data from Venclexta's MURANO trial, demonstrating the benefits of fixed duration Venclexta combinations in helping patients achieve sustained progression-free survival. The latest results from MURANO in the relapsed/refractory CLL setting showed a median progression-free survival of 54 months in the Venclexta and rituximab group compared to 17 months in the bendamustine rituximab group, three or more years after stopping treatment.
Updated dose-escalation data from a Phase 1 study evaluating epcoritamab in B-cell malignancies were also presented at ASH. Epcoritamab is a subcutaneously delivered bispecific CD3xCD20 antibody being developed in collaboration with Genmab. In the Phase 1 study, epcoritamab demonstrated encouraging single-agent antitumor activity in heavily pretreated patients with a consistent and favorable safety profile, showing no grade 3 or higher CRS events, as well as limited neurotoxicity. We believe that epcoritamab has the potential to become a best-in-class therapy across a number of B-cell malignancies, including diffuse large B-cell lymphoma and follicular lymphoma.
The Phase 3 trial in relapsed refractory, DLBCL, recently began, and we will provide updates on epcoritamab as its development program progresses. Initial results were also presented from a Phase 1 study evaluating TNB-383B in relapsed/refractory multiple myeloma. TNB-383B is a novel bispecific T-cell engaging immunotherapy targeting BCMA and CD3 being developed in collaboration with Teneobio. These Phase 1 results demonstrated that the BCMA CD3 bispecific provided overall response rates of 80%, with a large number of patients achieving a very good partial response or better despite having received multiple prior lines of therapy.
TNB-383B was well tolerated at all doses tested with a few off-target toxicities and no grade 3 or higher CRS observed. With its safety profile, efficacy, and the convenience of once-every-three-week dosing, this agent has the potential to become a promising treatment option for myeloma patients. And our partner, I-Mab, published an abstract with initial results from a Phase 1 study evaluating lemzoparlimab in AML and MDS. These results demonstrated encouraging activity in relapsed/refractory AML patients.
And lemzoparlimab was well tolerated with no serious hematological adverse events reported today. Based on these promising initial results, we plan to begin new studies this year for lemzoparlimab in AML, MDS, and in multiple myeloma. We also recently saw data from an interim analysis of a Phase 2 study, evaluating Teliso-V in heavily pretreated non-squamous non-small cell lung cancer patients. The encouraging results from stage 1 of this study met the criteria for advancing the program, with Teliso-V demonstrating a 54% objective response rate in patients with wild-type EGFR who have highly expressed cMet.
In EGFR wild-type patients with overexpressed cMet, which includes both high and intermediate expression, the objective response rate was 35%. Based on these results, we believe that there is an important role for Teliso-V in this target population, which represents roughly 25% of the nonsquamous non-small cell lung cancer population. We will be opening the second stage of the study and are planning discussions with regulators regarding the potential of this study to support an accelerated filing. We expect 2021 to be another important year for our oncology pipeline, with several regulatory submissions, as well as data readouts across all stages of development.
This year, we expect to see data for IMBRUVICA in the Phase 3 SHINE study in frontline MCL with regulatory submissions expected in the second half of the year, data for IMBRUVICA in combination with Venclexta in second-line or greater MCL, and frontline CLL with regulatory submission for frontline CLL expected in the second half of the year. We also expect to see data from registration-enabling studies for Venclexta in high-risk MDS and navitoclax in relapsed/refractory myelofibrosis, and we expect to see data from numerous programs in our early stage oncology pipeline. In addition, the programs under collaboration with Calico are also progressing well. Our partnered effort is comprised of a strong pipeline of novel targets, which includes more than 20 active programs in discovery or preclinical development.
Importantly, we currently have programs which have advanced into clinical development in two areas: immuno-oncology and neurodegeneration. The lead Calico program in oncology is focused on PTPN2 inhibitors. Which act at multiple steps in the cancer immunity cycle and have potential applicability in a broad variety of tumor types. The discovery of novel, orally bioavailable PTPN2 inhibitors represents a significant breakthrough in a target class that has historically been considered undruggable.
We currently have two assets in Phase 1 development, ABBV-CLS-579 and 484. We've seen evidence of immune activation in the clinic with this pathway, and we expect to see proof-of-concept data from this program in 2022. The lead Calico program in neuroscience is an eIF2B activator, which targets a key regulator of the highly conserved integrated stress response pathway. Inhibition of this pathway has the potential to prevent pathology and restore function in a number of neurodegenerative diseases such as ALS and Parkinson's disease, as well as in traumatic brain injury.
Our lead eIF2B activator, ABBV-CLS-7262 is currently progressing through Phase 1 and we plan to begin a study later this year in patients with ALS. In other neuroscience updates, last year, we completed our registrational program for atogepant in episodic migraine prevention. And we recently submitted our regulatory application to the FDA. We expect an approval decision by the end of the third quarter.
The data generated in our Phase 3 programs support a strong benefit-risk profile. And we believe that atogepant has the potential to offer meaningful benefits to patients as a safe, effective oral treatment option for the prevention of episodic migraine. In 2021, we expect to see data from several late-stage neuroscience assets, including results from two Phase 3 studies for Vraylar in major depressive disorder and results from the pivotal program for ABBV-951 in advanced Parkinson's disease, with regulatory submissions for 951 expected in the second half of the year. We also expect to see proof-of-concept data for Elezanumab in a Phase 2 study in multiple sclerosis and ABBV-8E12, our lead anti-tau antibody, in a Phase 2 study in Alzheimer's disease.
In addition to 8E12, we have a number of promising approaches in Alzheimer's, including our neuroinflammation programs aimed at TREM2 and CD33, currently in clinical development, as well as other tau approaches in preclinical development. These include tau antibodies with different epitope specificity, as well as approaches to clear intracellular tau. In Aesthetics, we continue to make excellent progress with our portfolio of facial toxins and dermal fillers, with several regulatory submissions, data readouts, and pivotal study starts expected this year. Our programs include new indications for BOTOX, as well as innovative toxins such as new liquid formulations in both long and short-acting toxins.
We also have programs to develop new indications for the JUVÉDERM collection, as well as novel dermal fillers such as HArmonyCA, which will be entering registration-enabling studies in the U.S. And in eye care, based on the positive results from the Phase 3 studies evaluating our topical eye drop, AGN-190584 for the treatment of symptoms associated with presbyopia. We plan to submit our regulatory application later this month and expect an approval decision in the fourth quarter of this year. So in summary, our R&D productivity remained high last year despite multiple COVID-related challenges, and we were able to maintain study continuity and minimize delays.
We're entering 2021 well-positioned for continued success and we expect significant program advancement across all stages of our pipeline again this year. This includes five new asset or major indication approvals, half a dozen regulatory submissions, more than 10 pivotal study readouts, and more than 15 data readouts from early and mid-stage programs. With that, I'll turn the call over to Rob for additional comments on our fourth-quarter performance and our 2021 guidance. Rob?
Rob Michael -- Executive Vice President and Chief Financial Officer
Thank you, Mike. Starting with fourth-quarter results. We once again delivered strong top- and bottom-line performance. We reported adjusted earnings per share of $2.92, above our guidance midpoint by $0.08.
Total net revenues were approximately $13.9 billion, up 6.8% on a comparable operational basis and ahead of our expectations. Immunology global sales were approximately $6 billion, up 14.8% on an operational basis. Within Immunology, Humira sales were approximately $5.2 billion, up 4.4% on an operational basis, with continued high single-digit growth in the U.S. offset by biosimilar competition across international markets.
SKYRIZI sales were $525 million, and RINVOQ sales were $281 million, with both products demonstrating strong sequential growth above expectations. Hematologic oncology delivered another strong quarter with revenue of approximately $1.8 billion, up 15.5% on an operational basis with solid growth from IMBRUVICA and Venclexta. Aesthetic sales were more than $1.1 billion, with BOTOX Cosmetic and JUVÉDERM, both experiencing a rapid recovery from the COVID pandemic. Neuroscience revenues were nearly $1.4 billion, up 14.9% on a comparable operational basis, led by Vraylar and our migraine portfolio.
We also saw a significant contribution from eye care, which had sales of more than $900 million. Turning now to the P&L profile for the fourth quarter. Adjusted gross margin was 81.8% of sales. Adjusted R&D investment was 12.6% of sales, and adjusted SG&A expense was 22.3% of sales.
The adjusted operating margin ratio was 46.9% of sales, an improvement of 230 basis points versus the prior year. Net interest expense was $618 million, and the adjusted tax rate was 11.6%. As we look ahead to 2021, our full-year adjusted earnings per share guidance is between $12.32 and $12.52, reflecting growth of 17.6% at the midpoint. Excluded from this guidance is $5.63 of known intangible amortization and specified items.
We expect adjusted net revenue of approximately $55.7 billion. At current rates, we expect foreign exchange to have a 1% favorable impact on full-year comparable sales growth. This forecast comprehends the following assumptions for our key products and therapeutic areas. We expect immunology global sales of approximately $25 billion, including U.S.
Humira growth of approximately 8%, international Humira revenue of approximately $3 billion at current exchange rates, SKYRIZI global sales of approximately $2.9 billion, and RINVOQ global sales of approximately $1.7 billion. We expect hematologic oncology to grow double digits, with IMBRUVICA global revenue of approximately $5.7 billion and Venclexta global sales of approximately $1.8 billion. For Aesthetics, we expect global sales of approximately $4.5 billion, including approximately $1.8 billion from BOTOX Cosmetic and approximately $1.3 billion from JUVÉDERM. For neuroscience, we expect global revenue of approximately $5.7 billion, including BOTOX Therapeutic sales of approximately $2.3 billion, Vraylar sales of approximately $1.8 billion, and UBRELVY sales of approximately $400 million.
For eye care, we expect global sales of approximately $2.9 billion, including approximately $550 million from RESTASIS, which assumes no generic competition in the first half of 2021. For women's health, we expect global revenue of approximately $1.1 billion. For our remaining larger products, we expect global sales of approximately $2 billion from MAVYRET, $1.2 billion from Creon, $1 billion from LINZESS, $800 million from Synthroid, and $750 million from Lupron. Looking at the P&L for 2021, we are forecasting full-year adjusted gross margin of approximately 83% of sales.
Adjusted R&D investment of approximately $6.6 billion, and adjusted SG&A expense of approximately $11.8 billion. This guidance includes approximately $1.7 billion in expense synergies from the Allergan acquisition. We are forecasting an adjusted operating margin ratio of approximately 50% of sales, which represents an improvement of roughly 200 basis points versus 2020. We expect adjusted net interest expense of approximately $2.4 billion.
Our non-GAAP tax rate to be approximately 12.5% and our share count to be roughly flat to Q4 2020. As we look ahead to the first quarter, we anticipate net revenue approaching $12.7 billion. At current rates, we expect foreign exchange to have a 1% favorable impact on comparable sales growth. We are forecasting an adjusted operating margin ratio of approximately 50% of sales, and we model a non-GAAP tax rate of 12.3%.
We expect adjusted earnings per share between $2.79 and $2.83, excluding approximately $1.32 of known intangible amortization and specified items. Finally, AbbVie's strong business performance and outlook continues to support our capital allocation priorities. Our cash balance at the end of December was $8.4 billion, and we expect to generate free cash flow of approximately $21 billion in 2021. This fully supports a strong and growing dividend, which we have more than tripled since inception, as well as rapid debt repayment, where we expect to pay down $17 billion of combined company debt by the end of 2021, including the $8.6 billion that was repaid in 2020.
We expect to achieve a net debt-to-EBITDA ratio just below 2.5x by the end of 2021 with further deleveraging through 2023. We anticipate that our net leverage ratio will be approximately 2 times by the end of 2022. Our strong cash flow also allows for continued business development, with approximately $2 billion allocated annually to augment our pipeline with the most promising external technologies and innovative mid- to late-stage assets. In closing, we are very pleased with AbbVie's strong performance in 2020.
We've driven top-tier growth while also advancing our strategic priorities, and we expect to deliver robust performance in 2021 and over the long term. With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President of Investor Relations
Thanks, Rob. We will now open the call for questions. In the interest of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two. Operator, first question, please.
Questions & Answers:
Operator
[Operator instructions] And our first question today is from Geoffrey Porges from SVB Leerink.
Geoffrey Porges -- SVB Leerink -- Analyst
Thank you very much, and as usual, I appreciate all the detail in the guidance. And congratulations on the results. A quick question on SKYRIZI and one on RINVOQ. First, one of your competitors had a negative result of a post-marketing study recently.
I'm just wondering if you've had any discussions with regulators about conducting any other studies for RINVOQ or updating the label for RINVOQ as a result of that negative signal? And then secondly, on SKYRIZI, a commercial question. Your current price for the 150-milligram dose is about $85,000, and you're using 4x the dose for ulcerative colitis. Could you just tell us how you can manage that? And is it feasible to have sort of different prices despite that big difference in dosing? Thanks.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
OK. This is Mike. I will take your second question first, and then we can cover the SKYRIZI question. With respect to RINVOQ, I assume you're talking about the tofacitinib safety study, which top-line results fairly recently in the last several days and showed in that program that they were unable to exclude a risk of MACE or malignancy based on the criteria that were used to analyze that data set.
As I said in my prepared remarks, we've kept a very, very close eye on our data, both at the time of the NDA and in an ongoing manner since that time, and we've not seen a signal. Our rates have not been elevated with respect to comparator or baseline rates, and the rates overall remain low. With respect to your specific question about whether we've had discussions with regulators. Regulators have not asked us do a long-term safety study in the way that Pfizer was asked, so that has not been discussed with regulators.
And we have not had any contact with regulators around labeling updates up to the present time.
Geoffrey Porges -- SVB Leerink -- Analyst
Right.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
And with respect to SKYRIZI?
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. Hi. It's Jeff Stewart on the commercial question. We have anticipated the different markets and how we will approach the pricing.
Now, it's important that we're just starting to see the SKYRIZI data. We saw the induction data. We'll see the maintenance data. I think it's important that as we look at our strategy that we're honing is for SKYRIZI, you're going to -- for Crohn's, you're going to have an induction dose, which is an IV at a different dose, and we know that based on the form and some things we can believe we can price that to market.
And also, we're coming with a unique approach for the maintenance as well, depending on where that dosing falls out. And we would be using at that point, which is known an on-body injector. So the combination of the forms, as well as basically the ways that we will deliver the medication when we get there, we believe that we can price effectively to the market and manage it across the indications.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
This is Rick. I think the bottom line is we've contemplated that. It's a good question, Geoff. But I think we have a strategy that will allow us to deal with that and impact the market in an appropriate way.
Liz Shea -- Vice President of Investor Relations
Thanks, Geoff. Operator, next question, please.
Operator
And our next question is from Vamil Divan from Mizuho Securities.
Vamil Divan -- Mizuho Securities -- Analyst
Hi. Great. Thanks so much for taking the questions. Maybe two if I could.
So one, I appreciate the long-term guidance you've given recently on the top line. I'm just wondering how we should may be thinking about the margin progression as we think about the Humira LoE in a couple of years? And then as we sort of get past that and your sales start to ramp up again, if you could maybe give us some sense of where you think your margins could sort of come back to? And then the other one I have is just on Vraylar. Again, I appreciate the guidance you've given there. I think one of the big events for you guys is you'll be the Phase 3 data in MDD.
I'm just curious kind of what gives you confidence and maybe you can just talk about whether it's around the drug or the study design? Sort of what gives you confidence or why should we be confident sort of going into that data readout? Thanks.
Rob Michael -- Executive Vice President and Chief Financial Officer
Vamil, this is Rob. I'll take your question on margin progression. I think when you consider the greater than $2 billion expense synergies from Allergan by next year and the P&L leverage that will come from the sales growth that we also expect for next year, you should expect that our operating margin will continue to expand through '22. Upon the entry of U.S.
biosimilars in '23 and given Humira's profitability, it is reasonable to expect operating margin and pullback. We've indicated before, the 45% range. Based on our current LRP, I think it will be a little bit higher than that. But then when we return to growth immediately -- in '24, we'll return to revenue growth, a very strong revenue growth starting in '25, you can expect then operating margins once again expand.
We've had a long history of expanding operating margin by leveraging the P&L. And I would expect that to continue as we start to see very strong revenue growth starting in '25 and beyond.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Yes, Vamil, this is Rick. Mike and I will cover the second question on Vraylar. It's important to recognize that what we've communicated in long-term guidance on Vraylar is based on the three currently approved indications. So it doesn't count on the fact that MDD would be successful.
Now, having said that, I think we do have, I'd say, we're cautiously optimistic about the MDD indication and I'll let Mark kind of walk through how we look at it and what gives us that level of confidence. But in the event it weren't to play out, that doesn't impact the guidance that we gave.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
So this is Mike. I'll pick up from here. I think that our optimism, and I think that's the right way to express it in a disease like MDD, which is a challenging disease to work and is based on a couple of features. One is based on the basic pharmacology of Vraylar, which has a unique mix of D3, D2, specificity, and other features that lead clinically to what's been described as a brightening effect which seems to be beneficial in a number of settings.
It's also driven by the results that we have from the MDD study that is positive that we already have in hand. So with one positive study, we would need only one, at least one or, of course, both of the next two studies to read out positive, either of those outcomes would support a filing. We've done a deep dive into the study design in the patient population. We think it's a well-designed study.
And we think the patient characteristics with respect to baseline factors and other elements are all very appropriate for this sort of study. And we can assess that in a blinded aggregate way in a way that's completely consistent with the study roles for the conduct of the study. And so all of those things make us feel optimistic that it's a molecule with a good chance to work. Well-designed study, well-conducted study, and we look forward to seeing the results.
But as I mentioned, MDD is a challenging area. And for that reason, we didn't build it into our deal model, and we didn't factor it into our guidance, as Rick said. So we view this as upside.
Liz Shea -- Vice President of Investor Relations
Thanks, Vamil. Operator, next question, please.
Operator
Thank you. And our next question is from Randall Stanicky from RBC Capital Markets.
Randall Stanicky -- RBC Capital Markets -- Analyst
Great. Back to RINVOQ in atopic derm, how quickly do you guys expect that launch to ramp? And maybe just help us with expectations given coinciding JAK competition from abrocitinib, the timing to payer ramp, and coverage. And then we sense a lot of patient warehousing, maybe if you could help quantify your thinking around that opportunity within the $1.7 billion outlook for the year, that would be helpful. And then a quick follow-up, Rick, you don't get asked about eye care a lot.
It's a $3 billion global franchise. You have some pipeline behind it. It could be a good growth business, but it's declining. Any appetite to strategically add to that business or reposition it? Or should we view it more as a mature cash flow generator? Thanks.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. Hi. It's Jeffrey Stewart. I'll start off with the atopic derm commercial question.
We're very encouraged with the market that we're about to enter, and I'll give you some context there. So when we look at the population, we see that just on the moderate to severe atopic derm patients that the market size or the potential is at least two and probably closer to 3 times the size of the psoriasis market. And so this is very, very encouraging in terms of our ability to enter. It's also significantly underpenetrated.
I mean, if you look at the psoriasis market, you're talking about far greater than 10% or 12% penetration and in the single digits, the low single digits, where we are right now with the one biologic, dupilumab. So it's very, very attractive. The other thing that I would say is that we see from our go-to-market approach that we know that HCPs very intimately. So about 85% of the market is driven by the derms.
We know the derms very well, and there's a roughly 90% overlap with the big prescribers of dupilumab and drugs like SKYRIZI and/or Humira. So we are very, very encouraged at the ability for this segment to rapidly expand despite the fact there will be multiple new entrants coming in. To get to your specific question about the access ramp, we have a very strong position, as you know, with RINVOQ right now in the existing indication of RA. We have greater than 95% commercial access.
That's the dominant channel for atopic derm. And our anticipation is we will have very strong access that will build to that level over the course of '21. Obviously, it's going to take some time once we get the approval, to go through the final approvals on the big commercial plans. And so we see it starting off slow, but then building into the middle of the year and certainly getting to a significant level at the end of the year.
So the combination of the market, the asset itself, which looks very, very strong, as you've seen from the data and the way that we will play in our derm segment, as well as the allergy segment, give us a lot of confidence for a strong ramp in '21 and beyond.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
The only thing I would add to Jeff's comments, I mean, if you look at RINVOQ, it did $731 million last year. Obviously, if you look at the running rate, so out of the fourth quarter, had a strong running rate coming out of the fourth quarter. But that's $1 billion worth of growth from '20 to '21. The majority of that growth is going to come from continued performance in RA.
I think where you will see the most significant impact from atopic dermatitis will be as we flow into '22, much like as you saw what happened in the RA market. It takes time for physicians to start to adapt it. Once they do, their momentum picks up. So I don't remember the specific number, and I'm not sure we gave that guidance anyway.
But I would be thinking about it more that it's continued penetration and growth in RA that's driving the bulk of that growth. Rob, anything you want to add?
Rob Michael -- Executive Vice President and Chief Financial Officer
Yeah. Just on your question regarding warehouse patients, we have a very modest amount of warehouse patients assumed in the forecast. So the $1.7 billion doesn't really count on that. And keep in mind that RINVOQ was one of the products that was lesser impacted by COVID.
And so there's not really a significant warehousing in that forecast.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
And then, Randall, on your second question, I would say we absolutely agree with your point of view. I think eye care is a very attractive market. It's the kinds of markets that I think we look for and that we -- the very best at is where there are specialized physicians who really drive the use of medications based on the clinical data and being able to restate markets and improve standard of care in those markets. And certainly, eye care, I think, fits that description.
So we would have a strong appetite to look for opportunities, and we are looking for opportunities now. If we could add to that eye care business to be able to drive growth. Obviously, RESTASIS, as Rob indicated in his formal remarks, we've built in a half a year, that's still an unknown of when that product will go generic or if it will go generic. But I think even aside from that, regardless of what happens with RESTASIS, longer term, this is an area that we would have interest.
And if we could find the right kind of assets to add to it, we would enthusiastically do that.
Liz Shea -- Vice President of Investor Relations
Thanks, Randall. Operator, next question, please.
Operator
And our next question is from Chris Schott from J.P. Morgan.
Chris Schott -- J.P. Morgan
Great. Thanks so much for the questions. Can you just elaborate a little bit more on Aesthetics? And maybe some of the learnings you've had in that franchise since you acquired it, have there been changes in the way you think about approaching the business commercially, your levels of investment? I'm just trying to get my hands around that high single-digit growth over time. It does seem healthier than the Street had been anticipating.
I'm just trying to get a little bit more color of what you're seeing in the market that gives you confidence in that. And then my second question was just on IMBRUVICA. The growth has slowed here a bit. Can you just elaborate a bit more on how much of this is -- is there any COVID-related dynamics playing out here? How much of this is competitive? I'm just trying to get a sense of just how you're seeing the health of that franchise over time.
Thanks so much.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Yeah. Chris, this is Rick. So I'll cover the Aesthetics question for you. I'd say as we've studied the Aesthetics market and had an opportunity to be able to operate the business now for some time, I think we're even more enthusiastic about the long-term ability to be able to grow this market.
I would say some of the areas that were a bit of a surprise to us is the responsiveness of this market to patient activation. And I would say that the strategy that we've put in place is one where we are funding the business on a very -- on a continuous basis at a high level to achieve the level of activation that we're looking for. And we think that will -- certainly, you can see the response, like as an example, in BOTOX, already, we're seeing a very aggressive response and being able to grow the market. You saw the BOTOX Cosmetics grew in the fourth quarter, 9%.
I would expect that we can continue to drive that level of growth. And as part of legacy Allergan, I think it was much more episodic in the way this was funded quarter to quarter where we have -- we basically built a funding plan that will allow them to continue to drive activation over a long period of time. I'd say the second thing that's of interest to us is I think this is a market where you can drive significant innovation if you fund that innovation in a way again, a more continuous basis and advance those programs more aggressively and have a well-thought-out strategic road map as to where you're trying to drive some of these markets. As Mike mentioned in his comments, our goal is to basically try to advance the level of performance of the toxin market significantly over time.
And the same with the filler market. There are certainly things that we can do to expand the areas that you can use fillers, both within the U.S. and globally. And that's a significant opportunity.
But long term, we think there's an opportunity to take some of the biologic expertise that we have here at AbbVie and create more biologically active fillers that not only do physical filling but also improve collagen, improve elastin, and other kinds of characteristics that would improve skin quality. And we think that will be -- if we're successful, we think that will be a significant opportunity to drive long-term growth. And then the last thing I'd say is the geographic footprint that AbbVie has. We obviously have a very broad geographic footprint.
And the structure that we've set up is this totally integrated global unit that we're operating in the Aesthetics business, really gives them the freedom to go out and expand or more aggressively fund areas around the globe that they think there is a significant opportunity. A good case in point is, I believe it was in the fourth quarter, we funded a significant expansion in China to be able to increase the sales force there, to be able to drive it more deeply into a broader set of the cities in China to the next level down. And we're already seeing the benefits of that. China is already back to growing much like it did pre-COVID.
So I think there's a lot of attractive attributes about that. On IMBRUVICA, maybe Jeff and I will tag-team on that one. What we're clearly seeing is that COVID is having an impact on patient starts in CLL. We're not only seeing it in IMBRUVICA, but we're seeing it in Venclexta as well.
And it's somewhat logical when you think about it, these oncology practices are trying to reduce density and CLL is a disease where you can -- in many patients' cases, you can delay therapy for some period of time. I would say that's the vast majority of it. When we look at -- when I look at the overall share and the reason why I'm talking about the overall share is Venclexta is now gaining a significant level of momentum in this market as well. When I look at our overall shares in first line, second line, or third line, we continue to have the dominant share position.
And I'd say probably partially to your question, if I look at Calquence, I'd say it's performing at the expectation we have. I think the first-line share is about 12%, slightly higher in second line, maybe 14%. And I don't recall the third-line share.
Rob Michael -- Executive Vice President and Chief Financial Officer
Very similar, yeah.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
So I'd say that's within the range of what we saw with MCL within the range of what we had modeled. So it's not really a competitive issue that we're dealing with. It's more a function of getting those patients starts back up to the level they were before. Anything you want to add, Jeff?
Jeff Stewart -- Executive Vice President, Commercial Operations
No. I think, Rick, that's exactly right. The only thing I would say in terms of our forecast, we think that in the first part of the year, the early part of the year, we'll continue to see some suppression in the new patient starts. But as we hit the second and third quarter, we anticipate that the market will recover.
Liz Shea -- Vice President of Investor Relations
Thanks, Chris. Operator, next question, please.
Operator
Our next question is from Tim Anderson from Wolfe Research.
Nicole Maher -- Wolfe Research -- Analyst
Hi. Can you hear me? This is Nicole Maher on for Tim Anderson. What does your long-term guidance assume for potential austerity measures in the ex-U.S. countries in 2021 and beyond? Similar to what we saw in the post-2008 time period, except this time around it would be the follow-up from the COVID impact?
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Hey, Nicole. This is Rick. I think this is something we've had experience with. If you think about the economic crisis, I thought we saw a similar kind of uptick in price erosion outside the United States and in particular, I'd say, in European Union.
We have factored in a reasonable assumption into our guidance for 2021. So I feel good about that. I think it is reflective of what we're likely to see. So I think we're covered from that perspective.
Anything you want to add, Rob?
Rob Michael -- Executive Vice President and Chief Financial Officer
No. That covers it.
Liz Shea -- Vice President of Investor Relations
Thanks, Nicole. Operator, next question, please.
Operator
And our next question is from Steve Scala from Cowen.
Steve Scala -- Cowen and Company -- Analyst
Thank you. Two questions. AbbVie delivered one of the first completely clean and compelling quarters in pharma this cycle and I have to believe has something in reserve for upside as the year unfolds. I'm sure you monitor the competition.
So beyond the AbbVie management team itself, what about your business? Do you think is allowing you to execute in this way? Would you attribute it mainly to the products themselves, the payer strategies, geographic mix? Or is there something else? And the second question is the ongoing Vraylar Phase 3 trials utilize doses up to 3 milligrams, while the successful prior trials were up to 4.5 milligrams. So why were the doses lowered in the first place? And what placebo response mitigation methods are included in the ongoing trials? Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
OK. Steve, this is Rick. I'll cover the first one and Mike can cover the second one. I would say first and foremost, we are a very disciplined organization in how we approach execution in the marketplace.
We tend to probably even to some extent, obsessively plan and go out and try to execute against that plan. And I think in times of difficulties, that kind of discipline tends to demonstrate itself. And that's where you see the biggest differences. So that's not to say other people don't do it.
Like that. I'm not that familiar with how others operate, but I know how we operate. And I know how we contingency plan, and we look at, OK, if that doesn't work, what are we going to do? And we do that ahead of time. And if that doesn't work, what are we going to do? And I think that kind of contingency planning and focus on execution is helpful.
I'd say the second thing is if I look at our business, we put a strategy in place, and I feel very good about how the business is performing overall. I mean, I would say the business firing on all cylinders. And you can look at our fourth-quarter performance, to your point. And I think it demonstrates that, and you can look at our guidance, and it demonstrates that almost every single product area is performing at or above, most of them above what consensus was.
And that, I think, is another indicator for you. And we have a much more diverse business now. We have four major growth platforms that are helping us drive that level of growth. Our new product launches are doing extremely well.
Obviously, SKYRIZI and RINVOQ are, but I'd also say UBRELVY and Vraylar are performing extremely well. And the pipeline, I would say one of the things that gives me the most confidence is when I look at the pipeline behind that, that's designed to be able to drive our long-term growth because one of the things that we focus on is how we're going to make sure that we continue to drive this business to perform at the level it's performing over the long term. And so if I look -- I look at the SKYRIZI and RINVOQ, R&D execution around the follow-on indications, it's been nothing less than spectacular, both from a timing standpoint and the kind of data that we have been able to produce. When I look at our hem/onc strategy, we've got a very disciplined strategy there of ensuring that we have enough assets to continue to grow what has become a very large franchise for us.
Our franchise is $6.6 billion, as we said, we're going to grow at double digits. Over the long term, what's going to allow us to do that? Well, obviously, IMBRUVICA is going to continue to drive share, Venclexta is going to continue to drive share in CLL. But Venclexta has indication expansions into area potential, in areas like t(11;14) and a broader AML population and several other areas. Then I look at navitoclax.
We should get that product approved and give us an opportunity in myelofibrosis. And then you look at Genmab and you look at our CD47, those will all allow us to ensure that we can sustain that growth profile over the long term. Neuroscience, same thing. Atogepant will allow us to expand into the broader migraine population.
So I feel very good about what we put in place and our ability to execute against that. So I think there's not one silver bullet that I can point to. I think it's all of those things. Certainly, our ability and market access has helped a lot in the U.S.
I'd say we're very good at that. But you have to have the right kinds of assets in order to execute that. You have to have assets that are differentiated, like SKYRIZI and RINVOQ. So it's the combination of all of that, it gives you this performance and gives you the long-term sustainable ability to deliver that kind of performance.
And I feel awfully good about where we are.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
So this is Mike. I'll take the Vraylar question. I believe you're talking about the ongoing MDD studies. And what I would say there is that the dose selection was based on everything we know about dose response, not only from the prior MDD studies, but across the program, and we've done a deep dive into that, and we're confident that we're at a dose that ought to have optimal effect in this indication.
With respect to your question about placebo response rate, managing or controlling the placebo response is extremely important in all studies, but particularly in depression studies and other studies in psychiatry. And I would say that there are many different approaches that are taken that are complementary to each other. The first and most important is appropriate site selection. One has to select sites with an appropriate patient population with experienced investigators who are also experienced evaluators in a clinical trial setting.
And that's one of the most important things to getting high-quality data to determine whether a drug works. The next element has to do with investigator training, investigator manuals, protocol design, and also with respect to inclusion and exclusion criteria to make sure that you have a patient population that is representative of the population that you would expect to treat post-registration if the study is successful. And we've taken a look at all of these things. We've taken a look at the blinded aggregate data, and we feel good that the measures that we have in place will effectively control the placebo response and give us a quality readout.
Steve Scala -- Cowen and Company -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Steve. Operator, next question, please.
Operator
Thank you. Our next question is from Gary Nachman from BMO Capital Markets.
Gary Nachman -- BMO Capital Markets -- Analyst
Hi. Good morning. Could you talk about how much more you plan on investing behind the neuroscience franchise to accelerate growth there? To get to the long-term targets, you talked about like the $4 billion in Vraylar, even without MDD, and how you see the long-term potential in BOTOX Therapeutic? And then how are you thinking about the launch for atogepant later this year? And how will you leverage the work that you've done so far with UBRELVY, how do you think that product will take off in the migraine market? Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Well, I'd say on the on the neuroscience investment, I mean, we obviously have a very broad neuroscience investment. I mean, we have a significant investment from an R&D standpoint and in disease-modifying approaches for a number of different neurological diseases that Mike has talked about and mentioned in his comments earlier. So I'd say we have a significant R&D investment. We obviously are investing in Vraylar to continue to expand that asset.
Again, our goal will be to invest in these areas where you can get maximum market share capture. I think if you look at Vraylar and you look at the projections that we've made over time, if you look at the sequential year-over-year dollar growth of that business, that's how you get to that number. And basically, we've been able to sustain that, and we expect to continue to sustain it as relatively low market share, but that's not unusual in this market because there's a lot of generic products that psychiatrists cycle patients through and sometimes in combination with patients. So we're going to invest in the business to be able to drive the maximum level of profitable share as we do in any other segment that we're in.
Same thing on BOTOX Therapeutic. Obviously, we have R&D programs in there to continue to expand the opportunities in therapeutics. Anything you want to add from an investment standpoint, Rob?
Rob Michael -- Executive Vice President and Chief Financial Officer
I think if you look at the overall portfolio, we've detailed out what we expect for Vraylar, and that's without the additional indication, we think we can get to approaching $4 billion. When we look at the migraine portfolio, peak sales are greater than $1 billion for both the UBRELVY and atogepant. We have 951 in the pipeline that we think can be a significant contributor. Obviously, BOTOX Therapeutic will continue to grow.
So we feel pretty good about the portfolio we have, and that double-digit growth outlook is supported by a number of very promising assets.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. Hi, it's Jeff. I'll take the second question on atogepant. I think, first, the asset itself is very, very attractive.
And when you look at the response on the migraine-free days at the 10 to the 60 milligram, it's really impressive data. Very impressive data as this very strong oral. And so we think that we can come at this in a couple of different ways. Obviously, you highlighted the leveraging UBRELVY.
We've got dedicated sales force that calls on the specialty organization, the neurologists, as well as the headache specialists. They'll actually carry both UBRELVY and atogepant in their call plan to really leverage the knowledge of a very established sales force and as well as focused on the big primary care writers that see a lot of the migraine sufferers. So this is an important dynamic that we'll be able to leverage when we get into the market toward the end of the year. Also, we're looking at the ability to see how you look on the back end of the migraine journey.
So patients are on BOTOX Therapeutic, for example, which is very substantial. It's the leading in play share for chronic migraine. But many of those patients don't get full efficacy results. So ultimately, the combination of BOTOX plus atogepant as a way to get really migraine freedom in the toughest patients is another area over the long-term that we think can leverage these assets across the board, whether it's UBRELVY on the front end with acute, atogepant in the middle, oral for episodic and chronic or BOTOX on the back end.
We think it's a nice portfolio that we can commercially manage over time to hit our ambitions that Rob described.
Liz Shea -- Vice President of Investor Relations
Thanks, Gary. Operator, next question, please.
Operator
Thank you. And our next question is from Navin Jacob from UBS.
Navin Jacob -- UBS -- Analyst
Hi. Navin from UBS. Thanks for taking the question. So first, on the ADC steroid, ADC for inflammatory conditions.
Just wanted to get an update there. It's been, I believe you said delayed for COVID-19. Do you still believe that this approach can lead to success in -- for refractory RA or other inflammatory conditions? Just wondering about your confidence in this technology, understanding it's still early in development. And then secondly, as it relates to your current state of affairs with RINVOQ and SKYRIZI, could you remind us of what the current in play market share for RINVOQ is in RA and SKYRIZI in psoriasis? Thank you so much.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
OK. This is Mike. I'll take your first question. ABBV-154, our TNF steroid conjugate, has not been delayed because of COVID.
There were some delays in other early immunology programs, our CD40 and our RORgamma t program experienced modest delays but 154 did not. As we said at the time of the COVID peak over the course of the last summer, there were a small number of studies that we delayed initiation and delayed enrollment. The programs that I'm talking about, CD40 and RORgamma t were impacted modestly in that time period, but 154 was not. So that remains on track.
We remain confident in it. We have selected 154 as the agent to go forward. Remember that we had 2, 3373, and 154, and we selected 154 because of advantages it had in linker technology. We're planning to initiate a large Phase 2b study in the first half of this year.
And then today, we're now saying that we will also be studying Phase 2 Crohn's disease, as well as polymyalgia rheumatica. And so that's an important set of indications. It covers a wide range of opportunities, RA and Crohn's disease are areas where we're very active. PMR, polymyalgia rheumatica, is a new area where there's not a lot of therapeutics.
Unfortunately, it's a well-established area in medicine, but there's very little in terms of treatment for these patients. They have considerable pain and suffering from their conditions, and it's particularly steroid responsive. So we think it is a very attractive target for a steroid ADC approach. So 154 remains on track, and we continue to have confidence in it.
Jeff Stewart -- Executive Vice President, Commercial Operations
Thanks, Mike. It's Jeff. I'll take the in-play share. So if we look at the psoriasis market and SKYRIZI, we have on our latest data point 33% of in play share, which is, of course, is new patients coming in or newly switched patients.
If you look at the total AbbVie share, it's approximately 45%. So very remarkable when you add Humira plus SKYRIZI in the dermatology space. If you look at the RA space, our latest data points are between 15% and 16% in terms of in-play share for RINVOQ in RA, and that's basically neck and neck with Humira. So for a total Abbvie share of roughly a third of the RA market.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
This is Rick. The only thing I'd add on that is when you look at that SKYRIZI 33% in play share, it's almost double what the next closest competitor is. I mean, it's impressive the gap between SKYRIZI and the No. 2 player.
And the other thing is, as these brands get more experience in the market, we'll also start to talk about the total TRx share. And I think SKYRIZI is at that point now. I think it's total TRx share. Now, it's 14%, 13.9%, 14%, something like that.
Rob Michael -- Executive Vice President and Chief Financial Officer
That's right.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
And that's pretty impressive for this short period of time. I think it's close to No. 2 in the market in TRx share. So they're both doing very, very well.
Liz Shea -- Vice President of Investor Relations
Thanks, Navin. Operator, next question, please.
Operator
And the next question is from Chris Raymond from Piper Sandler.
Chris Raymond -- Piper Sandler -- Analyst
Hi. Thanks. Just a couple of questions. First, on the relationship with BI on SKYRIZI.
We had a few inbound questions on the treatment of the royalty, and I know you've answered this question a little bit in the past, but also just noticing the big noncash GAAP charge you took this quarter. You back out of non-GAAP earnings. So I know you have described accounting for this as a business combination. But can you maybe give a little bit more color on the rationale and the accounting behind that noncash charge? And then is there also some threshold number or other event where you'd add this royalty expense back to non-GAAP? And then on ABBV-951, we picked up a decent amount of KOL excitement around this asset in Parkinson's.
I know Phase 3 is expected later this year. But I wonder if you could maybe talk about the launch, your launch expectations on this and maybe contrast it to the Duodopa experience. Just from our feedback, it seems like this could expand the addressable PD population pretty sizably. And I don't know, Rick, maybe frame how this sort of factors into your long-range $10 billion neuroscience guidance? Thanks.
Rob Michael -- Executive Vice President and Chief Financial Officer
Yeah. Chris, I'll take your question on contingent consideration. So yes, we did account for this as a business combination. So that means each quarter, we do mark-to-market the fair value of the future milestone royalty payments.
And you did see us take a fair value write-up this quarter based on the higher sales outlook, as we communicated during the immunology day event in December and that you see in the guidance we provide today. Obviously, the outlook for SKYRIZI continues to increase, and so we're recognizing that liability going forward. We also take into consideration because it's a fair value measure what the market is assuming. So it's not just our own forecast, it's also what Street expectations are.
And those have also increased, as we've seen a very nice ramp. We're starting to see, obviously, the confidence from the Street increase, and that's translate into a higher outlook for SKYRIZI, which then translates to higher future potential royalties. One of the reasons I wanted to stress also on the free cash flow in my remarks today, is because there is some confusion over -- that's how we account for it, but it's important to keep in mind that when I talk about free cash flow of $21 billion this year, that accounts for the royalty payments to BI. And so you can look at a few different ways.
You can look at it from a -- if you can track the consideration accretion that we're recording and the liability on the balance sheet as indicator of the future outlook, but also as we monitor our cash flow pretty carefully, what does that contribute to overall cash flow. So we would not be going back. We made a determination as a business combination. We should not anticipate that we would reverse that.
But we'll provide, obviously, more clarity on what those royalties look like going forward given the size of the asset.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
I mean, I'll also say in that time period when we did BI, it was an absolute requirement on the accounting --
Rob Michael -- Executive Vice President and Chief Financial Officer
Right. That was clear.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
It wasn't like it was a judgment call or something you desire to do. The accounting said it had to be accounted for in that form, in that fashion. It's since been changed going forward, but the window at which that occurred, that was the required accounting treatment. So on number two, Jeff and I will cover number two.
I'll give you sort of a high-level look, and then Jeff, maybe give you more specificity around it. If you look at Duodopa, I mean, this is a therapy that has absolutely phenomenal efficacy. You can see these patients who cannot move, really, and you turn on the pump and you start giving them the drug. And within a very short period of time, they regained their motion.
The challenge is a very difficult treatment to -- for the patient to basically deal with and the caregiver to deal with on a long-term sustainable basis. You have to do surgery, insert the G-tube, you have to maintain that G-tube open. So that does somewhat limit the population that is able to use it. And so we view this as a way to significantly expand the market.
And Jeff is obviously far more familiar with it, so I'll let him give you a little more specifics. But that's the general concept. I think this could be a significant -- wanted to be a significant treatment for these patients who need this kind of therapy; and two, I think you could expand the market pretty significantly.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. I think just to add on that, Rick, we hear the same thing from our KOLs. They're very, very encouraged. And with the perspective, you look at Duopa or Duodopa about a $0.5 billion product with a really difficult challenge on onboarding for these patients, right? You have to do the Jpeg surgery.
You have challenges with the size of the pump. Nonetheless, it's so remarkable that we do get that level of sales. So if I give you some perspective on the market, if you look at the advanced Parkinson's disease market, 90% of it is really old generic orals where the patients just have to take more and more oral medication before they can have any relief. And then they're still in big trouble.
So only a minority, about 10% ever get to, let's say, more advanced device-aided therapy, which is Duopa or Duodopa and deep brain stimulation. So as we study the market, we agree that as we look at the ability to sort of move from a more convenient way, a simple way for a neurologist to get a more advanced therapy without doing a procedure. Whether it's brain surgery or the GI surgery, we think we can start to move upstream into that 90% of the really nonworkable oral segment. So we are encouraged at the recent feedback from our KOLs and our study sites and are anticipating and planning for our launch in the coming years.
Liz Shea -- Vice President of Investor Relations
Thanks, Chris. Operator, next question, please.
Operator
And our next question is from Greg Gilbert from Truist.
Greg Gilbert -- Truist Securities -- Analyst
Yes. Hi. I was curious if your BOTOX Cosmetic guidance in the U.S. assumes that Jeuveau is on the market or off the market this year? And then longer term, curious about BOTOX Cosmetic versus Therapeutic.
Many years ago, Allergan started to explore the idea of separating the two from a reimbursement and pricing standpoint. I believe it involved litigation with the government at one point. But I don't know if that's still ongoing or if you're still thinking through that possibility since it has implications longer-term about keeping those assets together or possibly spinning Aesthetics someday if conditions warrant. Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Yeah. So I don't know that we're going to specifically comment on what we've assumed as it relates to Jeuveau. I just don't think it's probably appropriate. First of all, it's not that large of a product so it wouldn't have a material impact on BOTOX Cosmetics.
I'd say on your second question, I will tell you emphatically we have no interest in spinning off the Aesthetics business. We have a program in place where we manage the differences between the reimbursement associated with BOTOX Therapeutics and the cash paid portion of the Cosmetics business. It's been in place for quite some time. We're quite comfortable that we can manage it quite effectively.
So it's an important thing that you track carefully, but we have a good system in place to be able to do that. But we have no interest in spinning off the Aesthetics business or any aspects of the Aesthetics business.
Liz Shea -- Vice President of Investor Relations
Thanks, Greg. Operator, next question, please.
Operator
Our next question is from Geoffrey Meacham from Bank of America.
Aspen Mori -- Bank of America Merrill Lynch -- Analyst
Hey, guys, it's Aspen on for Jeff. A couple of quick ones. So within the context of the XELJANZ data, do you guys have an early view from the field as to whether docs are differentiating RINVOQ and -- sorry, RINVOQ and XELJANZ safety profiles? And then quickly on the mid- to early stage pipeline. There's obviously a lot going on in your hem/onc space.
But I just want to get a sense of how strategically important some more newer disruptive technologies are to AbbVie such as cell or gene therapy? Thanks.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. I'll take the early view from the field. I think it's important, at least we've heard from our teams that some of this data is not really new. It was available in the interim analysis that help led to the label that we have.
And so really, the early reports from our field, particularly from the KOLs and the big prescribers is a little bit of a shoulder shrug, like not that new news. I would say from the standpoint of the comparison between RINVOQ and XELJANZ. I mean, if you look at the penetration of the JAK class, really across the world and particularly in the U.S., there has been a significant lift that we just talked about with that in play share. And so really, what we're hearing from the field and from the prescribers are they view RINVOQ as a differentiated asset in terms of the overall risk-benefit, and that's why that share is moving so quickly.
And so that's really what we hear in the early days from our teams that are connected to those big rheumatologists.
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
So this is Mike. I'll take the question on the hem/onc portfolio, mid-stage, and newer technologies. What I would say is there is a lot going on in our hem/onc portfolio. Obviously, with our late-stage molecules in the mid-stage, I think you'll see a focus on T cell redirection, which is, of course, a newer technology.
And I think, a very attractive approach to harness the immune system to control these cancers. And you see good progress with our CD3xCD20 and our BCMA T-cell redirecting therapies. And so that is clearly an area of focus for us now, and I think we'll continue to be in the future. With respect to gene therapy, gene therapy is not a single thing, it can be used in different ways.
Gene replacement is not an area that we've been focused on. Gene delivery is an enabling technology for other therapeutic approaches like cell-based therapies, and we have early programs in cell-based therapies in hem/onc and in other areas, solid tumor oncology, and potentially other areas in the future. And so that's something that we are keeping a close eye on and making sure that we have access to the enabling technologies we need to prosecute those targets. I think that for those sorts of approaches were probably one generation away from things that are broadly applicable, but we are exploring possibilities that we think can fulfill that next-generation needs.
And so we are keeping a broad eye and are essentially therapeutically agnostic. What I mean by that is we look for the best tool to do the job. We don't find a tool and then figure out how to use it. And so in each of these cases, we're going after strong biology.
We're going after we think we'll raise the bar on the standard of care. And I think a number of the newer technologies that I mentioned fit that bill.
Liz Shea -- Vice President of Investor Relations
Thanks, Austin. Operator, we have time for one final question.
Operator
Thank you. Our final question today is from Luisa Hector from Berenberg.
Luisa Hector -- Berenberg -- Analyst
Hello. Thank you for taking my question, and thank you for the guidance on the cost lines. And I just wondered, given that we have various layers to consider with COVID and then the Allergan inclusion and the synergies, could you comment on the implied cost ratios for 2021? And how representative these are of the combined entity? And is there anything else we should be thinking about for those cost lines as we look out to '22 COVID-related savings maybe sticky, maybe ones that may reverse? And could you tell us the level of synergies you achieved already in 2020? Thank you.
Rob Michael -- Executive Vice President and Chief Financial Officer
Hi, Luisa. This is Rob. So I think now that we have our first full year with the combined company and you're looking at these profiles, I think you could assume they're indicative of -- in the range of what you'd expect going forward. And so this is probably a cleaner guide than, say, when you have a partial year like we had in 2020.
As it relates to the synergies we achieved in 2020, we achieved about $600 million of synergies, about $400 million, that was in R&D and $200 million in SG&A. And you see we've increased that to $1.7 billion in 2021 with about a little bit -- roughly half of that coming from R&D about in the 40% range, SG&A and about 10% coming from cost of goods.
Liz Shea -- Vice President of Investor Relations
Thanks, Luisa. And that concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator signoff]
Duration: 89 minutes
Call participants:
Liz Shea -- Vice President of Investor Relations
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources
Rob Michael -- Executive Vice President and Chief Financial Officer
Geoffrey Porges -- SVB Leerink -- Analyst
Jeff Stewart -- Executive Vice President, Commercial Operations
Vamil Divan -- Mizuho Securities -- Analyst
Randall Stanicky -- RBC Capital Markets -- Analyst
Chris Schott -- J.P. Morgan
Nicole Maher -- Wolfe Research -- Analyst
Steve Scala -- Cowen and Company -- Analyst
Gary Nachman -- BMO Capital Markets -- Analyst
Navin Jacob -- UBS -- Analyst
Chris Raymond -- Piper Sandler -- Analyst
Greg Gilbert -- Truist Securities -- Analyst
Aspen Mori -- Bank of America Merrill Lynch -- Analyst
Luisa Hector -- Berenberg -- Analyst
More ABBV analysis
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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 (NYSE: ABBV) Q4 2020 Earnings Call Feb 03, 2021, 9:00 a.m. Welcome to the AbbVie fourth-quarter 2020earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties, including the impact of the COVID-19 pandemic on AbbVie's operations and financial results that may cause actual results to differ materially from those indicated in the forward-looking statements. | We expect our R&D pipeline advancements to lead to the approval of more than a dozen new products or indications over the next two years, including a total of six additional indications for RINVOQ and SKYRIZI, which will cover all of Humira's major indications plus new significant disease areas, including atopic dermatitis; expanded indications for Venclexta and Vraylar and several new product approvals, including atogepant, for episodic migraine, navitoclax for myelofibrosis and ABBV-951, a potentially transformative next-generation therapy for advanced Parkinson's disease. Operator [Operator signoff] Duration: 89 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources Rob Michael -- Executive Vice President and Chief Financial Officer Geoffrey Porges -- SVB Leerink -- Analyst Jeff Stewart -- Executive Vice President, Commercial Operations Vamil Divan -- Mizuho Securities -- Analyst Randall Stanicky -- RBC Capital Markets -- Analyst Chris Schott -- J.P. Morgan Nicole Maher -- Wolfe Research -- Analyst Steve Scala -- Cowen and Company -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Navin Jacob -- UBS -- Analyst Chris Raymond -- Piper Sandler -- Analyst Greg Gilbert -- Truist Securities -- Analyst Aspen Mori -- Bank of America Merrill Lynch -- Analyst Luisa Hector -- Berenberg -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q4 2020 Earnings Call Feb 03, 2021, 9:00 a.m. | We expect our R&D pipeline advancements to lead to the approval of more than a dozen new products or indications over the next two years, including a total of six additional indications for RINVOQ and SKYRIZI, which will cover all of Humira's major indications plus new significant disease areas, including atopic dermatitis; expanded indications for Venclexta and Vraylar and several new product approvals, including atogepant, for episodic migraine, navitoclax for myelofibrosis and ABBV-951, a potentially transformative next-generation therapy for advanced Parkinson's disease. Operator [Operator signoff] Duration: 89 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources Rob Michael -- Executive Vice President and Chief Financial Officer Geoffrey Porges -- SVB Leerink -- Analyst Jeff Stewart -- Executive Vice President, Commercial Operations Vamil Divan -- Mizuho Securities -- Analyst Randall Stanicky -- RBC Capital Markets -- Analyst Chris Schott -- J.P. Morgan Nicole Maher -- Wolfe Research -- Analyst Steve Scala -- Cowen and Company -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Navin Jacob -- UBS -- Analyst Chris Raymond -- Piper Sandler -- Analyst Greg Gilbert -- Truist Securities -- Analyst Aspen Mori -- Bank of America Merrill Lynch -- Analyst Luisa Hector -- Berenberg -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q4 2020 Earnings Call Feb 03, 2021, 9:00 a.m. | We expect our R&D pipeline advancements to lead to the approval of more than a dozen new products or indications over the next two years, including a total of six additional indications for RINVOQ and SKYRIZI, which will cover all of Humira's major indications plus new significant disease areas, including atopic dermatitis; expanded indications for Venclexta and Vraylar and several new product approvals, including atogepant, for episodic migraine, navitoclax for myelofibrosis and ABBV-951, a potentially transformative next-generation therapy for advanced Parkinson's disease. Operator [Operator signoff] Duration: 89 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Mike Severino -- Vice Chairman and President, Research and Development, Corporate Strategy Office, Operations and Human Resources Rob Michael -- Executive Vice President and Chief Financial Officer Geoffrey Porges -- SVB Leerink -- Analyst Jeff Stewart -- Executive Vice President, Commercial Operations Vamil Divan -- Mizuho Securities -- Analyst Randall Stanicky -- RBC Capital Markets -- Analyst Chris Schott -- J.P. Morgan Nicole Maher -- Wolfe Research -- Analyst Steve Scala -- Cowen and Company -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Navin Jacob -- UBS -- Analyst Chris Raymond -- Piper Sandler -- Analyst Greg Gilbert -- Truist Securities -- Analyst Aspen Mori -- Bank of America Merrill Lynch -- Analyst Luisa Hector -- Berenberg -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q4 2020 Earnings Call Feb 03, 2021, 9:00 a.m. |
24224.0 | 2021-02-03 00:00:00 UTC | 4 Top Stock Trades for Thursday: AMZN, SPOT, BMY, ABBV | ABBV | https://www.nasdaq.com/articles/4-top-stock-trades-for-thursday%3A-amzn-spot-bmy-abbv-2021-02-03 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Bulls extended the stock market’s gains to a third-consecutive day as the earnings continue to roll in. Now, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Amazon (AMZN)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Amazon (NASDAQ:AMZN) made a great move ahead of earnings, popping above resistance ahead of its fourth-quarter earnings results.
However, the post-earnings reaction is sub-optimal, both without a stock split and on news of CEO Jeff Bezos stepping down later this year.
The plus side is that Amazon is holding up over the $3,345 level. If it can continue to do so, $3,500 to $3,552 remains in play.
7 A-Rated Growth Stocks To Buy For Today And Tomorrow
Should Amazon lose this prior resistance mark, shares may dip back down toward $3,200, where it finds multiple moving averages. Below uptrend support (blue line), and a trip to the 200-day moving average may be in order.
Top Stock Trades for Tomorrow No. 2: Spotify (SPOT)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Spotify (NYSE:SPOT) gave investors a nice two-day pre-earnings rally. However, it couldn’t deliver the goods on earnings, falling over 8% on the day.
With that said, there is some good news. What could the good news be on a 8% drop?
After fading hard from the 161.8% extension, shares are finding buyers at the 50-day and 10-week moving averages. If it can stick this level and reverse higher, bulls will potentially have a tradable post-earnings low.
A move below Wednesday’s low puts the $300 level and the 100-day moving average on the table. Above the 21-day moving average, and $350 is back in play. If it can take out that level, then $371 level is in play.
Top Stock Trades for Tomorrow No. 3: Bristol-Myers Squibb (BMY)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Bristol-Myers Squibb (NYSE:BMY) gave bulls and bears something to work with ahead of earnings, with its volatile yet contained price action.
The post-earnings reaction is lower though, with shares off 1.5%. However, that dip is putting it below the 50-day moving average.
From here, let’s see if can test down into the $61 area. There it finds uptrend support and the 200-day moving average. Both levels have been strong support over the last few months.
Below these marks could put $60 in play, but a drop below $60 could put a decline into mid-$50s on the table.
9 Mega-Cap Stocks Offering Hefty Opportunities
If shares reclaim Wednesday’s high, see if we can get a push up toward and through $65.
Top Stock Trades for Tomorrow No. 4: AbbVie (ABBV)
Click to Enlarge
Source: Chart courtesy of TrendSpider
AbbVie (NYSE:ABBV) delivered a top- and bottom-line earnings beat and provided better-than-expected guidance. It was rewarded with a 3.4% gain on Wednesday.
The move has shares reclaiming — albeit, barely — the 10-week and 50-day moving averages.
If the stock can take out the 21-day moving average and fill last week’s gap, then the $112.50 highs could be back on the table.
If it loses the 10-week moving average, then the $102 area could be back in play.
On the date of publication, Bret Kenwell held a long position in ABBV and BMY.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Thursday: AMZN, SPOT, BMY, ABBV 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. | Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) delivered a top- and bottom-line earnings beat and provided better-than-expected guidance. 4: AbbVie (ABBV) On the date of publication, Bret Kenwell held a long position in ABBV and BMY. | 4: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) delivered a top- and bottom-line earnings beat and provided better-than-expected guidance. On the date of publication, Bret Kenwell held a long position in ABBV and BMY. | 4: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) delivered a top- and bottom-line earnings beat and provided better-than-expected guidance. On the date of publication, Bret Kenwell held a long position in ABBV and BMY. | The post 4 Top Stock Trades for Thursday: AMZN, SPOT, BMY, ABBV appeared first on InvestorPlace. 4: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider AbbVie (NYSE:ABBV) delivered a top- and bottom-line earnings beat and provided better-than-expected guidance. |
24225.0 | 2021-02-03 00:00:00 UTC | AbbVie Q4 Results Top Estimates; Sees FY21 Profit Above View | ABBV | https://www.nasdaq.com/articles/abbvie-q4-results-top-estimates-sees-fy21-profit-above-view-2021-02-03 | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) reported that its net earnings attributable to the company for the fourth quarter ended December 31, 2020.dropped to $36 million or $0.01 per share from $2.80 billion or $1.88 per share last year.
The company recorded a $4.7 billion increase in the Skyrizi contingent consideration liability due to higher estimated future sales driven by stronger market share uptake and favorable clinical trial results as well as lower interest rates.
Adjusted earnings per share were $2.92 compared to $2.21 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $2.85 per share for the fourth-quarter. Analysts' estimates typically exclude special items.
Worldwide net revenues were $13.858 billion, an increase of 59.2 percent on a reported basis, or an increase of 6.8 percent on a comparable operational basis. Analysts expected revenue of $13.70 billion for the fourth-quarter.
Global Humira net revenues were $5.152 billion up 4.8 percent on a reported basis, or 4.4 percent on an operational basis. U.S. Humira net revenues were $4.293 billion, an increase of 8.2 percent. Internationally, Humira net revenues were $859 million, a decrease of 9.4 percent on a reported basis, or 11.4 percent on an operational basis, due to biosimilar competition.
Looking ahead for the full-year 2021, the company projects earnings per share to be in the range of $6.69 - $6.89 and adjusted earnings per share of $12.32 to $12.52. Analysts expect annual earnings of $12.18 per share.
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 Inc. (ABBV) reported that its net earnings attributable to the company for the fourth quarter ended December 31, 2020.dropped to $36 million or $0.01 per share from $2.80 billion or $1.88 per share last year. The company recorded a $4.7 billion increase in the Skyrizi contingent consideration liability due to higher estimated future sales driven by stronger market share uptake and favorable clinical trial results as well as lower interest rates. Analysts polled by Thomson Reuters expected the company to report earnings of $2.85 per share for the fourth-quarter. | (RTTNews) - AbbVie Inc. (ABBV) reported that its net earnings attributable to the company for the fourth quarter ended December 31, 2020.dropped to $36 million or $0.01 per share from $2.80 billion or $1.88 per share last year. Worldwide net revenues were $13.858 billion, an increase of 59.2 percent on a reported basis, or an increase of 6.8 percent on a comparable operational basis. Global Humira net revenues were $5.152 billion up 4.8 percent on a reported basis, or 4.4 percent on an operational basis. | (RTTNews) - AbbVie Inc. (ABBV) reported that its net earnings attributable to the company for the fourth quarter ended December 31, 2020.dropped to $36 million or $0.01 per share from $2.80 billion or $1.88 per share last year. Worldwide net revenues were $13.858 billion, an increase of 59.2 percent on a reported basis, or an increase of 6.8 percent on a comparable operational basis. Global Humira net revenues were $5.152 billion up 4.8 percent on a reported basis, or 4.4 percent on an operational basis. | (RTTNews) - AbbVie Inc. (ABBV) reported that its net earnings attributable to the company for the fourth quarter ended December 31, 2020.dropped to $36 million or $0.01 per share from $2.80 billion or $1.88 per share last year. Adjusted earnings per share were $2.92 compared to $2.21 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $2.85 per share for the fourth-quarter. |
24226.0 | 2021-02-03 00:00:00 UTC | Here's Why Investors Liked AbbVie's Q4 Results | ABBV | https://www.nasdaq.com/articles/heres-why-investors-liked-abbvies-q4-results-2021-02-03 | nan | nan | Shares of AbbVie (NYSE: ABBV) soared 21% in 2020, the stock's best performance since 2017. The big pharma hasn't gotten off to a great start so far in 2021, though, with shares down year to date.
The beginning of a bounce could be underway now, however, for the Dividend Aristocrat. AbbVie announced positive fourth-quarter results before the market opened on Wednesday. Here are the highlights from the company's update.
Image Source: Getty Images.
By the numbers
AbbVie announced revenue of $13.9 billion in the fourth quarter, a 59% year-over-year jump. This result also topped the average analyst revenue estimate of $13.7 billion.
The company reported net income in the fourth quarter of $36 million, or $0.01 per share, based on generally accepted accounting principles (GAAP). This was a steep decline from AbbVie's GAAP earnings of $2.8 billion, or $1.88 per share, in the prior-year period.
But it was a different story with AbbVie's adjusted bottom line. The drugmaker posted adjusted earnings of $2.92 share, up from $2.21 per share in the same period in 2019. This result easily beat the Wall Street consensus for adjusted earnings of $2.85.
Behind the numbers
Humira remained AbbVie's top-selling product in the fourth quarter. Total sales for the autoimmune-disease drug rose 4.8% year over year to $5.1 billion. Although international sales for Humira fell 9.4%, the decline was more than offset by 8.2% growth in the U.S., which is a bigger market for the drug.
AbbVie's successors to Humira turned in strong performances in the fourth quarter. Sales for Rinvoq and Skyrizi totaled $281 million and $525 million, respectively. Both autoimmune-disease drugs won their first regulatory approvals in 2019.
Momentum for the company's blood cancer franchise also carried over into the fourth quarter. Sales for Imbruvica jumped 9.8% year over year to $1.4 billion. Sales for Venclexta skyrocketed 46.2% to $365 million.
Some products picked up by AbbVie with its acquisition of Allergan also contributed to overall growth. Botox cosmetic sales rose more than 9% year over year to $493 million. Sales for antipsychotic drug Vraylar soared 38% to $401 million.
Looking ahead
AbbVie anticipates GAAP earnings per share for the full-year 2021 between $6.69 and $6.89. It expects adjusted EPS between $12.32 and $12.52. This forecast reflects solid growth compared to 2020.
The company also provided longer-term sales guidance. It looks for strong overall sales growth through 2023, when Humira loses exclusivity in the U.S. It anticipates that total sales will decline in 2023, followed by modest overall revenue growth in 2025. For the rest of the decade, though, the drugmaker projects a high-single-digit compound annual growth rate.
This outlook should be encouraging for investors, especially those who count on AbbVie's dividend. That juicy payout looks safe 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. | Shares of AbbVie (NYSE: ABBV) soared 21% in 2020, the stock's best performance since 2017. AbbVie announced positive fourth-quarter results before the market opened on Wednesday. By the numbers AbbVie announced revenue of $13.9 billion in the fourth quarter, a 59% year-over-year jump. | By the numbers AbbVie announced revenue of $13.9 billion in the fourth quarter, a 59% year-over-year jump. Looking ahead AbbVie anticipates GAAP earnings per share for the full-year 2021 between $6.69 and $6.89. Shares of AbbVie (NYSE: ABBV) soared 21% in 2020, the stock's best performance since 2017. | This was a steep decline from AbbVie's GAAP earnings of $2.8 billion, or $1.88 per share, in the prior-year period. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie. Shares of AbbVie (NYSE: ABBV) soared 21% in 2020, the stock's best performance since 2017. | By the numbers AbbVie announced revenue of $13.9 billion in the fourth quarter, a 59% year-over-year jump. Shares of AbbVie (NYSE: ABBV) soared 21% in 2020, the stock's best performance since 2017. AbbVie announced positive fourth-quarter results before the market opened on Wednesday. |
24227.0 | 2021-02-03 00:00:00 UTC | AbbVie’s 4Q Profit Tops Analysts’ Estimates; Shares Gain | ABBV | https://www.nasdaq.com/articles/abbvies-4q-profit-tops-analysts-estimates-shares-gain-2021-02-03 | nan | nan | AbbVie reported 4Q diluted EPS of $2.92, which came in ahead of analysts’ estimates of $2.86. Revenues in the fourth quarter were up by 59.2% year-on-year to $13.8 billion versus analysts’ estimates of $13.7 billion. Shares of the pharma company rose 1.4% in US morning trading.
AbbVie’s (ABBV) CEO Richard A. Gonzalez said, "We successfully completed the transformative Allergan acquisition and delivered another year of strong results in 2020, despite the challenges presented by the global pandemic. Based on our broad portfolio of diversified growth assets and the robust momentum of our business, we expect impressive growth again in 2021."
Revenues of the company’s immunology business portfolio increased by 15.3% year-on-year to $5.9 billion in 4Q while sales at its hematologic oncology business portfolio grew by 15.7% to $1.8 billion. (See AbbVie stock analysis on TipRanks)
The company provided FY21 diluted EPS guidance in the range of $6.69 to $6.89 and expects its adjusted diluted EPS to be in the range of $12.32 to $12.52.
Following the fourth quarter results, Mizuho Securities analyst Vamil Divan reiterated a Buy rating and a price target of $117 on the stock. Divan wrote in a note to investors, “The beat was led by several important products, including Skyrizi, Rinvoq, Ubrelvy, Botox Cosmetic and Juvederm, and supported by other assets such as Linzess and Restasis.”
“Following their recent disclosure of long-term guidance through 2030, we believe AbbVie now represents an especially compelling investment opportunity, with robust near-term growth and good visibility into its long-term growth prospects, while still trading at a significant discount to its peers and offering a robust dividend.” the analyst added.
The rest of the Street has a bullish outlook on the stock with a Strong Buy consensus rating. That’s based on 10 analysts recommending a Buy versus just 1 analyst suggesting a Hold. The average analyst price target of $120.18 implies about 15% upside potential to current levels.
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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) CEO Richard A. Gonzalez said, "We successfully completed the transformative Allergan acquisition and delivered another year of strong results in 2020, despite the challenges presented by the global pandemic. Divan wrote in a note to investors, “The beat was led by several important products, including Skyrizi, Rinvoq, Ubrelvy, Botox Cosmetic and Juvederm, and supported by other assets such as Linzess and Restasis.” “Following their recent disclosure of long-term guidance through 2030, we believe AbbVie now represents an especially compelling investment opportunity, with robust near-term growth and good visibility into its long-term growth prospects, while still trading at a significant discount to its peers and offering a robust dividend.” the analyst added. AbbVie reported 4Q diluted EPS of $2.92, which came in ahead of analysts’ estimates of $2.86. | AbbVie reported 4Q diluted EPS of $2.92, which came in ahead of analysts’ estimates of $2.86. AbbVie’s (ABBV) CEO Richard A. Gonzalez said, "We successfully completed the transformative Allergan acquisition and delivered another year of strong results in 2020, despite the challenges presented by the global pandemic. (See AbbVie stock analysis on TipRanks) The company provided FY21 diluted EPS guidance in the range of $6.69 to $6.89 and expects its adjusted diluted EPS to be in the range of $12.32 to $12.52. | (See AbbVie stock analysis on TipRanks) The company provided FY21 diluted EPS guidance in the range of $6.69 to $6.89 and expects its adjusted diluted EPS to be in the range of $12.32 to $12.52. Divan wrote in a note to investors, “The beat was led by several important products, including Skyrizi, Rinvoq, Ubrelvy, Botox Cosmetic and Juvederm, and supported by other assets such as Linzess and Restasis.” “Following their recent disclosure of long-term guidance through 2030, we believe AbbVie now represents an especially compelling investment opportunity, with robust near-term growth and good visibility into its long-term growth prospects, while still trading at a significant discount to its peers and offering a robust dividend.” the analyst added. AbbVie reported 4Q diluted EPS of $2.92, which came in ahead of analysts’ estimates of $2.86. | AbbVie reported 4Q diluted EPS of $2.92, which came in ahead of analysts’ estimates of $2.86. AbbVie’s (ABBV) CEO Richard A. Gonzalez said, "We successfully completed the transformative Allergan acquisition and delivered another year of strong results in 2020, despite the challenges presented by the global pandemic. (See AbbVie stock analysis on TipRanks) The company provided FY21 diluted EPS guidance in the range of $6.69 to $6.89 and expects its adjusted diluted EPS to be in the range of $12.32 to $12.52. |
24228.0 | 2021-02-03 00:00:00 UTC | Should Investors Be Watching These Top Biotech Stocks This Month? | ABBV | https://www.nasdaq.com/articles/should-investors-be-watching-these-top-biotech-stocks-this-month-2021-02-03 | nan | nan | Are These The Best Biotech Stocks To Buy Now? 4 Names To Know
Biotech stocks have been on fire in the last few months. The reason being how some of these companies delivered on investor expectations by announcing breakthrough clinical results or introduced revolutionary medicine. For instance, biotech companies like Moderna (NASDAQ: MRNA) and Pfizer (NYSE: PFE) have made their COVID-19 vaccines in record time. Rapid development and regulatory approvals will play a crucial role in a biotech stock’s market performance after all. With every milestone achieved in treatment or drug development, top biotech stocks will continue to thrive.
Vaxart (NASDAQ: VXRT) is another biotech company that has skyrocketed in valuation in the last week, up by a whopping 161%. This came after two of its Board members resigned and after news of the company announcing its Phase 1 trial for its tablet form COVID-19 vaccine. Aside from vaccines, we have also seen how many biotech companies continue to innovate in cancer treatment and gene-editing technology, treatments that were impossible a century ago. With the many game-changing treatments and drugs in development right now, there is certainly a lot of potential for the industry. All things considered, here is a list of top biotech stocks that are worth watching this month.
Top Biotech Stocks To Watch
Cassava Sciences Inc. (NASDAQ: SAVA)
Jazz Pharmaceuticals (NASDAQ: JAZZ)
AbbVie Inc. (NYSE: ABBV)
Veracyte Inc. (NASDAQ: VCYT)
Cassava Sciences Inc.
Cassava is a biotech company that focuses on neuroscience. It has a key focus in R&D to develop its first-in-class medicines for people with debilitating neurodegenerative conditions. The company collaborates with the National Institutes of Health (NIH) for its research programs with substantial scientific and financial support. Shares of Cassava are up by over 130% on Tuesday after the biotech company released promising data for its simufilam study, its drug candidate for the treatment of Alzheimer’s disease.
The interim analysis from this open-label study of simulfilam shows that it improves cognition and behavior in Alzheimer’s disease patients after six months of treatment. The company also reports that participants’ cognition scores improved by 10% on average from baseline. In these same patients, simulfilam also improved dementia-related behavior such as anxiety, delusions, and agitation, a 29% improvement from baseline. Furthermore, the study reported no serious safety issues. In light of this, the company will begin its phase 3 clinical trial of simufilam in the second half of 2021. Nevertheless, one should note that many Alzheimer’s drug candidates in the past have been unsuccessful. Therefore, should Cassava’s treatment turn out to be effective, its market potential would be enormous. Will this be enough for you to add SAVA stock to your watchlist?
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Jazz Pharmaceuticals
Jazz Pharmaceuticals is a biopharma company that is based in Ireland. The company focuses on developing life-changing medicines for people with serious diseases so that they can live their lives more fully. The company today announced that it has agreed to acquire GW Pharmaceuticals (NASDAQ: GWPH) in a cash-and-stock deal valued at $7.2 billion. The transaction has been unanimously approved by the Board of Directors of both companies and is expected to close in the second quarter of 2021. The company’s shares are traded at $152.86 as of 3:47 p.m. ET.
The acquisition of GW Pharmaceuticals will allow Jazz Pharmaceuticals to be a leader in neuroscience with a global commercial and operational footprint that is well-positioned to maximize the value of its diversified portfolio. In the company’s third-quarter fiscal posted in November, it reported strong financial and operational performance. Jazz Pharmaceuticals’ total revenue increased by 12% year-over-year at $600 million. The company’s increasingly diversified revenues are fuelled by the recent launch of Zepzelca, an innovative new treatment for relapsed small cell lung cancer. With such an impressive track record, will you consider adding JAZZ stock to your portfolio?
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AbbVie Inc.
AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. With over 47,000 employees around the globe, it continues to come up with new approaches to address today’s health issues. The company has a broad portfolio of treatments in the field of oncology, immunology, and neuroscience to name a few. The company has recently announced its fourth-quarter profit and revenue that managed to beat expectations. ABBV stock has been up by 23% since November.
In the company’s fourth-quarter financials, it reported full-year adjusted diluted earnings per share of $10.56. The company’s worldwide net revenues were $1.385 billion, an increase of 59.2% to a year earlier. A substantial chunk of this revenue came from its immunology portfolio, at $5.95 billion. This was a 15.3% increase compared to a year earlier. Its net revenues from the hematologic oncology portfolio were $1.789 billion, a 15.7% increase year-over-year. The company expects its portfolio of diversified assets and robust momentum of its business to see impressive growth again this year. With an excellent financial performance this quarter, will you add ABBV stock to your watchlist?
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Veracyte Inc.
Veracyte is a pioneering genomic diagnostics company. Its tests leverage innovations in genomic technology and machine learning to provide more confident diagnostics, prognostics, and treatment. The company deals with challenging diseases like thyroid cancer, lung cancer, breast cancer, and idiopathic pulmonary fibrosis. Its shares have been up by over 10% on today’s opening bell. This seems to come from two pieces of news that the company announced today.
Firstly, Veracyte will be acquiring Decipher Biosciences to further solidify its global leadership in the genomic cancer diagnostics market while accelerating revenue growth. Through this acquisition, Veracyte will be able to serve patients across the clinical care continuum in 7 of the 10 most prevalent cancers in the U.S. Secondly, it announced its preliminary fourth-quarter financial results, much to investors’ delight. In it, the company reported total revenue of between $34 million to $35 million, which is a 16% increase at the midpoint of the range compared to a year ago. Its product and testing volume also increased by 14% for the quarter. Given all of this, will you consider VCYT stock as a top biotech stock to watch?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Biotech Stocks To Watch Cassava Sciences Inc. (NASDAQ: SAVA) Jazz Pharmaceuticals (NASDAQ: JAZZ) AbbVie Inc. (NYSE: ABBV) Veracyte Inc. (NASDAQ: VCYT) Cassava Sciences Inc. Cassava is a biotech company that focuses on neuroscience. AbbVie Inc. AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. ABBV stock has been up by 23% since November. | Top Biotech Stocks To Watch Cassava Sciences Inc. (NASDAQ: SAVA) Jazz Pharmaceuticals (NASDAQ: JAZZ) AbbVie Inc. (NYSE: ABBV) Veracyte Inc. (NASDAQ: VCYT) Cassava Sciences Inc. Cassava is a biotech company that focuses on neuroscience. AbbVie Inc. AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. ABBV stock has been up by 23% since November. | Top Biotech Stocks To Watch Cassava Sciences Inc. (NASDAQ: SAVA) Jazz Pharmaceuticals (NASDAQ: JAZZ) AbbVie Inc. (NYSE: ABBV) Veracyte Inc. (NASDAQ: VCYT) Cassava Sciences Inc. Cassava is a biotech company that focuses on neuroscience. AbbVie Inc. AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. ABBV stock has been up by 23% since November. | Top Biotech Stocks To Watch Cassava Sciences Inc. (NASDAQ: SAVA) Jazz Pharmaceuticals (NASDAQ: JAZZ) AbbVie Inc. (NYSE: ABBV) Veracyte Inc. (NASDAQ: VCYT) Cassava Sciences Inc. Cassava is a biotech company that focuses on neuroscience. AbbVie Inc. AbbVie is a biotech company that operates as a research-based pharmaceutical manufacturer. ABBV stock has been up by 23% since November. |
24229.0 | 2021-02-03 00:00:00 UTC | AbbVie profit beats expectations on Humira demand | ABBV | https://www.nasdaq.com/articles/abbvie-profit-beats-expectations-on-humira-demand-2021-02-03 | nan | nan | Adds details on botox sales, profit estimates, share movement
Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%.
The Illinois-based company is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023.
Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. However, its sales have suffered since new competition entered Europe.
Overall quarterly sales of Humira rose 4.8% to $5.2 billion in the fourth quarter, just above estimates of $5.1 billion. However, international sales, which excludes the United States, declined 9.4% due to the impact of biosimilars in Europe.
The company said it expects to earn between $12.32 and $12.52 per share, ahead of the analysts' average estimate of $12.19, according to IBES estimates from Refinitiv.
Chief Executive Officer Richard Gonzalez said the company is expecting "impressive growth again in 2021" based on broad portfolio of diversified growth assets.
In the reported quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million. Rinvoq, which was approved in August 2019, brought in sales of $281 million.
Fourth-quarter sales for Botox's cosmetic use rose about 9% to $493 million as COVID-19 restrictions eased, above analysts' estimate of $441.9 million.
Overall sales jumped 59.2% to $13.9 billion, topping quarterly estimates of $13.7 billion.
Excluding items, AbbVie earned $2.92 per share, beating expectations of $2.85.
Shares of the drugmaker were last up at $105.25 before the bell.
(Reporting by Amruta Khandekar and Mrinalika Roy; Editing by Arun Koyyur)
((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. | Adds details on botox sales, profit estimates, share movement Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. Excluding items, AbbVie earned $2.92 per share, beating expectations of $2.85. | Adds details on botox sales, profit estimates, share movement Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%. Excluding items, AbbVie earned $2.92 per share, beating expectations of $2.85. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. | Adds details on botox sales, profit estimates, share movement Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. Excluding items, AbbVie earned $2.92 per share, beating expectations of $2.85. | Adds details on botox sales, profit estimates, share movement Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. Excluding items, AbbVie earned $2.92 per share, beating expectations of $2.85. |
24230.0 | 2021-02-03 00:00:00 UTC | AbbVie Q4 20 Earnings Conference Call At 9:00 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-q4-20-earnings-conference-call-at-9%3A00-am-et-2021-02-03 | nan | nan | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on February 3, 2021, to discuss its Q4 20 earnings result.
To access the live webcast, log on at https://investors.abbvie.com/
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 host a conference call at 9:00 AM ET on February 3, 2021, to discuss its Q4 20 earnings result. To access the live webcast, log on at https://investors.abbvie.com/ 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 host a conference call at 9:00 AM ET on February 3, 2021, to discuss its Q4 20 earnings result. To access the live webcast, log on at https://investors.abbvie.com/ 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 host a conference call at 9:00 AM ET on February 3, 2021, to discuss its Q4 20 earnings result. To access the live webcast, log on at https://investors.abbvie.com/ 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 host a conference call at 9:00 AM ET on February 3, 2021, to discuss its Q4 20 earnings result. To access the live webcast, log on at https://investors.abbvie.com/ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
24231.0 | 2021-02-03 00:00:00 UTC | Merck Q4 Earnings Preview: Keytruda And Gardasil In Focus | ABBV | https://www.nasdaq.com/articles/merck-q4-earnings-preview%3A-keytruda-and-gardasil-in-focus-2021-02-04 | nan | nan | Merck (NYSE: MRK) is scheduled to report its Q4 2020 results on Thursday, February 4. We expect the company to likely post revenue slightly below and earnings in-line with the consensus estimates, partly due to lower expected sales of vaccines, such as Gardasil and Proquad. That said, Merck should see an overall pickup in demand due to an increase in hospital visits with economies opening up gradually. We expect the company to do well based on these trends over the latest quarter.
While Merck may report earnings slightly below the consensus estimates, our forecast indicates that its valuation is around $102 per share, which is 30% above the current market price of around $78. Our interactive dashboard analysis on Merck’s Pre-Earnings has additional details.
(1) Revenues expected to be slightly below the consensus estimates
Trefis estimates Merck’s Q4 2020 revenues to be around $12.5 billion, slightly below the $12.7 billion consensus estimate. While the deferment of elective surgeries and hospital visits for non-emergency cases impacted the sales of pharmaceutical companies earlier in 2020, the gradual opening up of economies and growth in number of elective procedures is likely to have aided sales in Q4. The company is likely to see continued market share gains for its blockbuster drug – Keytruda – while vaccines such as Gardasil, may continue to see lower sales, as healthcare systems remain focused on Covid-19. Merck’s Q3 2020 sales were up 1% y-o-y to $12.6 billion, primarily reflecting continued growth in Keytruda sales as well as higher Animal Health products sales. Our dashboard on Merck Revenues offers more details on the company’s segments.
2) EPS likely to be in-line with the consensus estimates
Merck’s Q4 2020 adjusted earnings per share (EPS) is expected to be $1.38 per Trefis analysis, in-line with the consensus estimate. Merck’s adjusted net income of $11.7 billion in Q3 2020 reflected a 13% rise from its $10.4 billion figure in the prior-year quarter, due to margin expansion. The margins will likely improve further going forward, as the current Covid-19 crisis subsides. For the full year 2020, we expect the adjusted EPS to be higher at $6.00 compared to $5.19 in 2019.
(3) Stock price estimate higher than the current market price
Going by our Merck’s Valuation, with an EPS estimate of $6.00 and a P/E multiple of 17x in 2020, this translates into a price of $102, which is 30% above the current market price of around $78. The 17x figure is slightly lower than levels of near 18x seen over the recent years.
Note: P/E Multiples are based on Share Price at the end of the year and reported (or expected) Adjusted Earnings for the full year.
While MRK stock may have more room for growth, 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 Pfizer vs Merck.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That said, Merck should see an overall pickup in demand due to an increase in hospital visits with economies opening up gradually. While Merck may report earnings slightly below the consensus estimates, our forecast indicates that its valuation is around $102 per share, which is 30% above the current market price of around $78. While MRK stock may have more room for growth, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | We expect the company to likely post revenue slightly below and earnings in-line with the consensus estimates, partly due to lower expected sales of vaccines, such as Gardasil and Proquad. (1) Revenues expected to be slightly below the consensus estimates Trefis estimates Merck’s Q4 2020 revenues to be around $12.5 billion, slightly below the $12.7 billion consensus estimate. 2) EPS likely to be in-line with the consensus estimates Merck’s Q4 2020 adjusted earnings per share (EPS) is expected to be $1.38 per Trefis analysis, in-line with the consensus estimate. | (1) Revenues expected to be slightly below the consensus estimates Trefis estimates Merck’s Q4 2020 revenues to be around $12.5 billion, slightly below the $12.7 billion consensus estimate. 2) EPS likely to be in-line with the consensus estimates Merck’s Q4 2020 adjusted earnings per share (EPS) is expected to be $1.38 per Trefis analysis, in-line with the consensus estimate. (3) Stock price estimate higher than the current market price Going by our Merck’s Valuation, with an EPS estimate of $6.00 and a P/E multiple of 17x in 2020, this translates into a price of $102, which is 30% above the current market price of around $78. | We expect the company to likely post revenue slightly below and earnings in-line with the consensus estimates, partly due to lower expected sales of vaccines, such as Gardasil and Proquad. (1) Revenues expected to be slightly below the consensus estimates Trefis estimates Merck’s Q4 2020 revenues to be around $12.5 billion, slightly below the $12.7 billion consensus estimate. (3) Stock price estimate higher than the current market price Going by our Merck’s Valuation, with an EPS estimate of $6.00 and a P/E multiple of 17x in 2020, this translates into a price of $102, which is 30% above the current market price of around $78. |
24232.0 | 2021-02-03 00:00:00 UTC | AbbVie revenue beats expectations on Humira demand | ABBV | https://www.nasdaq.com/articles/abbvie-revenue-beats-expectations-on-humira-demand-2021-02-03 | nan | nan | Feb 3 (Reuters) - AbbVie Inc ABBV.N beat quarterly revenue estimates and forecast annual profit above expectations on Wednesday due to higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis.
AbbVie is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023.
Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. However, its sales have suffered since new competition entered Europe.
Overall quarterly sales of Humira rose 4.8% to $5.2 billion in the fourth quarter, just above estimates of $5.1 billion. However, international sales, which excludes the United States, declined 9.4% due to the impact of biosimilars in Europe.
The company forecast 2021 adjusted earnings of between $12.32 to $12.52 per share, ahead of the analyst average estimate of $12.19, according to IBES estimates from Refinitiv.
Chief Executive Officer Richard Gonzalez said the company is expecting "impressive growth again in 2021" based on broad portfolio of diversified growth assets.
In the fourth quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million, according to Refinitiv data. Rinvoq, which was approved in August 2019, brought in sales of $281 million.
Overall sales rose 59.2% to $13.9 billion in the quarter, topping estimates of $13.7 billion.
Net income attributable to the company fell to $36 million, or 1 cent per share, in the quarter ended Dec. 31, from $2.8 billion, or $1.88 per share, a year earlier.
The company recorded a $4.7 billion increase in the contingent consideration liability related to Skyrizi.
(Reporting by Amruta Khandekar and Mrinalika Roy; Editing by Arun Koyyur)
((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. | Feb 3 (Reuters) - AbbVie Inc ABBV.N beat quarterly revenue estimates and forecast annual profit above expectations on Wednesday due to higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis. AbbVie is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. | Feb 3 (Reuters) - AbbVie Inc ABBV.N beat quarterly revenue estimates and forecast annual profit above expectations on Wednesday due to higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis. AbbVie is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. | Feb 3 (Reuters) - AbbVie Inc ABBV.N beat quarterly revenue estimates and forecast annual profit above expectations on Wednesday due to higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis. AbbVie is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. | Feb 3 (Reuters) - AbbVie Inc ABBV.N beat quarterly revenue estimates and forecast annual profit above expectations on Wednesday due to higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis. AbbVie is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. |
24233.0 | 2021-02-03 00:00:00 UTC | AbbVie a Top Socially Responsible Dividend Stock With 5.0% Yield (ABBV) | ABBV | https://www.nasdaq.com/articles/abbvie-a-top-socially-responsible-dividend-stock-with-5.0-yield-abbv-2021-02-03 | nan | nan | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 5.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society — for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol.
According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.56% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 1.01% of the underlying holdings of the fund.
The annualized dividend paid by AbbVie Inc is $5.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/14/2021. Below is a long-term dividend history chart for ABBV, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Johnson & Johnson (JNJ), and Novartis (NVS).
Top 25 Socially Responsible Dividend Stocks — Income To Feel Good About »
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 (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 5.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Below is a long-term dividend history chart for ABBV, which the DividendRank report stressed as being of key importance. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.56% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 1.01% of the underlying holdings of the fund. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 5.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.56% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 1.01% of the underlying holdings of the fund. The annualized dividend paid by AbbVie Inc is $5.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/14/2021. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 5.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.56% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 1.01% of the underlying holdings of the fund. The annualized dividend paid by AbbVie Inc is $5.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/14/2021. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 5.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.56% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 1.01% of the underlying holdings of the fund. The annualized dividend paid by AbbVie Inc is $5.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/14/2021. |
24234.0 | 2021-02-02 00:00:00 UTC | Pre-Market Earnings Report for February 3, 2021 : ABBV, SPOT, BSX, HUM, EPD, BIIB, APTV, GWW, CHKP, CNHI, BIP, AVY | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-february-3-2021-%3A-abbv-spot-bsx-hum-epd-biib-aptv-gww-chkp | nan | nan | The following companies are expected to report earnings prior to market open on 02/03/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
AbbVie Inc. (ABBV) is reporting for the quarter ending December 31, 2020. The large cap pharmaceutical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.85. This value represents a 28.96% increase compared to the same quarter last year. In the past year ABBV has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 2.91%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABBV is 9.76 vs. an industry ratio of 14.80.
Spotify Technology S.A. (SPOT) is reporting for the quarter ending December 31, 2020. The technology services company's consensus earnings per share forecast from the 9 analysts that follow the stock is $-0.82. This value represents a 34.92% increase compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for SPOT is -89.42 vs. an industry ratio of 32.30.
Boston Scientific Corporation (BSX) is reporting for the quarter ending December 31, 2020. The medical products company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.31. This value represents a 32.61% decrease compared to the same quarter last year. BSX missed the consensus earnings per share in the 1st calendar quarter of 2020 by -15.15%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for BSX is 34.24 vs. an industry ratio of 57.40.
Humana Inc. (HUM) is reporting for the quarter ending December 31, 2020. The hmo company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-2.35. This value represents a 203.07% decrease compared to the same quarter last year. In the past year HUM has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 7.69%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for HUM is 20.35 vs. an industry ratio of 31.40.
Enterprise Products Partners L.P. (EPD) is reporting for the quarter ending December 31, 2020. The oil/gas company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.51. This value represents a 5.56% decrease compared to the same quarter last year. In the past year EPD has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for EPD is 9.95 vs. an industry ratio of -4.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Biogen Inc. (BIIB) is reporting for the quarter ending December 31, 2020. The biomedical (gene) company's consensus earnings per share forecast from the 29 analysts that follow the stock is $4.92. This value represents a 41.01% decrease compared to the same quarter last year. In the past year BIIB has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 9.68%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for BIIB is 8.24 vs. an industry ratio of 15.40.
Aptiv PLC (APTV) is reporting for the quarter ending December 31, 2020. The technology services company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.98. This value represents a 14.78% decrease compared to the same quarter last year. In the past year APTV has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 43.04%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for APTV is 77.96 vs. an industry ratio of 32.30, implying that they will have a higher earnings growth than their competitors in the same industry.
W.W. Grainger, Inc. (GWW) is reporting for the quarter ending December 31, 2020. The industrial services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.79. This value represents a 2.32% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for GWW is 22.71 vs. an industry ratio of 31.10.
Check Point Software Technologies Ltd. (CHKP) is reporting for the quarter ending December 31, 2020. The security company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.90. This value represents a 2.15% increase compared to the same quarter last year. In the past year CHKP has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 7.41%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for CHKP is 21.98 vs. an industry ratio of 13.50, implying that they will have a higher earnings growth than their competitors in the same industry.
CNH Industrial N.V. (CNHI) is reporting for the quarter ending December 31, 2020. The auto (foreign) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.15. This value represents a 25.00% decrease compared to the same quarter last year. CNHI missed the consensus earnings per share in the 1st calendar quarter of 2020 by -185.71%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for CNHI is 100.92 vs. an industry ratio of 1.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Brookfield Infrastructure Partners LP (BIP) is reporting for the quarter ending December 31, 2020. The electric power utilities company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.87. This value represents a 1342.86% increase compared to the same quarter last year. In the past year BIP has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 8.22%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for BIP is 16.80 vs. an industry ratio of 19.90.
Avery Dennison Corporation (AVY) is reporting for the quarter ending December 31, 2020. The office supplies company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.17. This value represents a 25.43% increase compared to the same quarter last year. In the past year AVY has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 24.03%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for AVY is 22.05 vs. an industry ratio of 15.10, implying that they will have a higher earnings growth than their competitors in the same industry.
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) is reporting for the quarter ending December 31, 2020. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABBV is 9.76 vs. an industry ratio of 14.80. | AbbVie Inc. (ABBV) is reporting for the quarter ending December 31, 2020. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABBV is 9.76 vs. an industry ratio of 14.80. | AbbVie Inc. (ABBV) is reporting for the quarter ending December 31, 2020. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABBV is 9.76 vs. an industry ratio of 14.80. | In the past year ABBV has beat the expectations every quarter. AbbVie Inc. (ABBV) is reporting for the quarter ending December 31, 2020. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABBV is 9.76 vs. an industry ratio of 14.80. |
24235.0 | 2021-02-02 00:00:00 UTC | Noteworthy Tuesday Option Activity: EA, ABBV, LCI | ABBV | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-ea-abbv-lci-2021-02-02 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Electronic Arts, Inc. (Symbol: EA), where a total volume of 19,472 contracts has been traded thus far today, a contract volume which is representative of approximately 1.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.3% of EA's average daily trading volume over the past month, of 3.1 million shares. Especially high volume was seen for the $165 strike call option expiring February 19, 2021, with 1,142 contracts trading so far today, representing approximately 114,200 underlying shares of EA. Below is a chart showing EA's trailing twelve month trading history, with the $165 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) saw options trading volume of 45,572 contracts, representing approximately 4.6 million underlying shares or approximately 58.7% of ABBV's average daily trading volume over the past month, of 7.8 million shares. Especially high volume was seen for the $110 strike call option expiring February 19, 2021, with 5,174 contracts trading so far today, representing approximately 517,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange:
And Lannett Co., Inc. (Symbol: LCI) saw options trading volume of 3,192 contracts, representing approximately 319,200 underlying shares or approximately 58.2% of LCI's average daily trading volume over the past month, of 548,775 shares. Especially high volume was seen for the $9 strike put option expiring February 19, 2021, with 1,100 contracts trading so far today, representing approximately 110,000 underlying shares of LCI. Below is a chart showing LCI's trailing twelve month trading history, with the $9 strike highlighted in orange:
For the various different available expirations for EA options, ABBV options, or LCI 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 $110 strike call option expiring February 19, 2021, with 5,174 contracts trading so far today, representing approximately 517,400 underlying shares of ABBV. Below is a chart showing EA's trailing twelve month trading history, with the $165 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 45,572 contracts, representing approximately 4.6 million underlying shares or approximately 58.7% of ABBV's average daily trading volume over the past month, of 7.8 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange: And Lannett Co., Inc. (Symbol: LCI) saw options trading volume of 3,192 contracts, representing approximately 319,200 underlying shares or approximately 58.2% of LCI's average daily trading volume over the past month, of 548,775 shares. | Below is a chart showing EA's trailing twelve month trading history, with the $165 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 45,572 contracts, representing approximately 4.6 million underlying shares or approximately 58.7% of ABBV's average daily trading volume over the past month, of 7.8 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange: And Lannett Co., Inc. (Symbol: LCI) saw options trading volume of 3,192 contracts, representing approximately 319,200 underlying shares or approximately 58.2% of LCI's average daily trading volume over the past month, of 548,775 shares. Especially high volume was seen for the $110 strike call option expiring February 19, 2021, with 5,174 contracts trading so far today, representing approximately 517,400 underlying shares of ABBV. | Below is a chart showing EA's trailing twelve month trading history, with the $165 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 45,572 contracts, representing approximately 4.6 million underlying shares or approximately 58.7% of ABBV's average daily trading volume over the past month, of 7.8 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange: And Lannett Co., Inc. (Symbol: LCI) saw options trading volume of 3,192 contracts, representing approximately 319,200 underlying shares or approximately 58.2% of LCI's average daily trading volume over the past month, of 548,775 shares. Especially high volume was seen for the $110 strike call option expiring February 19, 2021, with 5,174 contracts trading so far today, representing approximately 517,400 underlying shares of ABBV. | Below is a chart showing EA's trailing twelve month trading history, with the $165 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 45,572 contracts, representing approximately 4.6 million underlying shares or approximately 58.7% of ABBV's average daily trading volume over the past month, of 7.8 million shares. Especially high volume was seen for the $110 strike call option expiring February 19, 2021, with 5,174 contracts trading so far today, representing approximately 517,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $110 strike highlighted in orange: And Lannett Co., Inc. (Symbol: LCI) saw options trading volume of 3,192 contracts, representing approximately 319,200 underlying shares or approximately 58.2% of LCI's average daily trading volume over the past month, of 548,775 shares. |
24236.0 | 2021-02-02 00:00:00 UTC | 3 Top Dividend Stocks With Yields Over 4% | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-with-yields-over-4-2021-02-02 | nan | nan | When it comes to buying stocks, dividends are icing on the cake. Whatever your personal style of stock trading may be, incorporating dividend-paying companies into your portfolio is one of the most effective strategies to maximize your long-term returns and generate consistent cash as an investor.
However, as ill economic winds from the pandemic have forced many companies to temporarily suspend dividend payments, finding the right dividend stocks to invest in right now is especially tough. While the average dividend stock trading on the S&P 500 pays a yield of less than 2%, the stocks on this list each have yields that exceed 4%.
Here's why dividend investors should take a second look at these three top stocks.
Image source: Getty Images.
1. AbbVie
Biopharmaceutical behemoth AbbVie (NYSE: ABBV) pays a dividend that yields just shy of 5% based on current share prices. The company also boasts a title few dividend-paying stocks can lay claim to. AbbVie is a Dividend Aristocrat, having raised its dividend every year for more than 40 years. Assuming the company keeps this track record up, it's just a few years away from being crowned a Dividend King.
AbbVie's stellar portfolio of medicines stretches across a range of disciplines, from immunology to oncology to neuroscience, but its most prominent product is undoubtedly Humira. The household-name immunology drug continues to be the company's top-selling medicine quarter after quarter. Despite the impact of the COVID-19 pandemic and growing competition from biosimilars, Humira still amassed total global net revenues of $14.6 billion during the first three quarters of 2020. Bear in mind, AbbVie's total net revenues across all of its medicines came to $32 billion during that nine-month period, meaning that Humira currently generates about half of all the company's revenues.
Some investors have been concerned about AbbVie's dependency on Humira to grow its top line, particularly in light of the fact that the drug loses exclusivity in the U.S in just two years. The good news is, AbbVie has several other top-selling drugs to fall back on, not to mention a robust pipeline of promising drug candidates to treat conditions including rheumatoid arthritis, Crohn's disease, Parkinson's, and Alzheimer's. Besides Humira, Skyrizi, Rinvoq, and Imbruvica are also on the list of AbbVie's most lucrative drugs. These three products alone brought in total third-quarter net revenues of $435 million, $215 million, and $1.4 billion, respectively, for the period ended Sept. 30, 2020.
And thanks to AbbVie's acquisition of Allergan last year, the company now boasts Botox among its portfolio of products. Botox will continue to have a positive impact on AbbVie's balance sheet in the coming years, and could help to offset a future decline in Humira revenues. Botox generated nearly $1 billion in total net revenues during the third quarter alone. With its portfolio of best-selling medicines, strong pipeline, and oh-so-juicy dividend, AbbVie is one of the top stocks for long-term investors to buy in today's healthcare landscape.
2. Verizon
Verizon (NYSE: VZ) pays an above-average yield of 4.5%. The stock also trades super cheaply ($55) at just 13 times trailing earnings. The 5G giant enjoyed a remarkably good year in 2020 despite the negative impact of the COVID-19 pandemic, and management is expecting continued strong performance in 2021.
Verizon reported consolidated operating revenues to the tune of $128 billion for full-year 2020, representing a slim 3% decrease from its 2019 revenues. And in the final quarter of 2020 ended Dec. 31, the company's consolidated operating revenues were only down 0.2% compared to the year-ago period. Verizon's consumer revenues declined modestly in 2020, but the company grew its wireless retail postpaid net subscribers by 357,000 and added 284,000 postpaid smartphone net subscribers in the fourth quarter. And Verizon's revenues from its media segment grew by a whopping 11% in the final quarter of 2020.
By far, one of Verizon's greatest strengths lies in its solid cash position, which has helped it weather the uncertainty of the current economic climate and reduce its debt throughout the pandemic. In 2020, Verizon grew its operating cash flow by nearly 17% and its free cash flow by 32% compared to 2019. Looking ahead to 2021, management expects the company to increase its top line by 2% or more and that wireless service revenues will jump 3% or higher.
Verizon isn't a high-growth stock, but its attractive dividend and the overall resilience of its business that serves a constant consumer need make it a compelling play for value-driven investors.
3. Realty Income
Realty Income (NYSE: O) is a real estate investment trust (REIT). The promise of impressive dividends is one of the most common reasons investors buy shares of an REIT, and Realty Income certainly doesn't disappoint on that score. Not only does the Dividend Aristocrat pay an impressive yield of 4.6%, but it pays a dividend to investors on a monthly rather than a quarterly basis.
Realty Income's portfolio encompasses well over 6,500 properties around the world, operating in more than 50 different industries. Among Realty Income's most well-known tenants are Walgreens, 7-Eleven, FedEx, Dollar General, and LA Fitness. Since the REIT held its initial public offering (IPO) in 1994, it has delivered a compound average annual total return of more than 15% to investors. And with close to 100 quarters of successive dividend growth under its belt, few stocks can compete with Realty Income's dividend star power.
During the first nine months of 2020, Realty Income's revenues increased nearly 12% from the year-ago period. The fact that Realty Income's leases to many well-known essential-status businesses has helped it to avoid some of the pitfalls other REITs have faced during the pandemic. Realty Income also continued to expand its portfolio during the third quarter, which is a good indicator of its financial strength and ongoing ability to deliver meaningful growth despite the challenging economic climate. Management said, "During the third quarter, we invested $658.6 million, $230 million of which represents investments in the U.K., primarily in high-quality real estate leased to leading operators in essential and resilient industries, like the grocery, home improvement and convenience store industries."
At the time of this writing, Realty Income has total assets of nearly $20 billion, compared to approximately $9 billion in total liabilities. It also maintains strong liquidity, with cash and cash equivalents totaling $724.8 million. Finding a premium stock that pays a monthly dividend and has a rock-solid balance sheet is no easy feat, but Realty Income delivers on all counts.
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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 its portfolio of best-selling medicines, strong pipeline, and oh-so-juicy dividend, AbbVie is one of the top stocks for long-term investors to buy in today's healthcare landscape. AbbVie Biopharmaceutical behemoth AbbVie (NYSE: ABBV) pays a dividend that yields just shy of 5% based on current share prices. AbbVie is a Dividend Aristocrat, having raised its dividend every year for more than 40 years. | AbbVie Biopharmaceutical behemoth AbbVie (NYSE: ABBV) pays a dividend that yields just shy of 5% based on current share prices. AbbVie is a Dividend Aristocrat, having raised its dividend every year for more than 40 years. AbbVie's stellar portfolio of medicines stretches across a range of disciplines, from immunology to oncology to neuroscience, but its most prominent product is undoubtedly Humira. | Bear in mind, AbbVie's total net revenues across all of its medicines came to $32 billion during that nine-month period, meaning that Humira currently generates about half of all the company's revenues. AbbVie Biopharmaceutical behemoth AbbVie (NYSE: ABBV) pays a dividend that yields just shy of 5% based on current share prices. AbbVie is a Dividend Aristocrat, having raised its dividend every year for more than 40 years. | AbbVie is a Dividend Aristocrat, having raised its dividend every year for more than 40 years. AbbVie Biopharmaceutical behemoth AbbVie (NYSE: ABBV) pays a dividend that yields just shy of 5% based on current share prices. AbbVie's stellar portfolio of medicines stretches across a range of disciplines, from immunology to oncology to neuroscience, but its most prominent product is undoubtedly Humira. |
24237.0 | 2021-02-02 00:00:00 UTC | 7 Pharmaceutical Stocks With Compelling Pipelines | ABBV | https://www.nasdaq.com/articles/7-pharmaceutical-stocks-with-compelling-pipelines-2021-02-02 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the last year, pharmaceutical stocks, in general, have taken a back seat to coronavirus vaccine makers. Seemingly, unless it was tackling Covid-19, a drug maker was viewed by stock market traders as dull.
When the market prices future earnings, they bid up shares of BioNTech (NASDAQ:BNTX) and Moderna (NASDAQ:MRNA). Those stocks rose by two-fold and six-fold, respectively. And even though shares dipped in recent months, mega market capitalization pharmaceutical stocks are lagging.
That may be a mistake. Investors armed with the knowledge of drug companies having a compelling pipeline will get rewarded. Markets, as impatient as they are, will assign little short-term value to those having a deep pipeline of drugs in clinical studies. But as those studies progress, a positive data read will bring the drug closer to market. Before you know it, the company has a blockbuster drug on the market while the stock languishes.
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There are seven pharmaceutical stocks that investors should consider:
AbbVie (NYSE:ABBV)
AstraZeneca (NASDAQ:AZN)
Bristol-Myers Squibb (NYSE:BMY)
Gilead Sciences (NASDAQ:GILD)
Merck & Co (NYSE:MRK)
Pfizer (NYSE:PFE)
Viatris (NASDAQ:VTRS)
Taken from Stock Rover, notice the strong quality and growth scores for those picks. Also, the free cash flow per share exceeds the dividend per share, in most cases. This suggests that for those paying a dividend, investors get a steady stream of long-term income:
Company Quality Score Growth Score Free Cash Flow/Share Dividend/Share
AbbVie 83 99 $9.58 $5.20
AstraZeneca 90 93 $0.74 $1.40
Bristol-Myers Squibb 75 92 $5.30 $1.96
Gilead Sciences 79 52 $6.47 $2.72
Merck & Co 97 93 $2.65 $2.60
Pfizer 93 75 $1.83 $1.56
Regeneron Pharmaceuticals 100 100 $13.68 –
Viatris 70 83 $2.97 –
Data from Stock Rover
Pharmaceutical Stocks: AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
When AbbVie acquired Allergan, it took on additional debt which weighed on its balance sheet. ABBV stock fell to below the $80 range as investors questioned management’s wisdom. In time, the acquisition will prove accretive to revenue.
AbbVie positioned itself for sustainable growth by building strong leadership in four areas: immunology, hematologic oncology, neuroscience, and Allergan aesthetics. The pandemic may have slowed demand for botox and botox cosmetics. When the crisis ends, look for sales in this segment to rebound.
The company forecast a robust pipeline of new therapies driving its revenue growth in 2024. So, when Humira loses its exclusivity in 2023, AbbVie expects an overall sales decline in 2023 first. This will snap back, thanks to new products.
Growth will accelerate in 2025. Given that guidance, investors may build this five-year discounted cash flow revenue exit model.
(USD in millions) Input Projections
Fiscal Years Ending 19-Dec 20-Dec 21-Dec 22-Dec 23-Dec 24-Dec
Revenue 33,266 38,256 43,994 49,274 46,810 46,810
% Growth 1.60% 15.00% 15.00% 12.00% -5.00% 0.00%
EBITDA 15,714 19,064 22,726 26,104 23,405 23,405
% of Revenue 47.20% 49.80% 51.70% 53.00% 50.00% 50.00%
Model courtesy of finbox
This model uses a Revenue Exit multiple to calculate Terminal Value after five years.
Metrics Range Conclusion
Discount Rate 7.5% – 6.5% 7.00%
Terminal Revenue Multiple 5.3x – 6.3x 5.8x
Fair Value $100.78 – $126.11 $113.23
Using the assumptions above, ABBV stock is worth around $113.
AbbVie is banking on Rinvoq and Skyrizi offsetting the revenue loss from Humira. For the long-term investor, the sales peak for the two products will not happen until early 2030.
AstraZeneca (AZN)
Source: Roland Magnusson / Shutterstock.com
AstraZeneca’s Covid-19 vaccine is a near-term growth catalyst. It also has a few products that won approval from the Food and Drug Administration. On Jan. 15, the FDA approved AstraZeneca and Daiichi’s antibody-drug conjugate, Enhertu. This drug treats adult patients with locally advanced or metastatic HER2-positive gastric or gastroesophageal (GEJ) adenocarcinoma.
The European Union and the U.K. approved AZN’s dosing option for Imfinzi. The drug, which treats unresectable (inoperable) non-small cell lung cancer, would reduce a patient’s medical visits.
Earlier this year, India approved the emergency use of AZN’s Covid-19 vaccine. The country plans to administer the vaccine across the country. India has a population of 1.3 billion.
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On Wall Street, the average price target on AZN stock is $67.50 (per Tipranks). On a five-year discounted cash flow EBITDA exit model, a discount rate of 7% would imply a fair value of nearly $55:
Metrics Range Conclusion
Discount Rate 7.5% – 6.0% 7.00%
Terminal EBITDA Multiple 15.0x – 18.0x 15.8x
Fair Value $51.30 – $63.47 $54.66
Model courtesy of finbox
Readers may click on the embedded link above to change the assumptions. Forecasting a higher annual revenue and decreasing the discount rate would raise the fair value.
Bristol-Myers Squibb (BMY)
Source: IgorGolovniov / Shutterstock.com
When Bristol-Myers bought out Celgene, it issued a contingent value rights (CVR) agreement. This all-or-nothing payout is worth $6.4 billion. Celgene shareholders would get $9 a share if Celgene received approval for three of its drugs. Because the FDA did not decide on liso-cel, BMY terminated the CVR.
Saving $6.4 billion is a positive development for the company, preserving precious cash that BMY may use to further its research and development efforts. It would also compensate the firm for the ongoing product development delays by Celgene. As of Nov. 17, 2020, Bristol-Myers said it had over 50 compounds in development and over 40 disease areas being studied. Opdivo, which is in the research area of solid tumors, is well into Phase 2. The medication, which treats certain types of cancer, reached a primary endpoint last August. Unfortunately, the firm withdrew its application for treating small cell lung cancer.
Opdivo works as adjuvant therapy. For example, the CheckMate-577 trial studied the drug for treating resected oesophageal or gastroesophageal junction cancer (GEJ).
Gilead Sciences (GILD)
GILD) sign at the company headquarters in Silicon Valley, California." width="300" height="169">
Source: Sundry Photography / Shutterstock.com
Investors largely ignored the revenue potential from coronavirus antiviral drugs. Veklury (remdesivir) has mixed clinical and practical data supporting its efficacy in treating coronavirus patients. So, shareholders cannot wonder why Gilead Sciences excluded sales of the drug in its updated 2020 guidance on Jan. 11.
The company forecast product sales of $21.5 billion – $21.525 billion excluding Veklury. With $2.8 billion from the antiviral, it still represents almost 10% of total sales. Gilead is looking at its mid-to-long-term growth potential. It expects Biktarvy sales driving sales for the full year 2020. Truvada will weaken results, as it loses exclusivity in the U.S.
Gilead plans to boost its research and development spending from the mid-teens percentage growth set on Oct. 28, 2020, to around 20% growth.
The newest contributor to its pipeline is its acquisition of Immunomedics. This cost the company around $21 billion. Chairman and CEO Daniel O’Day said “we will bring Trodelvy to many more patients around the world with triple-negative breast cancer and continue to explore its potential in many other types of cancer, both as a monotherapy and in combination with other treatments.”
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As the leader in antibody-drug conjugate technology, the Immunomedics unit is a potential growth driver for Gilead in the years ahead.
On Wall Street, 26 analysts rating GILD stock have a median 12-month price target of $73, with a low of $58 a share and a high of $100 (according to CNN Business).
Merck & Co (MRK)
Source: Atmosphere1 / Shutterstock.com
Merck believes the market is underestimating its revenue growth prospects between now and 2024. As Keytruda loses its exclusivity, the company needs its pipeline of drugs in development to come to market.
CFO Ken Frazier said that Merck is focusing on oncology drugs. He highlighted the company’s completing 120 business development transactions. Spinning off its women’s health and renaming the unit Organon & Co. will deepen the company’s focus on its core strengths. So, not only will Organon grow on its own, the parent company will depend on sales of Gardasil, a vaccine for human papillomavirus. Pneumovax 23 is pneumococcal vaccination that fared well in the last year despite the Covid-19 pandemic.
The company has a rich pipeline with over 25 mechanisms in the clinic. This year, investors should watch for its developments in LAG-3 and CTLA4. Those are targets of immunotherapy in treating gynecologic cancers.
Based on its future cash flow, simplywall.st has a $144 fair value target on MRK stock.
Pfizer (PFE)
Source: pio3 / Shutterstock.com
Pfizer gets in the news very often because of its partnership with BioNTech and the coronavirus mRNA vaccine. Despite its lackluster performance, the drug manufacturing giant has a long-term sales target of at least 6% revenue growth compounded annually through 2025.
When JPMorgan analyst Chris Schott asked Merck about its growth target at the firm’s virtual Healthcare Conference held on Jan. 14, chairman and CEO Albert Bourla confirmed it. Excluding Covid-19 vaccine sales, Pfizer has several product growth drivers ahead.
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For instance, in its JAK pipeline, abrocitinib is an inhibitor that will treat patients with atopic dermatitis. This product will, of course, compete against Regeneron’s (NASDAQ:REGN) Dupixent drug. There are 60 million patients worldwide who could use that drug. That total addressable market is large and yet PFE stock trades at a discount.
Income investors should warm to PFE stock over holding BNTX; shares of the former pay a dividend that currently yields more than 4%.
Viatris (VTRS)
Source: luchschenF / Shutterstock.com
Viatris, which is formed by the spinoff of Pfizer’s Upjohn unit and Mylan, slumped in the last week. The company issued an unexpectedly weak outlook.
At last month’s JPMorgan conference, the company qualified 2021 as a trough. It projected flat revenue growth in the near-term. Impatient market participants dumped VTRS stock that day. The generics giant has several catalysts ahead, including plans to pay a dividend later this year.
In the next several years, Viatris will reduce its debt by over $4 billion. In the near-term, the company will invest to build its pipeline. It will get there by increasing its merger and acquisitions. This is a risky path, as the company could overpay for companies and get nothing in return. Still, positive cash flow from the slimmed-down, merged firm will give Viatris many options.
If it fixes its growth problems in China and Japan, then a rebound in international revenue will allow it to support its generic drug launches.
On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get original insight that helps improve investment returns.
The post 7 Pharmaceutical Stocks With Compelling Pipelines 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 Blue Chip Stocks to Help Prepare For Your Retirement There are seven pharmaceutical stocks that investors should consider: AbbVie (NYSE:ABBV) AstraZeneca (NASDAQ:AZN) Bristol-Myers Squibb (NYSE:BMY) Gilead Sciences (NASDAQ:GILD) Merck & Co (NYSE:MRK) Pfizer (NYSE:PFE) Viatris (NASDAQ:VTRS) Taken from Stock Rover, notice the strong quality and growth scores for those picks. This suggests that for those paying a dividend, investors get a steady stream of long-term income: Company Quality Score Growth Score Free Cash Flow/Share Dividend/Share AbbVie 83 99 $9.58 $5.20 AstraZeneca 90 93 $0.74 $1.40 Bristol-Myers Squibb 75 92 $5.30 $1.96 Gilead Sciences 79 52 $6.47 $2.72 Merck & Co 97 93 $2.65 $2.60 Pfizer 93 75 $1.83 $1.56 Regeneron Pharmaceuticals 100 100 $13.68 – Viatris 70 83 $2.97 – Data from Stock Rover Pharmaceutical Stocks: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com When AbbVie acquired Allergan, it took on additional debt which weighed on its balance sheet. ABBV stock fell to below the $80 range as investors questioned management’s wisdom. | 7 Blue Chip Stocks to Help Prepare For Your Retirement There are seven pharmaceutical stocks that investors should consider: AbbVie (NYSE:ABBV) AstraZeneca (NASDAQ:AZN) Bristol-Myers Squibb (NYSE:BMY) Gilead Sciences (NASDAQ:GILD) Merck & Co (NYSE:MRK) Pfizer (NYSE:PFE) Viatris (NASDAQ:VTRS) Taken from Stock Rover, notice the strong quality and growth scores for those picks. This suggests that for those paying a dividend, investors get a steady stream of long-term income: Company Quality Score Growth Score Free Cash Flow/Share Dividend/Share AbbVie 83 99 $9.58 $5.20 AstraZeneca 90 93 $0.74 $1.40 Bristol-Myers Squibb 75 92 $5.30 $1.96 Gilead Sciences 79 52 $6.47 $2.72 Merck & Co 97 93 $2.65 $2.60 Pfizer 93 75 $1.83 $1.56 Regeneron Pharmaceuticals 100 100 $13.68 – Viatris 70 83 $2.97 – Data from Stock Rover Pharmaceutical Stocks: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com When AbbVie acquired Allergan, it took on additional debt which weighed on its balance sheet. ABBV stock fell to below the $80 range as investors questioned management’s wisdom. | 7 Blue Chip Stocks to Help Prepare For Your Retirement There are seven pharmaceutical stocks that investors should consider: AbbVie (NYSE:ABBV) AstraZeneca (NASDAQ:AZN) Bristol-Myers Squibb (NYSE:BMY) Gilead Sciences (NASDAQ:GILD) Merck & Co (NYSE:MRK) Pfizer (NYSE:PFE) Viatris (NASDAQ:VTRS) Taken from Stock Rover, notice the strong quality and growth scores for those picks. This suggests that for those paying a dividend, investors get a steady stream of long-term income: Company Quality Score Growth Score Free Cash Flow/Share Dividend/Share AbbVie 83 99 $9.58 $5.20 AstraZeneca 90 93 $0.74 $1.40 Bristol-Myers Squibb 75 92 $5.30 $1.96 Gilead Sciences 79 52 $6.47 $2.72 Merck & Co 97 93 $2.65 $2.60 Pfizer 93 75 $1.83 $1.56 Regeneron Pharmaceuticals 100 100 $13.68 – Viatris 70 83 $2.97 – Data from Stock Rover Pharmaceutical Stocks: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com When AbbVie acquired Allergan, it took on additional debt which weighed on its balance sheet. ABBV stock fell to below the $80 range as investors questioned management’s wisdom. | 7 Blue Chip Stocks to Help Prepare For Your Retirement There are seven pharmaceutical stocks that investors should consider: AbbVie (NYSE:ABBV) AstraZeneca (NASDAQ:AZN) Bristol-Myers Squibb (NYSE:BMY) Gilead Sciences (NASDAQ:GILD) Merck & Co (NYSE:MRK) Pfizer (NYSE:PFE) Viatris (NASDAQ:VTRS) Taken from Stock Rover, notice the strong quality and growth scores for those picks. This suggests that for those paying a dividend, investors get a steady stream of long-term income: Company Quality Score Growth Score Free Cash Flow/Share Dividend/Share AbbVie 83 99 $9.58 $5.20 AstraZeneca 90 93 $0.74 $1.40 Bristol-Myers Squibb 75 92 $5.30 $1.96 Gilead Sciences 79 52 $6.47 $2.72 Merck & Co 97 93 $2.65 $2.60 Pfizer 93 75 $1.83 $1.56 Regeneron Pharmaceuticals 100 100 $13.68 – Viatris 70 83 $2.97 – Data from Stock Rover Pharmaceutical Stocks: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com When AbbVie acquired Allergan, it took on additional debt which weighed on its balance sheet. ABBV stock fell to below the $80 range as investors questioned management’s wisdom. |
24238.0 | 2021-02-01 00:00:00 UTC | Best Biotech Stocks To Buy Right Now? 4 Reporting Earnings This Week | ABBV | https://www.nasdaq.com/articles/best-biotech-stocks-to-buy-right-now-4-reporting-earnings-this-week-2021-02-01 | nan | nan | Looking For The Top Biotech Stocks To Buy In February?
Any investors worth their salt can tell you that biotech stocks are among the top performers on the stock market today. Whether it is explosive gains within a day or long-term gains, the industry has benefitted investors. Right now, as we enter another intense earnings week, some of the top biotech stocks are releasing their financials. For most biotech investors, it is a great time to see how the big players in the field have performed throughout the fiscal year.
To highlight, vaccine superstar Pfizer (NYSE: PFE) will be posting its fourth-quarter fiscal tomorrow. As the coronavirus pandemic continues to ravage the world, investors could be eager to hear what the company has in store for 2021. Additionally, leading HIV treatment developer Gilead Sciences (NASDAQ: GILD) is also reporting its earnings on Thursday. Even amidst earnings season, the company continues to innovate in the field as it announced a collaboration with Gritstone Oncology (NASDAQ: GRTS) earlier today. If anything, this speaks to the constantly evolving nature of biotech. As a result, eagle-eyed investors will likely be on the lookout for the best biotech stocks this week. With that in mind, here are four biotech giants in focus right now.
Top Biotech Stocks To Buy [Or Sell] This Week
Vertex Pharmaceuticals Inc. (NASDAQ: VRTX)
Bio-Techne Corporation (NASDAQ: TECH)
PerkinElmer Inc. (NYSE: PKI)
AbbVie Inc. (NYSE: ABBV)
Vertex Pharmaceuticals Inc.
First up is global biotech firm Vertex. The company specializes in the development of medicines for people with serious diseases. Its development pipeline consists of treatments for cystic fibrosis (CF), pain, sickle cell disease, and Type 1 Diabetes (T1D). Admittedly, VRTX stock has been trading sideways over the past year. Could its upcoming fourth-quarterearnings callafter today’s market close change that? Well, analysts appear to think so.
General estimates suggest that Vertex could be looking at a profit of $2.55 per share for the quarter. This would mark an incredible 50% leap year-over-year. Adding to that, Wall Street is forecasting a 12% growth in revenue to the tune of $1.58 billion. Impressively, equity analysts at Cowen (NASDAQ: COWN) commented, “We expect the current dislocation between Vertex Pharmaceuticals’ (VRTX) trading price and the value of its CF franchise to be only temporary. We would use the recent stock weakness to build a position.” With all this in mind, investors may be wondering if it is a good time to buy on the dip.
Last week, Vertex received two FDA regulatory updates regarding its child CF and T1D projects. Should the company see another strong quarter, could VRTX stock return to its pre-pandemic heights? You tell me.
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Bio-Techne Corporation
Bio-Techne is another top biotech company to watch this week. The Minnesota-based global life science company specializes in providing clinical tools and bioactive reagents. The company does so for the fields of research and clinical diagnostics with its portfolio of over 500,000 products. With TECH stock doubling in value since the March lows, investors could be curious to see if it has more room to grow moving forward.
For starters, Bio-Techne is slated to post its second-quarter fiscal before the market opens tomorrow. Given it reported a solid first quarter back in November, should investors be excited about TECH stock? Well, Bio-Techne saw green across the board in its last quarter. It saw year-over-year jumps of 124% in earnings per share and 131% in net income. CEO Chuck Kummeth summarized, “Achieving over 10% organic growth, including strong results from our key growth platforms, shows the strength of our diverse portfolio of tools that researchers are turning to in all aspects of life sciences research.”
If that wasn’t enough, it also made a recent strategic investment last week in life science company Eminence. As the company continues to provide the necessary industry tools, it could be looking at long-term growth. Could this mean big gains for TECH stock in the long run? I’ll let you decide.
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PerkinElmer Inc.
Thirdly, we will be looking at PerkinElmer. The company specializes in creating tools for several key fields in the biotechnology industry. This includes, but is not limited to, diagnostics, food production, and industrial testing. Notably, its coronavirus test kit received emergency use authorization (EUA) from the FDA back in October. In the midst of the pandemic, it would make sense that the company’s tools see higher demand. As PKI stock had one of its best years on the stock market in 2020, investors could be watching it ahead of its fourth-quarter results tomorrow.
According to analysts’ current consensus estimates place PerkinElmer at a profit of $3.01 per share. In this case, we could see a 418% year-over-year surge in its upcomingearnings call With expectations set this high, it would not surprise me if investors had PKI stock on their watchlists.
In terms of business highlights, the company has been busy throughout January 2021. On January 14, it received a EUA for its coronavirus test kit to be used in asymptomatic testing. This is excellent news for the company as the use for its test kit has been expanded massively. Moreover, it would help to further slow down the spread of the coronavirus, which in turn, bumps up demand for the company’s kit. As PerkinElmer shows no signs of slowing down, will you be adding PKI stock to your watchlist?
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AbbVie Inc.
Last but not least, we have biopharmaceutical titan AbbVie. The company’s portfolio consists of projects relating to immunology, oncology, virology, and women’s health. Its flagship arthritis medication, Humira is noted as the best-selling drug in the world. Furthermore, it also acquired Botox developer Allergan back in May. Despite its strong portfolio, ABBV stock has only gained 58% since the March selloffs. As it currently trades just above the $100 mark, could investors be looking at an exciting opportunity in ABBV stock ahead of itsearnings callon Wednesday?
Arguably, the company reported solid financials in its third-quarter fiscal back in October. AbbVie reported a 52% year-over-year increase in total revenue which added up to $12.9 billion. The company also ended the quarter with $7.89 billion in cash on hand. Aside from that, AbbVie also raised its dividend by 10% in the quarter. This places ABBV stock’s total dividend yield at 5.1% beating its industry average of 2.3%.
By and large, it was a combination of ABBV stock’s valuation and dividend that reportedly caught Warren Buffett’s eye. This in turn led to Berkshire Hathaway (NYSE: BRK.A) picking up the stock back in the third quarter of 2020. Given all of this, could it be a good time to buy ABBV stock? Your guess is as good as mine.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Biotech Stocks To Buy [Or Sell] This Week Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) Bio-Techne Corporation (NASDAQ: TECH) PerkinElmer Inc. (NYSE: PKI) AbbVie Inc. (NYSE: ABBV) Vertex Pharmaceuticals Inc. First up is global biotech firm Vertex. AbbVie Inc. Last but not least, we have biopharmaceutical titan AbbVie. Despite its strong portfolio, ABBV stock has only gained 58% since the March selloffs. | Top Biotech Stocks To Buy [Or Sell] This Week Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) Bio-Techne Corporation (NASDAQ: TECH) PerkinElmer Inc. (NYSE: PKI) AbbVie Inc. (NYSE: ABBV) Vertex Pharmaceuticals Inc. First up is global biotech firm Vertex. AbbVie Inc. Last but not least, we have biopharmaceutical titan AbbVie. Despite its strong portfolio, ABBV stock has only gained 58% since the March selloffs. | Top Biotech Stocks To Buy [Or Sell] This Week Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) Bio-Techne Corporation (NASDAQ: TECH) PerkinElmer Inc. (NYSE: PKI) AbbVie Inc. (NYSE: ABBV) Vertex Pharmaceuticals Inc. First up is global biotech firm Vertex. AbbVie Inc. Last but not least, we have biopharmaceutical titan AbbVie. Despite its strong portfolio, ABBV stock has only gained 58% since the March selloffs. | Top Biotech Stocks To Buy [Or Sell] This Week Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) Bio-Techne Corporation (NASDAQ: TECH) PerkinElmer Inc. (NYSE: PKI) AbbVie Inc. (NYSE: ABBV) Vertex Pharmaceuticals Inc. First up is global biotech firm Vertex. AbbVie Inc. Last but not least, we have biopharmaceutical titan AbbVie. Despite its strong portfolio, ABBV stock has only gained 58% since the March selloffs. |
24239.0 | 2021-01-31 00:00:00 UTC | These Dividend Stocks Are Practically Money Machines | ABBV | https://www.nasdaq.com/articles/these-dividend-stocks-are-practically-money-machines-2021-01-31 | nan | nan | If you depend on stocks to generate income, you want the dividend payments to be like clockwork. That requires the underlying businesses to be solid and reliable.
Of course, you'd also like to see those dividends increase over time. Otherwise, inflation could chip away at the amount of money you make and potentially lower your standard of living.
The good news is that plenty of stocks offer reliable and growing dividends. Here are three dividend stocks in particular that should practically be money machines.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) pays a dividend that I think any income investor would love. The dividend currently yields more than 5%. AbbVie has increased its dividend payout for 49 consecutive years and is knocking at the door of becoming a Dividend King (S&P 500 members with at least 50 years in a row of dividend hikes).
My view is that AbbVie's underlying business is even more stable than it appears at first glance. Some investors focus on the problems that will soon face the company's top-selling drug, Humira. Beginning in 2023, biosimilar rivals to the blockbuster autoimmune disease drug will enter the U.S. market. However, AbbVie should be well positioned to handle the inevitable decline of its longtime flagship product.
Two successors to Humira are already generating fast-growing sales. Although AbbVie hasn't reported its full-year 2020 results yet, Rinvoq and Skyrizi made well over $2 billion last year. The company expects the two drugs will achieve combined peak annual sales of $15 billion. That will go a long way toward offsetting expected sales declines for Humira, which likely pulled in around $20 billion in 2020.
But AbbVie has plenty of other growth drivers in addition to these two rising stars. Blood cancer drugs Imbruvica and Venclexta continue to enjoy strong momentum. Sales are picking up rapidly for antipsychotic drug Vraylar. AbbVie also has an up-and-coming migraine drug, Ubrelvy, as well as another promising migraine candidate, atogepant, that could soon win regulatory approval. I think that AbbVie will be able to keep increasing its dividends for a long time to come.
2. Brookfield Infrastructure Partners
Brookfield Infrastructure Partners (NYSE: BIP) offers a dividend yield of around 3.6%. Its distributions have increased by a compound annual growth rate of 10% since the company was founded in 2008.
The company's business model is remarkably resilient. Brookfield Infrastructure owns infrastructure assets like cell towers, data centers, natural gas pipelines and storage facilities, railroads, ports, and toll roads. These properties generate steady cash flow regardless of what's going on with the economy thanks to the company's long-term contracts with customers.
Brookfield Infrastructure's management refers to the company as a "grow-tility." It has the stability of a utility combined with strong growth prospects. The company targets generating total returns of around 15% over the long term.
The company is organized as a limited partnership (LP), which presents some tax complications. However, you can also buy shares of Brookfield Infrastructure Corporation (NYSE: BIPC), a separate entity created last year. It's the same underlying business as the LP, but organized under a traditional corporate structure. Brookfield Infrastructure Corporation pays the same dividend as Brookfield Infrastructure Partners. However, its yield is a little lower because of the differences in share prices.
3. Innovative Industrial Properties
If you want to buy shares of a dividend money machine that's also a fantastic growth stock, you'll definitely want to check out Innovative Industrial Properties (NYSE: IIPR). The company's dividend currently yields close to 2.5%. IIP has increased its dividend by 727% since initiating a dividend in late 2017.
The company is organized as a real estate investment trust (REIT) and focuses on the U.S. medical cannabis industry. IIP buys properties from medical cannabis operators, then leases the properties back to the operators. Its weighted-average remaining lease term is 16.6 years, giving the company a steady revenue stream well into the next decade.
IIP's growth has been breathtaking. Its revenue and earnings continue to soar as the REIT adds more properties. And IIP isn't having any problems finding more properties to buy and lease, signing its latest deal just a few days ago with multistate cannabis operator Harvest Health & Recreation.
It's possible that IIP could face more competition in the future. However, it's just as likely that the expansion of the U.S. medical cannabis market will create enough opportunities for IIP to keep its momentum going for years. I view IIP as a dividend investor's dream.
10 stocks we like better than Innovative Industrial Properties
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Innovative Industrial Properties wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Keith Speights owns shares of AbbVie, Brookfield Infrastructure, Brookfield Infrastructure Partners, and Innovative Industrial Properties. The Motley Fool owns shares of and recommends Innovative Industrial Properties. The Motley Fool recommends Brookfield Infrastructure and Brookfield Infrastructure 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 AbbVie (NYSE: ABBV) pays a dividend that I think any income investor would love. AbbVie has increased its dividend payout for 49 consecutive years and is knocking at the door of becoming a Dividend King (S&P 500 members with at least 50 years in a row of dividend hikes). My view is that AbbVie's underlying business is even more stable than it appears at first glance. | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Brookfield Infrastructure, Brookfield Infrastructure Partners, and Innovative Industrial Properties. AbbVie AbbVie (NYSE: ABBV) pays a dividend that I think any income investor would love. AbbVie has increased its dividend payout for 49 consecutive years and is knocking at the door of becoming a Dividend King (S&P 500 members with at least 50 years in a row of dividend hikes). | AbbVie has increased its dividend payout for 49 consecutive years and is knocking at the door of becoming a Dividend King (S&P 500 members with at least 50 years in a row of dividend hikes). See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Brookfield Infrastructure, Brookfield Infrastructure Partners, and Innovative Industrial Properties. AbbVie AbbVie (NYSE: ABBV) pays a dividend that I think any income investor would love. | AbbVie has increased its dividend payout for 49 consecutive years and is knocking at the door of becoming a Dividend King (S&P 500 members with at least 50 years in a row of dividend hikes). See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Brookfield Infrastructure, Brookfield Infrastructure Partners, and Innovative Industrial Properties. AbbVie AbbVie (NYSE: ABBV) pays a dividend that I think any income investor would love. |
24240.0 | 2021-01-29 00:00:00 UTC | 3 Dividend Stocks That Could Pay You for the Rest of Your Life | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-that-could-pay-you-for-the-rest-of-your-life-2021-01-29 | nan | nan | Never say never. Plenty of companies that were once seen as permanent pillars of their respective industries are now all but gone, as are their dividends. Blockbuster Video, Eastman Kodak, and J.C. Penney are some of these names that come to mind, and they're just a sampling of the stocks that were once income stalwarts, but aren't any longer.
The fact of the matter is, however, some dividend-paying companies are simply better positioned to adapt to an unpredictable future than others. Among the most malleable businesses that income-minded investors may want to keep in their portfolios for decades are Johnson & Johnson (NYSE: JNJ), American Tower (NYSE: AMT), and The Southern Company (NYSE: SO).
Image source: Getty Images.
Johnson & Johnson is so much more than shampoo and bandages
Dividend yield: 2.4%
Dividend CAGR (5-year): 6.1%
You likely know Johnson & Johnson as the maker of a popular baby shampoo. If you've looked a bit closer, you may also know it's the company behind Tylenol, Band-Aid brand bandages, Listerine mouthwash, and more. These consumer-oriented products are only a small slice of what it does though, accounting for around 15% of its revenue. Medical devices provide around 30% of Johnson & Johnson's top line, and prescription drugs produce a little more than half of it.
In fact, the company owns the immunosuppressives Remicade and Stelara, and co-owns leukemia drug Imbruvica with AbbVie, all three of which rank among the world's best-selling drugs. Never even mind the 12 drug approval filings it's got lined up for the next three years, or the 32 phase 3 clinical trials it has currently underway.
It is true that Johnson & Johnson does face some headwinds. It's still fighting a complicated wave of lawsuits over the sale of talcum powder contaminated with asbestos. Those could ultimately cost it billions of dollars. It has also been implicated in recent opioid-related lawsuits, with the plaintiffs asserting that the company downplayed their addiction risks.
These headwinds, however, don't pose a real threat to the company's dividend or the growth of the payout. J&J has a lot of levers it can pull and adaptations it can make to drive progress. As an example, in October, it completed its $6.5 billion acquisition of Momenta Pharmaceuticals, which brought several prospective blockbuster drugs into its portfolio.
American Tower, because mobile phones aren't going away
Dividend yield: 2.1%
Dividend CAGR (5-year): 18.4%
You may not be familiar with American Tower, but you're probably benefiting from its service. The real estate investment trust owns 181,000 cellphone towers, leasing space on them to more recognizable names like AT&T and T-Mobile. The company isn't limiting itself to the U.S. market though. It has been working on overseas growth for some time under the assumption that markets that are less developed now will eventually rely on wireless service as much as the U.S. does already. The only risk to this business would be an unexpected decision by people all over the world to stop using their mobile phones.
The odds of that happening, of course, are practically nil. Indeed, telecom company consortium GSMA estimates that only a little less than half the world's population is connected to the web with a web-enabled phone right now. Similarly, GSMA estimates that only 67% of the world's population are currently mobile subscribers. But buckle up. The addition of 600 million more users -- which it anticipates by 2025 -- should bring the total wireless customer tally up to 5.8 billion, or 70% of the world's population, while the advent of 5G should drive an explosion of web-enabled phone users well beyond 49%. This market growth outlook translates into revenue and income growth potential for American Tower.
We're already seeing plenty of evidence that this growth is underway. American Tower has increased its dividend payout every quarter -- not just every year -- since early 2012, from $0.21 per share then to $1.14 as of last quarter. Take the hint.
The Southern Company keeps the lights on
Dividend yield: 4.4%
Dividend CAGR (5-year): 3.4%
Finally, add utility name Southern Company to the list of dividend stocks you can count on for a lifetime.
Southern Company provides power for 9 million customers in six states. It also has footprints in the gas-storage and fiber optic businesses, diversifying its revenue streams and boosting the profits that it ultimately passes along in the form of dividends to shareholders. But, electricity production and delivery is its core business. That's why it's a reliable income investment, and will remain one into the distant future. People may skip vacations or postpone big purchases. But unless their situations get particularly dire, they're going to keep the lights on by paying their electricity bills.
The corresponding dividend resilience isn't difficult to spot either. The Southern Company has raised its payout for 19 consecutive years, and while that growth has been less than thrilling at an annualized clip of 3.3%, investors buying the stock today can step in at an above-average yield of 4.4%. That's not a bad trade-off for a stock you'll never have to worry about.
10 stocks we like better than Southern Company
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 Southern Company 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 November 20, 2020
James Brumley owns shares of AT&T. The Motley Fool owns shares of and recommends American Tower. The Motley Fool recommends Johnson & Johnson and T-Mobile US. 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. | In fact, the company owns the immunosuppressives Remicade and Stelara, and co-owns leukemia drug Imbruvica with AbbVie, all three of which rank among the world's best-selling drugs. Blockbuster Video, Eastman Kodak, and J.C. Penney are some of these names that come to mind, and they're just a sampling of the stocks that were once income stalwarts, but aren't any longer. It also has footprints in the gas-storage and fiber optic businesses, diversifying its revenue streams and boosting the profits that it ultimately passes along in the form of dividends to shareholders. | In fact, the company owns the immunosuppressives Remicade and Stelara, and co-owns leukemia drug Imbruvica with AbbVie, all three of which rank among the world's best-selling drugs. Among the most malleable businesses that income-minded investors may want to keep in their portfolios for decades are Johnson & Johnson (NYSE: JNJ), American Tower (NYSE: AMT), and The Southern Company (NYSE: SO). American Tower, because mobile phones aren't going away Dividend yield: 2.1% Dividend CAGR (5-year): 18.4% You may not be familiar with American Tower, but you're probably benefiting from its service. | In fact, the company owns the immunosuppressives Remicade and Stelara, and co-owns leukemia drug Imbruvica with AbbVie, all three of which rank among the world's best-selling drugs. Among the most malleable businesses that income-minded investors may want to keep in their portfolios for decades are Johnson & Johnson (NYSE: JNJ), American Tower (NYSE: AMT), and The Southern Company (NYSE: SO). Johnson & Johnson is so much more than shampoo and bandages Dividend yield: 2.4% Dividend CAGR (5-year): 6.1% You likely know Johnson & Johnson as the maker of a popular baby shampoo. | In fact, the company owns the immunosuppressives Remicade and Stelara, and co-owns leukemia drug Imbruvica with AbbVie, all three of which rank among the world's best-selling drugs. These headwinds, however, don't pose a real threat to the company's dividend or the growth of the payout. The only risk to this business would be an unexpected decision by people all over the world to stop using their mobile phones. |
24241.0 | 2021-01-28 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABBV | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-01-28 | 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
Brown & Brown Inc (Symbol: BRO) $44.08 $50.00 13.43%
Brady Corp (Symbol: BRC) $47.14 $52.75 11.90%
Carlisle Companies Inc. (Symbol: CSL) $145.69 $163.00 11.88%
AbbVie Inc (Symbol: ABBV) $102.79 $114.38 11.27%
Becton, Dickinson & Co (Symbol: BDX) $250.89 $277.77 10.71%
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
Brown & Brown Inc (Symbol: BRO) 0.84% 13.43% 14.27%
Brady Corp (Symbol: BRC) 1.87% 11.90% 13.77%
Carlisle Companies Inc. (Symbol: CSL) 1.44% 11.88% 13.32%
AbbVie Inc (Symbol: ABBV) 5.06% 11.27% 16.33%
Becton, Dickinson & Co (Symbol: BDX) 1.32% 10.71% 12.03%
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
Brown & Brown Inc (Symbol: BRO) $0.325 $0.348 7.08%
Brady Corp (Symbol: BRC) $0.862 $0.876 1.62%
Carlisle Companies Inc. (Symbol: CSL) $1.8 $2.05 13.89%
AbbVie Inc (Symbol: ABBV) $4.39 $4.84 10.25%
Becton, Dickinson & Co (Symbol: BDX) $3.1 $3.2 3.23%
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. | Get the latest Zacks research report on ABBV — FREE Get the latest Zacks research report on BDX — FREE 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. Brown & Brown Inc (Symbol: BRO) $44.08 $50.00 13.43% Brady Corp (Symbol: BRC) $47.14 $52.75 11.90% Carlisle Companies Inc. (Symbol: CSL) $145.69 $163.00 11.88% AbbVie Inc (Symbol: ABBV) $102.79 $114.38 11.27% Becton, Dickinson & Co (Symbol: BDX) $250.89 $277.77 10.71% 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. Brown & Brown Inc (Symbol: BRO) 0.84% 13.43% 14.27% Brady Corp (Symbol: BRC) 1.87% 11.90% 13.77% Carlisle Companies Inc. (Symbol: CSL) 1.44% 11.88% 13.32% AbbVie Inc (Symbol: ABBV) 5.06% 11.27% 16.33% Becton, Dickinson & Co (Symbol: BDX) 1.32% 10.71% 12.03% Another consideration with dividend growth stocks is just how much the dividend is growing. | Brown & Brown Inc (Symbol: BRO) $44.08 $50.00 13.43% Brady Corp (Symbol: BRC) $47.14 $52.75 11.90% Carlisle Companies Inc. (Symbol: CSL) $145.69 $163.00 11.88% AbbVie Inc (Symbol: ABBV) $102.79 $114.38 11.27% Becton, Dickinson & Co (Symbol: BDX) $250.89 $277.77 10.71% 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. Brown & Brown Inc (Symbol: BRO) 0.84% 13.43% 14.27% Brady Corp (Symbol: BRC) 1.87% 11.90% 13.77% Carlisle Companies Inc. (Symbol: CSL) 1.44% 11.88% 13.32% AbbVie Inc (Symbol: ABBV) 5.06% 11.27% 16.33% Becton, Dickinson & Co (Symbol: BDX) 1.32% 10.71% 12.03% Another consideration with dividend growth stocks is just how much the dividend is growing. Brown & Brown Inc (Symbol: BRO) $0.325 $0.348 7.08% Brady Corp (Symbol: BRC) $0.862 $0.876 1.62% Carlisle Companies Inc. (Symbol: CSL) $1.8 $2.05 13.89% AbbVie Inc (Symbol: ABBV) $4.39 $4.84 10.25% Becton, Dickinson & Co (Symbol: BDX) $3.1 $3.2 3.23% These five stocks are part of our full Dividend Aristocrats List. | Brown & Brown Inc (Symbol: BRO) $44.08 $50.00 13.43% Brady Corp (Symbol: BRC) $47.14 $52.75 11.90% Carlisle Companies Inc. (Symbol: CSL) $145.69 $163.00 11.88% AbbVie Inc (Symbol: ABBV) $102.79 $114.38 11.27% Becton, Dickinson & Co (Symbol: BDX) $250.89 $277.77 10.71% 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. Brown & Brown Inc (Symbol: BRO) 0.84% 13.43% 14.27% Brady Corp (Symbol: BRC) 1.87% 11.90% 13.77% Carlisle Companies Inc. (Symbol: CSL) 1.44% 11.88% 13.32% AbbVie Inc (Symbol: ABBV) 5.06% 11.27% 16.33% Becton, Dickinson & Co (Symbol: BDX) 1.32% 10.71% 12.03% Another consideration with dividend growth stocks is just how much the dividend is growing. Brown & Brown Inc (Symbol: BRO) $0.325 $0.348 7.08% Brady Corp (Symbol: BRC) $0.862 $0.876 1.62% Carlisle Companies Inc. (Symbol: CSL) $1.8 $2.05 13.89% AbbVie Inc (Symbol: ABBV) $4.39 $4.84 10.25% Becton, Dickinson & Co (Symbol: BDX) $3.1 $3.2 3.23% These five stocks are part of our full Dividend Aristocrats List. | Brown & Brown Inc (Symbol: BRO) $44.08 $50.00 13.43% Brady Corp (Symbol: BRC) $47.14 $52.75 11.90% Carlisle Companies Inc. (Symbol: CSL) $145.69 $163.00 11.88% AbbVie Inc (Symbol: ABBV) $102.79 $114.38 11.27% Becton, Dickinson & Co (Symbol: BDX) $250.89 $277.77 10.71% 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. Brown & Brown Inc (Symbol: BRO) 0.84% 13.43% 14.27% Brady Corp (Symbol: BRC) 1.87% 11.90% 13.77% Carlisle Companies Inc. (Symbol: CSL) 1.44% 11.88% 13.32% AbbVie Inc (Symbol: ABBV) 5.06% 11.27% 16.33% Becton, Dickinson & Co (Symbol: BDX) 1.32% 10.71% 12.03% Another consideration with dividend growth stocks is just how much the dividend is growing. Brown & Brown Inc (Symbol: BRO) $0.325 $0.348 7.08% Brady Corp (Symbol: BRC) $0.862 $0.876 1.62% Carlisle Companies Inc. (Symbol: CSL) $1.8 $2.05 13.89% AbbVie Inc (Symbol: ABBV) $4.39 $4.84 10.25% Becton, Dickinson & Co (Symbol: BDX) $3.1 $3.2 3.23% These five stocks are part of our full Dividend Aristocrats List. |
24242.0 | 2021-01-27 00:00:00 UTC | Wednesday Sector Laggards: Materials, Healthcare | ABBV | https://www.nasdaq.com/articles/wednesday-sector-laggards%3A-materials-healthcare-2021-01-27 | nan | nan | Looking at the sectors faring worst as of midday Wednesday, shares of Materials companies are underperforming other sectors, showing a 2.2% loss. Within that group, Howmet Aerospace Inc (Symbol: HWM) and Linde plc (Symbol: LIN) are two of the day's laggards, showing a loss of 4.6% and 3.9%, respectively. Among the high volume ETFs, one ETF closely following materials stocks is the Materials Select Sector SPDR ETF (Symbol: XLB), which is down 2.1% on the day, and down 1.37% year-to-date. Howmet Aerospace Inc, meanwhile, is down 16.47% year-to-date, and Linde plc, is down 6.64% year-to-date. LIN makes up approximately 15.5% of the underlying holdings of XLB.
The next worst performing sector is the Healthcare sector, showing a 2.0% loss. Among large Healthcare stocks, Regeneron Pharmaceuticals, Inc. (Symbol: REGN) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a loss of 5.0% and 4.7%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is down 2.4% in midday trading, and up 1.47% on a year-to-date basis. Regeneron Pharmaceuticals, Inc., meanwhile, is up 6.93% year-to-date, and AbbVie Inc, is down 2.02% year-to-date. Combined, REGN and ABBV make up approximately 5.5% 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 Wednesday. As you can see, one sector is up on the day, while eight sectors are down.
SECTOR % CHANGE
Energy +0.7%
Technology & Communications -0.7%
Consumer Products -1.1%
Utilities -1.2%
Services -1.6%
Industrial -1.8%
Healthcare -2.0%
Financial -2.0%
Materials -2.2%
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Combined, REGN and ABBV make up approximately 5.5% of the underlying holdings of XLV. Among large Healthcare stocks, Regeneron Pharmaceuticals, Inc. (Symbol: REGN) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a loss of 5.0% and 4.7%, respectively. Regeneron Pharmaceuticals, Inc., meanwhile, is up 6.93% year-to-date, and AbbVie Inc, is down 2.02% year-to-date. | Among large Healthcare stocks, Regeneron Pharmaceuticals, Inc. (Symbol: REGN) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a loss of 5.0% and 4.7%, respectively. Regeneron Pharmaceuticals, Inc., meanwhile, is up 6.93% year-to-date, and AbbVie Inc, is down 2.02% year-to-date. Combined, REGN and ABBV make up approximately 5.5% of the underlying holdings of XLV. | Among large Healthcare stocks, Regeneron Pharmaceuticals, Inc. (Symbol: REGN) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a loss of 5.0% and 4.7%, respectively. Regeneron Pharmaceuticals, Inc., meanwhile, is up 6.93% year-to-date, and AbbVie Inc, is down 2.02% year-to-date. Combined, REGN and ABBV make up approximately 5.5% of the underlying holdings of XLV. | Among large Healthcare stocks, Regeneron Pharmaceuticals, Inc. (Symbol: REGN) and AbbVie Inc (Symbol: ABBV) are the most notable, showing a loss of 5.0% and 4.7%, respectively. Regeneron Pharmaceuticals, Inc., meanwhile, is up 6.93% year-to-date, and AbbVie Inc, is down 2.02% year-to-date. Combined, REGN and ABBV make up approximately 5.5% of the underlying holdings of XLV. |
24243.0 | 2021-01-26 00:00:00 UTC | 2 Stocks I'll Hold Forever | ABBV | https://www.nasdaq.com/articles/2-stocks-ill-hold-forever-2021-01-26 | nan | nan | Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial satisfaction that you get from seeing a stock's value rise over time, you also get to savor that oh-so-precious feeling: I was right.
Once you've had enough self-congratulation, you can always choose to sell the stock and lock in your gains. But, if you're like me, there are a few stocks that just keep on giving so reliably that you'll never let them go. If you're looking to invest in something for the long haul, you'll probably be interested in these stocks too.
Image source: Getty Images.
1. AbbVie
As a major pharma company, AbbVie (NYSE: ABBV) delivers for its investors by developing and commercializing new drugs, like its best-selling arthritis treatment Humira. There's two reasons AbbVie is worth holding forever: its skill with drug development, and its generous dividend. The dividend hasn't ever been cut, and it's been increasing steadily over time. Right now, the forward yield is around 4.7%. But how does the company pay for it?
That's where things get much more interesting. Like many other pharma companies, AbbVie maximizes the revenue that it gets from each of its drug development projects by investigating their usefulness for multiple illnesses. Then, when it finds a promising lead, it runs a clinical trial to get regulatory approval for new illnesses other than what the drug was originally approved for. Case in point: For Humira, the original regulatory approval to treat arthritis in 2002 was only the very beginning of its revenue potential. Since then, it's been approved to treat eight (!) additional conditions, making the company $19.2 billion in 2019 alone.
Humira isn't the only therapy that AbbVie has worked hard to expand. Its monoclonal antibody risankizumab for psoriasis and upadacitinib for arthritis will likely follow a similar trajectory with their approved indications and revenue potential over time. It's this organizational talent for making its products increasingly lucrative over time that makes AbbVie worth holding forever. Where other companies might try to get their drugs approved for one or two other indications after launch, AbbVie never stops investing in its winners, and its shareholders tend to benefit as a result.
2. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is another healthcare stock that I'll hold forever. It sells consumer healthcare goods like Pedialyte, as well as medical devices like pacemakers, glucose monitors, and catheters. It also offers a plethora of medical diagnostic tests and medicines, not to mention surgical tools like cardiac stents. If you can't see a trend yet, don't worry -- Abbott's appeal is that it sells a huge swath of critical healthcare products to many different markets. Many of these goods don't require any additional investment to keep selling year after year, which means that Abbott can invest its funds to make new products to add to its repertoire. This flexibility came in handy during the COVID-19 pandemic, when Abbott was able to create several different coronavirus diagnostic tests that went on to become best-sellers nearly overnight.
Data source: YCharts.
Importantly, Abbott Labs has profitably repeated its formula of making evergreen healthcare products for decades and decades on end. Like AbbVie (which is actually one of its spin-offs), its dividend (with a current yield of 1.6%) has increased over time, and its payment is quite sustainable, given its rapid quarterly earnings growth of 28.3% year over year.
In summary, I'll never sell Abbott Laboratories because I expect that it'll continue to innovate and expand its durable revenue base indefinitely. While its dividend will never make you rich, it sometimes ratchets upward by a significant amount, and the stock is a case study for why you should invest for the long term. Compared to the wider market, the total returns for shareholders have been much better with Abbott for at least the last decade. I fully expect this trend to continue, so I'll be sure to keep holding.
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Alex Carchidi owns shares of Abbott Laboratories and 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. | Where other companies might try to get their drugs approved for one or two other indications after launch, AbbVie never stops investing in its winners, and its shareholders tend to benefit as a result. AbbVie As a major pharma company, AbbVie (NYSE: ABBV) delivers for its investors by developing and commercializing new drugs, like its best-selling arthritis treatment Humira. There's two reasons AbbVie is worth holding forever: its skill with drug development, and its generous dividend. | It's this organizational talent for making its products increasingly lucrative over time that makes AbbVie worth holding forever. AbbVie As a major pharma company, AbbVie (NYSE: ABBV) delivers for its investors by developing and commercializing new drugs, like its best-selling arthritis treatment Humira. There's two reasons AbbVie is worth holding forever: its skill with drug development, and its generous dividend. | 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Alex Carchidi owns shares of Abbott Laboratories and AbbVie. AbbVie As a major pharma company, AbbVie (NYSE: ABBV) delivers for its investors by developing and commercializing new drugs, like its best-selling arthritis treatment Humira. | AbbVie As a major pharma company, AbbVie (NYSE: ABBV) delivers for its investors by developing and commercializing new drugs, like its best-selling arthritis treatment Humira. There's two reasons AbbVie is worth holding forever: its skill with drug development, and its generous dividend. Like many other pharma companies, AbbVie maximizes the revenue that it gets from each of its drug development projects by investigating their usefulness for multiple illnesses. |
24244.0 | 2021-01-26 00:00:00 UTC | 3 Stocks to Bankroll Your Retirement | ABBV | https://www.nasdaq.com/articles/3-stocks-to-bankroll-your-retirement-2021-01-26 | nan | nan | When you're choosing the right stocks to help fund your retirement, you need stable, safe income producers -- companies that have steady, if not spectacular growth, with above-average dividend yields. But that doesn't mean you have to buy the same stocks your grandparents did.
Ideally, the stocks you pick are on the cusp of trends that are going to climb for years. Where's the growth? You can look for stocks in healthcare, pet care, and 5G technology, just to name a few sectors. Healthcare should be an obvious pick, as our population is aging and healthcare needs are expected to grow. The growth in spending on pets has been exponential and was further spurred during the pandemic. Lastly, 5G is the next big thing in technology, and the companies associated with it are sure to benefit.
That's why I recommend AbbVie (NYSE: ABBV), PetMed Express (NASDAQ: PETS) and Crown Castle International (NYSE: CCI). All three have attractive dividends and are expecting major growth.
Image source: Getty Images.
1. AbbVie: An outstanding dividend, plus growth
AbbVie is a retiree's dream stock. The pharmaceutical giant's shares are up more than 32% over the past year.
It began as a spinoff of Abbott Laboratories in 2013, but counting its time with Abbott, it is a Dividend Aristocrat with 48 consecutive years of dividend growth. Since 2013, the company has increased its dividend 225%, including a 10.2% gain this year. Its quarterly dividend of $1.33 a share offers a yield of 4.34%. Despite that pleasantly high number, it could easily go higher. While its payout ratio is a scary 97, the company's cash dividend payout ratio is only 47%.
PETS Payout Ratio data by YCharts
AbbVie is also a predictable growth stock with increased revenue every year. It's on track to increase revenue again in 2020 with reported revenue of $31.9 billion through the first nine months of 2020, up 30% year over year.
The company's lead therapy is Humira, an immunosuppressant. Much has been written about how biosimilars are cutting into its profits. Still, through the first nine months of 2020, Humira posted $14.6 billion in revenue, up 3% over the same period in 2019. AbbVie has a huge group of up-and-coming drugs as well. Blood cancer drug Imbruvica brought in $3.9 billion, up 13.9% through nine months. Two auto-immune drugs -- Skyrizi, which treats plaque psoriasis, and Rinvoq, which treats rheumatoid arthritis -- reported revenue through nine months of $1 billion and $450 million, respectively. That was in their first full year of sales.
2. PetMed Express: Revenue unleashed
Shares of PetMed Express, an online pet pharmacy, are up more than 44% over the past 12 months. The company is headed for its fifth consecutive year of annual revenue growth, with a compound annual revenue growth of 32.87% in that period. The company's quarterly dividend of $0.28 per share gives it a yield of 3.69%, and the dividend has grown 124% over the past decade. Its cash dividend payout ratio is a little high at 61%, but given the company's growth, it's still sustainable.
In the company's third-quarter earnings report, which was announced on Tuesday and included its numbers through Dec. 31, the company had net sales of $65.9 million, up 10% year over year for the quarter. Through nine months of 2020, sales were $237.5 million, up 13.2% over the same period in 2019.
The company also grew net income and margins. Third-quarter net income was reported as $7.6 million, up 11.3% year over year. Nine-month net income was listed as $23.8 million, up 26% compared to the same period in 2019. Gross margin improved 0.3% in the quarter to 29.8%.
PetMed Express fits the need of retirees because it has consistent growth, and a record of dividend growth with a sustainable payout ratio.
3. Crown Castle International: Wired for success
Crown Castle International is a real estate investment trust (REIT) that owns, operates, and leases wireless towers and antennas. The company's share price is up more than 9% over the past year.
The growth of 5G networks means quicker connectivity for online use, particularly mobile online use. But 5G signals don't travel far, so more cell towers and small cell fiber-connected antennas are needed to keep us connected.
Research and Markets estimates the 5G infrastructure market to grow from $12.6 in 2020 to $44.9 billion by 2025, a compound annual growth rate (CAGR) of 28.97%.
That's one area where Crown Castle will benefit. The company owns 80,000 route miles of fiber cable and more than 40,000 cell towers. It also leads the U.S. with roughly 70,000 small cells, which are attached to existing structures such as streetlights and utility poles.
Crown's quarterly dividend was raised 10.8% this year to $1.33 per share, offering a yield of 3.09%. The company says that its goal is to continue annual dividend growth of 7% to 8%. Over the past decade, the company's funds from operation (FFO) have risen 331% while its dividend has increased 280%. In the third quarter, Crown's adjusted FFO was $1.56 per share, a growth of 6% year over year. This keeps its dividend payout ratio at 85%, which isn't high for a REIT, especially one with Crown's steady cash flows that come from long-term leases.
PETS Revenue (TTM) data by YCharts
All three make great options
It's hard to go wrong with any of these stocks in your retirement portfolio.
PetMed Express may be the best bargain of the three with a price-to-earnings ratio of 19, but it doesn't have the dividend history that AbbVie has. Crown Castle International has the best chance of exploding growth, but for now, it is the most expensive of the three with a price-to-free cash flow ratio of 60. Of the three, AbbVie is the easiest choice because it has the highest dividend yield, strongest dividend growth history, and greatest track record of revenue growth.
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Jim Halley owns shares of AbbVie. The Motley Fool owns shares of and recommends Crown Castle International. 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. | That's why I recommend AbbVie (NYSE: ABBV), PetMed Express (NASDAQ: PETS) and Crown Castle International (NYSE: CCI). AbbVie: An outstanding dividend, plus growth AbbVie is a retiree's dream stock. PETS Payout Ratio data by YCharts AbbVie is also a predictable growth stock with increased revenue every year. | That's why I recommend AbbVie (NYSE: ABBV), PetMed Express (NASDAQ: PETS) and Crown Castle International (NYSE: CCI). AbbVie: An outstanding dividend, plus growth AbbVie is a retiree's dream stock. PETS Payout Ratio data by YCharts AbbVie is also a predictable growth stock with increased revenue every year. | PETS Payout Ratio data by YCharts AbbVie is also a predictable growth stock with increased revenue every year. Of the three, AbbVie is the easiest choice because it has the highest dividend yield, strongest dividend growth history, and greatest track record of revenue growth. That's why I recommend AbbVie (NYSE: ABBV), PetMed Express (NASDAQ: PETS) and Crown Castle International (NYSE: CCI). | PETS Payout Ratio data by YCharts AbbVie is also a predictable growth stock with increased revenue every year. That's why I recommend AbbVie (NYSE: ABBV), PetMed Express (NASDAQ: PETS) and Crown Castle International (NYSE: CCI). AbbVie: An outstanding dividend, plus growth AbbVie is a retiree's dream stock. |
24245.0 | 2021-01-26 00:00:00 UTC | Warren Buffett's 3 Biggest Stock Picks for 2021 | ABBV | https://www.nasdaq.com/articles/warren-buffetts-3-biggest-stock-picks-for-2021-2021-01-26 | nan | nan | Warren Buffett turned 90 late last year. The stock-picking giant has a loyal following within the investment community. The Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) CEO still plays an instrumental role in guiding the investment decisions of his conglomerate, albeit with help from investment managers who might eventually take his place.
Buffett has a huge amount of capital at his disposal, and he's not afraid to make big bets. As of his most recent report, Berkshire had more than $150 billion invested in just three stocks. Although they're not new stock picks, the fact that Buffett still has confidence in these companies is a recommendation in itself. Here's a countdown of Buffett's three favorite stocks for 2021.
Warren Buffett. Image source: The Motley Fool.
3. Coca-Cola
Buffett has always said that his favorite holding period is forever, and Coca-Cola (NYSE: KO) is a true long-term buy-and-hold play for Buffett. Berkshire has had the same 400 million share position in Coca-Cola for more than 25 years, and even the stock's lackluster performance in the past year hasn't prompted any change in the insurance giant's stance toward the $19 billion holding.
Coca-Cola didn't do very well for Berkshire in 2020, with its share price falling 1%. Moreover, it's off to a terrible start in 2021, having fallen more than 10% in just the first few weeks of the year. Skeptics point to stagnant earnings and a rich valuation without huge prospects for future growth.
However, Coca-Cola does check some boxes on Buffett's list. A 3.4% dividend yield keeps cash flowing into Berkshire's coffers. While the beverage giant might not be a top growth stock, it has a loyal following that protects it from economic downturns as well. In a frothy market, that might be exactly the kind of ballast Buffett wants among his other holdings.
2. Bank of America
Buffett shocked many investors in 2020 when he made massive sales of some of his largest positions. Airline stocks got the ax following their coronavirus crisis collapse, and Berkshire dramatically slashed its allocation to financial stocks. Many long-held positions, including Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE: JPM), and Wells Fargo (NYSE: WFC), either got sold entirely or saw big reductions.
That makes Buffett's ongoing commitment to Bank of America (NYSE: BAC) all the more meaningful. Berkshire still has more than 1 billion shares of the banking giant, worth about $31 billion at recent prices. That's actually up from his total investment this time last year, and Buffett's nearly 12% stake in B of A comes with the added requirements of maintaining a bank position above the 10% mark.
Bank of America did even worse than Coca-Cola in 2020, falling 14% in a terrible environment for bank stocks. But Buffett has been optimistic about the longer-term prospects for the financial industry, and B of A now pays a dividend yield above 2.25%. With banks looking to restore their stock buyback activity now that the worst of the COVID-19 pandemic appears to be behind us, Bank of America could return to the impressive path higher it has taken since the financial crisis more than a decade ago.
1. Apple
The benefit of the Buffett long-term investing approach is that when he finds a winner, it can pay off handsomely. Apple (NASDAQ: AAPL) has been a huge winner for the Oracle of Omaha. Berkshire's 944 million share stake in Apple makes up almost half of all of its publicly traded stock holdings, and it's worth more than $135 billion at recent prices.
Recently, Buffett has looked at Apple as a source of funds for investing in other ideas. For instance, in the most recent quarter, Berkshire sold about 36 million shares of Apple, helping it take new positions in pharmaceutical stocks like Bristol Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV), and Merck (NYSE: MRK).
Yet even with modest trimming, Berkshire doesn't seem to have any doubts about Apple's long-term staying power. Investors shouldn't necessarily count on a repeat of the extremely strong performance that has sent Apple shares soaring more than 275% in just the past two years. Yet with the success of the 5G-enabled iPhone 12 signaling the beginning of another huge upgrade cycle for the mobile device giant, Apple still has upside.
Keep your eyes on Omaha in 2021
The stock market can go up one year and down the next, but over time, Warren Buffett's stocks have done extremely well. That makes watching Apple, Bank of America, and Coca-Cola in 2021 worthwhile to see what comes next for the three most influential stocks in Berkshire Hathaway's portfolio.
10 stocks we like better than Berkshire Hathaway (B shares)
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Dan Caplinger owns shares of Apple and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Bristol Myers Squibb and recommends the following options: short March 2021 $225 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and long January 2023 $200 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. | For instance, in the most recent quarter, Berkshire sold about 36 million shares of Apple, helping it take new positions in pharmaceutical stocks like Bristol Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV), and Merck (NYSE: MRK). That's actually up from his total investment this time last year, and Buffett's nearly 12% stake in B of A comes with the added requirements of maintaining a bank position above the 10% mark. Berkshire's 944 million share stake in Apple makes up almost half of all of its publicly traded stock holdings, and it's worth more than $135 billion at recent prices. | For instance, in the most recent quarter, Berkshire sold about 36 million shares of Apple, helping it take new positions in pharmaceutical stocks like Bristol Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV), and Merck (NYSE: MRK). Berkshire still has more than 1 billion shares of the banking giant, worth about $31 billion at recent prices. Berkshire's 944 million share stake in Apple makes up almost half of all of its publicly traded stock holdings, and it's worth more than $135 billion at recent prices. | For instance, in the most recent quarter, Berkshire sold about 36 million shares of Apple, helping it take new positions in pharmaceutical stocks like Bristol Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV), and Merck (NYSE: MRK). See the 10 stocks *Stock Advisor returns as of November 20, 2020 Dan Caplinger owns shares of Apple and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Bristol Myers Squibb and recommends the following options: short March 2021 $225 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). | For instance, in the most recent quarter, Berkshire sold about 36 million shares of Apple, helping it take new positions in pharmaceutical stocks like Bristol Myers Squibb (NYSE: BMY), AbbVie (NYSE: ABBV), and Merck (NYSE: MRK). Berkshire has had the same 400 million share position in Coca-Cola for more than 25 years, and even the stock's lackluster performance in the past year hasn't prompted any change in the insurance giant's stance toward the $19 billion holding. Coca-Cola didn't do very well for Berkshire in 2020, with its share price falling 1%. |
24246.0 | 2021-01-25 00:00:00 UTC | 3 Reasons To Invest in Pfizer Stock Despite Its Dismal Performance | ABBV | https://www.nasdaq.com/articles/3-reasons-to-invest-in-pfizer-stock-despite-its-dismal-performance-2021-01-25 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Pfizer (NYSE:PFE) stock is down nearly 1% so far this year. That’s strange, considering it got its vaccine out the door in record time. The novel coronavirus pandemic has wreaked havoc on the global economy. Pfizer and BioNTech’s (NASDAQ:BNTX) vaccine received Emergency Use Authorization (EUA) due to its excellent efficacy of 95%. But despite that, Pfizer stock hasn’t moved the needle.
PFE) logo on Pfizer building. Pfizer is an American pharmaceutical corporation." width="300" height="169">
Source: Manuel Esteban / Shutterstock.com
That’s the part that confusing analysts. According to Morgan Stanley, Pfizer is projected to haul vaccine revenue worth $19 billion in 2021. And it’s expected to earn a further $9.3 billion in 2022. Despite all these positive catalysts, Pfizer stock is meandering along.
Retail traders are more attracted to electric vehicle (EV) stocks and SPAC plays. Solid performers are left in the dust as investors chase potential multi-baggers.
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Despite a yield of 4.3% and 10 positive earnings surprises in the last 12 quarters, Pfizer stock continues to trade at 11.8x forward price-earnings. It has a 12-month price target of $41.8 per share, a 14.6% premium to the current price. No matter which way you look at it, shares are a bargain at the moment.
Pfizer Stock Is a Value Play in the Pharma Sector
Vaccine stocks are slowly losing steam after a bumper 2020. That’s because investors are booking their profits after valuations went supersonic.
However, we are still in the early days of recovery. The virus is surging and initial vaccine supplies remain limited. The country’s immunization program focuses on the elderly, people with serious medical conditions, and essential workers. That means there are still millions of yet to be vaccinated.
Source: Chart courtesy of StockRover.com
Besides, the emergence of a new variant of the disease makes investors rethink the logic of abandoning pharmaceutical stocks quickly. The World Health Organization believes there is no impact on vaccines from the variant. BioNTech has also expressed confidence its vaccine is effective against the variant. However, the Pfizer and BioNTech partnership may still have to develop vaccines to deal with new strains of coronavirus. In such a situation, its research on Covid-19 will prove useful and reduce costs moving forward.
Amidst all this, Pfizer stock’s forward P/E is the cheapest among the major vaccine manufacturers. It’s expected to grow sales and EPS at 10.9% and 10.3%, respectively. Shares have a margin of safety of 27% and as I mentioned, seldom has a quarter gone by where the company hasn’t beaten Wall Street estimates soundly.
Come for the Valuation, Stay for the Dividend
Dividend investing is not something that you would associate with pharmaceutical stocks these days. However, having a sustainable income stream in addition to the growth in your portfolio’s market value from asset appreciation is important. It’s here that Pfizer gets top marks.
The company has hiked its distribution for more than 10 consecutive years. Considering the kind of sales growth the company is expected to see for the next couple of years, there is no danger it will cut its distribution any time soon, leading to a very healthy total return.
The only company with a close to 4.3% yield is AbbVie (NYSE:ABBV), with 4.7%. However, the Abbott Laboratories (NYSE:ABT) spin-off is not a frontrunner in the vaccine game, a major reason for investing in Pfizer stock.
Diversified Portfolio
Undoubtedly, Covid-19 associated vaccine sales are a major tailwind for Pfizer stock. However, the company also has other medical products that are doing well, especially its oncology portfolio, which contributes more than 10% to its overall top line.
For the past five years, revenues have grown at 32% due to Ibrance and Sutent’s success. Sutent is a $1 billion-plus drug, while Ibrance generates over $4 billion in annual sales. Additionally, Pfizer’s hemophilia drug candidate marstacimab is a major growth driver.
These have nothing to do with Covid-19 vaccine sales, which are expected to be a major driving force for the foreseeable future. Pfizer and BioNTech plan to produce 2 billion doses of their Covid-19 vaccine this year. Moderna (NASDAQ:MRNA), its closest competitor, does not have the resources to match Pfizer’s production capacity.
Attractively Placed
Unlike several of its peers, Pfizer stock hasn’t soared to dizzying heights. That says a lot of the speculative atmosphere that exists at the moment. People are investing less in established names. Instead, the focus has shifted to obscure companies in high growth niches.
Even if you feel that vaccine sales are a one-off, there is a possibility that future coronavirus strains could require new products. In addition, an attractive valuation, high dividend yield, and solid outlook make Pfizer stock a value play for me.
On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
The post 3 Reasons To Invest in Pfizer Stock Despite Its Dismal Performance 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. | The only company with a close to 4.3% yield is AbbVie (NYSE:ABBV), with 4.7%. Source: Chart courtesy of StockRover.com Besides, the emergence of a new variant of the disease makes investors rethink the logic of abandoning pharmaceutical stocks quickly. Considering the kind of sales growth the company is expected to see for the next couple of years, there is no danger it will cut its distribution any time soon, leading to a very healthy total return. | The only company with a close to 4.3% yield is AbbVie (NYSE:ABBV), with 4.7%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pfizer (NYSE:PFE) stock is down nearly 1% so far this year. Pfizer and BioNTech’s (NASDAQ:BNTX) vaccine received Emergency Use Authorization (EUA) due to its excellent efficacy of 95%. | The only company with a close to 4.3% yield is AbbVie (NYSE:ABBV), with 4.7%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pfizer (NYSE:PFE) stock is down nearly 1% so far this year. Pfizer Stock Is a Value Play in the Pharma Sector Vaccine stocks are slowly losing steam after a bumper 2020. | The only company with a close to 4.3% yield is AbbVie (NYSE:ABBV), with 4.7%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pfizer (NYSE:PFE) stock is down nearly 1% so far this year. Considering the kind of sales growth the company is expected to see for the next couple of years, there is no danger it will cut its distribution any time soon, leading to a very healthy total return. |
24247.0 | 2021-01-22 00:00:00 UTC | 7 Dividend Aristocrats That Will Outlive Us All | ABBV | https://www.nasdaq.com/articles/7-dividend-aristocrats-that-will-outlive-us-all-2021-01-22 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Most long-term investors love passive income stocks. Therefore, today we introduce seven “Dividend Aristocrats,” or businesses that have increased the base dividend every year for the past 25 years.
According to metrics from S&P Global (NYSE:SPGI), “Since 1926, dividends have contributed to approximately one-third of total return while capital appreciations have contributed two-thirds. Therefore, both sustainable dividend income and capital appreciation potential are important to total return expectations.”
Over the past year, the S&P 500 Dividend Aristocrats Index has returned over 6%. By comparison, the Dow Jones Industrial Average (DJIA) has increased by 5%.
Solid businesses with wide moats tend to be able to generate stable revenues and strong cash flows in most years, even in volatile times or recessions. In fact, many such firms end up gaining market share at the expense of weaker businesses that might simply fight to stay alive during economically tough times.
Meanwhile, companies that consistently grow dividends are in effect saying that they are committed to sharing the success of the business with stockholders.
With that information, here are seven Dividend Aristocrats that deserve your attention in 2021:
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AbbVie (NYSE:ABBV)
Albemarle (NYSE:ALB)
Automatic Data Processing (NASDAQ:ADP)
Chubb (NYSE:CB)
Emerson Electric (NYSE:EMR)
ProShares S&P 500 Dividend Aristocrats ETF (BACS:NOBL)
Sysco (NYSE:SYY)
Dividend Aristocrats: AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
52-week range: $62.55 – $113.41
1-year price change: Up 23.82%
Dividend yield: 4.71%
Illinois-based biopharma group AbbVie is our first Dividend Aristocrat. It has numerous research and development (R&D) centers and manufacturing facilities globally. Several of its therapeutic areas include eye care, gastroenterology, immunology, neuroscience, oncology, rheumatology, virology, and women’s health. In addition, its Allergan Aesthetics portfolio includes products, such as Botox Cosmetics, fillers, and implants.
The last quarterly report showed non-GAAP adjusted net revenues of $12.882 billion, an increase of 4.1% year-over-year (YoY). Net earnings of $2.31 billion meant an increase of 22.5% YoY. Adjusted diluted EPS was $2.83, up 21% YoY. Cash and equivalents stood at $7.89 billion.
CEO Richard A. Gonzalez cited, “Results from key growth products – including Skyrizi, Rinvoq and Ubrelvy – continue to track ahead of our expectations, our aesthetics portfolio is demonstrating a strong V-shaped recovery, our hematologic-oncology franchise is delivering double-digit growth and we’re advancing numerous attractive late-stage pipeline programs.”
The company has in-demand therapies and products that contribute to revenue growth. AbbVie’s pipeline also deserves attention. I’d regard any drop in price as an opportunity to buy the shares.
Albemarle (ALB)
ALB) logo on a mobile phone screen" width="300" height="169">
Source: IgorGolovniov/Shutterstock.com
52-week range: $48.89 – $187.25
1-year price change: Up 124.84%
Dividend yield: 0.89%
Charlotte, North Carolina-based Albemarle produces specialty chemicals used in a wide range of products manufactured by pharmaceutical companies, agricultural companies, water treatment companies, electronics products manufacturers, refineries, and others.
In 2020, Albemarle caught investors’ attention as it is the industry leader in lithium, used to make electric vehicle (EV) batteries. Consumers’ love for EVs translated to a jump in the ALB share price. Investors believe the new administration in Washington will continue to provide tailwinds for the renewable energy sector.
Q3 results announced in early November showed net sales of $747 million, down by 15% YoY. Net income was $98.3 million and decreased 36.6%. Adjusted diluted EPS of $1.09 showed a decline of 28.8% YoY.
CEO Kent Masters said, “We now expect to realize approximately $80 million of cost savings this year and to reach an annual savings rate of $120 million or more by the end of 2021. We expect these savings to represent a first wave of ongoing operational improvements that will reap notable benefits for the company.”
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ALB stock’s forward P/E and P/S ratios are 48.39x and 6x, respectively. As a result of the recent run-up in price, the valuation metrics are overstretched. Potential investors could consider investing around $170.
Automatic Data Processing (ADP)
Source: Shutterstock
52-week range: $103.11 – $182.32
1-year price change: Down 7.87%
Dividend yield: 2.31%
Roseland, New Jersey-based Automatic Data Processing provides cloud-based human capital management (HCM) solutions such as human resources (HR) payroll, tax, and benefits administration, as well as business outsourcing services. The company tends to generate steady, recurring revenue. However, 2020 has also meant challenges due to job losses stateside, which has meant revenue loss for the group.
According to the most recent quarterly metrics, revenues came at $3.5 billion, down by 1% YoY. Adjusted net earnings of $605 million showed an increase of 4%. Adjusted diluted EPS was $1.41 and increased by 5%.
CFO Kathleen Winters commented, “Our first quarter results significantly exceeded our expectations across the board… While we still expect to face headwinds over the course of the year, we will continue to look for ways to drive strong performance in both the near and long-term.”
Forward P/E and P/S ratios are 27.9x and 4.81x, respectively. Despite the recent decline in price, I believe the shares are still richly valued for the current environment. A potential decline would improve the margin of safety.
Emerson Electric (EMR)
Source: Shutterstock
52-week range: $37.75 – $84.44
1-year price change: Up 6.29%
Dividend yield: 2.44%
St Louis, Missouri-based Emerson Electric is a technology and engineering company. The group focuses on Automation Solutions (manufacturing electrical components and providing services and training) and Commercial & Residential Solutions (covering heating, air conditioning, and refrigeration).
FY20 Q4 metrics released in early November showed GAAP net sales of $4.6 billion, down 8% YoY. Net earnings were $723 million, up 1% YoY. Adjusted EPS came at $1.10, down 4%. Free cash flow for the quarter was $1.02 billion and increased 2%.
CEO David N. Farr commented, “Amidst all the challenges, we exceeded our second quarter reset financial forecast in sales, EBITDA, and cash flow… We also continued to invest and took bold action to build on our innovation and technology footprint of the future, with three strategic acquisitions: American Governor, Open Systems International Inc. and Progea.”
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EMR stock’s forward P/E and P/S ratios are 25.5x and 2.99x, respectively. Emerson Electric’s automation division currently has significant exposure to the traditional energy (i.e., oil and gas) industry. However, it is also growing its alternative energy (i.e., clean fuels and renewables) businesses. Any decline below $80, especially toward $75, would offer a good entry point into the engineering group.
Chubb (CB)
Source: thodonal88 / Shutterstock.com
52-week range: $87.35 – $167.74
1-year price change: Up 1.66%
Dividend yield: 2%
Chubb is one of the largest publicly traded property and casualty insurance companies worldwide. 2020 has meant challenges for the industry. The pandemic, hurricanes, flooding, flooding, and civil unrest have meant increased insurance claims. However, the company’s operations stood the test of times.
The most recent quarterly earnings showed revenue of $9.46 billion, up 4.6% YoY. Net income was $1.19 billion, an increase of 9.4%. Diluted EPS was $2.63, up by 10.5%. Operating cash flow was $3.5 billion.
CEO Evan G. Greenberg cited, “With strong and continuously improving underwriting conditions in most all regions of the world, we grew P&C (property and casualty) net premiums written 6.5% in the quarter in constant dollars, comprised of 10.8% growth in our commercial P&C business and a 3.3% decline in consumer lines … we expect to grow our EPS through both revenue growth and improved margins.”
The fact that Chubb was able to grow its premiums written in 2020 makes it stand out among insurers. I believe the shares could find a place in most long-term portfolios.
ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
Source: Shutterstock
52-week range: $48.62 – $81.96
1-year price change: Up 1.31%
Dividend yield: 1.25%
Expense ratio: 0.35%
Our next choice is an exchange-traded fund (ETF), namely the ProShares S&P 500 Dividend Aristocrats ETF. It focuses on the S&P 500 Dividend Aristocrats Index comprised of businesses that have grown dividends for decades, not just for 25 consecutive years.
The fund, which started trading in September 2013, has 65 holdings. Total net assets of the fund are around $6.2 billion. As far as sector allocations are concerned, Industrials leads the ETF with 24.03%, followed by Consumer Staples (18.78%), and Materials (13.19%).
The top ten names, with approximately equal weights, make up around 20% of net assets. Albemarle, Exxon Mobil (NYSE:XOM), AbbVie, Walgreens Boots Alliance (NASDAQ:WBA) head the roster.
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NOBL returned 6% in the past 52 weeks. I believe any decline in the price of the fund during this earnings season would make it a good buy for long-term portfolios.
Sysco (SYY)
Source: JHVEPhoto/Shutterstock.com
52-week range: $26 – $84.12
1-year price change: Down 8.58%
Dividend yield: 2.35%
Houston, Texas-based Sysco sells food products and related equipment to restaurants, health care facilities, hotels, and educational facilities. It has about 57,000 employees in over 300 distribution facilities worldwide. The customer count exceeds 620,000.
Needless to say, 2002 was a difficult year as many of those customers had to scale down operations due to the pandemic. Sysco released FY21 Q1 metrics in early November. Sales were $11.8 billion, a decrease of 23.0% YoY. Non-GAAP net earnings were $173.5 million, down by 66.0%. Non-GAAP diluted EPS was 34 cents, a decline of 65.3%
CEO Kevin Hourican said, “Although our first quarter 2021 results continue to be impacted by the pandemic, we are pleased with our overall expense management and our ability to produce positive free cash flow and a profitable quarter despite a 23% reduction in sales.”
A potential decline toward $70 would offer better long-term value. In the coming quarters, as economies recover and cities and countries go back to normal, Sysco’s operations are likely to recover as well.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.
The post 7 Dividend Aristocrats That Will Outlive Us All 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. | With that information, here are seven Dividend Aristocrats that deserve your attention in 2021: 7 Airline Stocks Being Fueled by Vaccine News AbbVie (NYSE:ABBV) Albemarle (NYSE:ALB) Automatic Data Processing (NASDAQ:ADP) Chubb (NYSE:CB) Emerson Electric (NYSE:EMR) ProShares S&P 500 Dividend Aristocrats ETF (BACS:NOBL) Sysco (NYSE:SYY) Dividend Aristocrats: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com 52-week range: $62.55 – $113.41 1-year price change: Up 23.82% Dividend yield: 4.71% Illinois-based biopharma group AbbVie is our first Dividend Aristocrat. AbbVie’s pipeline also deserves attention. Albemarle, Exxon Mobil (NYSE:XOM), AbbVie, Walgreens Boots Alliance (NASDAQ:WBA) head the roster. | With that information, here are seven Dividend Aristocrats that deserve your attention in 2021: 7 Airline Stocks Being Fueled by Vaccine News AbbVie (NYSE:ABBV) Albemarle (NYSE:ALB) Automatic Data Processing (NASDAQ:ADP) Chubb (NYSE:CB) Emerson Electric (NYSE:EMR) ProShares S&P 500 Dividend Aristocrats ETF (BACS:NOBL) Sysco (NYSE:SYY) Dividend Aristocrats: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com 52-week range: $62.55 – $113.41 1-year price change: Up 23.82% Dividend yield: 4.71% Illinois-based biopharma group AbbVie is our first Dividend Aristocrat. AbbVie’s pipeline also deserves attention. Albemarle, Exxon Mobil (NYSE:XOM), AbbVie, Walgreens Boots Alliance (NASDAQ:WBA) head the roster. | With that information, here are seven Dividend Aristocrats that deserve your attention in 2021: 7 Airline Stocks Being Fueled by Vaccine News AbbVie (NYSE:ABBV) Albemarle (NYSE:ALB) Automatic Data Processing (NASDAQ:ADP) Chubb (NYSE:CB) Emerson Electric (NYSE:EMR) ProShares S&P 500 Dividend Aristocrats ETF (BACS:NOBL) Sysco (NYSE:SYY) Dividend Aristocrats: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com 52-week range: $62.55 – $113.41 1-year price change: Up 23.82% Dividend yield: 4.71% Illinois-based biopharma group AbbVie is our first Dividend Aristocrat. AbbVie’s pipeline also deserves attention. Albemarle, Exxon Mobil (NYSE:XOM), AbbVie, Walgreens Boots Alliance (NASDAQ:WBA) head the roster. | With that information, here are seven Dividend Aristocrats that deserve your attention in 2021: 7 Airline Stocks Being Fueled by Vaccine News AbbVie (NYSE:ABBV) Albemarle (NYSE:ALB) Automatic Data Processing (NASDAQ:ADP) Chubb (NYSE:CB) Emerson Electric (NYSE:EMR) ProShares S&P 500 Dividend Aristocrats ETF (BACS:NOBL) Sysco (NYSE:SYY) Dividend Aristocrats: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com 52-week range: $62.55 – $113.41 1-year price change: Up 23.82% Dividend yield: 4.71% Illinois-based biopharma group AbbVie is our first Dividend Aristocrat. AbbVie’s pipeline also deserves attention. Albemarle, Exxon Mobil (NYSE:XOM), AbbVie, Walgreens Boots Alliance (NASDAQ:WBA) head the roster. |
24248.0 | 2021-01-17 00:00:00 UTC | The Biggest Drug Competition in 2021 (Hint: It Isn't COVID Vaccines) | ABBV | https://www.nasdaq.com/articles/the-biggest-drug-competition-in-2021-hint%3A-it-isnt-covid-vaccines-2021-01-17 | nan | nan | In this video from Motley Fool Live, recorded on Jan. 4, Corinne Cardina, bureau chief of healthcare and cannabis, and Fool.com contributor Brian Orelli discuss the upcoming four-way competition for patients with eczema. Regeneron Pharmaceuticals (NASDAQ: REGN) and Sanofi (NASDAQ: SNY) have captured a large share of the moderate-to-severe patients with their injected drug Dupixent. But there's still plenty of market share available for drugs that can be delivered orally or topically.
10 stocks we like better than Incyte
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 Incyte wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Corinne Cardina: Any other big indications that you're going to watch this year beyond Biogen?
Brian Orelli: Yeah. We have a four-drug race, I think, in atopic dermatitis -- most people call that eczema. It affects 10% of adults and 20% of children worldwide. Many of those can be taken care of with topical generics. But there's still a pretty large market for moderate-to-severe patients.
Pfizer (NYSE: PFE) has abrocitinib, which is -- actually all four of these are JAK [Janus kinase] inhibitors. They're looking for an FDA [Food and Drug Administration] decision expected in April.
AbbVie (NYSE: ABBV) has Rinvoq. That's a brand name because it's already approved for rheumatoid arthritis. Also a JAK inhibitor. They submitted to the FDA and the EMA [European Medicines Agency] at the end of October. I haven't seen an acceptance from the FDA yet, which would start the date for when you would expect an FDA approval. But it should happen probably in October of next year, assuming they get a standard approval review.
Then Eli Lilly (NYSE: LLY) and Incyte (NASDAQ: INCY) have Olumiant. It's approved for rheumatoid arthritis. It's been approved for eczema in the EU, and then we should start to see the U.S. approval shortly -- application for the U.S. approval shortly -- if they haven't done that already.
Then Incyte has a cream that's a form of their same active ingredient as their JAK inhibitor, it's called Jakafi, which treats, I think a blood cancer [Editor's note: myelofibrosis]. They're planning on submitting a marketing application to the FDA. They were planning on doing it at the end of 2020, so it should happen pretty soon if they haven't done already. Then they have a priority review voucher which would give it an eight-month review period, so look for maybe [an] August, September time frame. The priority-review voucher will shave off four months off of a standard review.
Cardina: Sure. So can you remind us what a JAK inhibitor is, and why something that works for rheumatoid arthritis also works for eczema?
Orelli: Yeah. So rheumatoid arthritis and eczema are caused by inflammation, and JAK inhibitors inhibit the immune cells from attacking the patient's body; they're both autoimmune diseases. That's why Jakafi, which I said treats a blood cancer -- so that blood cancer is an immune cell, and so it's dampening the growth of the immune cell for the blood cancer.
Cardina: Excellent. Any thoughts on a potential winner in this market?
Orelli: Definitely the biggest loser is probably going to be Dupixent, which is from Regeneron and Sanofi. That drug has done really well. They had over $1 billion in global sales just in the third quarter alone, although some of that's for asthma and nasal polyps. It has to be injected, compared to the topical or oral JAK inhibitors. I think they'll be able to compete quite well.
Among the JAK inhibitors, I think it's hard to know for sure. They haven't been running any head-to-head clinical trials, so it's hard to know which one is going to win. I think Incyte might have an edge being a topical, because doctors may not want to inhibit the rest of the immune system fighting viruses. But if you're applying it to just your skin, you're more likely to have it act just locally, versus globally with an oral JAK inhibitor.
Brian Orelli, PhD and Corinne Cardina have no position in any of the stocks mentioned. The Motley Fool recommends Biogen and Incyte. 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 (NYSE: ABBV) has Rinvoq. In this video from Motley Fool Live, recorded on Jan. 4, Corinne Cardina, bureau chief of healthcare and cannabis, and Fool.com contributor Brian Orelli discuss the upcoming four-way competition for patients with eczema. Then Incyte has a cream that's a form of their same active ingredient as their JAK inhibitor, it's called Jakafi, which treats, I think a blood cancer [Editor's note: myelofibrosis]. | AbbVie (NYSE: ABBV) has Rinvoq. Regeneron Pharmaceuticals (NASDAQ: REGN) and Sanofi (NASDAQ: SNY) have captured a large share of the moderate-to-severe patients with their injected drug Dupixent. But there's still a pretty large market for moderate-to-severe patients. | AbbVie (NYSE: ABBV) has Rinvoq. In this video from Motley Fool Live, recorded on Jan. 4, Corinne Cardina, bureau chief of healthcare and cannabis, and Fool.com contributor Brian Orelli discuss the upcoming four-way competition for patients with eczema. It's been approved for eczema in the EU, and then we should start to see the U.S. approval shortly -- application for the U.S. approval shortly -- if they haven't done that already. | AbbVie (NYSE: ABBV) has Rinvoq. But it should happen probably in October of next year, assuming they get a standard approval review. They're planning on submitting a marketing application to the FDA. |
24249.0 | 2021-01-17 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On John Neff - 1/17/2021 | ABBV | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-john-neff-1-17-2021-2021-01-17 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
DAVITA INC (DVA) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: DaVita Inc., formerly DaVita HealthCare Partners Inc., operates one division: DaVita Kidney Care (Kidney Care). The Kidney Care division consists of the Company's United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. The Company's segments include U.S. dialysis and related lab services and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as an end-stage renal disease (ESRD). In addition, as of March 31, 2019, the Company operated or provided administrative services to 243 outpatient dialysis centers located in nine countries outside of the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: PASS
SALES GROWTH: FAIL
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of DAVITA INC
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QUEST DIAGNOSTICS INC (DGX) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Quest Diagnostics Incorporated is a provider of diagnostic information services. The Company operates through two businesses: Diagnostic Information Services and Diagnostic Solutions. The Diagnostic Information Services business develops and delivers diagnostic testing information and services, providing insights that empower and enable a range of customers, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers and accountable care organizations (ACOs). Its Diagnostic Solutions group includes its risk assessment services business, which offers solutions for insurers, and its healthcare information technology businesses, which offers solutions for healthcare providers. The Company's services are provided under the Quest Diagnostics brand, but it also provides services under other brands, including AmeriPath, Dermpath Diagnostics, Focus Diagnostics, Athena Diagnostics, ExamOne, Quanum and Care360.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: PASS
SALES GROWTH: FAIL
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: FAIL
Detailed Analysis of QUEST DIAGNOSTICS INC
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ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson's disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ABBVIE INC
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HCA HEALTHCARE INC (HCA) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: HCA Healthcare, Inc., formerly HCA Holdings, Inc., is a holding company. The Company, through its subsidiaries, owns and operates hospitals and related healthcare entities. As of December 31, 2016, the Company operated in two geographically organized groups, including the National and American Groups. As of December 31, 2016, the National Group included 84 hospitals, which were located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia. As of December 31, 2016, the American Group included 80 hospitals, which were located in Colorado, northern Georgia, Kansas, southern Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas. As of December 31, 2016, the Company operated six hospitals in England. The Company owns, manages or operates hospitals, freestanding surgery centers and freestanding emergency care facilities, walk-in clinics, diagnostic and imaging centers, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
SALES GROWTH: FAIL
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of HCA HEALTHCARE INC
Full Guru Analysis for HCA>
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HOLOGIC, INC. (HOLX) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Hologic, Inc. is a developer, manufacturer and supplier of diagnostics products, medical imaging systems and surgical products with an emphasis on women's health. The Company operates through four segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health. The diagnostics products include Aptima family of assays, ThinPrep system, the Rapid Fetal Fibronectin Test and Procleix blood screening assays. It offers viral load assays for the quantitation of Hepatitis B Virus (HBV), Hepatitis C Virus (HCV) and Human Immunodeficiency Virus-1 (HIV-1). The Breast Health products include breast imaging and related products and accessories, including digital mammography systems, computer-aided detection (CAD) and breast biopsy guidance systems. The GYN Surgical products include NovaSure Endometrial Ablation System and MyoSure Hysteroscopic Tissue Removal System. The Skeletal Health segment offers Discovery and Horizon X-ray bone densitometers and mini C-arm imaging systems.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: FAIL
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of HOLOGIC, INC.
Full Guru Analysis for HOLX>
Full Factor Report for HOLX>
More details on Validea's John Neff strategy
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of QUEST DIAGNOSTICS INC Full Guru Analysis for DGX> Full Factor Report for DGX> ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. Detailed Analysis of ABBVIE INC Full Guru Analysis for ABBV> Full Factor Report for ABBV> HCA HEALTHCARE INC (HCA) is a large-cap growth stock in the Healthcare Facilities industry. | Detailed Analysis of ABBVIE INC Full Guru Analysis for ABBV> Full Factor Report for ABBV> HCA HEALTHCARE INC (HCA) is a large-cap growth stock in the Healthcare Facilities industry. Detailed Analysis of QUEST DIAGNOSTICS INC Full Guru Analysis for DGX> Full Factor Report for DGX> ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. | Detailed Analysis of QUEST DIAGNOSTICS INC Full Guru Analysis for DGX> Full Factor Report for DGX> ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. Detailed Analysis of ABBVIE INC Full Guru Analysis for ABBV> Full Factor Report for ABBV> HCA HEALTHCARE INC (HCA) is a large-cap growth stock in the Healthcare Facilities industry. | Detailed Analysis of QUEST DIAGNOSTICS INC Full Guru Analysis for DGX> Full Factor Report for DGX> ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. Detailed Analysis of ABBVIE INC Full Guru Analysis for ABBV> Full Factor Report for ABBV> HCA HEALTHCARE INC (HCA) is a large-cap growth stock in the Healthcare Facilities industry. |
24250.0 | 2021-01-15 00:00:00 UTC | Notable ETF Inflow Detected - IWV, TMO, KO, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-iwv-tmo-ko-abbv-2021-01-15 | 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 $125.6 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 47,300,000 to 47,850,000). Among the largest underlying components of IWV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.3%, Coca-Cola Co (Symbol: KO) is down about 1.3%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.6%. 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 $126 per share, with $229.82 as the 52 week high point — that compares with a last trade of $225.65. 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 IWV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.3%, Coca-Cola Co (Symbol: KO) is down about 1.3%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.6%. 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 $126 per share, with $229.82 as the 52 week high point — that compares with a last trade of $225.65. 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 Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.3%, Coca-Cola Co (Symbol: KO) is down about 1.3%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.6%. 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 $126 per share, with $229.82 as the 52 week high point — that compares with a last trade of $225.65. 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 Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.3%, Coca-Cola Co (Symbol: KO) is down about 1.3%, and AbbVie Inc (Symbol: ABBV) is lower 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 iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $125.6 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 47,300,000 to 47,850,000). 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 $126 per share, with $229.82 as the 52 week high point — that compares with a last trade of $225.65. | Among the largest underlying components of IWV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.3%, Coca-Cola Co (Symbol: KO) is down about 1.3%, and AbbVie Inc (Symbol: ABBV) is lower 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 iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $125.6 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 47,300,000 to 47,850,000). 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 $126 per share, with $229.82 as the 52 week high point — that compares with a last trade of $225.65. |
24251.0 | 2021-01-15 00:00:00 UTC | 3 Green Flags for AbbVie in 2021 and 1 Red Flag | ABBV | https://www.nasdaq.com/articles/3-green-flags-for-abbvie-in-2021-and-1-red-flag-2021-01-15 | nan | nan | If you can identify leading companies in growing industries, you'll be well on your way to finding stocks that will bolster your portfolio's value. Beyond that, it helps to pick companies that have investor-friendly policies -- not to mention favorable tailwinds or upcoming catalysts for growth.
In that vein, after an excellent 2020, the pharma company AbbVie (NYSE: ABBV) is positioned for an encore performance in 2021. Its quarterly revenue is growing faster than 52% year over year, and the company is strongly profitable thanks to its collection of in-demand immunology and rheumatology therapies. But despite three green flags for the upcoming year, it also has one looming red flag that future investors absolutely can't miss if they want to make an informed decision about buying shares. Let's dive in and take a look at what's coming up.
Image source: Getty Images.
1. Three new Rinvoq indications
Rinvoq, one of AbbVie's drugs for rheumatoid arthritis, is already on the market. But in 2021, it may be approved for as many as three new indications, thereby increasing its pool of potential patients and its revenue-making potential, too.
AbbVie is currently awaiting regulatory review of its evidence that Rinvoq is effective for psoriatic arthritis, atopic dermatitis, and ankylosing spondylitis. The potential approval for atopic dermatitis is especially important, as it would mean that the company could serve a new market that it currently has no presence in.
2. Skyrizi's phase 3 data update
Sometime this year, AbbVie will provide an update from Skyrizi's phase 3 clinical trial for Crohn's disease. If this update is favorable, it'll mean that the company is continuing to see success with its efforts to build out its immunology pipeline by seeking new indications of its established assets. Given that theglobal marketfor Crohn's disease therapeutics was estimated to be worth $14.1 billion in 2020, the company could potentially look forward to a slice of the market share moving forward.
The bigger picture here is that advancing rapidly with Skyrizi will help AbbVie replace revenue from Humira, the decline of which has loomed for years. Right now, Skyrizi is already approved for psoriasis, and there are ongoing clinical trials to examine its effectiveness for ulcerative colitis and psoriatic arthritis. If it's ultimately approved for those indications, it'd be capable of serving the majority of the markets addressed by Humira.
3. Revenue from Humira will (still!) continue to grow in the U.S.
AbbVie's drug Humira for rheumatoid arthritis is its largest earner, netting the company an estimated $16 billion from its U.S. sales in 2020 alone. And management expects domestic revenue from Humira to keep expanding in 2021, even as it faces rising competition from biosimilars.
Another way of looking at this green flag is that biosimilars haven't eroded Humira's market share as rapidly as many people had expected. Therefore, AbbVie has a bit more time before sales from Humira fall off the cliff. So investors can have a measure of confidence that AbbVie won't need to take defensive financial actions like curbing its dividend anytime soon.
But biosimilars are thrashing Humira revenue in international markets
Even though AbbVie is still seeing revenue growth from Humira in the U.S., the same is not true when it comes to international sales. Continuing a trend that started with gusto in 2018 when Humira lost patent exclusivity in Europe, biosimilars will erode Humira's market share throughout 2021 outside the U.S., with management estimating a sharp drop of 45% this year.
In dollar values, this means that after making $3.7 billion in international sales in 2020, this year Humira could make as little as $1.5 billion. That's going to leave a small but noticeable dent in the company's trailing 12-month revenue of $40.65 billion. But if it succeeds in getting its other immunology projects to pick up its market share where Humira leaves off, its stock price could still be secure for the time being.
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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 is currently awaiting regulatory review of its evidence that Rinvoq is effective for psoriatic arthritis, atopic dermatitis, and ankylosing spondylitis. continue to grow in the U.S. AbbVie's drug Humira for rheumatoid arthritis is its largest earner, netting the company an estimated $16 billion from its U.S. sales in 2020 alone. In that vein, after an excellent 2020, the pharma company AbbVie (NYSE: ABBV) is positioned for an encore performance in 2021. | Three new Rinvoq indications Rinvoq, one of AbbVie's drugs for rheumatoid arthritis, is already on the market. Skyrizi's phase 3 data update Sometime this year, AbbVie will provide an update from Skyrizi's phase 3 clinical trial for Crohn's disease. In that vein, after an excellent 2020, the pharma company AbbVie (NYSE: ABBV) is positioned for an encore performance in 2021. | continue to grow in the U.S. AbbVie's drug Humira for rheumatoid arthritis is its largest earner, netting the company an estimated $16 billion from its U.S. sales in 2020 alone. But biosimilars are thrashing Humira revenue in international markets Even though AbbVie is still seeing revenue growth from Humira in the U.S., the same is not true when it comes to international sales. In that vein, after an excellent 2020, the pharma company AbbVie (NYSE: ABBV) is positioned for an encore performance in 2021. | continue to grow in the U.S. AbbVie's drug Humira for rheumatoid arthritis is its largest earner, netting the company an estimated $16 billion from its U.S. sales in 2020 alone. In that vein, after an excellent 2020, the pharma company AbbVie (NYSE: ABBV) is positioned for an encore performance in 2021. Three new Rinvoq indications Rinvoq, one of AbbVie's drugs for rheumatoid arthritis, is already on the market. |
24252.0 | 2021-01-14 00:00:00 UTC | 3 Great Dividend Stocks That Are Simply Too Cheap to Ignore | ABBV | https://www.nasdaq.com/articles/3-great-dividend-stocks-that-are-simply-too-cheap-to-ignore-2021-01-14 | nan | nan | There's a problem with many dividend stocks on the market right now. It's not that their dividends are too low; instead, their valuations are too high. When the next bear market comes, investors who bought the stocks for the great dividends could be stuck with big losses. Those losses could easily more than wipe out all of the income they received.
Here's the good news: This problem doesn't extend to all dividend stocks. Some of them don't have ridiculously high valuations. A few are even downright bargains. Here are three great dividend stocks that are simply too cheap to ignore.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) ranks as one of the least expensive healthcare stocks on the market. Its shares currently trade at less than nine times expected earnings. By comparison, the forward earnings multiple for the S&P 500 index is nearly 23.
The big drugmaker also offers one of the most attractive dividends on the market. AbbVie's dividend currently yields over 4.7%. The company is a Dividend Aristocrat, an elite group of S&P 500 members with at least 25 consecutive years of dividend increases. AbbVie's record stands at 49 years in a row of dividend hikes.
There's one major knock against AbbVie: Top-selling drug Humira faces biosimilar competition in the U.S. beginning in 2023. Sales for the blockbuster autoimmune disease drug will undoubtedly plunge. However, AbbVie has known for a long time that day would come and has been busy getting ready for it.
The company already has two autoimmune disease drugs on the market (Rinvoq and Skyrizi) that should largely offset the lower sales for Humira. AbbVie's lineup also includes other drugs with fast-growing sales, including blood cancer drugs Imbruvica and Venclexta. With these and other growth drivers, AbbVie's dividend appears to be pretty safe.
2. Bristol Myers Squibb
Bristol Myers Squibb (NYSE: BMY) is another big drugmaker that's even cheaper than AbbVie. The pharma stock trades at a little over eight times expected earnings.
Investors also have a lot to like with BMS' dividend, as its yield currently stands at 3%. There were some concerns that the 2019 acquisition of Celgene could negatively impact BMS' dividend program. The company addressed those worries head-on, though, by continuing to increase its dividend payout -- most recently, it announced a dividend hike of 8.9% last month.
BMS' growth prospects make its valuation even more appealing. Wall Street analysts project that the company will deliver average annual earnings growth of more than 21% over the next five years.
This level of growth should be attainable. BMS already has multiple blockbusters with strong sales growth, including blood cancer drugs Revlimid and Pomalyst/Imnovid and blood thinner Eliquis. Its pipeline is also loaded with programs seeking new indications for approved drugs, such as cancer immunotherapy Opdivo and several promising new candidates, including cancer cell therapies ide-cel and liso-cel.
3. Viatris
There aren't many profitable stocks on the market that are less expensive than Viatris (NASDAQ: VTRS). Its shares trade at less than five times expected earnings. That's dirt cheap no matter how you look at it.
Technically, Viatris doesn't pay a dividend. So how did it make our list? The drugmaker has only been an official entity since November 2020 after the merger of Mylan with Pfizer's Upjohn unit. Viatris hasn't initiated a dividend program yet, but will soon. And the company expects that its dividend yield will be close to 5%.
What about growth? Don't look for Viatris' revenue to increase very much over the next four years or so. After then, though, the company's pipeline should fuel solid revenue growth. On the other hand, Viatris expects to deliver modest earnings growth right out of the gate as it achieves synergies from the merger of Mylan and Upjohn.
Viatris could be a somewhat boring stock. For investors seeking income, though, boredom is beautiful.
10 stocks we like better than Viatris Inc.
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*Stock Advisor returns as of November 20, 2020
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 (NYSE: ABBV) ranks as one of the least expensive healthcare stocks on the market. AbbVie's dividend currently yields over 4.7%. AbbVie's record stands at 49 years in a row of dividend hikes. | Bristol Myers Squibb Bristol Myers Squibb (NYSE: BMY) is another big drugmaker that's even cheaper than AbbVie. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie AbbVie (NYSE: ABBV) ranks as one of the least expensive healthcare stocks on the market. | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie AbbVie (NYSE: ABBV) ranks as one of the least expensive healthcare stocks on the market. AbbVie's dividend currently yields over 4.7%. | AbbVie AbbVie (NYSE: ABBV) ranks as one of the least expensive healthcare stocks on the market. AbbVie's dividend currently yields over 4.7%. AbbVie's record stands at 49 years in a row of dividend hikes. |
24253.0 | 2021-01-13 00:00:00 UTC | Health Care Sector Update for 01/13/2021: QTRX,MRNS,HSKA,HARP,ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-01-13-2021%3A-qtrxmrnshskaharpabbv-2021-01-13 | nan | nan | Health care stocks were ending mostly higher this afternoon, with the NYSE Health Care Index rising 0.5% while the SPDR Health Care Select Sector ETF also was ahead 0.4%.
The Nasdaq Biotechnology index was climbing 0.1%.
In company news, Quanterix (QTRX) raced nearly14% higher after the digital biomarker analysis company said it expects to report GAAP revenue in a range of $24 million to $26 million for its Q4 ended Dec. 31, up at least 51% over its $15.9 million in revenue during the same quarter last year and exceeding the Capital IQ consensus expecting $21.7 million in Q4 revenue. The company issued the preliminary Q4 results ahead of CEO Kevin Krusovsky presenting at an investor conference hosted by JPMorgan later this afternoon.
Marinus Pharmaceuticals (MRNS) rose 4.2% after it received a positive response from the US Food and Drug Administration supporting the filing of a new drug application for the use of the company's oral ganaxolone drug candidate in children and young adults with CDKL5 deficiency disorder following positive data from phase III testing of the anti-seizure medication. Marinus is expecting to submit a new drug application for ganazolone by the mid-2021.
To the downside, Heska Corp. (HSKA) declined 1.1% after the veterinary diagnostic products company Wednesday announced plans to acquire Lacuna Diagnostics, a provider of point-of-care diagnostics, digital cytology technology, and telemedicine services. Financial terms were not disclosed.
Harpoon Therapeutics (HARP) has turned 3.1% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. Harpoon is expected to report interim data from phase I/II testing of HPN217 later this year and is planning to begin the dose-expansion portion of the trial during the second half of 2021. AbbVie was 2.7% higher this afternoon.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Harpoon Therapeutics (HARP) has turned 3.1% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. AbbVie was 2.7% higher this afternoon. The company issued the preliminary Q4 results ahead of CEO Kevin Krusovsky presenting at an investor conference hosted by JPMorgan later this afternoon. | Harpoon Therapeutics (HARP) has turned 3.1% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. AbbVie was 2.7% higher this afternoon. Health care stocks were ending mostly higher this afternoon, with the NYSE Health Care Index rising 0.5% while the SPDR Health Care Select Sector ETF also was ahead 0.4%. | Harpoon Therapeutics (HARP) has turned 3.1% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. AbbVie was 2.7% higher this afternoon. In company news, Quanterix (QTRX) raced nearly14% higher after the digital biomarker analysis company said it expects to report GAAP revenue in a range of $24 million to $26 million for its Q4 ended Dec. 31, up at least 51% over its $15.9 million in revenue during the same quarter last year and exceeding the Capital IQ consensus expecting $21.7 million in Q4 revenue. | Harpoon Therapeutics (HARP) has turned 3.1% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. AbbVie was 2.7% higher this afternoon. Marinus Pharmaceuticals (MRNS) rose 4.2% after it received a positive response from the US Food and Drug Administration supporting the filing of a new drug application for the use of the company's oral ganaxolone drug candidate in children and young adults with CDKL5 deficiency disorder following positive data from phase III testing of the anti-seizure medication. |
24254.0 | 2021-01-13 00:00:00 UTC | Health Care Sector Update for 01/13/2021: MRNS,HSKA,HARP,ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-01-13-2021%3A-mrnshskaharpabbv-2021-01-13 | nan | nan | Health care stocks were mostly higher this afternoon, with the NYSE Health Care Index rising 0.4% while the SPDR Health Care Select Sector ETF also was ahead 0.5%.
The Nasdaq Biotechnology index was climbing 0.5%.
In company news, Marinus Pharmaceuticals (MRNS) rose 6% after it received a positive response from the US Food and Drug Administration supporting the filing of a new-drug application for the use of the company's oral ganaxolone drug candidate in children and young adults with CDKL5 deficiency disorder following positive data from phase III testing of the anti-seizure medication. Marinus is expecting to submit the new-drug application for ganazolone by the mid-2021.
Heska Corp. (HSKA) declined 1.2% after the veterinary diagnostic products company Wednesday announced plans to acquire Lacuna Diagnostics, a provider of point-of-care diagnostics, digital cytology technology, and telemedicine services. Financial terms were not disclosed.
Harpoon Therapeutics (HARP) has turned 2.5% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. Harpoon is expected to report interim data from phase I/II testing of HPN217 later this year and is planning to begin the dose-expansion portion of the trial during the second half of 2021. AbbVie was 2.9% higher this afternoon.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Harpoon Therapeutics (HARP) has turned 2.5% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. AbbVie was 2.9% higher this afternoon. In company news, Marinus Pharmaceuticals (MRNS) rose 6% after it received a positive response from the US Food and Drug Administration supporting the filing of a new-drug application for the use of the company's oral ganaxolone drug candidate in children and young adults with CDKL5 deficiency disorder following positive data from phase III testing of the anti-seizure medication. | Harpoon Therapeutics (HARP) has turned 2.5% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. AbbVie was 2.9% higher this afternoon. Health care stocks were mostly higher this afternoon, with the NYSE Health Care Index rising 0.4% while the SPDR Health Care Select Sector ETF also was ahead 0.5%. | Harpoon Therapeutics (HARP) has turned 2.5% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. AbbVie was 2.9% higher this afternoon. Health care stocks were mostly higher this afternoon, with the NYSE Health Care Index rising 0.4% while the SPDR Health Care Select Sector ETF also was ahead 0.5%. | AbbVie was 2.9% higher this afternoon. Harpoon Therapeutics (HARP) has turned 2.5% lower this afternoon, giving back a more than 5% gain earlier Wednesday that followed it saying the US Food and Drug Administration has granted orphan drug designation for its HPN217 drug candidate it is co-developing with AbbVie (ABBV) for the treatment of multiple myeloma. The Nasdaq Biotechnology index was climbing 0.5%. |
24255.0 | 2021-01-13 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for January 14, 2021 | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-ex-dividend-date-scheduled-for-january-14-2021-2021-01-13 | nan | nan | AbbVie Inc. (ABBV) will begin trading ex-dividend on January 14, 2021. A cash dividend payment of $1.3 per share is scheduled to be paid on February 16, 2021. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 10.17% increase over prior dividend payment.
The previous trading day's last sale of ABBV was $109.78, representing a 0.58% decrease from the 52 week high of $109.15 and a 75.51% increase over the 52 week low of $62.55.
ABBV is a part of the Health Care sector, which includes companies such as Johnson & Johnson (JNJ) and Novartis AG (NVS). ABBV's current earnings per share, an indicator of a company's profitability, is $4.73. Zacks Investment Research reports ABBV's forecasted earnings growth in 2020 as 17.27%, compared to an industry average of 11.1%.
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:
VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC)
VictoryShares US Large Cap High Div Volatility Wtd ETF (CDL)
VictoryShares US 500 Volatility Wtd ETF (CFA)
VictoryShares USAA MSCI USA Value Momentum ETF (ULVM)
VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV).
The top-performing ETF of this group is CDL with an increase of 18.73% over the last 100 days. CDC has the highest percent weighting of ABBV at 10000%.
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 2020 as 17.27%, compared to an industry average of 11.1%. 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. The following ETF(s) have ABBV as a top-10 holding: VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC) VictoryShares US Large Cap High Div Volatility Wtd ETF (CDL) VictoryShares US 500 Volatility Wtd ETF (CFA) VictoryShares USAA MSCI USA Value Momentum ETF (ULVM) VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV). AbbVie Inc. (ABBV) will begin trading ex-dividend on January 14, 2021. | 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: VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC) VictoryShares US Large Cap High Div Volatility Wtd ETF (CDL) VictoryShares US 500 Volatility Wtd ETF (CFA) VictoryShares USAA MSCI USA Value Momentum ETF (ULVM) VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV). | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. AbbVie Inc. (ABBV) will begin trading ex-dividend on January 14, 2021. The previous trading day's last sale of ABBV was $109.78, representing a 0.58% decrease from the 52 week high of $109.15 and a 75.51% increase over the 52 week low of $62.55. |
24256.0 | 2021-01-13 00:00:00 UTC | 3 Dividend Aristocrats to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-to-buy-right-now-2021-01-13 | nan | nan | There's a lot to like about consistency. That's true for people. And it's true for stocks -- especially dividend stocks. Investors want to be able to count on dividend payments that are like clockwork.
It's even better when that consistency isn't just related to paying dividends but also includes dividend increases. Dividend Aristocrats include only S&P 500 members that have boosted their dividends for at least 25 consecutive years. Some of these great dividend stocks are better than others. Here are three Dividend Aristocrats that you can buy right now.
Image source: Getty Images.
1. Abbott Labs
Abbott Labs (NYSE: ABT) increased its dividend in December 2020 by 25%. This marked the 49th year in a row of dividend hikes for the big healthcare company. Abbott's dividend now yields over 1.6%.
Unlike many Dividend Aristocrats, Abbott's dividend isn't the main reason to like the stock. Abbott boasts an impressive growth story. Its shares soared 26% last year, fueled by strong revenue and earnings growth. The consensus among Wall Street analysts is for the company to deliver average annual earnings growth of over 13% during the next five years.
A large part of Abbott's recent success stemmed from its COVID-19 tests. The company quickly emerged as the leader in the new market in early 2020. Abbott now markets eight COVID-19 tests under the U.S. emergency use authorization (EUA) program. Its COVID testing sales totaled $881 million in the company's latest reported quarter.
Abbott has other growth drivers, though. The most important of these is the company's FreeStyle Libre continuous glucose monitoring (CGM) device. Look for continued strong sales momentum for the CGM, especially with the third-generation version of the device securing a European CE Mark in September.
2. AbbVie
If you like Abbott Labs' dividend, you'll probably love the company's spin-off -- AbbVie (NYSE: ABBV). Because it was part of Abbott until 2013 and has continued to increase its dividend every year, AbbVie's track record of dividend increases mirrors its parent company. But AbbVie's dividend yield of nearly 4.8% is much more appealing.
AbbVie's growth prospects aren't on par with Abbott's. Still, though, analysts expect the big drugmaker to deliver average annual earnings growth of close to 11% over the next five years.
That level would be even higher, except AbbVie faces intense biosimilar competition in the U.S. for its top-selling product Humira beginning in 2023. But AbbVie already has two autoimmune disease drugs ready to take the baton from Humira. The company projects that Rinvoq and Skyrizi will generate combined sales of $15 billion by 2024.
AbbVie's lineup also includes other products with solid sales growth. Blood cancer drugs Imbruvica and Venclexta top the list. In addition, the company's acquisition of Allergan last year allowed it to pick up rising stars such as antipsychotic drug Vraylar and migraine drug Ubrelvy.
3. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) isn't just a Dividend Aristocrat. The healthcare giant's 58 consecutive years of dividend increases qualify it as a Dividend King. J&J's dividend currently yields more than 2.5%.
The company's stellar dividend record has made J&J a longtime favorite among income-seeking investors. These investors also understandably appreciate the stability that J&J offers. It's arguably the most diversified healthcare stock on the market, with multibillion-dollar businesses in the consumer health, medical devices, and pharmaceutical industries.
But what about growth? Johnson & Johnson might not be the most attractive choice on that front. Analysts look for the company to generate average annual earnings growth of only a little over 4% over the next five years. J&J's consumer and medical device segments haven't produced impressive growth recently, while sales for blockbuster autoimmune disease drug Remicade continue to fall due to biosimilar competition.
Don't dismiss J&J's long-term growth prospects, though. The company's single-dose COVID-19 vaccine could be a huge winner. Johnson & Johnson also has the financial strength to make strategic acquisitions to fuel growth. I doubt that J&J's growth lull will linger for too much longer.
10 stocks we like better than Johnson & Johnson
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Keith Speights owns shares of AbbVie. 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. | AbbVie If you like Abbott Labs' dividend, you'll probably love the company's spin-off -- AbbVie (NYSE: ABBV). Because it was part of Abbott until 2013 and has continued to increase its dividend every year, AbbVie's track record of dividend increases mirrors its parent company. But AbbVie's dividend yield of nearly 4.8% is much more appealing. | AbbVie If you like Abbott Labs' dividend, you'll probably love the company's spin-off -- AbbVie (NYSE: ABBV). Because it was part of Abbott until 2013 and has continued to increase its dividend every year, AbbVie's track record of dividend increases mirrors its parent company. But AbbVie's dividend yield of nearly 4.8% is much more appealing. | Because it was part of Abbott until 2013 and has continued to increase its dividend every year, AbbVie's track record of dividend increases mirrors its parent company. AbbVie If you like Abbott Labs' dividend, you'll probably love the company's spin-off -- AbbVie (NYSE: ABBV). But AbbVie's dividend yield of nearly 4.8% is much more appealing. | AbbVie If you like Abbott Labs' dividend, you'll probably love the company's spin-off -- AbbVie (NYSE: ABBV). Because it was part of Abbott until 2013 and has continued to increase its dividend every year, AbbVie's track record of dividend increases mirrors its parent company. But AbbVie's dividend yield of nearly 4.8% is much more appealing. |
24257.0 | 2021-01-12 00:00:00 UTC | Ex-Dividend Reminder: DTE Energy, AbbVie and Patterson Companies | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-dte-energy-abbvie-and-patterson-companies-2021-01-12 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Patterson Companies Inc (Symbol: PDCO) will all trade ex-dividend for their respective upcoming dividends. DTE Energy Co will pay its quarterly dividend of $0.7812 on 2/1/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 2/16/21, and Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/29/21. As a percentage of DTP's recent stock price of $47.00, this dividend works out to approximately 1.66%, so look for shares of DTE Energy Co to trade 1.66% lower — all else being equal — when DTP shares open for trading on 1/14/21. Similarly, investors should look for ABBV to open 1.18% lower in price and for PDCO to open 0.81% lower, all else being equal.
Below are dividend history charts for DTP, ABBV, and PDCO, showing historical dividends prior to the most recent ones declared.
DTE Energy Co (Symbol: DTP):
AbbVie Inc (Symbol: ABBV):
Patterson Companies Inc (Symbol: PDCO):
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 6.65% for DTE Energy Co, 4.73% for AbbVie Inc, and 3.24% for Patterson Companies Inc.
In Tuesday trading, DTE Energy Co shares are currently off about 0.3%, AbbVie Inc shares are up about 0.8%, and Patterson Companies Inc shares are up about 0.1% 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 6.65% for DTE Energy Co, 4.73% for AbbVie Inc, and 3.24% for Patterson Companies Inc. Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Patterson Companies Inc (Symbol: PDCO) will all trade ex-dividend for their respective upcoming dividends. DTE Energy Co will pay its quarterly dividend of $0.7812 on 2/1/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 2/16/21, and Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/29/21. | Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Patterson Companies Inc (Symbol: PDCO) will all trade ex-dividend for their respective upcoming dividends. DTE Energy Co will pay its quarterly dividend of $0.7812 on 2/1/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 2/16/21, and Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/29/21. DTE Energy Co (Symbol: DTP): AbbVie Inc (Symbol: ABBV): Patterson Companies Inc (Symbol: PDCO): 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 1/14/21, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Patterson Companies Inc (Symbol: PDCO) will all trade ex-dividend for their respective upcoming dividends. DTE Energy Co will pay its quarterly dividend of $0.7812 on 2/1/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 2/16/21, and Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/29/21. DTE Energy Co (Symbol: DTP): AbbVie Inc (Symbol: ABBV): Patterson Companies Inc (Symbol: PDCO): 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 1/14/21, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Patterson Companies Inc (Symbol: PDCO) will all trade ex-dividend for their respective upcoming dividends. If they do continue, the current estimated yields on annualized basis would be 6.65% for DTE Energy Co, 4.73% for AbbVie Inc, and 3.24% for Patterson Companies Inc. DTE Energy Co will pay its quarterly dividend of $0.7812 on 2/1/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 2/16/21, and Patterson Companies Inc will pay its quarterly dividend of $0.26 on 1/29/21. |
24258.0 | 2021-01-12 00:00:00 UTC | How to Play Stock Spinoffs for 176%+ Payout Growth, 200%+ Upside | ABBV | https://www.nasdaq.com/articles/how-to-play-stock-spinoffs-for-176-payout-growth-200-upside-2021-01-12 | nan | nan | Let's start 2021 with a proven strategy for grabbing two growing income streams in one buy. Plus, we'll nicely set ourselves up to bank double-digit price gains to boot.
The strategy? Simple: we're buying dividend-paying stocks poised to spin off one of their businesses into a brand-new dividend-paying stock. When that happens, we wind up with two or more quarterly dividends where there used to be just one.
Two other things you should know: our "new" dividend(s) will likely grow faster than our original payout! And we won't have to do anything to get this extra cash.
I'll give you a telltale sign to look for as we move to front-run the next "dividend split" in a moment. But first, let's look at how spinoffs are, hands-down, the closest thing you'll ever find to a win-win in investing.
How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts
Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us.
Prior to their breakup eight years ago, the dividend of the old parent company, Abbott, was already growing at a healthy clip, more than doubling in the preceding 10 years and reaching $0.51 a share right before the spinoff took effect:
Abbott's Dividend Soared Pre-Split ...
On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly.
Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott.
It got better, too, because the spinoff lit a fire under the payout, with both firms' dividends nearly tripling in eight years, growing 176%, on average, much faster than the old Abbott's payout grew in the preceding decade.
... And Both Firms' Payouts Accelerated After ...
And if Abbott investors held on to their AbbVie shares, their holdings skyrocketed as other income-seekers noticed these rapid payout hikes and bought in, driving up the prices of both companies in lockstep with their rising payouts:
... Driving Fast Price Gains, Too!
Spinoff + Growing Dividend = Double Win
I think you can see where I'm going here: buying stocks that are about to split and have fast-rising payouts is the key to unlocking some serious profits.
The best news is that, to tap the biggest gains, you don't have to be clairvoyant: even if you'd bought Abbott and/or AbbVie during the first few months after their separation, you'd have still bagged most of the gains both stocks went on to deliver.
That's because new spinoffs tend to stagnate for the first while as investors who were handed them get a feel for the new company--and ultimately decide whether they want to keep it around. There's also a lack of coverage of spinoffs from Wall Street, which would much rather fawn over a shiny new IPO than a "boring" spinoff.
But spinoffs have advantages IPOs lack: for one, many have already proven they're profitable businesses. And their parents will also want to help ensure they get off on the right foot, because they won't want to be known for a spinoff that fell flat.
IPOs, on the other hand, are rarely profitable, have no access to the management expertise of a parent company and, let's be honest, never pay dividends! I'm looking at you, Airbnb (ABNB) and DoorDash (DASH).
And make no mistake, growing dividends are critical to our strategy--as AbbVie and Abbott showed, you can set yourself up for outperformance if you grab shares of upcoming or recent spinoffs with a history of hiking their payouts.
The One Telltale Sign of an Upcoming Spinoff
Pretty well all spinoffs have one thing in common: they come from companies that have one or more divisions whose products don't overlap with one another. You can see this with AbbVie, whose pharmaceuticals are separate and distinct from Abbott's medical devices.
You can see it again with one of the biggest spinoffs in stock-market history, the split of online-payment service PayPal (PAYPL) from auction site eBay (EBAY).
Companies that conduct spinoffs also tend to grow by buying other firms, as was the case with information-technology manager Synnex (SNX), which we added to the portfolio of my Hidden Yields dividend-growth service in October 2019.
We did so because this growth stock was trading "too cheaply" thanks to its recent acquisition of customer-service consultant Convergys. Higher debt levels had spooked Mr. and Ms. Market, as the couple fretted whether SNX could pay its tab.
But we anticipated that SNX, which has made 24 acquisitions in its 40-year history, would have no problem paying down the credit for its latest shopping spree. Since then, the firm steadily reduced its debt and its stock steadily rose. We Hidden Yielders have enjoyed 52% total returns since we added SNX to our portfolio:
Spinoff Play Shines for 52% Total Returns
That's not all: just over a month ago, Synnex completed the spinoff of Concentrix Corporation (CNXC), which provides customer-service solutions and works with many of the top tech companies in the US. And guess what? We're already up 27% on our new CNXC position.
Spinoff "Baby" Surges Post-Split
That's a great start, and I'll have more to say about both stocks in Hidden Yields once we get a clearer sense of how big--and how fast-growing--Concentrix's dividend will be, as well as Synnex's payout growth post-pandemic.
Meantime, one spinoff to keep an eye on is the one in progress at International Business Machines (IBM), which will conclude before the end of 2021. The new firm will contain IBM's IT infrastructure business, letting the "old" IBM focus on artificial intelligence and cloud computing. The move will better position IBM to take on cloud leaders Microsoft (MSFT) and Amazon.com (AMZN).
No word on the new company's dividend, but management says two firms' combined payouts won't be less than the $1.63 quarterly (for a 5% annualized yield) IBM pays today.
What I See Ahead for Synnex and Concentrix--and 7 BUYS for 130%+ Upside
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Pick No. 1 is a great example. It boasts a portfolio of cell towers that are cranking out higher and higher rents as each of us gobbles up more and more mobile data (especially during the pandemic).
And management is turning around and handing that surging cash stream to its investors as a dividend that rises every quarter and has jumped an amazing 137% in the last 5 years. That, in turn, has driven its share price up almost point for point as more investors have come onboard:
137% Dividend Hike Ignites Pick No. 1's Price
This smartly run company has plenty of cash left for dividend hikes, so we can expect its payout to keep rising higher, taking its share price along for the ride!
The other 6 stocks in this report all have dividends that are surging just like this, and I expect their share prices to ride their payouts up over the next 5 years, too!
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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. | And make no mistake, growing dividends are critical to our strategy--as AbbVie and Abbott showed, you can set yourself up for outperformance if you grab shares of upcoming or recent spinoffs with a history of hiking their payouts. How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us. On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly. | And if Abbott investors held on to their AbbVie shares, their holdings skyrocketed as other income-seekers noticed these rapid payout hikes and bought in, driving up the prices of both companies in lockstep with their rising payouts: ... Driving Fast Price Gains, Too! How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us. On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly. | How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us. Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott. On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly. | On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly. How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us. Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott. |
24259.0 | 2021-01-11 00:00:00 UTC | Noteworthy Monday Option Activity: ABBV, DVA, LUV | ABBV | https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-abbv-dva-luv-2021-01-11 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,338 contracts have traded so far, representing approximately 3.4 million underlying shares. That amounts to about 49.6% of ABBV's average daily trading volume over the past month of 6.9 million shares. Particularly high volume was seen for the $120 strike call option expiring February 19, 2021, with 3,729 contracts trading so far today, representing approximately 372,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange:
DaVita Inc (Symbol: DVA) saw options trading volume of 3,208 contracts, representing approximately 320,800 underlying shares or approximately 46.1% of DVA's average daily trading volume over the past month, of 696,430 shares. Particularly high volume was seen for the $130 strike call option expiring April 16, 2021, with 1,520 contracts trading so far today, representing approximately 152,000 underlying shares of DVA. Below is a chart showing DVA's trailing twelve month trading history, with the $130 strike highlighted in orange:
And Southwest Airlines Co (Symbol: LUV) saw options trading volume of 28,689 contracts, representing approximately 2.9 million underlying shares or approximately 45.5% of LUV's average daily trading volume over the past month, of 6.3 million shares. Especially high volume was seen for the $45 strike call option expiring March 19, 2021, with 3,791 contracts trading so far today, representing approximately 379,100 underlying shares of LUV. Below is a chart showing LUV's trailing twelve month trading history, with the $45 strike highlighted in orange:
For the various different available expirations for ABBV options, DVA options, or LUV 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 $120 strike call option expiring February 19, 2021, with 3,729 contracts trading so far today, representing approximately 372,900 underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,338 contracts have traded so far, representing approximately 3.4 million underlying shares. That amounts to about 49.6% of ABBV's average daily trading volume over the past month of 6.9 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: DaVita Inc (Symbol: DVA) saw options trading volume of 3,208 contracts, representing approximately 320,800 underlying shares or approximately 46.1% of DVA's average daily trading volume over the past month, of 696,430 shares. Below is a chart showing LUV's trailing twelve month trading history, with the $45 strike highlighted in orange: For the various different available expirations for ABBV options, DVA options, or LUV options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,338 contracts have traded so far, representing approximately 3.4 million underlying shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,338 contracts have traded so far, representing approximately 3.4 million underlying shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: DaVita Inc (Symbol: DVA) saw options trading volume of 3,208 contracts, representing approximately 320,800 underlying shares or approximately 46.1% of DVA's average daily trading volume over the past month, of 696,430 shares. That amounts to about 49.6% of ABBV's average daily trading volume over the past month of 6.9 million shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 34,338 contracts have traded so far, representing approximately 3.4 million underlying shares. That amounts to about 49.6% of ABBV's average daily trading volume over the past month of 6.9 million shares. Particularly high volume was seen for the $120 strike call option expiring February 19, 2021, with 3,729 contracts trading so far today, representing approximately 372,900 underlying shares of ABBV. |
24260.0 | 2021-01-11 00:00:00 UTC | 7 Hot Stocks That Will Keep You Energized With 3%-Plus Yields | ABBV | https://www.nasdaq.com/articles/7-hot-stocks-that-will-keep-you-energized-with-3-plus-yields-2021-01-11 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In a market like this, most people aren’t hunting for income stocks. Instead, they’re looking for hot stocks with turbocharged growth potential.
Now, that’s fine for part of your portfolio. But a well-balanced portfolio also needs stocks that are able to win the slow and steady long-term race. Those picks make it a point to reward investors every quarter with some cash.
Plus, when it comes to a major bull market (like the one we’re in), it’s important to remember that the market doesn’t always perform this well. There are times when you just want names that can work in all weather. Usually those are the market’s actual hot stocks.
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So, these seven names with 3%-plus yields are the kind of quality picks you want anchoring your portfolio when the broader rally slows. That’s when they will really shine, delivering solid growth quarter after quarter.
Abbvie (NYSE:ABBV)
Broadcom (NASDAQ:AVGO)
Coresite Realty (NYSE:COR)
Flowers Foods (NYSE:FLO)
General Mills (NYSE:GIS)
NextEra Energy Partners (NYSE:NEP)
J.M. Smucker (NYSE:SJM)
Abbvie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
Humira is one of the world’s most successful drugs and Abbvie makes it. But that isn’t what makes this compelling pick one of the hot stocks. Instead, it’s all the other approved medications that ABBV has on the market and in its huge pipeline.
Usually, drug companies can live off of a blockbuster drug for a while, but eventually pricing gets lower and competitors enter the market, eating into margins. That’s why one great drug doesn’t make a great drug company.
On top of that, the average cost of developing a drug candidate is around $2.6 billion when all is said and done. So, as a drug maker, you want to make sure you’re developing a good candidate and that you have deep enough pockets to keep several clinical trials going at once.
Abbvie is able to accomplish all of this. And, its track record is very good.
Finally, ABBV stock wasn’t in on the vaccine frenzy, so it’s still a value buy. Plus, with all the cash flow from its array of products, it delivers a reliable 4.85% dividend. The stock is up over 20% in the past year to boot.
Broadcom (AVGO)
Source: Shutterstock
If you’re searching for a tech firm that isn’t wildly overvalued at this point, AVGO stock may be just what you’re looking for.
Right now, this name is trading at a trailing price-earnings of 70.4, so it’s not exactly cheap here. But the fact is, AVGO has a lot going for it in many different sectors. That’s because it’s a chipmaker that also sells hardware and software for mainframes, networking, optical processing, wired connectivity and wireless sectors.
What’s more, the company has been around in one form or another since 1961. It has built a significant reputation in the industry and continues to be a strong player, even with the explosion of tech in recent decades. That’s a testament to Broadcom’s leadership and ability to stay on the cutting edge in a highly competitive market.
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Currently, AVGO stock is up about 49% in the past one year and growth should continue to be brisk given the strategic sectors it dominates. This pick of the hot stocks also has an attractive 3.23% dividend, even after all that growth.
Coresite Realty (COR)
Source: ©iStock.com/TimArbaev
Next on my list of hot stocks is Coresite Realty. If you’re looking for a real estate investment trust (REIT) to add to your portfolio, look no further than COR stock.
Coresite isn’t the biggest data-center REIT out there, but it is U.S.-focused and well-positioned for growth in one of the most important sectors today. Now that “smart” devices have come to even include the lowly doorbell, managing all that data is crucial to businesses.
COR supplies the data centers that make that happen, whether for mobile connectivity, server farms or cloud providers. Plus, it offers colocation services where two or more companies can operate in one site and connect to one another. Coresite simply builds out the locations and collects the rent.
Right now, the stock is only up about 4% in the past year, so it didn’t get sucked into the tech stock buying frenzy. However, that’s a good thing. The company still has plenty of long-term value and its 4.16% dividend is making you a lot more than a savings account.
Flowers Foods (FLO)
Source: Shutterstock.com
You probably haven’t heard of Flowers Foods, but I’m sure you’ve heard of some of its bakery brands. These include Wonder Bread, Nature’s Own, Dave’s Killer Bread and Tastykake, among others. The company produces these names from over 40 different bakeries across the country.
And, whether it’s a pandemic or simply a seasonal storm, bakery items are essential products for pretty much every home. That’s why the bread company even makes its popular Mi Casa tortilla brand.
FLO is one of largest bakery companies in the United States. However, it keeps a low profile and lets its products do all the talking. With over 100 years in the business, Flowers has a solid portfolio of brands and manages its business well.
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Currently, FLO stock is up a little under 2% in the past year, having been overlooked by many investors. But, this pick of the 0ven-hot stocks offers a rock-solid 3.62% dividend.
General Mills (GIS)
GIS) sign on a General Mills office in Ontario, Canada." width="300" height="169">
Source: JHVEPhoto / Shutterstock.com
If you’re looking for a big, blue-chip consumer food company that has a 155-year history, look no further than General Mills. While consumer staples companies have been hot stocks during the pandemic, the food side of things hasn’t moved much.
But that’s to our advantage. GIS maintains an impressive portfolio of roughly 90 brands that even you probably grab at the grocery store, including Yoplait, Betty Crocker, Pillsbury and Cheerios.
The trick with managing all of these brands is staying on top of the consumer, seeing what they’re buying and what they’re leaving behind. General Mills has done an extremely good job of this, making it a great investment.
In short, this name is a global player that is well-positioned and well-priced right now. GIS stock is up about 8% in the past year and delivers a 3.62% dividend. Yet, it trades at a trailing price-earnings of roughly 14.5. That makes it a steal right now.
NextEra Energy Partners (NEP)
Source: Diyana Dimitrova / Shutterstock.com
NextEra Energy Partners is a subsidiary of the renewable energy and utility powerhouse NextEra Energy (NYSE:NEE), one of the more recognizable hot stocks on the market right now.
NEE is one of the world’s largest producers of renewable energy and it sells to NEP as well as its south Florida utility subsidiary, Florida Power & Light (FPL). Additionally, there are various pieces to the larger company — for instance, NEP manages much of the electricity generated from NEE’s wind farms.
Fundamentally, NEP is a specialized company that is set up as a limited partnership. That means investors get a share of the net profits distributed to them as dividends. And, of course, the company is much smaller than its parent due to its specialized role. However, it reaps the rewards of that parent all the same.
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NEP stock is up about 50% in the past year and still offers a dividend yield of 2.98%. That’s just on the other side of 3% and is due to the stock’s significant performance. So, NEP is a long-haul stock that will eventually move on to pay an above average dividend.
J.M. Smucker (SJM)
Source: JHVEPhoto / Shutterstock.com
Closing my list of hot stocks is another consumer food company with more than a century of business under its belt — 124 years to be exact.
While many of its contemporaries have grown into multinational empires with scores of brands, J.M. Smucker has taken a different approach. Unlike competitors, SJM focuses on the U.S. market and tries to own brands that are the pinnacle of their categories.
The company’s more than 40 product names include Smucker’s, Jif, Folgers, Milk Bone and Carnation, to name a few. This kind of focus means it can keep its iconic brands fresh and also cherry pick the best up-and-coming names. Admittedly, the strategy is a little conservative, but it has worked a long time.
Right now, SJM stock is up over 11% for the past year. On top of that, it shares a very friendly and reliable 3.1% dividend.
On the date of publication, Louis Navellier had positions in NEE, ABBV and AVGO. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system —with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
The post 7 Hot Stocks That Will Keep You Energized With 3%-Plus Yields 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) Broadcom (NASDAQ:AVGO) Coresite Realty (NYSE:COR) Flowers Foods (NYSE:FLO) General Mills (NYSE:GIS) NextEra Energy Partners (NYSE:NEP) J.M. Smucker (NYSE:SJM) Abbvie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Humira is one of the world’s most successful drugs and Abbvie makes it. Instead, it’s all the other approved medications that ABBV has on the market and in its huge pipeline. | Abbvie (NYSE:ABBV) Broadcom (NASDAQ:AVGO) Coresite Realty (NYSE:COR) Flowers Foods (NYSE:FLO) General Mills (NYSE:GIS) NextEra Energy Partners (NYSE:NEP) J.M. Smucker (NYSE:SJM) Abbvie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Humira is one of the world’s most successful drugs and Abbvie makes it. Instead, it’s all the other approved medications that ABBV has on the market and in its huge pipeline. | Abbvie (NYSE:ABBV) Broadcom (NASDAQ:AVGO) Coresite Realty (NYSE:COR) Flowers Foods (NYSE:FLO) General Mills (NYSE:GIS) NextEra Energy Partners (NYSE:NEP) J.M. Smucker (NYSE:SJM) Abbvie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Humira is one of the world’s most successful drugs and Abbvie makes it. Instead, it’s all the other approved medications that ABBV has on the market and in its huge pipeline. | Abbvie (NYSE:ABBV) Broadcom (NASDAQ:AVGO) Coresite Realty (NYSE:COR) Flowers Foods (NYSE:FLO) General Mills (NYSE:GIS) NextEra Energy Partners (NYSE:NEP) J.M. Smucker (NYSE:SJM) Abbvie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Humira is one of the world’s most successful drugs and Abbvie makes it. Instead, it’s all the other approved medications that ABBV has on the market and in its huge pipeline. |
24261.0 | 2021-01-11 00:00:00 UTC | The Top 7 Pharmaceutical Stocks for the Next 10 Years | ABBV | https://www.nasdaq.com/articles/the-top-7-pharmaceutical-stocks-for-the-next-10-years-2021-01-11 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Each industry within the stock market has its own unique set of factors that determine the success of stocks in that niche. Pharmaceutical stocks are no exception. Investors looking to take positions in pharmaceutical shares need to consider the unique factors that drive the industry.
Analysts who judge the merit of these companies have to assess many considerations within a given pharmaceutical company. They have to consider the pipeline of drugs being developed, how successful that company has been in bringing drugs to market, patent rights and duration and the regulatory environment.
Then investors should consider more traditional factors such as income statements, balance sheets, cash flows and more. Although analysis of any industry is complex, it could be argued that pharmaceuticals are even more so.
Usually investors are looking for a longer timeline when investing in pharmaceuticals given the amount of time it requires to be successful in the industry. It wouldn’t be unusual to invest in a company in the industry and hold it for a decade.
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In fact, that’s what this article is about — the top pharmaceutical stocks for the next 10 years. Let’s take a look:
Pfizer (NYSE:PFE)
Bristol-Myers Squibb (NYSE:BMY)
AbbVie (NYSE:ABBV)
Sanofi (NYSE:SNY)
Takeda (NYSE:TAK)
Novartis (NYSE:NVS)
Johnson & Johnson (NYSE:JNJ)
Pharmaceutical Stocks: Pfizer (PFE)
PFE) logo on Pfizer building. Pfizer is an American pharmaceutical corporation." width="300" height="169">Source: Manuel Esteban / Shutterstock.com
Pfizer is, of course, top of mind at present given its role in fighting Covid-19. The company has been central to the vaccine conversation since early on in the pandemic. Of course Pfizer now has been issued Emergency Use Authorization (EUA) by the Food and Drug Administration (FDA) along with partner BioNTech (NASDAQ:BNTX).
But according to industry experts, Pfizer might not expect a massive windfall from the vaccine. Mizuho analyst Vamil Divan explained:
“For Pfizer right now, we don’t think it’s going to be zero opportunity for them over time, but we also don’t think it’s going to be a $2 [billion] to $3 billion opportunity. And for a company Pfizer’s size, that’s what it takes to move the needle — it’s not a game-changing opportunity for Pfizer long-term.”
So while Pfizer/BioNTech’s vaccine may bring in reasonably strong profits in time, it’s not going to set Pfizer up for the coming decade.
To understand what will drive the future, investors need to consider Pfizer’s pipeline of drugs. The company operates across six therapeutic areas: anti-infectives, internal medicine, oncology, rare diseases, vaccines and inflammation and immunology. The pipeline includes 92 projects.
The company’s acquisitions of Array Biopharma and Therachon Holding AG, along with its joint venture with GlaxoSmithKline (NYSE:GSK) and pipeline, mean Pfizer should be strong for a long time.
Bristol-Myers Squibb (BMY)
BMY) logo at the top of a cellphone." width="300" height="169">Source: Piotr Swat / Shutterstock.com
I recently argued in another article that Bristol-Myers Squibb is a strong pharmaceutical company to invest in due to its valuation and stable of revenue-generating drugs. The same thesis that I have for buying BMY stock now applies to buying it and holding it for the coming 10 years: Its strong revenues and patents will allow it to develop for a long time.
In the first three quarters of 2020, Bristol-Myers Squibb had seven drugs that each contributed at least $1 billion of revenue to the company. Three of those drugs sold more than $5 billion each.
The company is also quite cheap, based on its forward price-to-earnings (P/E) ratio of 8.5. Further, the company has strong patent protection for several of those revenue giants. Revlimid, the company’s best-selling drug, went off patent protection in 2019. Yet it remained the best seller through the first three quarters of 2020.
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Eliquis is under patent protection through 2026 and 2031. Bristol-Myer Squibb’s Opdivo, its other $5-billion-seller this year, is protected from generic competition through 2026. BMY’s strong competitive moat makes it a great cheap stock to buy.
AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">Source: Piotr Swat / Shutterstock.com
AbbVie is relatively cheap right now over concerns about upcoming patent expiry on its best-selling drug Humira. Humira is expected to bring in $20 billion of sales out of a predicted $45.6 billion in 2020. Humira has experienced a halving in sales in certain European markets after going off patent protection. U.S. sales will take a hit when biosimilars reach the market in 2023.
Investors are clearly wondering if that will spell impending doom for ABBV stock, given how important Humira currently is to the company. AbbVie’s CEO believes that the company’s pipeline of drugs will more than shore up the balance sheet:
“Sales of the two new drugs [Skyrizi and Rinvoq] will exceed more than $15 billion by 2025, Gonzalez predicted. So if U.S. sales of Humira suffer a 45% hit from the arrival of biosimilars in 2023, Skyrizi and Rinvoq will take up the slack by at least 2025.”
If that turns out to be true, AbbVie should be able to fund development of its next blockbuster drugs beyond Skyrizi and Rinvoq. The company exhibits a strong record of capital allocation based on WACC (weighted average cost of capital) vs. ROIC (return on invested capital) of 5.17% vs. 13.51%. This indicates that the company produces an 8% premium and creates value with borrowed capital.
Sanofi (SNY)
SNY) logo on the side of company branch in Germany" width="300" height="169">Source: nitpicker / Shutterstock.com
Next up on this list of pharmaceutical stocks is Sanofi. As of Sept. 30, the company had 34 treatments in Phase III and registration and 50 therapeutically indicated treatments in Phases I and II. Wall Street is keen on SNY stock, having rated it as overweight.
Current valuation makes SNY shares attractive now. But its future strategy makes it attractive for the next 10 years. Sanofi shares carry a P/E ratio in the 90th percentile among peers. One way to understand this is to say that out of 10 pharmaceutical peer stocks, a dollar of Sanofi’s earnings will be cheaper than nine of them.
So Sanofi is relatively cheap now, but its strategy for the future is why investors should take note. The company anticipates its anti-inflammatory drug Dupixent will achieve 10 billion EUR in peak sales.
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Vaccines should bring in revenues as another strategic asset class for the firm. It expects high compound annual growth rates (CAGR) within vaccines through 2025. Finally, the company has identified six potential blockbuster drugs that it has scheduled for launch in succession.
Takeda (TAK)
Source: luchschenF / Shutterstock.com
It should be clear to investors that pipelines are bets on the future within the pharmaceutical industry. A company’s pipeline predicts its future. In drug development there is no alternative given the time required and the hurdles to overcome.
Takeda predicts that its pipeline will lead to $47 billion in revenues by 2030. For investors looking for a long-term play in pharma, there is little else to do but hope that such revenues come to be. Outside of those anticipated revenues there is another reason to be interested in TAK stock in the long run: It operates in Japan and serves an aging population.
The median age in Japan is 48.4 years with Americans exactly 10 years younger on average. Takeda’s solutions may find a lot of utility in the U.S. as it faces a demographic shift.
Although Takeda saw revenues decrease 4.2% between 2019 and 2020, it managed to increase profits by 15.7% in the same period. That speaks to the operational efficiency of the company.
Novartis (NVS)
Source: Denis Linine / Shutterstock.com
Novartis’s pipeline is deep and should give potential investors an idea of the timeline required for development of a drug for commercialization.
The company recently won a battle related to patent protection for its MS drug Gilenya. The drug generated $738 million in revenue in Q2, and the judgment protects it from generic competition through 2027.
Another reason to consider investing in pharmaceutical stocks is that they tend to pay dividends. Because Novartis is a Swiss company, it only pays an annual dividend. Depending on the jurisdiction this can be advantageous for tax purposes.
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Novartis is harnessing the advances in analytics and has developed its own platform called Nerve Live. The company’s head of Predictive Analytics in Drug Development, Dr. Luca Finelli explains:
“We are used to generating and working with huge amounts of data, analyzing it, and using this knowledge to research and develop new therapies. If we are able to bring our data into one place and tap into the latest computing technologies, we can generate new insights that in the past were difficult to obtain because our data was locked in silos.”
Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
My final pick for pharmaceutical stocks to buy is Johnson & Johnson. The company remains one of the leading names in healthcare and operates multiple businesses including Janssen, its pharmaceutical arm. Therefore an investment in Janssen is done through JNJ stock. For some investors this will make a lot of sense as a diversified strategy because the company is backed by Johnson & Johnson.
It also makes Janssen less risky than other pharmaceutical companies as development can be approached with a different strategy. The company’s pipeline includes a broad spectrum across six therapeutic areas.
JNJ stock is up 11.09% in the past year and remains a conservative play as a dividend aristocrat having no dividend reductions since 1982. Janssen’s sales have been steady over the past year. Total global pharmaceutical sales were up in Q3 by 5% year-over-year and rose by 5.2% through the first 3 quarters of 2020.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.”
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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. | Let’s take a look: Pfizer (NYSE:PFE) Bristol-Myers Squibb (NYSE:BMY) AbbVie (NYSE:ABBV) Sanofi (NYSE:SNY) Takeda (NYSE:TAK) Novartis (NYSE:NVS) Johnson & Johnson (NYSE:JNJ) Pharmaceutical Stocks: Pfizer (PFE) PFE) logo on Pfizer building. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169">Source: Piotr Swat / Shutterstock.com AbbVie is relatively cheap right now over concerns about upcoming patent expiry on its best-selling drug Humira. Investors are clearly wondering if that will spell impending doom for ABBV stock, given how important Humira currently is to the company. | Let’s take a look: Pfizer (NYSE:PFE) Bristol-Myers Squibb (NYSE:BMY) AbbVie (NYSE:ABBV) Sanofi (NYSE:SNY) Takeda (NYSE:TAK) Novartis (NYSE:NVS) Johnson & Johnson (NYSE:JNJ) Pharmaceutical Stocks: Pfizer (PFE) PFE) logo on Pfizer building. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169">Source: Piotr Swat / Shutterstock.com AbbVie is relatively cheap right now over concerns about upcoming patent expiry on its best-selling drug Humira. Investors are clearly wondering if that will spell impending doom for ABBV stock, given how important Humira currently is to the company. | Let’s take a look: Pfizer (NYSE:PFE) Bristol-Myers Squibb (NYSE:BMY) AbbVie (NYSE:ABBV) Sanofi (NYSE:SNY) Takeda (NYSE:TAK) Novartis (NYSE:NVS) Johnson & Johnson (NYSE:JNJ) Pharmaceutical Stocks: Pfizer (PFE) PFE) logo on Pfizer building. AbbVie’s CEO believes that the company’s pipeline of drugs will more than shore up the balance sheet: “Sales of the two new drugs [Skyrizi and Rinvoq] will exceed more than $15 billion by 2025, Gonzalez predicted. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169">Source: Piotr Swat / Shutterstock.com AbbVie is relatively cheap right now over concerns about upcoming patent expiry on its best-selling drug Humira. | Let’s take a look: Pfizer (NYSE:PFE) Bristol-Myers Squibb (NYSE:BMY) AbbVie (NYSE:ABBV) Sanofi (NYSE:SNY) Takeda (NYSE:TAK) Novartis (NYSE:NVS) Johnson & Johnson (NYSE:JNJ) Pharmaceutical Stocks: Pfizer (PFE) PFE) logo on Pfizer building. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169">Source: Piotr Swat / Shutterstock.com AbbVie is relatively cheap right now over concerns about upcoming patent expiry on its best-selling drug Humira. Investors are clearly wondering if that will spell impending doom for ABBV stock, given how important Humira currently is to the company. |
24262.0 | 2021-01-10 00:00:00 UTC | 3 Reasons to Invest in Dividend-Paying Stocks for Retirement | ABBV | https://www.nasdaq.com/articles/3-reasons-to-invest-in-dividend-paying-stocks-for-retirement-2021-01-10 | nan | nan | Today's workers face plenty of challenges when preparing for retirement. Costs are rising, and life expectancy is increasing, meaning you'll need to save more than ever. At the same time, though, many workers don't have access to pensions, and Social Security benefits are at risk of cuts in the relatively near future.
This means you'll need a hefty retirement fund heading into your senior years -- and dividend-paying stocks can help get you there.
Image source: Getty Images.
1. They can boost your retirement income
Dividend stocks are unique in that they actually pay you to own them. When companies have leftover earnings at the end of the year, they may choose to pay back a portion of that money to shareholders in the form of a dividend.
When you invest in these companies, you can choose to either reinvest your dividend to buy more stock or cash out your payments. It's often wise to reinvest your dividend during the years leading up to retirement, because you'll slowly be buying more shares, and you'll receive more dividends the more shares you own. Then, once you retire, you can start cashing out your payments to boost your income.
2. They can help your savings keep up with inflation
One of the more challenging aspects of preparing for retirement is dealing with inflation. Inflation can significantly reduce your buying power over time, which can pose challenges later in retirement.
If you're investing in dividend stocks, though, those dividend payments can help offset the effects of inflation. Many dividend stocks increase their dividends year after year. The most consistent dividend payers are part of a group of companies called the Dividend Aristocrats. Companies that have earned this notable title have increased their dividends every year for at least 25 consecutive years.
By investing in dividend stocks that reliably increase their dividend payments each year, you can limit the effect inflation has on your savings. That, in turn, can help your money last longer in retirement.
3. They have higher rates of return than standard savings accounts
Around 53% of Americans have at least a portion of their retirement savings stashed in savings accounts, according to a survey from the Certified Financial Planner Board and Morning Consult. While it's usually best to invest your retirement money in the stock market to see as much growth as possible, that can be difficult for many workers to stomach -- especially as they get closer to retirement age.
Investing in dividend stocks is a good compromise between putting your money in a savings account and investing in the stock market. While they're still stocks, which will always carry a certain amount of risk, many dividend stocks pay you more in dividends than you'd receive in interest with a savings account.
For example, most standard bank savings accounts have interest rates of a fraction of a percent per year. Even high-yield savings accounts boast interest rates of just 1% to 2% per year. By comparison, stocks like ExxonMobil and Abbvie -- both Dividend Aristocrats -- have dividend yields of more than 4% as of this writing.
Planning for retirement can be tough, but it helps to have an investing strategy in place. By including a well-diversified array of solid dividend stocks in your portfolio, you can give your income a boost in retirement.
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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. | By comparison, stocks like ExxonMobil and Abbvie -- both Dividend Aristocrats -- have dividend yields of more than 4% as of this writing. At the same time, though, many workers don't have access to pensions, and Social Security benefits are at risk of cuts in the relatively near future. When companies have leftover earnings at the end of the year, they may choose to pay back a portion of that money to shareholders in the form of a dividend. | By comparison, stocks like ExxonMobil and Abbvie -- both Dividend Aristocrats -- have dividend yields of more than 4% as of this writing. They can boost your retirement income Dividend stocks are unique in that they actually pay you to own them. Many dividend stocks increase their dividends year after year. | By comparison, stocks like ExxonMobil and Abbvie -- both Dividend Aristocrats -- have dividend yields of more than 4% as of this writing. By investing in dividend stocks that reliably increase their dividend payments each year, you can limit the effect inflation has on your savings. Investing in dividend stocks is a good compromise between putting your money in a savings account and investing in the stock market. | By comparison, stocks like ExxonMobil and Abbvie -- both Dividend Aristocrats -- have dividend yields of more than 4% as of this writing. Many dividend stocks increase their dividends year after year. Investing in dividend stocks is a good compromise between putting your money in a savings account and investing in the stock market. |
24263.0 | 2021-01-09 00:00:00 UTC | How Safe Is AbbVie's Dividend? | ABBV | https://www.nasdaq.com/articles/how-safe-is-abbvies-dividend-2021-01-09 | nan | nan | It's human nature to worry. There's a reason why old adages such as "all good things must come to an end" remain widely used -- we tend to expect something to go wrong.
For income-seeking investors, everything has gone right with AbbVie (NYSE: ABBV) for a long time. The big drugmaker's dividends have steadily increased. But could the good times come to an end in the near future? Just how safe is AbbVie's dividend?
Image source: Getty Images.
Potential reasons for concern
There are usually at least some reasons for concern about any company's dividend. No dividend is completely safe. For AbbVie, the most glaring potential problem is Humira.
To call Humira AbbVie's crown jewel would be an understatement. It's been the world's best-selling drug for several years. During the first three quarters of 2020, Humira generated sales of $14.7 billion. That represented 46% of AbbVie's total revenue.
However, Humira's days at the top are definitely numbered. Beginning in 2023, the blockbuster autoimmune-disease drug will face biosimilar competition in the U.S. It's a foregone conclusion that Humira sales will plunge. After biosimilars to the drug entered the European market in late 2018, international sales for Humira sank more than 30% in the following year.
Then there's AbbVie's dividend payout ratio -- the percentage of earnings paid out as dividends. It's the top metric used by investors to assess the safety of a dividend. Lower payout ratios indicate that a company is in a strong position to continue paying its dividends. But AbbVie's payout ratio is over 99%.
Let's step back and look at the scenario here. AbbVie is currently using nearly all of its earnings to cover its dividend. And it will soon experience a steep sales decline for the drug that generates nearly half of its total revenue. It's understandable why some would be concerned about the future of AbbVie's dividend.
The bigger picture
The scenario described above might seem bleak. However, we need to understand the bigger picture for AbbVie.
Humira is by no means AbbVie's only product. Other drugs continue to generate strong revenue growth, notably including blood cancer drugs Imbruvica and Venclexta. This growth will help partially offset the anticipated sales decline for Humira.
Perhaps more importantly, AbbVie has two powerful autoimmune-disease drugs ready to take the baton from Humira. The company projects that Rinvoq and Skyrizi will combine for sales of $15 billion by 2025. These two drugs alone should largely cushion the blow that AbbVie will take from biosimilar competition to Humira.
And while the payout ratio is the most commonly used metric for assessing the safety of a dividend, it isn't necessarily the best metric. Earnings (the denominator in the payout ratio) can include non-recurring items that don't really reflect the financial strength of a company. The best method of evaluating the ability of a company to keep paying its dividend is to look at its cash flow.
In the first nine months of 2020, AbbVie generated operating cash flow of $12.7 billion. It paid out $5.6 billion in dividends during the same period. Clearly, AbbVie continues to generate more-than-enough cash flow to keep funding its dividend program.
Marked safe
Just as people mark themselves as safe on social media during catastrophic events, I think we can mark AbbVie's dividend as safe, despite the coming challenges for Humira. In fact, I recently referred to AbbVie as a "money machine" because of its dividend.
As already discussed, AbbVie is in a much stronger position to maintain its dividend, at least at current levels, than a cursory glance at its payout ratio and Humira prospects reflect. Another important factor, though, is that AbbVie has ample motivation to grow its dividend.
The company belongs to the group of stocks known as Dividend Aristocrats. These are S&P 500 members that have increased their dividends for at least 25 consecutive years. AbbVie's track record of 49 years in a row of dividend hikes goes way beyond the minimum threshold to be a Dividend Aristocrat. Any company that achieves this elite status doesn't want to lose it.
My view is that AbbVie will keep the dividends flowing and growing for a long time to come. This is an example of a good thing that probably won't come to an end anytime soon.
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Keith Speights 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. | As already discussed, AbbVie is in a much stronger position to maintain its dividend, at least at current levels, than a cursory glance at its payout ratio and Humira prospects reflect. For income-seeking investors, everything has gone right with AbbVie (NYSE: ABBV) for a long time. Just how safe is AbbVie's dividend? | Then there's AbbVie's dividend payout ratio -- the percentage of earnings paid out as dividends. For income-seeking investors, everything has gone right with AbbVie (NYSE: ABBV) for a long time. Just how safe is AbbVie's dividend? | Then there's AbbVie's dividend payout ratio -- the percentage of earnings paid out as dividends. Marked safe Just as people mark themselves as safe on social media during catastrophic events, I think we can mark AbbVie's dividend as safe, despite the coming challenges for Humira. AbbVie's track record of 49 years in a row of dividend hikes goes way beyond the minimum threshold to be a Dividend Aristocrat. | My view is that AbbVie will keep the dividends flowing and growing for a long time to come. For income-seeking investors, everything has gone right with AbbVie (NYSE: ABBV) for a long time. Just how safe is AbbVie's dividend? |
24264.0 | 2021-01-09 00:00:00 UTC | 3 Stocks That Are Absurdly Cheap Right Now | ABBV | https://www.nasdaq.com/articles/3-stocks-that-are-absurdly-cheap-right-now-2021-01-09 | nan | nan | One of the best ways to maximize your odds of earning a great return on a stock is to buy it when it's dirt cheap. But with the average stock on the S&P 500 now trading at more than 27 times its earnings and the index soaring 15% over the past 12 months, it's not easy for investors to find great deals.
The good news is there are still some incredible bargains out there. Three ridiculously cheap stocks that you should consider buying right now are AbbVie (NYSE: ABBV), Lumen Technologies (NYSE: LUMN), and Dell (NYSE: DELL). They're trading at relatively low multiples to earnings and 2021 could be a good year for their businesses.
Image source: Getty Images.
1. AbbVie
AbbVie is a top healthcare stock that got a whole lot bigger in 2019 after closing on its $63 billion deal to acquire Botox-maker Allergan. Although the immunosuppressant Humira remains the company's top-selling drug, AbbVie will lose patent protection on it in 2023. So it makes sense that the company is looking for avenues to diversify as it tries to prepare for the inevitable decline in revenue. But with a broad portfolio that includes drugs in various categories, including immunology, aesthetics, eye care, and women's health, AbbVie has many opportunities for growth down the road.
Through the nine-month period ending Sept. 30, AbbVie's total revenue of $31.9 billion was up 30% from the prior-year period -- largely due to the inclusion of Allergan's results, as the deal didn't close until May of last year. However, its earnings of $4.6 billion during the period were down 9.9% year over year.
But those numbers will get better as Allergan and AbbVie continue to integrate and eliminate redundancies to make their operations more efficient. Today, AbbVie stock trades at a trailing price-to-earnings (P/E) ratio of 23, which is still cheaper than the average stock on the S&P 500. However, when you look at its forward P/E, which takes into account the earnings analysts are expecting from the company in the future, that multiple comes down to just nine.
Despite climbing 18% over the past year, AbbVie still looks like a bargain buy, especially as hospitals hope to resume more of their day-to-day operations this year and physicians are likely to prescribe more drugs to the many patients who skipped doctor visits during the pandemic. And with a dividend yield of about 5% (well above the S&P 500 average of about 1.6%), there's even more of an incentive to load up on the stock right now.
2. Lumen
Lumen, previously known as CenturyLink, is another cheap stock that might be too good of a buy to pass up on. The company's shares are down 22% over the past 12 months and could be due for a rally. Its trailing P/E is 8, and with an even lower forward P/E of 7, the stock looks like a bargain.
The Louisiana-based company is well-positioned to meet the needs of businesses that are trying to be more digital and remote. Through its Hyper Wide Area Network, Lumen helps offices get online, and its VPN ensures those connections are safe and private.
Over the past three quarters, the company's revenue of $15.6 billion has fallen 3.5%, but without goodwill impairment charges (which totaled $6.5 billion a year ago) weighing down its operations, it's produced a profit of $1.1 billion compared to a loss of $5.5 billion in the prior-year period.
With the rollout of multiple vaccines likely slowing down the pandemic this year, 2021 should be a better year for the economy. And that will lead to stronger demand for Lumen's services, making a recovery in the stock's price a real possibility this year. Its cheap price will only make it more attractive to value investors. It also pays an attractive quarterly dividend of $0.25, which at a share price of $10 yields 10% per year, and that could make it a hot buy for income investors.
3. Dell
Like Lumen, Dell is a business that will thrive as companies invest more into the cloud and technology in general. And although it is the best-performing stock on this list, rising 44% in value over the past year, it still may not be too late to buy shares of Dell. Its trailing P/E ratio is 23, which isn't all that cheap -- at least not until you look at its forward P/E, which is drastically lower at a multiple of just 10.
What makes Dell an appealing investment is that the tech company's business has been fairly stable, even amid the pandemic. Sales over the nine-month period ending Oct. 30 totaled $68.1 billion, which was flat from the prior-year period. And with less spend on selling, general, and administrative expenses, its operating income of $3 billion was a 55.7% improvement year over year.
Dell's diverse mix of physical computer products along with cloud-based solutions makes it a safe and diverse buy. In what should be a stronger economy this year, Dell could perform even better as companies upgrade their existing hardware and make the most of the cloud to support remote workers -- a trend that could be here to stay. It's the only stock on this list that doesn't pay a dividend, but that doesn't make it any worse of a buy, as Dell could have a fantastic year in 2021.
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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. | Three ridiculously cheap stocks that you should consider buying right now are AbbVie (NYSE: ABBV), Lumen Technologies (NYSE: LUMN), and Dell (NYSE: DELL). AbbVie AbbVie is a top healthcare stock that got a whole lot bigger in 2019 after closing on its $63 billion deal to acquire Botox-maker Allergan. Although the immunosuppressant Humira remains the company's top-selling drug, AbbVie will lose patent protection on it in 2023. | Three ridiculously cheap stocks that you should consider buying right now are AbbVie (NYSE: ABBV), Lumen Technologies (NYSE: LUMN), and Dell (NYSE: DELL). Through the nine-month period ending Sept. 30, AbbVie's total revenue of $31.9 billion was up 30% from the prior-year period -- largely due to the inclusion of Allergan's results, as the deal didn't close until May of last year. AbbVie AbbVie is a top healthcare stock that got a whole lot bigger in 2019 after closing on its $63 billion deal to acquire Botox-maker Allergan. | Three ridiculously cheap stocks that you should consider buying right now are AbbVie (NYSE: ABBV), Lumen Technologies (NYSE: LUMN), and Dell (NYSE: DELL). AbbVie AbbVie is a top healthcare stock that got a whole lot bigger in 2019 after closing on its $63 billion deal to acquire Botox-maker Allergan. Although the immunosuppressant Humira remains the company's top-selling drug, AbbVie will lose patent protection on it in 2023. | Three ridiculously cheap stocks that you should consider buying right now are AbbVie (NYSE: ABBV), Lumen Technologies (NYSE: LUMN), and Dell (NYSE: DELL). AbbVie AbbVie is a top healthcare stock that got a whole lot bigger in 2019 after closing on its $63 billion deal to acquire Botox-maker Allergan. Although the immunosuppressant Humira remains the company's top-selling drug, AbbVie will lose patent protection on it in 2023. |
24265.0 | 2021-01-09 00:00:00 UTC | AbbVie Inc. (NYSE:ABBV) Will Pay A US$1.30 Dividend In Four Days | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-nyse%3Aabbv-will-pay-a-us%241.30-dividend-in-four-days-2021-01-09 | nan | nan | It looks like AbbVie Inc. (NYSE:ABBV) is about to go ex-dividend in the next 4 days. You will need to purchase shares before the 14th of January to receive the dividend, which will be paid on the 16th of February.
AbbVie's next dividend payment will be US$1.30 per share. Last year, in total, the company distributed US$4.72 to shareholders. Last year's total dividend payments show that AbbVie has a trailing yield of 4.8% on the current share price of $107.27. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Last year, AbbVie paid out 103% of its income as dividends, which is above a level that we're comfortable with, especially if the company needs to reinvest in its business. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Fortunately, it paid out only 47% of its free cash flow in the past 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. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:ABBV Historic Dividend January 9th 2021
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see AbbVie's earnings have been skyrocketing, up 33% per annum for the past five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past eight years, AbbVie has increased its dividend at approximately 16% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.
Final Takeaway
Has AbbVie got what it takes to maintain its dividend payments? It's good to see earnings per share growing and low cashflow payout ratio, although we're uncomfortable with AbbVie's paying out such a high percentage of its profit. Overall we're not hugely bearish on the stock, but there are likely better dividend investments out there.
In light of that, while AbbVie has an appealing dividend, it's worth knowing the risks involved with this stock. For instance, we've identified 4 warning signs for AbbVie (1 is a bit unpleasant) you should be aware of.
If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
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. | Last year's total dividend payments show that AbbVie has a trailing yield of 4.8% on the current share price of $107.27. Last year, AbbVie paid out 103% of its income as dividends, which is above a level that we're comfortable with, especially if the company needs to reinvest in its business. It's good to see earnings per share growing and low cashflow payout ratio, although we're uncomfortable with AbbVie's paying out such a high percentage of its profit. | Last year's total dividend payments show that AbbVie has a trailing yield of 4.8% on the current share price of $107.27. NYSE:ABBV Historic Dividend January 9th 2021 Have Earnings And Dividends Been Growing? It looks like AbbVie Inc. (NYSE:ABBV) is about to go ex-dividend in the next 4 days. | It looks like AbbVie Inc. (NYSE:ABBV) is about to go ex-dividend in the next 4 days. AbbVie's next dividend payment will be US$1.30 per share. Last year's total dividend payments show that AbbVie has a trailing yield of 4.8% on the current share price of $107.27. | It's good to see earnings per share growing and low cashflow payout ratio, although we're uncomfortable with AbbVie's paying out such a high percentage of its profit. It looks like AbbVie Inc. (NYSE:ABBV) is about to go ex-dividend in the next 4 days. AbbVie's next dividend payment will be US$1.30 per share. |
24266.0 | 2021-01-07 00:00:00 UTC | AbbVie : Skyrizi Shows Improvements In Clinical Responses In Two Phase 3 Studies On Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-skyrizi-shows-improvements-in-clinical-responses-in-two-phase-3-studies-on-crohns | nan | nan | (RTTNews) - AbbVie (ABBV) said Risankizumab or Skyrizi has demonstrated significant improvements in clinical remission and endoscopic response in two phase 3 induction studies in patients with crohn's disease.
The company noted hat a significantly greater proportion of patients with Crohn's disease treated with either dose of risankizumab (600 mg or 1200 mg) achieved both primary endpoints, demonstrating statistically significant results for clinical remission and endoscopic response at week 12 compared to placebo.
The company noted that the overall safety results in these studies, ADVANCE and MOTIVATE, were generally consistent with the known safety profile of risankizumab, with no new safety risks observed.
Risankizumab (Skyrizi), an interleukin-23 (IL-23) inhibitor, is being evaluated as a treatment for adults with moderate to severe Crohn's disease and several other immune-mediated conditions.
Risankizumab (Skyrizi) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
Skyrizi is indicated for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy.
Crohn's disease is a chronic, systemic disease that manifests as inflammation within the gastrointestinal (or digestive) tract, causing persistent diarrhea, abdominal pain and rectal bleeding.
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) said Risankizumab or Skyrizi has demonstrated significant improvements in clinical remission and endoscopic response in two phase 3 induction studies in patients with crohn's disease. Risankizumab (Skyrizi) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The company noted hat a significantly greater proportion of patients with Crohn's disease treated with either dose of risankizumab (600 mg or 1200 mg) achieved both primary endpoints, demonstrating statistically significant results for clinical remission and endoscopic response at week 12 compared to placebo. | (RTTNews) - AbbVie (ABBV) said Risankizumab or Skyrizi has demonstrated significant improvements in clinical remission and endoscopic response in two phase 3 induction studies in patients with crohn's disease. Risankizumab (Skyrizi) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The company noted hat a significantly greater proportion of patients with Crohn's disease treated with either dose of risankizumab (600 mg or 1200 mg) achieved both primary endpoints, demonstrating statistically significant results for clinical remission and endoscopic response at week 12 compared to placebo. | (RTTNews) - AbbVie (ABBV) said Risankizumab or Skyrizi has demonstrated significant improvements in clinical remission and endoscopic response in two phase 3 induction studies in patients with crohn's disease. Risankizumab (Skyrizi) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The company noted hat a significantly greater proportion of patients with Crohn's disease treated with either dose of risankizumab (600 mg or 1200 mg) achieved both primary endpoints, demonstrating statistically significant results for clinical remission and endoscopic response at week 12 compared to placebo. | (RTTNews) - AbbVie (ABBV) said Risankizumab or Skyrizi has demonstrated significant improvements in clinical remission and endoscopic response in two phase 3 induction studies in patients with crohn's disease. Risankizumab (Skyrizi) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The company noted that the overall safety results in these studies, ADVANCE and MOTIVATE, were generally consistent with the known safety profile of risankizumab, with no new safety risks observed. |
24267.0 | 2021-01-07 00:00:00 UTC | Adamas Pharma - Starting The Year Off Right? | ABBV | https://www.nasdaq.com/articles/adamas-pharma-starting-the-year-off-right-2021-01-07 | nan | nan | (RTTNews) - Shares of Adamas Pharmaceuticals Inc. (ADMS) have recovered 140% from their 52-week low of $1.90 recorded on Mar.18, 2020, and trade around $4.50.
Adamas is a commercial-stage pharmaceutical company with a growing portfolio of therapies for neurological diseases. The company's flagship product is GOCOVRI, a FDA-approved medicine for the treatment of dyskinesia in patients with Parkinson's disease receiving levodopa-based therapy, with or without concomitant dopaminergic medicines.
The sales of GOCOVRI have increased over the years ever since its launch in the fourth quarter of 2017. The drug raked in sales of $568 thousand in 2017; $34.05 million in 2018; $54.64 million in 2019; and $51.5 million in the nine months ended Sep.30, 2020.
Adamas has proposed a revision to the indication statement to include GOCOVRI as an appropriate therapy for the treatment of OFF episodes in Parkinson's disease patients receiving levodopa and the FDA decision is expected on February 1, 2021.
According to Neil McFarlane, Chief Executive Officer, of Adamas, "If the proposed indication statement is approved, it would reflect the full spectrum of GOCOVRI's therapeutic benefit in PD motor complications and better support physicians to identify appropriate treatments for their patients. Many PD medications necessitate a trade-off between reducing OFF time and exacerbating levodopa-induced dyskinesia. GOCOVRI is the first medication clinically proven to reduce both."
Adamas also has a partnered product Namzaric, which is approved for the treatment of moderate to severe dementia of an Alzheimer's type. This drug is marketed in the United States by Allergan plc, now part of AbbVie (ABBV). Adamas began earning royalty revenue on net sales of Namzaric beginning May 18, 2020 and royalties will be earned quarterly through 2024.
Q3, 2020 Highlights
The company's total revenue for the third quarter of 2020 was $20.2 million, including GOCOVRI product sales of $19 million and Namzaric royalty revenue of $1.2 million. This compares with total revenue of $13.9 million in the third quarter of 2019.
Net loss for Q3, 2020, narrowed to $11.9 million or $0.42 per share from $27.6 million or $0.99 per share in Q3, 2019.
Cash, cash equivalents, and available-for-sale securities as of September 30, 2020, totaled $92.5 million.
Settlement of Disputes
The company began 2021 on a positive note by settling an ongoing patent litigation with Osmotica Pharmaceutical US LLC, a subsidiary of Osmotica Pharmaceuticals plc (OSMT), related to Parkinson's drug Osmolex ER. This drug is approved for the treatment of Parkinson's disease and drug-induced extrapyramidal reactions in adult patients.
As part of the patent dispute settlement, which was closed as recently as Jan.5, Adamas acquired the global rights to Osmolex ER for $7.5 million.
Last November, Adamas entered into a Memorandum of Understanding to settle one of its previously disclosed class-action lawsuits in the California Superior Court for the County of Alameda for $7.5 million. This settlement agreement remains subject to approval by the California State Court. A final non-appealable closure of this court action is expected mid-2021.
ADMS has traded in a range of $1.90 to $6.13 in the last 1 year. The stock closed Wednesday's trading at $4.57, down 1.30%.
Given the strong GOCOVRI sales, improving Namzaric royalties, and the upcoming FDA decision, Adamas is a stock worth following.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This drug is marketed in the United States by Allergan plc, now part of AbbVie (ABBV). Adamas has proposed a revision to the indication statement to include GOCOVRI as an appropriate therapy for the treatment of OFF episodes in Parkinson's disease patients receiving levodopa and the FDA decision is expected on February 1, 2021. According to Neil McFarlane, Chief Executive Officer, of Adamas, "If the proposed indication statement is approved, it would reflect the full spectrum of GOCOVRI's therapeutic benefit in PD motor complications and better support physicians to identify appropriate treatments for their patients. | This drug is marketed in the United States by Allergan plc, now part of AbbVie (ABBV). The company's flagship product is GOCOVRI, a FDA-approved medicine for the treatment of dyskinesia in patients with Parkinson's disease receiving levodopa-based therapy, with or without concomitant dopaminergic medicines. Adamas began earning royalty revenue on net sales of Namzaric beginning May 18, 2020 and royalties will be earned quarterly through 2024. | This drug is marketed in the United States by Allergan plc, now part of AbbVie (ABBV). The drug raked in sales of $568 thousand in 2017; $34.05 million in 2018; $54.64 million in 2019; and $51.5 million in the nine months ended Sep.30, 2020. Adamas has proposed a revision to the indication statement to include GOCOVRI as an appropriate therapy for the treatment of OFF episodes in Parkinson's disease patients receiving levodopa and the FDA decision is expected on February 1, 2021. | This drug is marketed in the United States by Allergan plc, now part of AbbVie (ABBV). Q3, 2020 Highlights The company's total revenue for the third quarter of 2020 was $20.2 million, including GOCOVRI product sales of $19 million and Namzaric royalty revenue of $1.2 million. This compares with total revenue of $13.9 million in the third quarter of 2019. |
24268.0 | 2021-01-07 00:00:00 UTC | Notable ETF Outflow Detected - IVW, TMO, ABBV, ABT | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-ivw-tmo-abbv-abt-2021-01-07 | 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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $191.2 million dollar outflow -- that's a 0.6% decrease week over week (from 506,500,000 to 503,450,000). Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. 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 IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. 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 IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. 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 IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher 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 iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $191.2 million dollar outflow -- that's a 0.6% decrease week over week (from 506,500,000 to 503,450,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher 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 iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $191.2 million dollar outflow -- that's a 0.6% decrease week over week (from 506,500,000 to 503,450,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. |
24269.0 | 2021-01-06 00:00:00 UTC | MRKR Soars As FDA Lifts Hold On MT-401, RYTM Sells Priority Review Voucher, MLND Dumps MLE-301 | ABBV | https://www.nasdaq.com/articles/mrkr-soars-as-fda-lifts-hold-on-mt-401-rytm-sells-priority-review-voucher-mlnd-dumps-mle | nan | nan | (RTTNews) - Today's Daily Dose brings you news about the FDA lifting the partial clinical hold on Marker Therapeutics' phase II post-transplant acute myeloid leukemia trial; Rhythm selling its Rare Pediatric Disease Priority Review Voucher for $100 million; Hoth Therapeutics' financing agreement; Millendo discontinuing further development of MLE-301 for the treatment of menopausal vasomotor symptoms; and Aerpio Pharma exploring strategic alternatives.
Read on…
1. FDA Lifts Partial Hold on Marker's MT-401 Trial
Marker Therapeutics Inc. (MRKR) is all set to move forward with its phase II trial of MT-401 for the treatment of post-transplant acute myeloid leukemia, now that the FDA has lifted the partial clinical hold that was in place since last February.
MT-401 is an allogeneic multi-tumor-associated antigen (MultiTAA)-specific T cell product manufactured under Good Manufacturing Practice (GMP) using donor-derived T cells.
A full clinical hold was imposed on the trial by the FDA on November 12, 2019, seeking additional information and technical specifications for two legacy reagents supplied by third parties used in the MultiTAA-specific T cell manufacturing process. After the company satisfied the Agency's request, the full clinical hold was converted to partial hold last February.
Commenting on the FDA's decision to lift the partial hold Mythili Koneru, Chief Medical Officer of Marker Therapeutics, said, "We are pleased to move forward with our Phase 2 AML trial of MT-401, which we believe may provide a safe and effective treatment option for patients with post-transplant AML over the standard of care."
MRKR closed Tuesday's trading at $1.73, up 17.69%.
2. Rhythm Sells Priority Review Voucher for $100 Mln
Rhythm Pharmaceuticals Inc. (RYTM) has entered into a definitive agreement to sell its Rare Pediatric Disease Priority Review Voucher for $100 million.
The FDA awarded the Priority Review Voucher to Rhythm for securing approval of IMCIVREE last November for chronic weight management in adult and pediatric patients 6 years of age and older with obesity due to proopiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1 (PCSK1) or leptin receptor (LEPR) deficiency confirmed by genetic testing.
Commenting on the agreement, David Meeker, Chair, President and Chief Executive Officer of Rhythm, said, "The non-dilutive capital from the sale of our PRV provides an important source of additional funding to advance the continued development of Setmelanotide as a precision medicine for people whose severe obesity and insatiable hunger may be caused by genetic variants associated with the melanocortin-4 (MC4R) receptor pathway."
RYTM closed Tuesday's trading at $31.52, up 3.82%.
3. Hoth Therapeutics Secures $5 Mln Financing
Hoth Therapeutics Inc. (HOTH) has entered into a definitive securities purchase agreement in connection with a private placement to institutional investors.
As per the agreement, the investors have agreed to purchase 2.47 million shares of the company's common stock and accompanying warrants to purchase up to an aggregate of approximately 1.24 million shares of common stock, at a purchase price of $2.02 per share and accompanying warrant to purchase 0.5 of a share of common stock, which is at-the-market under Nasdaq rules.
The financing, which is slated to close on January 7, 2021, is expected to bring in gross proceeds of approximately $5.0 million for the company.
Hoth is planning to start preclinical studies of HT-006 for various multi-drug resistant bacterial species this quarter.
HOTH closed Tuesday's trading at $2.30, down 8.37%.
4. Millendo Pulls the Plug on MLE-301
Shares of Millendo Therapeutics Inc. (MLND) plunged more than 17% on Tuesday, following the company's decision to discontinue further development of MLE-301, a selective neurokinin 3 receptor (NK3R) antagonist, for the treatment of menopausal vasomotor symptoms.
The decision to pull the plug on MLE-301 was taken based on an analysis of the pharmacokinetic and pharmacodynamic data from the ongoing phase I study being conducted in healthy male volunteers.
According to the company, while MLE-301 was generally well-tolerated, the data do not support moving forward with its development in the target population of peri- and post-menopausal women, especially with the evolving dynamics of a highly competitive NK3R antagonist market.
To rein in the expenses, the company may also plan for a reduction in its workforce.
MLND closed Tuesday's trading at $1.69, down 17.96%.
5. Aerpio Exploring Strategic Options
Shares of Aerpio Pharmaceuticals Inc. (ARPO) were up over 12% at $1.20 in after-hours Tuesday, on news of the company's decision to explore strategic alternatives focused on maximizing stockholder value.
The strategic options being reviewed by the company include partnering its programs, as well as, the potential for an acquisition, company sale, merger, business combination, asset sale, in-license, out-license or others.
Last month, the company announced statistically significant results from its phase II trial of Razuprotafib in patients with elevated intraocular pressure associated with open angle glaucoma or ocular hypertension.
ARPO closed Tuesday's trading at $1.07, up 1.90%. In after-hours, the stock was up 12.15% at $1.20.
6. Cerecor's COVID Study Meets Key Goal
Cerecor Inc.'s (CERC) exploratory phase II US trial of CERC-002 in patients hospitalized with COVID-19 associated pneumonia and mild-to-moderate acute respiratory distress syndrome has demonstrated robust improvement in the primary endpoint.
The primary endpoint is the proportion of patients alive and free of respiratory failure over the 28-day study period compared to placebo. The 28-day mortality was reduced by approximately 50% in patients treated with CERC-002 compared to placebo.
The company intends to meet with the FDA and believes that these data support the initiation of a registration trial and filing for Breakthrough Therapy Designation.
CERC closed Tuesday's trading at $2.92, up 10.61%.
7. AbbVie Hands Over Rights of muscarinic agonist program to Sosei
Sosei Group Corp. (SOLTF.OB) has regained the worldwide rights to its muscarinic agonist programs in development for the treatment of major neurological disorders, including Alzheimer's disease from AbbVie (ABBV).
The global rights to the muscarinic receptor agonists were originally handed over by Sosei Group to Allergan in April 2016 under a deal potentially valued at $3.35 billion. Allergan was acquired by AbbVie in May 2020.
The decision of AbbVie to hand over the worldwide rights to muscarinic agonist programs was based on its pipeline strategy and is not as a result of safety or efficacy data.
Sosei said it will now conduct a full internal review to determine a strategy for the further development and re-partnering of the muscarinic agonist programs.
SOLTF.OB closed Tuesday's trading at $16.29, up 3.17%.
8. Stocks That Lost/Gained the Most
Synthetic Biologics Inc. (SYN) closed Tuesday's trading at $1.00, up 99.96%.
ImmunoPrecise Antibodies Ltd. (IPA) closed at $16.73, up 24.85%.
The Ensign Group Inc. (ENSG) closed at a new high of $80.61, up 6.99%.
Bionano Genomics Inc. (BNGO) closed at $4.95, down 31.25%.
Mersana Therapeutics Inc. (MRSN) closed at $18.70, down 29.49%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Hands Over Rights of muscarinic agonist program to Sosei Sosei Group Corp. (SOLTF.OB) has regained the worldwide rights to its muscarinic agonist programs in development for the treatment of major neurological disorders, including Alzheimer's disease from AbbVie (ABBV). Allergan was acquired by AbbVie in May 2020. The decision of AbbVie to hand over the worldwide rights to muscarinic agonist programs was based on its pipeline strategy and is not as a result of safety or efficacy data. | AbbVie Hands Over Rights of muscarinic agonist program to Sosei Sosei Group Corp. (SOLTF.OB) has regained the worldwide rights to its muscarinic agonist programs in development for the treatment of major neurological disorders, including Alzheimer's disease from AbbVie (ABBV). Allergan was acquired by AbbVie in May 2020. The decision of AbbVie to hand over the worldwide rights to muscarinic agonist programs was based on its pipeline strategy and is not as a result of safety or efficacy data. | AbbVie Hands Over Rights of muscarinic agonist program to Sosei Sosei Group Corp. (SOLTF.OB) has regained the worldwide rights to its muscarinic agonist programs in development for the treatment of major neurological disorders, including Alzheimer's disease from AbbVie (ABBV). Allergan was acquired by AbbVie in May 2020. The decision of AbbVie to hand over the worldwide rights to muscarinic agonist programs was based on its pipeline strategy and is not as a result of safety or efficacy data. | The decision of AbbVie to hand over the worldwide rights to muscarinic agonist programs was based on its pipeline strategy and is not as a result of safety or efficacy data. AbbVie Hands Over Rights of muscarinic agonist program to Sosei Sosei Group Corp. (SOLTF.OB) has regained the worldwide rights to its muscarinic agonist programs in development for the treatment of major neurological disorders, including Alzheimer's disease from AbbVie (ABBV). Allergan was acquired by AbbVie in May 2020. |
24270.0 | 2021-01-05 00:00:00 UTC | AbbVie Announces Positive Results From Phase 3 Studies In Adults With Active Psoriatic Arthritis | ABBV | https://www.nasdaq.com/articles/abbvie-announces-positive-results-from-phase-3-studies-in-adults-with-active-psoriatic | nan | nan | (RTTNews) - AbbVie (ABBV) said that two phase 3 studies in adults with active psoriatic arthritis, KEEPsAKE-1 and KEEPsAKE-2, demonstrated that significantly more patients treated with risankizumab (150 mg) achieved the primary endpoint of ACR20 response at week 24 versus placebo.
In KEEPsAKE-1 and KEEPsAKE-2, 57 and 51 percent of patients receiving risankizumab achieved ACR20 response at week 24, respectively, versus 34 and 27 percent receiving placebo.
The company noted that the secondary endpoints showed significant improvements in skin clearance , physical function and minimal disease activity at week 24. The company said the safety results in the studies to-date were generally consistent with the known profile of risankizumab in psoriasis patients.
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) said that two phase 3 studies in adults with active psoriatic arthritis, KEEPsAKE-1 and KEEPsAKE-2, demonstrated that significantly more patients treated with risankizumab (150 mg) achieved the primary endpoint of ACR20 response at week 24 versus placebo. The company noted that the secondary endpoints showed significant improvements in skin clearance , physical function and minimal disease activity at week 24. The company said the safety results in the studies to-date were generally consistent with the known profile of risankizumab in psoriasis patients. | (RTTNews) - AbbVie (ABBV) said that two phase 3 studies in adults with active psoriatic arthritis, KEEPsAKE-1 and KEEPsAKE-2, demonstrated that significantly more patients treated with risankizumab (150 mg) achieved the primary endpoint of ACR20 response at week 24 versus placebo. In KEEPsAKE-1 and KEEPsAKE-2, 57 and 51 percent of patients receiving risankizumab achieved ACR20 response at week 24, respectively, versus 34 and 27 percent receiving placebo. The company noted that the secondary endpoints showed significant improvements in skin clearance , physical function and minimal disease activity at week 24. | (RTTNews) - AbbVie (ABBV) said that two phase 3 studies in adults with active psoriatic arthritis, KEEPsAKE-1 and KEEPsAKE-2, demonstrated that significantly more patients treated with risankizumab (150 mg) achieved the primary endpoint of ACR20 response at week 24 versus placebo. In KEEPsAKE-1 and KEEPsAKE-2, 57 and 51 percent of patients receiving risankizumab achieved ACR20 response at week 24, respectively, versus 34 and 27 percent receiving placebo. 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) said that two phase 3 studies in adults with active psoriatic arthritis, KEEPsAKE-1 and KEEPsAKE-2, demonstrated that significantly more patients treated with risankizumab (150 mg) achieved the primary endpoint of ACR20 response at week 24 versus placebo. In KEEPsAKE-1 and KEEPsAKE-2, 57 and 51 percent of patients receiving risankizumab achieved ACR20 response at week 24, respectively, versus 34 and 27 percent receiving placebo. The company noted that the secondary endpoints showed significant improvements in skin clearance , physical function and minimal disease activity at week 24. |
24271.0 | 2021-01-05 00:00:00 UTC | Got $1,000? These 2 Top Stocks Can Make You Rich | ABBV | https://www.nasdaq.com/articles/got-%241000-these-2-top-stocks-can-make-you-rich-2021-01-05 | nan | nan | This year the stock market has been on nothing short of a roller coaster ride. The S&P 500 has seen dramatic lows and dizzying highs. On March 23, the index recorded its fastest-ever 30% drop in just 22 trading days. Then, on Dec. 31, it reached a record high of 3,760.
In such unpredictable times, investors find it difficult to distinguish been potential winners and losers. If you are looking for reasonably priced stocks poised for a solid long-term growth trajectory in 2021, then you're at the right place. It will take only $1,000 in disposable cash, and you could get rich by investing in these two top-notch healthcare stocks.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) offers a solid combination of robust growth prospects and steady income. The healthcare company is up over 18.5% over the past 12 months, it still sports a solid dividend yield of about 5%.
AbbVie's revenue growth trajectory is closely linked with sales of Humira. This immunosuppressant drug has clocked revenue of $14.7 billion so far this year, almost half of AbbVie's $31.9 billion total revenue. Humira's sales are expected to be close to $20 billion for the whole year 2020. Investors, however, are concerned about Humira's upcoming loss of exclusivity (LOE) in the U.S. and subsequent biosimilar competition starting in 2023.
Although Humira is expected to remain a solid growth driver for AbbVie all the way until its U.S. LOE, AbbVie has also been preparing for a post-Humira world for some time now. The company's next-generation immunology drugs, Rinvoq and Skyrizi, are expected to earn $15 billion in combined risk-adjusted sales by 2025, thereby offsetting much of the impact of Humira's biosimilar erosion. Besides, the company has also built a robust blood cancer portfolio comprised of Venclexta and Imbruvica, expected to rake in over $6.5 billion in sales in 2020. AbbVie has also developed a broad neurosciences portfolio targeting Parkinson's disease, migraine, and other neuropsychiatric conditions, with annual revenue potential close to $5 billion by 2025.
With the acquisition of Allergan, AbbVie has expanded in the field of aesthetics and neurology. The deal is expected to be 12% accretive to AbbVie's fiscal 2020 adjusted earnings per share (EPS). Previously, concerns were raised about the AbbVie-Allergan integration, especially amid the financial pressures of the pandemic. However, the combined company has successfully allayed many of these fears by becoming profitable and reporting generally accepted accounting principles (GAAP) EPS of $1.3, a dramatic improvement from the GAAP loss per share of $0.50 reported in the second quarter.
Investors can also take relief in the company's focus on repaying $15 billion to $18 billion of its debt by the end of 2021. This will significantly reduce the company's total debt, which was over $87 billion at end of the third quarter. With operating cash flow over $16 billion in last 12 months and a cash balance of $8 billion at the end of the third quarter, AbbVie is definitely in a position to sustain its dividend policy as well as its long-term growth trajectory.
Despite the many positives, we can still say that AbbVie is very much a bargain stock. The company is trading at just over eight times expected earnings for fiscal 2021. Hence, despite the Humira U.S. LOE risk, AbbVie offers a favorable risk-reward proposition to healthcare investors.
2. Merck
2020 has been pretty challenging for Merck (NYSE: MRK). Concerns about its over-reliance on its leading cancer drug, Keytruda, were exacerbated in February 2020, when the company announced plans to spin off its women's health, legacy brands, and biosimilars businesses into a new entity, Organon. Since Merck will now house only oncology, hospital acute care, vaccines, and animal health segments, the revenue dependence on Keytruda is bound to increase, at least in the short run. Finally, the company has estimated the top-line impact of the pandemic to be around $2.4 billion for fiscal 2020.
Despite these challenges, Merck has guided for a fiscal 2020 revenue of $47.6 billion to $48.6 billion, a year-over-year increase of 2% to 4%. The company has earned $35.5 billion so far this year.
Merck's over-dependence on Keytruda is not that big of an immediate challenge, considering the drug will enjoy patent protection until 2028. The drug is approved in multiple indications and geographies, either as a single agent or in combination with other drugs. Hence, Keytruda's revenues flow from multiple diverse patient pools. Merck's current top-line exposure to Keytruda is around 30%, which is not that high, especially considering that its peer Regeneron (NASDAQ: REGN) has revenue exposure of over 70% to Eylea, and Vertex Pharmaceuticals (NASDAQ: VRTX) earns over 60% of its revenue from Trikafta. The divestiture of Organon will also prove to be a net positive for Merck in the long run, since the company is essentially spinning off low-growth assets and choosing to focus on high-growth ones.
Merck has also started playing an active role in the COVID-19 landscape. The company has entered into a $356 million deal with the U.S. government to supply 60,000-100,000 doses of its investigational COVID-19 therapeutic, MK-7110, for treating hospitalized patients with severe COVID-19. The company added MK-7110, previously known as CD24Fc, through a $425 million acquisition of OncoImmune. MK-7110 demonstrated a 50% reduction in the risk of respiratory failure or death in severe or critical COVID-19 patients in a late-stage trial. Although it's not a very big revenue driver, MK-7110 could prove to be a commercially successful asset amid a surge of new COVID-19 cases in the U.S. and Europe, and the emergence of a potentially more contagious coronavirus strain in the U.K. The company is also working on another COVID-19 therapeutic, molnupiravir, as well as COVID-19 vaccines, V590 and V591, in early-stage clinical trials.
ABBV data by YCharts
Merck is down 11% over the past 12 months. The stock may see some volatility in the first half of 2021, until the completion of the Organon spinoff. However, its mega-blockbuster Keytruda and its COVID-19 portfolio may help reduce the headline risk associated with the pandemic. The company is trading at a little less than 13 times expected earnings for fiscal 2021, which is not exactly cheap, but still reasonable. For these reasons, I think it will be more than worthwhile for healthcare investors to buy this stock now.
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. | AbbVie AbbVie (NYSE: ABBV) offers a solid combination of robust growth prospects and steady income. AbbVie's revenue growth trajectory is closely linked with sales of Humira. This immunosuppressant drug has clocked revenue of $14.7 billion so far this year, almost half of AbbVie's $31.9 billion total revenue. | AbbVie AbbVie (NYSE: ABBV) offers a solid combination of robust growth prospects and steady income. This immunosuppressant drug has clocked revenue of $14.7 billion so far this year, almost half of AbbVie's $31.9 billion total revenue. Hence, despite the Humira U.S. LOE risk, AbbVie offers a favorable risk-reward proposition to healthcare investors. | This immunosuppressant drug has clocked revenue of $14.7 billion so far this year, almost half of AbbVie's $31.9 billion total revenue. With operating cash flow over $16 billion in last 12 months and a cash balance of $8 billion at the end of the third quarter, AbbVie is definitely in a position to sustain its dividend policy as well as its long-term growth trajectory. AbbVie AbbVie (NYSE: ABBV) offers a solid combination of robust growth prospects and steady income. | This immunosuppressant drug has clocked revenue of $14.7 billion so far this year, almost half of AbbVie's $31.9 billion total revenue. AbbVie AbbVie (NYSE: ABBV) offers a solid combination of robust growth prospects and steady income. AbbVie's revenue growth trajectory is closely linked with sales of Humira. |
24272.0 | 2021-01-04 00:00:00 UTC | Drugmakers kick off 2021 with 500 U.S. price hikes | ABBV | https://www.nasdaq.com/articles/drugmakers-kick-off-2021-with-500-u.s.-price-hikes-2021-01-04 | nan | nan | By Michael Erman
NEW YORK, Jan 4 (Reuters) - Drugmakers including Abbvie Inc ABBV.N and Bristol Myers Squibb BMY.N raised U.S. list prices on more than 500 drugs to kick off 2021, according to an analysis by health care research firm 46brooklyn.
The hikes come as drugmakers are reeling from effects of the COVID-19 pandemic, which has reduced doctor visits and demand for some drugs. They are also fighting new drug price-cutting rules from the Trump administration, which would reduce the industry's profitability.
They include more than 300 price increases from companies like Pfizer PFE.N and GlaxoSmithKline GSK.L reported by Reuters late last week.
Nearly all the increases were below 10%, and the median hike was 4.8%, down slightly from last year, 46brooklyn said. The firm's analysis is based on data from Elsevier's Gold Standard Drug Database.
Abbvie raised prices on around 40 drugs including a 7.4% hike on rheumatoid arthritis treatment Humira, the world's top-selling drug. Revenue from Humira is expected to top $20 billion next year.
Bristol Myers hiked prices on around a dozen drugs, including cancer drugs Revlimid and Opdivo by 4.5 percent and 1.5 percent, respectively. It hiked the price of blood thinner Eliquis by 6 percent.
It said in a statement that it only raised prices on drugs with ongoing clinical research. It expects net prices, which include rebates and other discounts, to fall this year.
Drug price increases have slowed substantially since 2015, both in terms of the size of the hikes and the number of drugs affected.
However, 46brooklyn said its analysis of Medicaid data shows the average cost per branded drug is still ticking up.
"Over time, we end up cycling out cheaper brands designed to treat large populations, and replacing them with expensive brands designed to treat smaller populations," wrote Eric Pachman, president of 46brooklyn. "With price increases losing their impact, launch prices will be the primary driver of U.S. drug list price inflation."
(Reporting by Michael Erman; Editing by David Gregorio)
((michael.erman@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. | By Michael Erman NEW YORK, Jan 4 (Reuters) - Drugmakers including Abbvie Inc ABBV.N and Bristol Myers Squibb BMY.N raised U.S. list prices on more than 500 drugs to kick off 2021, according to an analysis by health care research firm 46brooklyn. Abbvie raised prices on around 40 drugs including a 7.4% hike on rheumatoid arthritis treatment Humira, the world's top-selling drug. The hikes come as drugmakers are reeling from effects of the COVID-19 pandemic, which has reduced doctor visits and demand for some drugs. | By Michael Erman NEW YORK, Jan 4 (Reuters) - Drugmakers including Abbvie Inc ABBV.N and Bristol Myers Squibb BMY.N raised U.S. list prices on more than 500 drugs to kick off 2021, according to an analysis by health care research firm 46brooklyn. Abbvie raised prices on around 40 drugs including a 7.4% hike on rheumatoid arthritis treatment Humira, the world's top-selling drug. Bristol Myers hiked prices on around a dozen drugs, including cancer drugs Revlimid and Opdivo by 4.5 percent and 1.5 percent, respectively. | Abbvie raised prices on around 40 drugs including a 7.4% hike on rheumatoid arthritis treatment Humira, the world's top-selling drug. By Michael Erman NEW YORK, Jan 4 (Reuters) - Drugmakers including Abbvie Inc ABBV.N and Bristol Myers Squibb BMY.N raised U.S. list prices on more than 500 drugs to kick off 2021, according to an analysis by health care research firm 46brooklyn. Bristol Myers hiked prices on around a dozen drugs, including cancer drugs Revlimid and Opdivo by 4.5 percent and 1.5 percent, respectively. | By Michael Erman NEW YORK, Jan 4 (Reuters) - Drugmakers including Abbvie Inc ABBV.N and Bristol Myers Squibb BMY.N raised U.S. list prices on more than 500 drugs to kick off 2021, according to an analysis by health care research firm 46brooklyn. Abbvie raised prices on around 40 drugs including a 7.4% hike on rheumatoid arthritis treatment Humira, the world's top-selling drug. Nearly all the increases were below 10%, and the median hike was 4.8%, down slightly from last year, 46brooklyn said. |
24273.0 | 2021-01-04 00:00:00 UTC | 7 Cheap Stocks to Buy in January For a Quick Buck | ABBV | https://www.nasdaq.com/articles/7-cheap-stocks-to-buy-in-january-for-a-quick-buck-2021-01-04 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There are always deals to be had in the wake of the holiday season. For one, retailers often look to offload excess inventory after Christmas. But there are also always cheap stocks to buy in January. Now, following such an unprecedented year, the stock market will present opportunities to those shrewd enough to pay attention.
Of course, the world is still in a pandemic. Covid-19 has devastated us globally. But it has also opened up opportunities in many cases.
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Our economy has been shaken, but out of that there is money to be made in the stock market as sectors and equities rebound. So, here are seven cheap stocks to buy in January as the new year begins.
Bristol-Myers Squibb (NYSE:BMY)
Intel (NASDAQ:INTC)
Southwest Airlines (NYSE:LUV)
Aptiv (NYSE:APTV)
AbbVie (NYSE:ABBV)
Howard Hughes (NYSE:HHC)
Disney (NYSE:DIS)
Cheap Stocks to Buy: Bristol-Myers Squibb (BMY)
BMY) logo displayed on a phone screen" width="300" height="169">
Source: IgorGolovniov / Shutterstock.com
Pharmaceutical companies live and die by the drugs they can develop and commercialize. To that end, Bristol-Myers Squibb counted seven commercialized drugs which produced over $1 billion in sales within the first nine months of 2020. Additionally, three of those drugs accounted for more than $5 billion each in sales over the same period.
But that doesn’t indicate that BMY stock is cheap. It could very well carry a lofty valuation given its ability to commercialize high-selling drugs. Yet, it doesn’t: its forward price-earnings ratio is 8.19. That ranks above 90% of the company’s peers.
Another important consideration for investors in pharmaceutical companies is patent expiry. Revlimid, BMY’s best-selling drug, will remain patent-protected through 2027 in the United States. Likewise, Eliquis — its second-best seller — has patents protected through 2026 and 2031. Finally, the company’s Opdivo is protected from generic competition through 2026. So, clearly Bristol-Myers Squibb has a strong competitive moat. That makes it one of the best cheap stocks to buy in January.
Intel (INTC)
INTC) logo in blue on a black screen." width="300" height="169">
Source: Kate Krav-Rude / Shutterstock.com
Intel is not quite the chip manufacturing titan that it used to be — companies like Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) have certainly taken the spotlight at the forefront of the semiconductor industry.
What’s more, the industry has generally had a great 2020. The iShares PHLX Semiconductor Index Fund (NASDAQ:SOXX) has risen 54.47% over the past one year. Likewise, AMD is up nearly 95% and NVDA is up about 127% in the same period.
But INTC stock has shed some 15% over the same period. Why? For one, the company announced it would delay its new chip manufacturing until 2022. That hurt it significantly. On top of that, companies such as Apple (NASDAQ:APPL) are also likely to start manufacturing their own chips. So, Intel is facing stiffer competition in a historically competitive sector.
While the company may never return to its former stature, though, I think it will certainly rise from its current position. In fact, just one piece of significant positive news will indicate to the markets that it has been undervalued relative to peers.
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Right now, INTC stock carries a 9.79 trailing price-earnings ratio while NVDA and AMD carry ratios of 85.49 and 123.93, respectively. That should tell an important story to investors seeking cheap stocks to buy in January, regardless of Intel’s tough 2020.
Southwest Airlines (LUV)
LUV) plane mid-flight with mountains in background. Represents airline stocks." width="300" height="169">
Source: Eliyahu Yosef Parypa / Shutterstock.com
Southwest Airlines might raise a few eyebrows as the next pick on my list of cheap stocks to buy in January. After all, the company has a forward price-earnings ratio that is worse than 95% of industry peers. The company also posted an earnings per share (EPS) loss of $3.01 for the trailing-12 months (TTM). Those two metrics make LUV stock look like a name to avoid at all costs. But we have to keep in mind that 2020 has been a year that has disproportionately affected the airline sector.
Investors who look at the trailing-12 month EPS for industry peers like American Airlines (NASDAQ:AAL) and Delta (NYSE:DAL) will quickly realize that LUV has weathered the pandemic much better. Right now, Delta has an EPS loss of $16.53 and American a loss of $14.
Moreover, all three companies incurred massive losses due to exorbitant cash burn from their grounded fleets. Earnings suffered tremendously as a result. But, while daily passenger throughput is still down significantly, the vaccine news should help numbers start to return.
When it comes to picking a stock for the revival of airlines, then, Southwest is among the most financially sound operators in the industry. It will look cheap this time next year.
Aptiv (APTV)
APTV) office building in Poland." width="300" height="169">
Source: shutterstock.com
Aptiv isn’t on this list of cheap stocks to buy in January just because Wall Street favors it. For one, the company has also posted earnings beats in its recent past quarters. Markets tend to reward stocks that do that.
Of course, though, there are a lot of electric vehicle (EV) players that are unjustly benefiting from the shift toward green vehicles right now. Some valuations look too high, given that many of the names run simply on hype and future promises of profitability. But Aptiv isn’t one of them.
That’s why investors who are interested in EVs but afraid that the bottom might drop out of the market should consider APTV stock. In addition to its steady earnings beats, the company also has big goals beyond EVs. CEO Kevin P. Clark notes,“Aptiv is a technology company that will usher in the next generation of active safety, autonomous vehicles, smart cities and connectivity.”
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And Aptiv has fared very well over the pandemic. Through the first nine months of 2020, revenues were a bit down, having dipped 17.7% compared to the same period of 2019. But Aptiv became much more operationally sound this year. Net income rose by 96.2% comparing those same two periods, despite the slightly lower revenue.
Abbvie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
Out of the 22 analysts who currently cover ABBV stock and are tracked by the Wall Street Journal, 14 of them consider it a buy. Moreover, their median price sits nicely at $118.50 and their high is $135. Clearly, they certainly feel that Abbvie is one of the cheap stocks to buy in January.
This Chicago-based pharmaceutical company has a few metrics that stick out to me, making it an affordable value stock. For one — from a pure value perspective — ABBV looks good because of its forward price-earnings ratio of 8.6. That’s 86.9% above its industry peers.
Secondly, although Abbvie isn’t particularly financially strong, it is capital efficient based on its weighted average cost of capital (WACC) versus its return on invested capital (ROIC). The company’s WACC is -5.44% and its ROIC is 26.67%. So, it’s clear that Abbvie knows how to create value from the capital it possesses.
Finally, Humira is the pharmaceutical company’s cash cow. While the drug is facing competition, it still reported a Q3 sales increase of 7.7% in the United States, despite a 9.3% decrease internationally. Plus, ABBV will maintain U.S. patents on Humira through 2022 and anticipates sales declines from biosimilar drugs in 2023.
So, this company has a strong pipeline and may very well thrive into 2023. At the very least, it looks like Abbvie will be a strong and affordable investment until then.
Howard Hughes (HHC)
Source: Shutterstock
Howard Hughes develops and operates planned communities and mixed-use properties. The company has 12 large communities under its control across the United States, in major cities like Chicago, New York, Honolulu and more.
Although the company has seen an overall decrease in operating income from its assets through the first three quarters of 2020, there is good news. HHC’s largest operating asset business — office real estate –experienced a 39.1% increase in operating income in the same period of 2020. Office real estate accounts for over 60% of the company’s operating income.
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Of course, Howard Hughes experienced significant disruptions in its retail and hospitality sectors in 2020 for obvious reasons. Surely these will remain hampered for the first half of 2021. However, the company can look forward to a turnaround sometime thereafter as the population becomes increasingly vaccinated. That means there’s a nice boon in store for HHC stock, landing it on this list of cheap stocks to buy in January.
Disney (DIS)
Source: spiderman777 / Shutterstock.com
Last on my list of cheap stocks to buy in January is DIS stock. Of course, it’s fairly easy to understand the major problem that hurt Disney this year — its theme parks got hammered as the pandemic forced shutterings throughout 2020. The company succinctly summarized this issue in its Q3 earnings report:
“The most significant adverse impact in the current quarter and year from COVID-19 was approximately $2.4 billion and $6.9 billion, respectively, on operating income at our Parks, Experiences and Products segment due to revenue lost as a result of the closures or reduced operating capacities.”
However, the company has done well in 2020 in other ways, namely streaming. Disney anticipates that its already large 86.8 million strong subscriber base will swell up somewhere between 230 million to 260 million by 2024.
Perhaps the company will shift its asset base to include a smaller mix of theme parks in the future. The pandemic certainly made the business risks of in-person entertainment clear. Regardless, though, Disney will see a surge in revenue in 2021 from both the recovery of its parks and its growing streaming platform. That will bolster the already hot House of Mouse.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Cheap Stocks to Buy in January For a Quick Buck 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. | Bristol-Myers Squibb (NYSE:BMY) Intel (NASDAQ:INTC) Southwest Airlines (NYSE:LUV) Aptiv (NYSE:APTV) AbbVie (NYSE:ABBV) Howard Hughes (NYSE:HHC) Disney (NYSE:DIS) Cheap Stocks to Buy: Bristol-Myers Squibb (BMY) BMY) logo displayed on a phone screen" width="300" height="169"> Source: IgorGolovniov / Shutterstock.com Pharmaceutical companies live and die by the drugs they can develop and commercialize. Abbvie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Out of the 22 analysts who currently cover ABBV stock and are tracked by the Wall Street Journal, 14 of them consider it a buy. Clearly, they certainly feel that Abbvie is one of the cheap stocks to buy in January. | Bristol-Myers Squibb (NYSE:BMY) Intel (NASDAQ:INTC) Southwest Airlines (NYSE:LUV) Aptiv (NYSE:APTV) AbbVie (NYSE:ABBV) Howard Hughes (NYSE:HHC) Disney (NYSE:DIS) Cheap Stocks to Buy: Bristol-Myers Squibb (BMY) BMY) logo displayed on a phone screen" width="300" height="169"> Source: IgorGolovniov / Shutterstock.com Pharmaceutical companies live and die by the drugs they can develop and commercialize. Abbvie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Out of the 22 analysts who currently cover ABBV stock and are tracked by the Wall Street Journal, 14 of them consider it a buy. Clearly, they certainly feel that Abbvie is one of the cheap stocks to buy in January. | Bristol-Myers Squibb (NYSE:BMY) Intel (NASDAQ:INTC) Southwest Airlines (NYSE:LUV) Aptiv (NYSE:APTV) AbbVie (NYSE:ABBV) Howard Hughes (NYSE:HHC) Disney (NYSE:DIS) Cheap Stocks to Buy: Bristol-Myers Squibb (BMY) BMY) logo displayed on a phone screen" width="300" height="169"> Source: IgorGolovniov / Shutterstock.com Pharmaceutical companies live and die by the drugs they can develop and commercialize. Abbvie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Out of the 22 analysts who currently cover ABBV stock and are tracked by the Wall Street Journal, 14 of them consider it a buy. Clearly, they certainly feel that Abbvie is one of the cheap stocks to buy in January. | Bristol-Myers Squibb (NYSE:BMY) Intel (NASDAQ:INTC) Southwest Airlines (NYSE:LUV) Aptiv (NYSE:APTV) AbbVie (NYSE:ABBV) Howard Hughes (NYSE:HHC) Disney (NYSE:DIS) Cheap Stocks to Buy: Bristol-Myers Squibb (BMY) BMY) logo displayed on a phone screen" width="300" height="169"> Source: IgorGolovniov / Shutterstock.com Pharmaceutical companies live and die by the drugs they can develop and commercialize. Abbvie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Out of the 22 analysts who currently cover ABBV stock and are tracked by the Wall Street Journal, 14 of them consider it a buy. Clearly, they certainly feel that Abbvie is one of the cheap stocks to buy in January. |
24274.0 | 2021-01-04 00:00:00 UTC | 3 Top Biotech Buyout Candidates in 2021 | ABBV | https://www.nasdaq.com/articles/3-top-biotech-buyout-candidates-in-2021-2021-01-04 | nan | nan | Many predictions for the new year probably won't pan out. However, here's one that seems to be a pretty safe bet: There will be several biotech acquisitions. Granted, this prediction is safe because there are several biotech deals made every year.
It's not nearly as easy to accurately forecast which companies will be involved in these transactions. Some biotechs appear to be prime acquisition targets, though. Here are three top biotech buyout candidates in 2021.
Image source: Getty Images.
1. bluebird bio
Many biotech stocks soared last year. Not bluebird bio (NASDAQ: BLUE). Its shares plunged nearly 50%. While that certainly wasn't good for Bluebird shareholders, I think it makes the company a much more attractive acquisition candidate.
It's important to understand why Bluebird wasn't able to fly high in 2020. The stock was hit hard in the overall market meltdown caused by the COVID-19 pandemic in the first quarter of the year. In May, Bluebird and its big partner, Bristol Myers Squibb (NYSE: BMY), received a Refusal to File letter from the U.S. Food and Drug Administration (FDA) for the regulatory filing seeking approval for ide-cel in treating multiple myeloma. Soon afterward, Bluebird conducted a dilution-causing stock offering. And in November, the company announced that was delaying the submission for approval of LentiGlobin as a treatment for sickle cell disease (SCD) from the second half of 2021 to late 2022.
I think that the main takeaway from this streak of bad news for Bluebird is that the biotech doesn't fully have its act together with respect to navigating the regulatory approval process. However, the potential for Bluebird's pipeline remains quite attractive. In addition to ide-cel and LentiGlobin, Bluebird has a promising late-stage candidate for treating rare metabolic disorder cerebral adrenoleukodystrophy with Lenti-D.
Because of its setbacks, Bluebird's market cap now stands at close to $3 billion. I suspect a big drugmaker (hello, Bristol Myers Squibb?) could look at this valuation along with the long-term prospects of Bluebird's pipeline and put this bird in a cage.
2. Editas Medicine
When ARK Investment Management founder and CEO Cathie Woods speaks, people listen. Woods recently stated that she thinks that the "biggest upside surprises are going to come from the genomic space," adding that "gene therapies are going to cure disease." She's very bullish on CRISPR gene editing stocks, notably including Editas Medicine (NASDAQ: EDIT).
Cathie Woods certainly isn't alone in her view about the potential for gene editing. I wouldn't be surprised if major biopharmaceutical companies are at least contemplating making deals in the space, with Editas high on the list.
Sure, AbbVie walked away from a partnership that Allergan had made with Editas to develop gene-editing therapy EDIT-101 for treating genetic eye disorder Leber congenital amaurosis type 10. However, that was before Editas reported outstanding preclinical results in December for another CRISPR candidate, EDIT-301, in treating rare blood diseases sickle cell disease and beta thalassemia.
Editas hopes to begin an early stage clinical study of EDIT-301 in 2021. It should also make progress with its phase 1 study evaluating EDIT-101. Despite skyrocketing more than 150% last year, the biotech's market cap remains under $5 billion. I think that the promise of its pipeline combined with the strength of its CRISPR intellectual property rights could make Editas an attractive takeover candidate this year.
3. Translate Bio
Thanks to the success for COVID-19 vaccines developed by Moderna and the Pfizer-BioNTech partnership, interest in messenger RNA (mRNA) technology is at an all-time high. Don't be surprised if a big drugmaker chooses to scoop up a smaller player to stake a claim in the mRNA space. Translate Bio (NASDAQ: TBIO) could be a top prospect.
Granted, Translate Bio is lagging well behind the leaders in the coronavirus vaccine race. The company and its partner, Sanofi (NASDAQ: SNY), plan to begin a phase 1/2 study of mRNA vaccine candidate MRT5500 in Q1 of this year. But the allure of mRNA goes well beyond just COVID-19.
Translate Bio's pipeline includes an mRNA therapy targeting cystic fibrosis that's in early stage testing. It also teamed up with Sanofi to develop mRNA vaccines for influenza as well as other viral and bacterial diseases.
Sanofi just might decide that it needs more than just collaboration deals with Translate Bio to remain a major player in the global vaccine market with the rise of mRNA technology. With the small biotech's market cap below $1.5 billion, an acquisition could be on the table in the not-too-distant future.
10 stocks we like better than Translate Bio, Inc.
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Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Editas Medicine, and Pfizer. The Motley Fool owns shares of and recommends Bluebird Bio, Bristol Myers Squibb, and Editas Medicine. 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. | Sure, AbbVie walked away from a partnership that Allergan had made with Editas to develop gene-editing therapy EDIT-101 for treating genetic eye disorder Leber congenital amaurosis type 10. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Editas Medicine, and Pfizer. I think that the main takeaway from this streak of bad news for Bluebird is that the biotech doesn't fully have its act together with respect to navigating the regulatory approval process. | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Editas Medicine, and Pfizer. Sure, AbbVie walked away from a partnership that Allergan had made with Editas to develop gene-editing therapy EDIT-101 for treating genetic eye disorder Leber congenital amaurosis type 10. She's very bullish on CRISPR gene editing stocks, notably including Editas Medicine (NASDAQ: EDIT). | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Editas Medicine, and Pfizer. Sure, AbbVie walked away from a partnership that Allergan had made with Editas to develop gene-editing therapy EDIT-101 for treating genetic eye disorder Leber congenital amaurosis type 10. 1. bluebird bio Many biotech stocks soared last year. | Sure, AbbVie walked away from a partnership that Allergan had made with Editas to develop gene-editing therapy EDIT-101 for treating genetic eye disorder Leber congenital amaurosis type 10. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Editas Medicine, and Pfizer. 1. bluebird bio Many biotech stocks soared last year. |
24275.0 | 2021-01-01 00:00:00 UTC | These 4 Micro-Cap Healthcare Stocks Gained the Most in 2020 | ABBV | https://www.nasdaq.com/articles/these-4-micro-cap-healthcare-stocks-gained-the-most-in-2020-2021-01-01 | nan | nan | If you're like me, you're an eternal optimist when it comes to the march of scientific progress and its ability to improve human life. Making new technologies, foods, and medicines is never easy, but it still pays off time and time again for investors and members of the public alike. If you want to get rich off of advancements in science, however, you'll need to know which innovative companies are the most promising -- preferably long before everyone else realizes the same thing.
The stocks that I'll discuss today are micro-cap stocks, which means that they have market capitalizations between $50 million and $300 million. Think of them as early stage public companies that don't have much consistent revenue yet. Their products or methods might be unproven, but their businesses tend to have a lot of room to grow. So, while you shouldn't allocate 100% of your portfolio to micro-cap stocks, they can be great for long-term investing.
Image source: Getty Images.
1. iBio
iBio (NYSEMKT: IBIO) expanded by more than 349% this year after initiating two coronavirus vaccine programs, both of which are still in preclinical development. Nonetheless, this pair of projects is likely what put the stock on the map for investors, and preliminary data reports in August show that one of the candidates appears to be effective. But there's a long road ahead before the company could see any revenue, as the clinical trials are just beginning.
Aside from its development pipeline, iBio also performs contract manufacturing and development for other small biotech companies. While these activities don't make it profitable, they do partially subsidize the development of intellectual property (IP) pertaining to drug manufacturing. Time will tell whether its IP will pay off enough to be sustainable. In the meantime, be on the lookout for announcements of major new development partners or news about its coronavirus vaccine projects.
2. AquaBounty Technologies
Most investors probably haven't heard of AquaBounty Technologies (NASDAQ: AQB), even though its stock more than tripled in 2020. In a nutshell, AquaBounty develops and raises genetically engineered salmon that eat less feedstock and yield more when harvested. So, when the company announced that its very first batch of super-salmon would be harvested before the end of the year, its stock popped in anticipation. In fact, while it spent most of the year as a micro-cap, AquaBounty has grown enough since the end of September to earn the small-cap label.
Currently, its salmon product is the only genetically engineered animal protein that's approved by regulators for human consumption in the U.S. and Canada. Over the next few years, AquaBounty plans to build new farming facilities in North America while advancing through the regulatory approval process in a handful of international markets. This means that its revenue growth is likely on the verge of accelerating and delivering the company with its first consistent earnings. Investors should take note: The company is shaping up to be a leader in the food market of the future.
IBIO data by YCharts
3. Alpine Immune Sciences
Alpine Immune Sciences (NASDAQ: ALPN) tripled in value this year with a new collaboration worth up to $805 million with AbbVie to develop its ALPN-101 anti-inflammatory drug. When the deal was announced in June, Alpine's stock skyrocketed. According to the latest earnings report, the collaboration should yield enough cash to continue developing its lead pipeline programs through 2024.
Importantly, this means that the company will be able to move forward on its wholly owned phase 1 ALPN-202 project for advanced malignancies. While the AbbVie deal is a big break in the short term, Alpine's long-term growth potential rests in its internally developed projects. So keep an eye on ALPN-202 to see whether the clinical data is living up to the company's hopes.
4. CTI BioPharma
CTI BioPharma (NASDAQ: CTIC) more than doubled its value in 2020 with growth of 108.9%, driven by its PRE-VENT therapy for severe COVID-19. Because the company moved fast to meet the pandemic-induced demand for life-saving drugs, PRE-VENT is already in phase 3 of its clinical trials. Look for an interim update from this program in early 2021, and expect CTI's stock to move up or down in line with the results.
Aside from PRE-VENT, CTI also has several other programs that aim to treat myelofibrosis. At least one of these programs could be approved in 2021, which would give the company recurring revenue for the first time and catalyze further stock growth. But be aware that all of CTI's eggs are in one basket. All of its pipeline projects are based around its antibody pacritinib, so unexpected setbacks with its safety characteristics or manufacturing process could be particularly damaging.
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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. | While the AbbVie deal is a big break in the short term, Alpine's long-term growth potential rests in its internally developed projects. Alpine Immune Sciences Alpine Immune Sciences (NASDAQ: ALPN) tripled in value this year with a new collaboration worth up to $805 million with AbbVie to develop its ALPN-101 anti-inflammatory drug. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Alex Carchidi owns shares of AbbVie. | Alpine Immune Sciences Alpine Immune Sciences (NASDAQ: ALPN) tripled in value this year with a new collaboration worth up to $805 million with AbbVie to develop its ALPN-101 anti-inflammatory drug. While the AbbVie deal is a big break in the short term, Alpine's long-term growth potential rests in its internally developed projects. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Alex Carchidi owns shares of AbbVie. | Alpine Immune Sciences Alpine Immune Sciences (NASDAQ: ALPN) tripled in value this year with a new collaboration worth up to $805 million with AbbVie to develop its ALPN-101 anti-inflammatory drug. While the AbbVie deal is a big break in the short term, Alpine's long-term growth potential rests in its internally developed projects. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Alex Carchidi owns shares of AbbVie. | Alpine Immune Sciences Alpine Immune Sciences (NASDAQ: ALPN) tripled in value this year with a new collaboration worth up to $805 million with AbbVie to develop its ALPN-101 anti-inflammatory drug. While the AbbVie deal is a big break in the short term, Alpine's long-term growth potential rests in its internally developed projects. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Alex Carchidi owns shares of AbbVie. |
24276.0 | 2020-12-31 00:00:00 UTC | 3 Stocks That Can Pay You More Than Social Security Benefits | ABBV | https://www.nasdaq.com/articles/3-stocks-that-can-pay-you-more-than-social-security-benefits-2020-12-31 | nan | nan | Social Security benefits are a major source of income for millions of retirees. In fact, nearly nine in 10 Americans say their benefits will make up at least a portion of their income in retirement, according to a poll from Gallup.
However, the average retiree only receives around $1,500 per month from Social Security, data from the Social Security Administration shows. For many retirees, benefits alone won't be enough to pay the bills.
To supplement your Social Security benefits, you may choose to invest in stocks. Investing in the stock market is one of the most effective ways to build a strong nest egg, but there are some stocks that can also provide passive income in retirement. And if you invest enough money in the right stocks, these investments could pay you even more than Social Security benefits.
Image source: Getty Images.
How to earn passive income from stocks
Not all stocks provide passive income in retirement; the ones that do are called dividend stocks. Companies that pay dividends are usually large, profitable corporations. When they have extra cash at the end of the quarter or year, rather than investing all of it back into the business, they may choose to pay a portion of it back to shareholders in the form of a quarterly dividend.
When you receive a dividend payment, you can either invest it back into your stock or cash it out. Reinvesting it is a smart option when you're still working, because the more shares of stock you own, the more you'll receive in dividends. But once you retire, you may choose to cash out your dividend payments as a source of passive income.
Also, not all dividend stocks are created equal. Some companies suspend their dividends during tough economic times, while others have been increasing their dividend payments every year for decades. The Dividend Aristocrats are an elite group of companies that have increased their dividend every year for at least 25 consecutive years, so if you're looking for more consistent dividend payments, choosing stocks from this list may be the way to go.
How much you can earn in dividends will depend on which stocks you're investing in and how many shares you own. Here are a few options, as well as how much you'd need to invest in each stock to earn more than the average Social Security payment in dividends.
1. Chevron
Chevron (NYSE: CVX) is part of the Dividend Aristocrats group, having increased its dividend every year for 32 consecutive years. It currently pays a quarterly dividend that totals $5.16 annually, meaning that for each share you own, you'll receive $5.16 per year in dividend payments.
The average Social Security benefit amount is roughly $1,500 per month, or around $18,000 per year. To receive more than that in dividend payments, you'd need to own approximately 3,488 shares of Chevron stock. As of Dec. 28, Chevron stock costs roughly $85 per share. So to earn at least $1,500 per month in dividend payments, you'd need to have close to $296,500 invested in this stock.
While that number may seem unrealistic, remember that you don't need to invest that much all at once. If you invest consistently for years and also reinvest any dividend payments you receive during that time, it will be easier to invest a significant amount of money.
2. AbbVie
Healthcare company AbbVie (NYSE: ABBV) is another member of the Dividend Aristocrats, and it has increased its dividend by 195% since 2013. It currently pays $5.20 per year in total quarterly dividends, so you'd need around 3,462 shares of this company to earn at least $1,500 per month in dividend payments.
This stock is a little pricier at around $103 per share, so you'd need to invest a total of around $356,600 in this stock to earn more than you would with Social Security.
3. ExxonMobil
ExxonMobil (NYSE: XOM) has been paying dividends for more than 100 years. It's also part of the Dividend Aristocrats group, having increased its dividend by around 6% per year, on average, over the past 38 years.
This company currently has a quarterly dividend that totals $3.48 per year, meaning you'd need around 5,172 shares of this stock to earn as much as you would with Social Security. This stock is more affordable than the others on the list, however, with a current stock price of around $41 per share. That means you'd need to invest a total of around $212,000 to earn at least $1,500 per month in dividend payments.
Building a balanced portfolio
As you're saving for retirement, it's crucial to make sure you're diversifying your investments. Investing all your money into a single stock can be a recipe for disaster, so it's wise to spread your savings across at least 10 to 15 different stocks to limit your risk.
Even if you can't invest enough in dividend stocks to earn thousands of dollars per month in passive income, that doesn't mean these stocks aren't a smart investment. By investing in solid companies that are paying consistent dividends, you can boost your retirement income and enjoy your senior years more comfortably.
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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 Healthcare company AbbVie (NYSE: ABBV) is another member of the Dividend Aristocrats, and it has increased its dividend by 195% since 2013. In fact, nearly nine in 10 Americans say their benefits will make up at least a portion of their income in retirement, according to a poll from Gallup. This company currently has a quarterly dividend that totals $3.48 per year, meaning you'd need around 5,172 shares of this stock to earn as much as you would with Social Security. | AbbVie Healthcare company AbbVie (NYSE: ABBV) is another member of the Dividend Aristocrats, and it has increased its dividend by 195% since 2013. How to earn passive income from stocks Not all stocks provide passive income in retirement; the ones that do are called dividend stocks. Chevron Chevron (NYSE: CVX) is part of the Dividend Aristocrats group, having increased its dividend every year for 32 consecutive years. | AbbVie Healthcare company AbbVie (NYSE: ABBV) is another member of the Dividend Aristocrats, and it has increased its dividend by 195% since 2013. How to earn passive income from stocks Not all stocks provide passive income in retirement; the ones that do are called dividend stocks. The Dividend Aristocrats are an elite group of companies that have increased their dividend every year for at least 25 consecutive years, so if you're looking for more consistent dividend payments, choosing stocks from this list may be the way to go. | AbbVie Healthcare company AbbVie (NYSE: ABBV) is another member of the Dividend Aristocrats, and it has increased its dividend by 195% since 2013. And if you invest enough money in the right stocks, these investments could pay you even more than Social Security benefits. It currently pays $5.20 per year in total quarterly dividends, so you'd need around 3,462 shares of this company to earn at least $1,500 per month in dividend payments. |
24277.0 | 2020-12-31 00:00:00 UTC | 3 Warren Buffett Stocks Worth Buying Now | ABBV | https://www.nasdaq.com/articles/3-warren-buffett-stocks-worth-buying-now-2020-12-31 | nan | nan | When it comes to stock market trading, few investors are more legendary than Warren Buffett. The Oracle of Omaha is one of the richest individuals alive and has amassed a net worth of nearly $90 billion at the time of this writing. Through Buffett's holding company Berkshire Hathaway, the investment mogul controls a substantial portfolio of stocks across industries ranging from financial services to tech to healthcare.
Like any investor, Warren Buffett has marked some big wins and losses over the years, but his long-term investment mantra and focus on stacking his portfolio with top-notch value stocks has stood the test of time. The volatility of the pandemic stock market has generated some remarkable investment opportunities, and as Warren Buffett says: "Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble."
Here are three Warren Buffet stocks you should consider adding to your portfolio in the new year to maximize your returns over the next decade or longer.
Image source: Getty Images.
1. AbbVie
Shares of large-cap biopharmaceutical company AbbVie (NYSE: ABBV) have risen about 18% over the trailing-12-month period despite extreme fluctuations in the broader market. The stock is a well-known Dividend Aristocrat, having consistently raised its dividend on an annual basis for nearly five decades. AbbVie's dividend yield (5.04% based on current share prices) is also well above that of the average stock on the S&P 500, which makes the company a great choice for income-seeking investors.
Although healthcare stocks have generally battled fewer headwinds in the pandemic economy, few have fared as well as AbbVie. The company has a recession-resilient portfolio of products ranging from immunology drugs to oncology therapies to medical aesthetics. Because of this, AbbVie reported double-digit year-over-year net revenue growth in each of the first three quarters of 2020: 10.1%, 26.3%, and 52.1%, respectively.
Among AbbVie's most profitable products are immunosuppressive drug Humira, rheumatoid arthritis treatment Rinvoq, plaque psoriasis drug Skyrizi, targeted cancer therapy Imbruvica, and Botox, which the company acquired when it purchased Allergan back in May. In the third quarter, these five products alone amassed revenues of $5.1 billion, $215 million, $435 million, $1.4 billion, and $393 million, respectively.
In AbbVie's third-quarter report, management increased the company's adjusted diluted earnings-per-share (EPS) guidance for 2020 and boosted its 2021 dividend by more than 10%. These actions are clear signs of management's high confidence in AbbVie's future continued growth. Analysts are also expecting great things from AbbVie over the next few years, and project that the company will report double-digit earnings growth every year over the next five years alone.
Based on its robust dividend and growth opportunity, AbbVie remains an excellent stock to buy and hold for the long term, regardless of what the market brings in the new year.
2. Amazon
Although Warren Buffett has historically shied away from high-growth stocks, Berkshire Hathaway maintains a modest position in Amazon (NASDAQ: AMZN). The FAANG company has been one of the high performers in the coronavirus stock market, and it continues to grow its foothold on the lucrative e-commerce space. According to Statista, Amazon is expected to control a 50% share of the U.S. e-commerce retail market by 2021.
Shares of Amazon have gained serious momentum over the past decade. For example, if you had invested $1,000 in Amazon just 10 years ago, that investment would be worth more than $16,000 today. Over the past 12 months, Amazon has jumped from about $1,850 per share to nearly $3,300 per share as investors capitalize on the company's continued above-average growth, despite the market's ups and downs.
Besides Amazon's booming e-commerce business, another reason for its ongoing success is its ability to consistently expand its presence to highly profitable industries. From cloud infrastructure to smart devices to grocery to pharmacy, Amazon's habit of unlocking new means of growth potential and unseating established rivals make it a force to be reckoned with in whatever industry it chooses to disrupt next.
After clocking year-over-year net sales increases of 26%, 40%, and 37%, respectively, in the first three quarters of 2020, Amazon expects to report between 28% and 38% net sales growth when it releases its fourth-quarter results in February.
If you want to invest in a company that you can easily keep in your portfolio forever, Amazon is one of those unstoppable stocks that fits the bill.
3. General Motors
With more than a century of business under its belt, General Motors (NYSE: GM) has seen it all. From two world wars to the Great Depression to the Great Recession to the current market mayhem, the automaker has managed to survive the worst of the worst. Trading at just around $40 per share and 19 times trailing earnings, General Motors is the most affordable stock on this list.
General Motors is a prime example of a value stock. Over the last few years, the company's growth has been tepid, at best. For example, in 2018, the company reported just 1% year-over-year net revenue growth, while its net revenue dropped by 6.7% in 2019. The coronavirus pandemic has had a noticeable impact on the company's balance sheet, with General Motors reporting its net revenue down 6.2% and 53%, respectively, year over year during the first and second quarters of 2020.
After a rough few quarters, investors rejoiced when the company reported better-than-expected third-quarter results. Although GM's third-quarter revenues of $35.5 billion represented a 0% increase from the year-ago period, the fact that the company didn't dip into negative territory was encouraging.
Throughout the pandemic, General Motors' commitment to maintaining high liquidity has helped it to mitigate losses, pay down debt, and prepare for the future. The company closed the third quarter with nearly $38 billion in automotive liquidity and almost $10 billion in operating cash flow from its auto business.
General Motors' footprint in the electric vehicles market should be a vital catalyst for future growth. Management has set 2025 as the target by when it plans to release 30 global electric vehicles, and recently launched the Hummer EV supertruck in October. In November, General Motors also announced a landmark deal with Nikola to furnish its hydrotec fuel cell systems for the company's electric-powered class 7/8 semi-trucks. General Motors also continues to see high consumer demand for its more traditional lineup of vehicles, as evidenced by its $76 million investment in two additional U.S. manufacturing plants in December, along with its third-quarter launch of "an all-new portfolio of fullsize SUVs."
It may take some time, but General Motors can overcome the headwinds it's faced of late. Investors willing to wait it out could see some serious upside over the next few years as the company taps into new sources of revenue growth in its pursuit of an "all-electric 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. | AbbVie Shares of large-cap biopharmaceutical company AbbVie (NYSE: ABBV) have risen about 18% over the trailing-12-month period despite extreme fluctuations in the broader market. AbbVie's dividend yield (5.04% based on current share prices) is also well above that of the average stock on the S&P 500, which makes the company a great choice for income-seeking investors. Although healthcare stocks have generally battled fewer headwinds in the pandemic economy, few have fared as well as AbbVie. | Because of this, AbbVie reported double-digit year-over-year net revenue growth in each of the first three quarters of 2020: 10.1%, 26.3%, and 52.1%, respectively. AbbVie Shares of large-cap biopharmaceutical company AbbVie (NYSE: ABBV) have risen about 18% over the trailing-12-month period despite extreme fluctuations in the broader market. AbbVie's dividend yield (5.04% based on current share prices) is also well above that of the average stock on the S&P 500, which makes the company a great choice for income-seeking investors. | AbbVie Shares of large-cap biopharmaceutical company AbbVie (NYSE: ABBV) have risen about 18% over the trailing-12-month period despite extreme fluctuations in the broader market. AbbVie's dividend yield (5.04% based on current share prices) is also well above that of the average stock on the S&P 500, which makes the company a great choice for income-seeking investors. Although healthcare stocks have generally battled fewer headwinds in the pandemic economy, few have fared as well as AbbVie. | Analysts are also expecting great things from AbbVie over the next few years, and project that the company will report double-digit earnings growth every year over the next five years alone. AbbVie Shares of large-cap biopharmaceutical company AbbVie (NYSE: ABBV) have risen about 18% over the trailing-12-month period despite extreme fluctuations in the broader market. AbbVie's dividend yield (5.04% based on current share prices) is also well above that of the average stock on the S&P 500, which makes the company a great choice for income-seeking investors. |
24278.0 | 2020-12-31 00:00:00 UTC | How to Find the Best Dividend Stocks | ABBV | https://www.nasdaq.com/articles/how-to-find-the-best-dividend-stocks-2020-12-31 | nan | nan | Dividend-paying stocks can make your financial life much better in a variety of ways. They can provide regular, dependable income year in and year out, no matter what the economy is doing. They can help support you in retirement with that income -- often without your having to sell the dividend-generating shares. Those dividends will typically grow over time, helping you keep up with inflation, too.
Dividend payers have been shown to outperform non-payers, on average, and they deserve a spot in your portfolio -- perhaps even a big spot. Here's how to find the best dividend-paying stocks.
Image source: Getty Images.
Look for growing, high quality companies
Start by just looking for the best companies you can find. Read widely -- including at sites such as The Motley Fool, where we write about promising companies every day. You might focus on companies with which you're fairly familiar, such as ones in your industry. Or you might focus on ones you can understand well -- that's always smart, because some businesses are far more complicated than others (think biotechnology versus supermarkets or apparel companies), and the better you understand a company, the less likely it is that you'll be surprised by bad news one day.
Among the most promising companies you find, seek the dividend payers among them
Look for solid dividend yields
Next, look for companies with solid dividend yields. Remember that a company's dividend yield is its total annual dividend amount divided by its current stock price. So, for example, if Starbucks (NASDAQ: SBUX) is paying $1.80 per year (in quarterly payments of $0.45) and it's trading at $104 per share, you'd divide $1.80 by $104, getting 0.017, or a 1.7% dividend yield. That tells you that if you buy into Starbucks now, you'll receive 1.7% of your purchase price over the course of a year: A $5,000 investment would generate $85 in annual dividend income.
Be careful with super steep yields, though -- because they often reflect a struggling company. Remember the dividend yield formula -- if the stock price plunges and the dividend amount holds steady, the yield will rise. If Starbucks were suddenly trading at $90 per share, for example, you'd divide its $1.80 annual dividend by $75 and you'd get 0.024, or 2.4%.
Look for growing dividends
Dividend growth is an important consideration, too, because most good dividends are increased over time -- often annually. They increase at different rates, too. So a company with a 1.5% yield may be a better long-term investment than one with a 3% yield, if the former is growing at an average annual rate of 12%, while the latter is growing at 2%, on average.
Here are some examples of familiar companies, their recent dividend yields, and their five-year average annual dividend growth rate:
COMPANY
RECENT DIVIDEND YIELD
5-YEAR DIVIDEND GROWTH RATE*
AbbVie
5%
18.3%
AT&T
7.25%
2%
Realty Income
4.6%
4.1%
CVS Health
2.9%
7.4%
Hasbro
2.9%
8.1%
PepsiCo
2.8%
7.8%
Clorox
2.2%
7.6%
Starbucks
1.7%
17.6%
Walmart
1.5%
2%
Apple
0.6%
9.6%
Visa
0.6%
18%
Source: Yahoo! Finance, author calculations.
Look for reasonable payout ratios
Finally, check the payout ratio of any dividend stock you're considering. The payout ratio reflects the percentage of a company's earnings that it's shelling out in dividends. Coca-Cola, for example, recently had earnings per share (EPS) over the past 12 months of $1.93, and an annual dividend rate of $1.64 per share. Divide $1.64 by $1.93 and you'll arrive at a payout ratio of 0.85, or 85%, which shows Coca-Cola paying out 85% of its earnings as dividends.
Note that with real estate investment trusts (REITs), it's best to calculate a dividend yield by dividing the annual dividend sum by the trailing twelve months' of "funds from operations" (FFO), as that more accurately reflects income. (The usual EPS number will include depreciation, an accounting item that can be hefty in real estate.)
A low payout ratio is good because it means there's lots of room for future dividend growth. (It might also mean that the company has other pressing needs or preferences for much of its earnings, such as paying down debt, buying back shares, or fueling growth. A high ratio, say, of 80% or 90% or more, reveals not too much room for growth -- though remember that the company's earnings may be somewhat depressed from time to time, such as if it's being challenged by a pandemic. A very high payout ratio -- of more than 100% -- is unsustainable over the long run. It's not a short-term dealbreaker, though, because if earnings are higher in the years to come, the dividend will again become manageable. But otherwise, that dividend will likely be reduced, suspended, or eliminated entirely. Disney, for example, recently suspended its payout, due to COVID-19-related challenges.
So consider including some healthy and growing dividend payers in your portfolio. You'll find plenty to choose from among consumer product companies, financial companies, technology companies, real estate companies, and much more.
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Selena Maranjian owns shares of AbbVie, Apple, AT&T, Realty Income, Starbucks, and Walt Disney. The Motley Fool owns shares of and recommends Apple, Hasbro, Starbucks, Visa, and Walt Disney. The Motley Fool recommends CVS Health and recommends the following options: short January 2021 $135 calls on Walt Disney, short January 2021 $100 calls on Starbucks, and long January 2021 $60 calls on Walt Disney. 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 5% 18.3% See the 10 stocks Stock Advisor returns as of 2/1/20 Selena Maranjian owns shares of AbbVie, Apple, AT&T, Realty Income, Starbucks, and Walt Disney. So, for example, if Starbucks (NASDAQ: SBUX) is paying $1.80 per year (in quarterly payments of $0.45) and it's trading at $104 per share, you'd divide $1.80 by $104, getting 0.017, or a 1.7% dividend yield. | AbbVie 5% 18.3% See the 10 stocks Stock Advisor returns as of 2/1/20 Selena Maranjian owns shares of AbbVie, Apple, AT&T, Realty Income, Starbucks, and Walt Disney. 7.25% 2% Realty Income 4.6% 4.1% CVS Health 2.9% 7.4% Hasbro 2.9% 8.1% PepsiCo 2.8% 7.8% Clorox 2.2% 7.6% Starbucks 1.7% 17.6% Walmart 1.5% 2% Apple 0.6% 9.6% Visa 0.6% 18% Source: Yahoo! | AbbVie 5% 18.3% See the 10 stocks Stock Advisor returns as of 2/1/20 Selena Maranjian owns shares of AbbVie, Apple, AT&T, Realty Income, Starbucks, and Walt Disney. Among the most promising companies you find, seek the dividend payers among them Look for solid dividend yields Next, look for companies with solid dividend yields. | See the 10 stocks Stock Advisor returns as of 2/1/20 Selena Maranjian owns shares of AbbVie, Apple, AT&T, Realty Income, Starbucks, and Walt Disney. AbbVie 5% 18.3% So a company with a 1.5% yield may be a better long-term investment than one with a 3% yield, if the former is growing at an average annual rate of 12%, while the latter is growing at 2%, on average. |
24279.0 | 2020-12-29 00:00:00 UTC | ACWI, TMO, ABBV, CVX: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/acwi-tmo-abbv-cvx%3A-large-outflows-detected-at-etf-2020-12-29 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI ACWI ETF (Symbol: ACWI) where we have detected an approximate $288.6 million dollar outflow -- that's a 2.0% decrease week over week (from 160,000,000 to 156,800,000). Among the largest underlying components of ACWI, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 1.3%, and Chevron Corporation (Symbol: CVX) is lower by about 0.2%. For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average:
Looking at the chart above, ACWI's low point in its 52 week range is $53.31 per share, with $90.885 as the 52 week high point — that compares with a last trade of $90.54. 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 ACWI, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 1.3%, and Chevron Corporation (Symbol: CVX) is lower by about 0.2%. For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average: Looking at the chart above, ACWI's low point in its 52 week range is $53.31 per share, with $90.885 as the 52 week high point — that compares with a last trade of $90.54. 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 ACWI, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 1.3%, and Chevron Corporation (Symbol: CVX) is lower by about 0.2%. For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average: Looking at the chart above, ACWI's low point in its 52 week range is $53.31 per share, with $90.885 as the 52 week high point — that compares with a last trade of $90.54. 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 ACWI, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 1.3%, and Chevron Corporation (Symbol: CVX) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI ACWI ETF (Symbol: ACWI) where we have detected an approximate $288.6 million dollar outflow -- that's a 2.0% decrease week over week (from 160,000,000 to 156,800,000). For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average: Looking at the chart above, ACWI's low point in its 52 week range is $53.31 per share, with $90.885 as the 52 week high point — that compares with a last trade of $90.54. | Among the largest underlying components of ACWI, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 1.3%, and Chevron Corporation (Symbol: CVX) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI ACWI ETF (Symbol: ACWI) where we have detected an approximate $288.6 million dollar outflow -- that's a 2.0% decrease week over week (from 160,000,000 to 156,800,000). For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average: Looking at the chart above, ACWI's low point in its 52 week range is $53.31 per share, with $90.885 as the 52 week high point — that compares with a last trade of $90.54. |
24280.0 | 2020-12-29 00:00:00 UTC | Have $600 and 10 Years to Wait? Park It in These 3 Top Stocks | ABBV | https://www.nasdaq.com/articles/have-%24600-and-10-years-to-wait-park-it-in-these-3-top-stocks-2020-12-29 | nan | nan | Are you in line to receive a $600 stimulus check you don't need right now? If so, you should think about backing that extra cash into one of these top healthcare stocks.
During the coronavirus pandemic, we've seen how successful healthcare companies can thrive during economic circumstances that crush most businesses. AbbVie (NYSE: ABBV), CVS Health (NYSE: CVS), and Teladoc Health (NYSE: TDOC) operate in different corners of the healthcare sector, but they're all positioned to outperform for patient investors.
Image source: Getty Images.
1. AbbVie
This company's doing everything it can to offset competitive pressure for its top-selling immunology drug, Humira. The strategy is working. Despite biosimilar competition for Humira in the EU, bounding U.S. sales of the same drug and a pair of more recently launched treatments pushed total immunology portfolio sales about 15% higher year over year in the third quarter.
The recent acquisition of Allergan and its Botox portfolio added some growing revenue streams that reduced AbbVie's reliance on Humira to just 45% of total revenue at the moment. Sales of Skyrizi, a new treatment for psoriasis, and Rinvoq, a new treatment for rheumatoid arthritis, are rising quickly enough to offset biosimilar competition for Humira that's expected to begin in a few years. Rinvoq and Skyrizi launched in 2019 and they're already generating around $2.6 billion in combined annual revenue.
The stock offers a juicy 5.2% dividend yield at recent prices, and successful new drug launches put AbbVie in a position to raise its payout significantly over the next decade. AbbVie has more than tripled its dividend payout since 2013. Investors buying the stock now can reasonably expect their payouts to keep soaring in the decade ahead.
2. CVS Health
While you're probably not far from one of CVS' 9,900 retail pharmacy locations, you might not realize the company also manages pharmacy benefits for health plan sponsors that cover about 103 million members. Through the acquisition of Aetna in 2018, the company also manages health insurance benefits for around 33 million people.
It's hard to measure all the ways bringing associated healthcare services under the same umbrella allows CVS Health to stay a step ahead of smaller, less diversified competitors. We can see in the numbers, though, the strategy is designed to work out well for investors in good times and bad.
Back in February, CVS Health was expecting adjusted earnings to reach between $7.04 and $7.17 per share this year. That was before the coronavirus pandemic raised its ugly head. Despite COVID-19 challenges, CVS Health raised its bottom-line expectation for 2020 to a range between $7.35 and $7.45 per share this November.
At recent prices, this healthcare stock offers a nice 2.9% dividend yield that will bound much higher over the next decade. The company has frozen its payout in place to help pay down debt incurred to acquire its health benefits business, but patients investors should be well rewarded. CVS Health's operations generated a whopping $12.6 billion in free cash flow over the past year, which was enough to cover its dividend obligation about five times over.
Image source: Getty Images.
3. Teladoc Health
This company's one of many jostling for a leading share of the enormous market for telehealth services. Thanks to the acquisition of Livongo Health earlier this year, though, Teladoc Health has the best shot at remaining the leading facilitator of medical services at a distance. That's because Livongo's leading an effort to address America's chronic care crisis.
Around half of all Americans live with a chronic disease. Caring for these conditions represents an estimated 86 cents of every dollar spent on healthcare. Sadly, the medical community at large still isn't up to speed when it comes to managing chronic conditions like diabetes, asthma, and hypertension so they don't lead to expensive hospitalizations. That's where Teladoc comes in.
Healthcare plan sponsors are quickly catching on to the fact that hiring Livongo to help employees manage chronic conditions costs less than expecting them to manage their conditions on their own.
Since merging with Livongo, Teladoc employer clients have been eager to add Livongo services. The company has only scratched the surface. As the clear leader in a market with lots of room to grow, this stock could deliver tremendous gains over the long run.
They don't always go straight up
While all three of these companies have the means to drive their bottom lines steadily higher in the coming decade, stocks never rise in a straight line for very long. These companies have what it takes to outperform for you, but not if you cut and run before they get a chance to prove themselves.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Teladoc Health. The Motley Fool recommends CVS Health. 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. | The stock offers a juicy 5.2% dividend yield at recent prices, and successful new drug launches put AbbVie in a position to raise its payout significantly over the next decade. AbbVie (NYSE: ABBV), CVS Health (NYSE: CVS), and Teladoc Health (NYSE: TDOC) operate in different corners of the healthcare sector, but they're all positioned to outperform for patient investors. AbbVie This company's doing everything it can to offset competitive pressure for its top-selling immunology drug, Humira. | AbbVie (NYSE: ABBV), CVS Health (NYSE: CVS), and Teladoc Health (NYSE: TDOC) operate in different corners of the healthcare sector, but they're all positioned to outperform for patient investors. The stock offers a juicy 5.2% dividend yield at recent prices, and successful new drug launches put AbbVie in a position to raise its payout significantly over the next decade. AbbVie This company's doing everything it can to offset competitive pressure for its top-selling immunology drug, Humira. | AbbVie (NYSE: ABBV), CVS Health (NYSE: CVS), and Teladoc Health (NYSE: TDOC) operate in different corners of the healthcare sector, but they're all positioned to outperform for patient investors. AbbVie This company's doing everything it can to offset competitive pressure for its top-selling immunology drug, Humira. The recent acquisition of Allergan and its Botox portfolio added some growing revenue streams that reduced AbbVie's reliance on Humira to just 45% of total revenue at the moment. | AbbVie (NYSE: ABBV), CVS Health (NYSE: CVS), and Teladoc Health (NYSE: TDOC) operate in different corners of the healthcare sector, but they're all positioned to outperform for patient investors. AbbVie This company's doing everything it can to offset competitive pressure for its top-selling immunology drug, Humira. The recent acquisition of Allergan and its Botox portfolio added some growing revenue streams that reduced AbbVie's reliance on Humira to just 45% of total revenue at the moment. |
24281.0 | 2020-12-29 00:00:00 UTC | 3 Stocks That'll Turn Your $600 Stimulus Check Into a Money Machine | ABBV | https://www.nasdaq.com/articles/3-stocks-thatll-turn-your-%24600-stimulus-check-into-a-money-machine-2020-12-29 | nan | nan | More stimulus checks are on the way. After months of political wrangling and plenty of twists and turns, most Americans will soon receive $600 stimulus checks.
For many, this money will be critical in helping make ends meet. For others who aren't struggling financially, it will be a nice bonus they could use in lots of different ways. The most important priorities for using your stimulus money are to pay all your bills and shore up your emergency fund.
If you've got those bases covered, though, investing in stocks with great long-term prospects is a really smart way to use the funds. But which stocks should you consider buying? Here are three stocks that'll turn your $600 stimulus check into a money machine by paying consistent and solid dividends.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) qualifies as a Dividend Aristocrat (an S&P 500 member that has increased its dividends for at least 25 consecutive years) because it was part of Abbott Labs for 125 years before being spun off as a separate entity in 2013. AbbVie has increased its dividend by 225% since the spin-off, with its yield currently topping 5%.
I think that AbbVie's dividend program should remain strong for a long time to come. Sure, the company's top-selling drug Humira will face increased competition when biosimilar rivals hit the U.S. market in 2023. However, past experience with other blockbuster autoimmune disease drugs showed that while sales will fall off significantly, they won't evaporate.
Importantly, AbbVie has been preparing for the challenges to Humira for years. It has two products already on the market to take the baton from Humira: Rinvoq and Skyrizi. AbbVie thinks these two autoimmune disease drugs will generate combined sales of around $15 billion by 2025. That should offset much of the anticipated sales decline for Humira.
AbbVie also has several other growth drivers. In particular, blood cancer drugs Imbruvica and Venclexta enjoy solid momentum. Sales also continue to climb for Ubrelvy and Vraylar, two neuroscience drugs AbbVie picked up with its acquisition of Allergan earlier this year.
2. Brookfield Renewable
There's a strong case to be made that Brookfield Renewable Partners (NYSE: BEP) is the top energy dividend stock on the market today. You might find that claim a little surprising, considering that the company's dividend yield is around 2% -- not bad, but not necessarily mouthwatering.
Brookfield Renewable is so attractive, though, for its long-term growth prospects. Renewable energy is the future of energy production. Solar and wind are already the most cost-effective bulk sources of electric power. Countries and large companies around the world have committed to reducing carbon emissions, which will boost the demand for renewable energy.
Brookfield Renewable is ready to meet the increased demand. The company's capacity currently stands at more than 19,000 megawatts, with renewable energy facilities across four continents. It has a development pipeline of 18,000 megawatts.
The company expects to deliver total returns over the long term of between 12% and 15%. With the strong outlook for renewable energy, Brookfield Renewable should reach and perhaps beat its goal.
3. Innovative Industrial Properties
I think that Innovative Industrial Properties (NYSE: IIPR) is the dividend stock most likely to double in 2021. If I'm right, that makes IIP's dividend yield of around 2.6% a lot more attractive than it would otherwise be.
IIP is the leading real estate investment trust (REIT) focused on the medical cannabis market. As a REIT, it must return at least 90% of its taxable income to shareholders in the form of dividends. Since paying its first dividend in late 2017, IIP's dividend has soared nearly 727%. And its stock has skyrocketed even more.
Can IIP really double in the new year? It's quite possible. The company currently owns 66 medical cannabis properties in 17 states. The medical cannabis markets in many of these states are still only in their early stages, giving IIP plenty of opportunities to grow. And there are more states that have legalized medical cannabis where IIP doesn't own properties right now than those where it does.
My view is that IIP's real estate capital alternative for medical cannabis operators will remain very attractive throughout 2021 and beyond. As IIP adds more properties, its revenue and earnings will increase. That will drive its dividend even higher. Buying this stock really should turn your stimulus check into a money machine.
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Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Innovative Industrial Properties. The Motley Fool owns shares of and recommends Innovative Industrial 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. | Sales also continue to climb for Ubrelvy and Vraylar, two neuroscience drugs AbbVie picked up with its acquisition of Allergan earlier this year. AbbVie AbbVie (NYSE: ABBV) qualifies as a Dividend Aristocrat (an S&P 500 member that has increased its dividends for at least 25 consecutive years) because it was part of Abbott Labs for 125 years before being spun off as a separate entity in 2013. AbbVie has increased its dividend by 225% since the spin-off, with its yield currently topping 5%. | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Innovative Industrial Properties. AbbVie AbbVie (NYSE: ABBV) qualifies as a Dividend Aristocrat (an S&P 500 member that has increased its dividends for at least 25 consecutive years) because it was part of Abbott Labs for 125 years before being spun off as a separate entity in 2013. AbbVie has increased its dividend by 225% since the spin-off, with its yield currently topping 5%. | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Innovative Industrial Properties. AbbVie AbbVie (NYSE: ABBV) qualifies as a Dividend Aristocrat (an S&P 500 member that has increased its dividends for at least 25 consecutive years) because it was part of Abbott Labs for 125 years before being spun off as a separate entity in 2013. AbbVie has increased its dividend by 225% since the spin-off, with its yield currently topping 5%. | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Brookfield Renewable Partners L.P., and Innovative Industrial Properties. AbbVie AbbVie (NYSE: ABBV) qualifies as a Dividend Aristocrat (an S&P 500 member that has increased its dividends for at least 25 consecutive years) because it was part of Abbott Labs for 125 years before being spun off as a separate entity in 2013. AbbVie has increased its dividend by 225% since the spin-off, with its yield currently topping 5%. |
24282.0 | 2020-12-25 00:00:00 UTC | Got $5,000? These 3 Stocks Are Ridiculously Cheap Right Now | ABBV | https://www.nasdaq.com/articles/got-%245000-these-3-stocks-are-ridiculously-cheap-right-now-2020-12-25 | nan | nan | You'll find a lot more bargains during post-Christmas sales than you will in the stock market. The major market indexes are at all-time highs. After a fantastic run following the market meltdown earlier this year, valuations are at least a little frothy.
You can still find some stocks available at a discount. If you've got $5,000 to invest, here are three stocks that are ridiculously cheap right now.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) is one of the least expensive big pharma stocks on the market. Its shares currently trade at only 8.6 times expected earnings. The potential for AbbVie's earnings to increase over the next few years is looking pretty good.
Many investors focus on the glaring negative for AbbVie: the coming sales decline for Humira. It's true that the top-selling autoimmune disease drug faces biosimilar rivals in the U.S. beginning in 2023 and will almost certainly experience a significant drop in sales.
However, AbbVie has two successors to Humira already on the market with Rinvoq and Skyrizi. The company now projects combined peak sales of $15 billion for the two drugs -- not too much below Humira's current sales -- after Gilead Sciences decided to give up seeking U.S. approval for filgotinib in treating rheumatoid arthritis.
AbbVie has several other growth drivers as well, including blood cancer drugs Imbruvica and Venclexta, plus antipsychotic drug Vraylar. Don't overlook the company's attractive dividend yield of around 5%. With improving growth prospects, a fantastic dividend, and a bargain valuation, AbbVie looks like a solid pick for the new year.
2. Bristol Myers Squibb
Believe it or not, Bristol Myers Squibb (NYSE: BMY) is even cheaper than AbbVie. The big drugmaker's shares trade at 8.4 times expected earnings. That valuation is even more appealing when you factor in BMS' strong growth prospects.
Sure, sales for blockbuster blood cancer drug Revlimid are likely to fall once generic rivals reach the market in 2022. However, BMS' acquisition of Celgene last year gives it plenty of other drugs with tremendous potential. Put multiple myeloma drug Pomalyst/Imnovid near the top of that list. The Celgene deal also brought up-and-comers into BMS' lineup, including multiple sclerosis drug Zeposia and Reblozyl, which treats anemia associated with rare blood disorder beta thalassemia and myelodysplastic syndromes.
Additional potential blockbusters could be on the way soon. BMS hopes to win regulatory approvals for cancer cell therapies ide-cel and liso-cel over the next few months. In addition, the company should be able to jump-start sales growth for its blockbuster cancer immunotherapy Opdivo by picking up additional approved indications.
With this promising stable of approved drugs and pipeline candidates, Wall Street analysts project that BMS will deliver average annual earnings growth of more than 21% over the next five years. As a bonus, the company's dividend yields close to 3.2%. BMS checks off the boxes for all kinds of investors -- value, income, and growth.
3. Viatris
Rounding out our list of ridiculously cheap stocks is one that didn't even exist until last month. Viatris (NASDAQ: VTRS) was formed in November from the merger of Mylan and Pfizer's Upjohn unit. Its shares are dirt cheap, trading at a super-low 4.4 times expected earnings.
No, Viatris isn't likely to be a millionaire-maker kind of stock. The company is loaded down with drugs such as Lyrica that are losing market share to generic rivals. Viatris itself sells generic drugs in aglobal marketthat presents significant headwinds, including pricing pressures in the U.S. and China.
Even with these challenges, though, Viatris expects to deliver solid earnings growth over the next few years as it realizes cost synergies from the Mylan-Upjohn merger. Within the next five years, the company should return to robust revenue growth.
The biggest draw for Viatris, though, will almost certainly be its dividend. The company should soon announce its first dividend. Look for a yield in the ballpark of 5%. Viatris could be a great fit for income-seeking investors wanting to find a bargain.
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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 and Gilead Sciences. 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 (NYSE: ABBV) is one of the least expensive big pharma stocks on the market. The potential for AbbVie's earnings to increase over the next few years is looking pretty good. Many investors focus on the glaring negative for AbbVie: the coming sales decline for Humira. | With improving growth prospects, a fantastic dividend, and a bargain valuation, AbbVie looks like a solid pick for the new year. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. AbbVie AbbVie (NYSE: ABBV) is one of the least expensive big pharma stocks on the market. | AbbVie AbbVie (NYSE: ABBV) is one of the least expensive big pharma stocks on the market. AbbVie has several other growth drivers as well, including blood cancer drugs Imbruvica and Venclexta, plus antipsychotic drug Vraylar. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bristol Myers Squibb, Pfizer, and Viatris Inc. | With improving growth prospects, a fantastic dividend, and a bargain valuation, AbbVie looks like a solid pick for the new year. AbbVie AbbVie (NYSE: ABBV) is one of the least expensive big pharma stocks on the market. The potential for AbbVie's earnings to increase over the next few years is looking pretty good. |
24283.0 | 2020-12-23 00:00:00 UTC | 3 Stocks to Buy With Dividends Yielding More Than 4% | ABBV | https://www.nasdaq.com/articles/3-stocks-to-buy-with-dividends-yielding-more-than-4-2020-12-23 | nan | nan | Income investors often chase high dividend yields, but their money could be at risk if the yield isn't supported by stable and rising dividends. A company that has the financial clout to pay regular dividends and the right commitment to shareholders should eventually generate solid returns for you, both in terms of dividend yield and stock price appreciation. Here are three such incredible stocks that not only yield more than 4% today, but that are also well placed to support their payout.
Sit back and watch this dividend stock grow
With a dividend yield of 4.3%, Duke Energy (NYSE: DUK) is one of the better utility stocks you could own right now. Duke has increased its dividend for 14 straight years. It's poised to continue doing so for the foreseeable future thanks to several factors.
To start, 95% of Duke's operating income comes from regulated utility operations, ensuring income stability. As the largest regulated utility in North America, Duke also has a large customer base, offering diversification. The reason to invest in Duke now, though, lies in its growth prospects.
Image source: Getty Images.
Duke recently boosted its five-year capital spending program to $58 billion through 2024 and $65 billion-$75 billion from 2025 to 2029. The company expects the program to drive its rate base up by 6.5% compound annual growth through 2024, with significant focus on clean energy. That could mean 4% to 6% growth in its earnings per share off of the 2021 base, with similar growth in dividends. Combine that with the stock's 4%-plus yield and patient shareholders could easily make high single-digit annual returns from Duke shares regardless of the economic conditions.
Look beyond the risks for big rewards
Enterprise Products Partners (NYSE: EPD) shares currently yield a hefty 8.7%. While there have been concerns about that sky-high yield, the dividend looks safe for several reasons.
To start, Enterprise Products Partners is generating enough cash to support dividends. Its distributable cash flow (DCF) covered distribution by 1.6 times during the nine months ended Sept. 30, 2020.
Also, Enterprise has increased its dividend every year for the past 21 consecutive years, with the last increase in January 2020. Enterprise stopped quarterly dividend increases after the first quarter of 2020, but I'm not ruling out another hike, even if small, in the near future.
Enterprise may not want to break its streak just yet; it's still generating strong cash flows despite the challenging times. For example, it generated flat year-over-year DCF worth $1.6 billion in the third quarter despite a sharp drop in commodity prices.
Enterprise's strong cash-flow position can largely be attributed to three factors. Cost reduction and a conservative balance sheet are two of them. The third, and most important, is its business model. As a midstream company that transports oil and natural gas, Enterprise's operations are largely fee-based and not as vulnerable to falling oil prices as those of oil producers. That's the biggest reason why income investors might want to ignore naysayers and dip into Enterprise Products Partners shares.
Plenty of opportunities for this Dividend Aristocrat
AbbVie (NYSE: ABBV) stock is yielding a solid 5% even after its 15% rally so far this year. The pharmaceutical giant was spun off from Abbott Laboratories in 2013 and has increased its dividend every year since. AbbVie counts as a Dividend Aristocrat given its 49-year streak of annual dividend increases from the time it was part of Abbott. In the third quarter, AbbVie announced a 10.2% dividend raise.
ABBV Revenue (TTM = Trailing 12 month) data by YCharts
AbbVie has grown rapidly in recent years thanks largely to Humira, its key immunosuppressive drug. Not surprisingly, emergent biosimilar competition has made investors jittery, but AbbVie is prepping up for a life beyond Humira. To start, its Rinvoq and Skyrizi drugs, which should replace Humira, are in late-stage regulatory review and on track for faster launches than previously planned. AbbVie projects the two drugs could bring in revenue of more than $15 billion by 2025.
AbbVie's recent acquisition of Allergan, which added Botox and neurological drugs to its portfolio, should be another major growth driver. Allergan generated revenue worth $16.1 billion in 2019. For the full year 2020, AbbVie projects Allergan to add 12% to its adjusted earnings per share.
Meanwhile, management is focused on strengthening AbbVie's financials, targeting a $15 billion-$18 billion reduction in debt by the end of 2021. That's another encouraging move. It should ensure that AbbVie can continue to pay out higher dividends year after year and deliver strong returns for shareholders in the long run.
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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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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool recommends Duke Energy 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. | ABBV Revenue (TTM = Trailing 12 month) data by YCharts AbbVie has grown rapidly in recent years thanks largely to Humira, its key immunosuppressive drug. Plenty of opportunities for this Dividend Aristocrat AbbVie (NYSE: ABBV) stock is yielding a solid 5% even after its 15% rally so far this year. AbbVie counts as a Dividend Aristocrat given its 49-year streak of annual dividend increases from the time it was part of Abbott. | Plenty of opportunities for this Dividend Aristocrat AbbVie (NYSE: ABBV) stock is yielding a solid 5% even after its 15% rally so far this year. AbbVie counts as a Dividend Aristocrat given its 49-year streak of annual dividend increases from the time it was part of Abbott. In the third quarter, AbbVie announced a 10.2% dividend raise. | Plenty of opportunities for this Dividend Aristocrat AbbVie (NYSE: ABBV) stock is yielding a solid 5% even after its 15% rally so far this year. AbbVie counts as a Dividend Aristocrat given its 49-year streak of annual dividend increases from the time it was part of Abbott. In the third quarter, AbbVie announced a 10.2% dividend raise. | Plenty of opportunities for this Dividend Aristocrat AbbVie (NYSE: ABBV) stock is yielding a solid 5% even after its 15% rally so far this year. AbbVie counts as a Dividend Aristocrat given its 49-year streak of annual dividend increases from the time it was part of Abbott. In the third quarter, AbbVie announced a 10.2% dividend raise. |
24284.0 | 2020-12-23 00:00:00 UTC | AbbVie: FDA Approves IMBRUVICA Prescribing Information Update For Waldenström's Macroglobulinemia | ABBV | https://www.nasdaq.com/articles/abbvie%3A-fda-approves-imbruvica-prescribing-information-update-for-waldenstroms | nan | nan | (RTTNews) - AbbVie (ABBV) said Wednesday that the U.S. Food and Drug Administration or FDA approved the update of the IMBRUVICA (ibrutinib) Prescribing Information to include efficacy and safety data for the combination of IMBRUVICA with rituximab for the treatment of Waldenström's macroglobulinemia (WM).
The approval is based on the final analysis of the Phase 3 iNNOVATE study. The IMBRUVICA prescribing information now includes final analysis data, with an overall follow-up of 63 months, from the Phase 3 iNNOVATE clinical trial.
With additional follow-up since the primary analysis, the combination of IMBRUVICA plus rituximab continued to demonstrate prolonged progression-free survival or PFS in WM patients compared to rituximab monotherapy.
First approved in 2013, IMBRUVICA is currently available to patients with several types of blood cancer, as well as chronic graft-versus-host disease. It was approved as a monotherapy for WM in 2015 and as a combination therapy with rituximab in 2018 based on the iNNOVATE primary analysis.
"We're encouraged by this latest recognition from the FDA as it underscores our commitment to supporting those impacted by Waldenström's macroglobulinemia, a rare and incurable form of non-Hodgkin's lymphoma," said Danelle James, IMBRUVICA Global Development Lead of Pharmacyclics LLC, an AbbVie company.
IMBRUVICA is the only Bruton's tyrosine kinase or BTK inhibitor approved to treat WM. WM typically affects older adults and is primarily found in the bone marrow, although lymph nodes and the spleen may also be affected. In the U.S., there are about 2,800 new cases of WM each year.
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) said Wednesday that the U.S. Food and Drug Administration or FDA approved the update of the IMBRUVICA (ibrutinib) Prescribing Information to include efficacy and safety data for the combination of IMBRUVICA with rituximab for the treatment of Waldenström's macroglobulinemia (WM). "We're encouraged by this latest recognition from the FDA as it underscores our commitment to supporting those impacted by Waldenström's macroglobulinemia, a rare and incurable form of non-Hodgkin's lymphoma," said Danelle James, IMBRUVICA Global Development Lead of Pharmacyclics LLC, an AbbVie company. The IMBRUVICA prescribing information now includes final analysis data, with an overall follow-up of 63 months, from the Phase 3 iNNOVATE clinical trial. | (RTTNews) - AbbVie (ABBV) said Wednesday that the U.S. Food and Drug Administration or FDA approved the update of the IMBRUVICA (ibrutinib) Prescribing Information to include efficacy and safety data for the combination of IMBRUVICA with rituximab for the treatment of Waldenström's macroglobulinemia (WM). "We're encouraged by this latest recognition from the FDA as it underscores our commitment to supporting those impacted by Waldenström's macroglobulinemia, a rare and incurable form of non-Hodgkin's lymphoma," said Danelle James, IMBRUVICA Global Development Lead of Pharmacyclics LLC, an AbbVie company. The approval is based on the final analysis of the Phase 3 iNNOVATE study. | (RTTNews) - AbbVie (ABBV) said Wednesday that the U.S. Food and Drug Administration or FDA approved the update of the IMBRUVICA (ibrutinib) Prescribing Information to include efficacy and safety data for the combination of IMBRUVICA with rituximab for the treatment of Waldenström's macroglobulinemia (WM). "We're encouraged by this latest recognition from the FDA as it underscores our commitment to supporting those impacted by Waldenström's macroglobulinemia, a rare and incurable form of non-Hodgkin's lymphoma," said Danelle James, IMBRUVICA Global Development Lead of Pharmacyclics LLC, an AbbVie company. With additional follow-up since the primary analysis, the combination of IMBRUVICA plus rituximab continued to demonstrate prolonged progression-free survival or PFS in WM patients compared to rituximab monotherapy. | (RTTNews) - AbbVie (ABBV) said Wednesday that the U.S. Food and Drug Administration or FDA approved the update of the IMBRUVICA (ibrutinib) Prescribing Information to include efficacy and safety data for the combination of IMBRUVICA with rituximab for the treatment of Waldenström's macroglobulinemia (WM). "We're encouraged by this latest recognition from the FDA as it underscores our commitment to supporting those impacted by Waldenström's macroglobulinemia, a rare and incurable form of non-Hodgkin's lymphoma," said Danelle James, IMBRUVICA Global Development Lead of Pharmacyclics LLC, an AbbVie company. First approved in 2013, IMBRUVICA is currently available to patients with several types of blood cancer, as well as chronic graft-versus-host disease. |
24285.0 | 2020-12-23 00:00:00 UTC | 5 Dividend Stocks Likely to Up Their Yield Soon | ABBV | https://www.nasdaq.com/articles/5-dividend-stocks-likely-to-up-their-yield-soon-2020-12-23 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividend stocks are a special category of financial assets, providing a lot of benefits for investing that make them attractive for the majority of investors. Searching for dividend stocks to buy, investors will see they offer income and can provide stock price appreciation.
In general, dividend stocks are safer and less volatile compared to tech stocks or growth stocks.
The following five dividend stocks to buy are dividend aristocrats, have good fundamentals and are considered to be undervalued.
In addition, these dividend stocks offer sustainable income, diversification and are defensive stocks for a turbulent stock market in the future, which is a realistic scenario.
The dividend aristocrats definition makes these stocks interesting as a dividend aristocrat is a stock with a long history of raising its dividend, more than 10 years. The best part is the expectation of increasing the dividend in the future.
I particularly like dividend stocks for one key reason. They are suitable for passive investing, receiving the annual or quarterly dividend on time. But they can also be monitored for active trading. This means waiting for any stock price correction to buy low, and increase the total return, from a potential stock price appreciation and the dividend.
7 Undervalued Stocks That Could Soar in 2021
Here are five dividend stocks to buy that are attractive with high odds of increased dividends in the future. (Data is taken using the Dividend.com screener.)
People’s United Financial (NASDAQ:PBCT)
AbbVie (NYSE:ABBV)
Leggett & Platt (NYSE:LEG)
AT&T (NYSE:T)
Cincinnati Financial Corporation (NASDAQ:CINF)
Dividend Stocks to Buy: People’s United Financial (PBCT)
Source: iQoncept/shutterstock.com
People’s United Financial is the operator for People’s United Bank providing a range of financial products ranging from commercial banking to retail banking and wealth management.
The stock has a one-year annual dividend growth of 1.43%, five-year average dividend growth of 7.60% and has 27 years of consecutive dividend growth. With an average financials sector trailing yield of 3.42% and a banking average trailing yield of 1.87%, the stock offers a more attractive yield compared to many financial sector dividend ETFs.
PBCT shares have a payout ratio of 53.8% for 2019 and 62.2% for the trailing 12 months. There is room for the dividend to increase. Talking about consistency, the dividend in 2015 was 67 cents, and has increased by 1 cent each year ever since.
What makes this stock attractive is that it is down nearly 25% in 2020. It is a prime candidate for stocks that have missed the stock market rally in 2020.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie is an international healthcare company. It is no surprise that its stock offers a high dividend yield. The healthcare sector is a favorite for investors searching for dividend stocks to buy.
ABBV stock has a one-year dividend growth of 19.22%, five-year annual dividend growth of 157.83%, and the years of consecutive dividend growth are 48. Yes, that is almost half a century. ABBV stock is the definition of passive income.
With a year-to-date return of about 18%, the stock has delivered perfectly its expectation for investing in quality dividend aristocrats stocks. It has offered a considerable total return adding the dividends.
7 Undervalued Stocks That Could Soar in 2021
The dividend in 2018 was $3.59, it increased to $4.28 in 2019 and for the trailing 12 months, it is $4.61.
Dividend Stocks to Buy: Leggett & Platt (LEG)
Source: Shutterstock
LEG stock could bounce in 2021 as it is in the consumer cyclical sector. Leggett & Platt produces worldwide furniture, flooring and textile plus bedding products. If you are performing stock analysis and want another stock with almost half a century of increased dividends, then here is another second choice, as ABBV stock before.
Leggett & Platt stock has a one-year annual dividend growth of 5.33% and a five-year annual average dividend growth of 29.51%. The stock has posted 49 years of consecutive dividend growth.
The 70.2% payout ratio for 2019 is high enough, but this has boosted the dividend of $1.50 in 2018 to $1.58 in 2019 and $1.60 for the trailing 12 months.
AT&T (T)
Source: Roman Tiraspolsky / Shutterstock.com
AT&T is among the largest telecommunication and media company in the U.S. and has been mentioned in another article 3 5G Stocks to Buy as the U.S. Military Tests the Waters.
It is a great dividend and income stock, too. The stock has a one-year annual dividend growth of 2%, a five-year annual dividend growth of 10.87%, and 36 years of consecutive dividend growth.
This stock also missed the stock market rebound from the March 2020 crash with a year-to-date return of about -25%. Yes, picking it at the end of the year would not have been among top stock gainers in 2020. But investing is mostly forward-looking.
AT&T is an attractive stock that you could well buy and forget if you are a passive investor. The dividends earned can provide inflation compensation and generate substantial income.
7 Undervalued Stocks That Could Soar in 2021
The dividend of $2.01 in 2018 increased to $2.05 in 2019, and it is $2.08 for the trailing 12 months. Among the mentioned stocks in this list, I believe T stock is also a cheap stock, with plenty of upside stock price potential.
Dividend Stocks to Buy: Cincinnati Financial Corporation (CINF)
Source: MicroOne/ShutterStock.com
CINF stock is the second stock in the financial services sector in this list of dividend stocks to buy, but in a different industry. This stock also has been out of favor in 2020 with a performance of -21%. Should this be a negative factor for considering it? To me, it is not.
Buying stocks at low prices and taking into account the fundamentals and the attractive dividend yield is an interesting investment approach. And it could well compensate for the risks of investing in stocks. Meanwhile, the dividend history of CINF stock is impressive.
It has a one-year annual dividend growth of 5.66%, a five-year average dividend growth of 27.27%, and 38 years of consecutive dividend growth. The dividend of $2.12 in 2018 has grown to $2.24 in 2019 and is $2.36 for the trailing 12 months.
On the date of publication, Stavros Georgiadis, CFA did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post 5 Dividend Stocks Likely to Up Their Yield Soon 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. | People’s United Financial (NASDAQ:PBCT) AbbVie (NYSE:ABBV) Leggett & Platt (NYSE:LEG) AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie is an international healthcare company. ABBV stock has a one-year dividend growth of 19.22%, five-year annual dividend growth of 157.83%, and the years of consecutive dividend growth are 48. | People’s United Financial (NASDAQ:PBCT) AbbVie (NYSE:ABBV) Leggett & Platt (NYSE:LEG) AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie is an international healthcare company. ABBV stock has a one-year dividend growth of 19.22%, five-year annual dividend growth of 157.83%, and the years of consecutive dividend growth are 48. | ABBV stock has a one-year dividend growth of 19.22%, five-year annual dividend growth of 157.83%, and the years of consecutive dividend growth are 48. People’s United Financial (NASDAQ:PBCT) AbbVie (NYSE:ABBV) Leggett & Platt (NYSE:LEG) AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie is an international healthcare company. | People’s United Financial (NASDAQ:PBCT) AbbVie (NYSE:ABBV) Leggett & Platt (NYSE:LEG) AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie is an international healthcare company. ABBV stock has a one-year dividend growth of 19.22%, five-year annual dividend growth of 157.83%, and the years of consecutive dividend growth are 48. |
24286.0 | 2020-12-23 00:00:00 UTC | Coronavirus Stimulus Checks: Top Stocks To Buy Now | ABBV | https://www.nasdaq.com/articles/coronavirus-stimulus-checks%3A-top-stocks-to-buy-now-2020-12-23 | nan | nan | On Monday, Congress approved a coronavirus relief bill that includes $600 stimulus checks for most Americans. Now, investors -- as long as their bills are paid and emergency funds are well-padded -- might be wondering where to spend it. While it might be tempting to drop the cash on a highly risky stock that has a chance of exploding, it's probably a better decision for the long-term to pick a safer and more predictable stock instead.
With $600, you'll be able to purchase a few shares of the stocks that I'll discuss today. And, because they each offer a quarterly dividend payment, you'll get a bit of residual income from the purchase too. It won't make you rich, but it'll steadily support your portfolio's growth over the long haul, and that's what counts.
Image source: Getty Images.
AbbVie
If you're looking for a stock with a formidable dividend yield over 5% as well as considerable prospects for equity growth, AbbVie (NYSE: ABBV) is an excellent choice. If you aren't familiar, AbbVie is a major pharmaceutical company which makes drugs like Humira for autoimmune disorders. Because its revenue from these in-demand therapies is highly predictable, it can offer a large dividend and increase its size at regular intervals without fear of cutting into money for critical activities like research and development (R&D). And, it's constantly investing in its pipeline to keep new therapies coming.
Recently, it received regulatory approval for its drug Rinvoq for ankylosing spondylitis, which management has credited for better-than-expected revenue growth of 52.2% year-over-year in the third quarter. If it succeeds in seeking additional approvals for Rinvoq to expand the pool of eligible patients, this growth will continue, potentially leading to further earnings and revenue growth that push the stock to new heights.
Innovative Industrial Properties
Innovative Industrial Properties (NYSE: IIPR) is a real estate investment trust (REIT) with a focus on investing in medical cannabis cultivation properties. This means that the company is positioned to grow alongside the cannabis industry in the U.S. in the aftermath of a slew of state-level cannabis legalizations in the most recent election. Right now, it owns 63 cultivation facilities, but that's almost certainly just the beginning. As long as businesses are trying to grow cannabis, IIP will have customers.
As the cannabis industry has ramped up, so has IIP, with intense quarterly revenue growth of 197.1% year-over-year. Its forward dividend yield is still small at 2.57%, but the stock has also expanded considerably. Plus, the company's dividend payout has increased at least once per year in the last few years. This means that you can be confident that management believes in the stability of the company's cash flow, which is a major positive.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is the best of these three stocks if you're a highly conservative investor. Unlike the other two companies, J&J has an exceptionally long history of stable operations and gradually growing revenue from its lineup of consumer healthcare products like Listerine. It also has a dividend yield of 2.61%, which is a nice bonus.
Johnson & Johnson's dividend yield is 2.64%, but it has increased this yield each year for several decades on end. So, it's safe to count on this dividend to continue growing, at least for as long as people still need to use basic healthcare stuff, like Bandaids, that the company makes. You shouldn't exactly plan on the stock to grow like wild, though. With revenue growth habitually in the single-digits, there aren't too many catalysts that could send it into overdrive. But, keep an eye on the company's coronavirus vaccine candidate, which is currently in late-stage clinical trials. If it's approved for sale, the market will almost certainly react favorably.
10 stocks we like better than AbbVie
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Alex Carchidi owns shares of AbbVie. The Motley Fool owns shares of and recommends Innovative Industrial Properties. 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. | AbbVie If you're looking for a stock with a formidable dividend yield over 5% as well as considerable prospects for equity growth, AbbVie (NYSE: ABBV) is an excellent choice. If you aren't familiar, AbbVie is a major pharmaceutical company which makes drugs like Humira for autoimmune disorders. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | AbbVie If you're looking for a stock with a formidable dividend yield over 5% as well as considerable prospects for equity growth, AbbVie (NYSE: ABBV) is an excellent choice. If you aren't familiar, AbbVie is a major pharmaceutical company which makes drugs like Humira for autoimmune disorders. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | AbbVie If you're looking for a stock with a formidable dividend yield over 5% as well as considerable prospects for equity growth, AbbVie (NYSE: ABBV) is an excellent choice. If you aren't familiar, AbbVie is a major pharmaceutical company which makes drugs like Humira for autoimmune disorders. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Alex Carchidi owns shares of AbbVie. AbbVie If you're looking for a stock with a formidable dividend yield over 5% as well as considerable prospects for equity growth, AbbVie (NYSE: ABBV) is an excellent choice. If you aren't familiar, AbbVie is a major pharmaceutical company which makes drugs like Humira for autoimmune disorders. |
24287.0 | 2020-12-20 00:00:00 UTC | 3 Things to Expect From Berkshire Hathaway in 2021 | ABBV | https://www.nasdaq.com/articles/3-things-to-expect-from-berkshire-hathaway-in-2021-2020-12-20 | nan | nan | If you're a fan and follower of legendary investor Warren Buffett, then you're certainly aware of Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B). When people talk about mirroring Buffett's buys and sells, they're actually talking about Berkshire's trades. The holdings of the company's portfolio are publicly disclosed every quarter, too, which makes riding the Oracle of Omaha's coattails a relatively easy task. Easier still is simply owning shares of the highly diversified multinational conglomerate!
Whatever your style, a handful of things are likely to happen with Berkshire Hathaway's portfolio in what will hopefully be a more normal 2021. Three stand out above the rest. Buffett and his acolytes have already tipped their hands, so to speak, as to two of them.
Image source: Getty Images.
1. Rekindled operating earnings, cash flow
It's an often overlooked nuance of the Berkshire Hathaway portfolio, but it's not just a collection of stocks. Around half of Berkshire's $500 billion valuation reflects the value of privately held companies, like See's Candies, Dairy Queen, Helzberg Diamonds, GEICO, Pampered Chef, and Benjamin Moore, just to name a few.
These owned companies are tracked differently than Berkshire's stocks. Berkshire's publicly traded investments are called "investments in equity securities" on the company's books, and changes to their value are booked as "investment gains (or losses)" on its quarterly statements. Businesses that are outright owned by Berkshire Hathaway, however, don't have an ever-changing market value. They're the companies that drive revenue that's eventually turned into net income and cash flow, as any stand-alone business reports.
The arrangement can make it tough to ferret out just how Buffett's non-stock holdings are performing in any given quarter. And like most other companies, this year has been a tough one for Berkshire. Its third-quarter operating profits fell 32% year over year, worsening from Q2's 10% dip in operating income to $5.5 billion. You may have seen much different numbers due to gains in the value of the stocks also held by Berkshire during that time, though no amount of unrealized stock gains can fully offset the record-breaking net loss of $50 billion booked during the first quarter of the year, when the pandemic first took hold. As it stands right now, Berkshire's actual operating income this year should be on the order of about half of last year's total.
Buffett cares little about these wild swings in reported quarterly income, as the stock market's volatility exaggerates how well or how poorly the portfolio is actually doing. But you should care, since the cash these privately held companies produce ultimately funds things like new acquisitions and stock buybacks. The good news is, there's every reason to believe operating income and cash flow will look more like 2019's levels in a more normal 2021.
2. A scaleback of Apple
Much of this year's non-operating (and unrealized) gains logged by Berkshire can be attributed to the fund's surprisingly big stake in Apple (NASDAQ: AAPL).
It's no secret Buffett's never been a huge fan of tech stocks, explaining he doesn't understand them well enough to judge them. Nevertheless -- and presumably with some nudging from other Berkshire team members -- the company began building a stake in the tech giant back in 2016. In the meantime, it's ballooned into Berkshire's biggest single stock position. With nearly 1 billion shares worth more than $100 billion, Apple accounts for nearly half of the total value of Berkshire's overall stock holdings.
That may be enough, though, if not more than enough. Berkshire shed around 36 million shares of the iPhone maker during Q3, or roughly $4 billion worth.
The move could simply be chalked up to a little profit-taking. Apple shares have nearly doubled in value this year, and it's not like Buffett hasn't occasionally sold some Apple stock since Berkshire first opened its position in 2016. But Buffett and his stock-picking team rarely do one-offs. They generally want in or out. The fact that we've now seen multiple partial exits may well indicate Berkshire is looking for a more substantial exit of the trade.
3. Added pharmaceutical exposure
Finally, while Berkshire may be on the way out of its Apple trade, it's clearly looking to add stakes in pharmaceutical stocks. During the third quarter, the company added brand new positions in Bristol-Myers Squibb (NYSE: BMY), Merck (NYSE: MRK), and AbbVie (NYSE: ABBV). Berkshire also bought a small stake in Pfizer (NYSE: PFE).
None of these positions were particularly big by Berkshire standards. The company didn't commit more than $2 billion to any of them, and "only" owns a little more than $100 million worth of Pfizer despite its successful (and now approved) COVID-19 vaccine. It's not clear exactly what Buffett or his managers may see for the industry that they didn't see as of the second quarter.
As is the case with the modest repeated sales of Apple shares, though, this new interest in pharma companies is likely to be a prelude to much bigger positions that are gradually expanded rather than established with one big trade.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Bristol Myers Squibb and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares) and short January 2021 $200 puts 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. | During the third quarter, the company added brand new positions in Bristol-Myers Squibb (NYSE: BMY), Merck (NYSE: MRK), and AbbVie (NYSE: ABBV). Around half of Berkshire's $500 billion valuation reflects the value of privately held companies, like See's Candies, Dairy Queen, Helzberg Diamonds, GEICO, Pampered Chef, and Benjamin Moore, just to name a few. Buffett cares little about these wild swings in reported quarterly income, as the stock market's volatility exaggerates how well or how poorly the portfolio is actually doing. | During the third quarter, the company added brand new positions in Bristol-Myers Squibb (NYSE: BMY), Merck (NYSE: MRK), and AbbVie (NYSE: ABBV). Berkshire's publicly traded investments are called "investments in equity securities" on the company's books, and changes to their value are booked as "investment gains (or losses)" on its quarterly statements. With nearly 1 billion shares worth more than $100 billion, Apple accounts for nearly half of the total value of Berkshire's overall stock holdings. | During the third quarter, the company added brand new positions in Bristol-Myers Squibb (NYSE: BMY), Merck (NYSE: MRK), and AbbVie (NYSE: ABBV). You may have seen much different numbers due to gains in the value of the stocks also held by Berkshire during that time, though no amount of unrealized stock gains can fully offset the record-breaking net loss of $50 billion booked during the first quarter of the year, when the pandemic first took hold. Apple shares have nearly doubled in value this year, and it's not like Buffett hasn't occasionally sold some Apple stock since Berkshire first opened its position in 2016. | During the third quarter, the company added brand new positions in Bristol-Myers Squibb (NYSE: BMY), Merck (NYSE: MRK), and AbbVie (NYSE: ABBV). With nearly 1 billion shares worth more than $100 billion, Apple accounts for nearly half of the total value of Berkshire's overall stock holdings. Apple shares have nearly doubled in value this year, and it's not like Buffett hasn't occasionally sold some Apple stock since Berkshire first opened its position in 2016. |
24288.0 | 2020-12-17 00:00:00 UTC | Vanguard High Dividend Yield ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/vanguard-high-dividend-yield-etf-experiences-big-inflow-2020-12-17 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $558.6 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 330,453,242 to 336,549,877). Among the largest underlying components of VYM, in trading today PepsiCo Inc (Symbol: PEP) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is down about 0.4%, and Chevron Corporation (Symbol: CVX) is lower by about 0.8%. For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average:
Looking at the chart above, VYM's low point in its 52 week range is $60.07 per share, with $94.86 as the 52 week high point — that compares with a last trade of $91.73. 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 VYM, in trading today PepsiCo Inc (Symbol: PEP) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is down about 0.4%, and Chevron Corporation (Symbol: CVX) is lower by about 0.8%. For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $60.07 per share, with $94.86 as the 52 week high point — that compares with a last trade of $91.73. 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 VYM, in trading today PepsiCo Inc (Symbol: PEP) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is down about 0.4%, and Chevron Corporation (Symbol: CVX) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $558.6 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 330,453,242 to 336,549,877). For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $60.07 per share, with $94.86 as the 52 week high point — that compares with a last trade of $91.73. | Among the largest underlying components of VYM, in trading today PepsiCo Inc (Symbol: PEP) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is down about 0.4%, and Chevron Corporation (Symbol: CVX) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $558.6 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 330,453,242 to 336,549,877). For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $60.07 per share, with $94.86 as the 52 week high point — that compares with a last trade of $91.73. | Among the largest underlying components of VYM, in trading today PepsiCo Inc (Symbol: PEP) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is down about 0.4%, and Chevron Corporation (Symbol: CVX) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $558.6 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 330,453,242 to 336,549,877). For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $60.07 per share, with $94.86 as the 52 week high point — that compares with a last trade of $91.73. |
24289.0 | 2020-12-17 00:00:00 UTC | 3 Dividend Stocks I'd Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-id-buy-right-now-2020-12-17 | nan | nan | Investors interested in good dividend stocks can have it all. It just takes a little looking when you're bargain hunting, particularly when seeking high dividends that are safe, in stocks that have strong growth potential.
I looked at companies with dividend yields of at least 4% whose balance sheets were not only healthy this year, but that also point to revenue growth next year. Then, I trimmed the list by including only companies with a solid history of raising dividends and whose cash dividend payout ratios are under 50%, so there was little chance the dividends would be at risk. From that list, I focused on undervalued companies.
Westlake Chemical Partners (NYSE: WLKP), AbbVie (NYSE: ABBV) and SpartanNash (NASDAQ: SPTN) all made the cut.
Image source: Getty Images.
Westlake Chemical Partners is a steady earner
The share price of Houston-based Westlake Chemical Partners is down more than 18% year to date. But over the past three months, the stock is up more than 8%. The company raised its quarterly dividend this year to $0.47 a share, giving it a yield, at current share prices, of 8.77%. Over the past five years, it has raised its dividend by 53%.
Westlake Chemical Partners came into existence in 2014 and has raised its dividend each year. Westlake Chemical Corporation created Westlake Chemical Partners as a limited partnership to buy and operate ethylene production facilities. Ethylene is a hydrocarbon gas widely used in a variety of products.
The company operates an ethylene plant in Calvert City, Kentucky, and two in Lake Charles, Louisiana. The Lake Charles facilities were affected by Hurricane Laura in August, but despite that, Westlake Chemical Partners reported third-quarter net sales of $217.7 million, ahead of the $216.6 million it earned in the same period last year, though for the year, sales are down 6%. It also had a reported $51.5 million in net income this year, a 17% improvement, year over year.
The company has predictable cash flows because of its relationship with Westlake Chemical, which purchases 95% of the company's ethylene for a cash margin of $0.10 per pound after operating costs, maintenance, capital expenditures, and reserves, according to its third-quarter report.
WCP's cash dividend payout ratio of 15.98% means there won't likely be a need for a dividend cut any time soon. On top of that, the stock's price-to-earnings ratio (P/E) is 11, whereas the average P/E in the industry was 24.11 in the last quarter, making it a bargain with a nice upside.
SPTN Dividend data by YCharts
Marching into step with SpartanNash
SpartanNash is the fifth-largest food distributor in the United States and the leading distributor of grocery products to U.S. military commissaries. The Grand Rapids, Michigan, company owns 155 retail stores and distributes to more than 2,100 independent grocers in the United States.
Its stock is up more than 28% year to date. While a lot of that is due to the pandemic's eat-at-home push, SpartanNash's long-term numbers show a nice uptrend, with 18 consecutive quarters of sales growth. For the year, the company reported $7.1 billion in sales, up 8% year over year.
Speaking of uptrends, the company's annual dividends have grown every year for the past decade, and for the past five, they've grown at a rate of 28.33%. That dividend produces a yield of 4.18%, which makes holding onto the stock a great idea. With a cash dividend payout ratio of 14.55%, it appears quite safe.
There's another big reason to think long-term with SpartanNash. It has been providing groceries to Amazon.com since 2016. In October, the companies came to terms on an agreement that allows Amazon to buy up to 15% of SpartanNash stock by 2027 and strengthens their relationship, more than doubling the amount of groceries Amazon would purchase from SpartanNash to use in its Fresh grocery stores.
While a lot of people bought SpartanNash stock following the Amazon announcement, it still appears to be a good deal, with a P/E of 9.53, compared to the typical P/E in the consumer staples industry of 24.15.
AbbVie continues to be a great dividend play
AbbVie's shares are up more than 22% year to date. The pharmaceutical company, headquartered in Lake Bluff, Illinois, has raised its dividend every year since it spun off from Abbott Laboratories in 2013. Counting its time as part of Abbott, it is a Dividend Aristocrat, with 48 consecutive years of increased dividends.
AbbVie has grown revenue more than 48% over the past five years and through nine months this year, the company is on a torrid pace. In the third quarter, reported revenue was $12.1 billion, up 52% over the same period last year. Through nine months, the company has posted $31.9 billion in net revenue, a 30% improvement year over year.
Those are great numbers, but on top of that, the company's dividend offers a yield of 4.35%. Over the past five years, AbbVie has increased its dividend a whopping 128%. That has come at a cost, though, as it has the highest cash dividend payout ratio of the three at 47.04%, though considering the company's expected growth, the dividend should be safe. Though it also has the highest P/E of the three at 22.79, that's still below the typical healthcare stock's P/E of 29.39.
SPTN PE Ratio data by YCharts
All three are good options
I see good reasons for picking any of these stocks because of their overall strength and dividends. I think SpartanNash has the best long-term potential of the bunch because of its arrangement with Amazon.
I also see plenty of upside for Westlake Chemical Partners, and its dividend is nearly twice that of my other two favorites. The company's stock is still down for the year, but looking at its financials, it's clear to me that it is underpriced.
AbbVie is probably the most risk-free choice of the group. The company's strong pipeline of drugs should help drive profits for years and the company has the best recent history of dividend increases.
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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. Jim Halley owns shares of AbbVie. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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. | Westlake Chemical Partners (NYSE: WLKP), AbbVie (NYSE: ABBV) and SpartanNash (NASDAQ: SPTN) all made the cut. AbbVie continues to be a great dividend play AbbVie's shares are up more than 22% year to date. AbbVie has grown revenue more than 48% over the past five years and through nine months this year, the company is on a torrid pace. | Westlake Chemical Partners (NYSE: WLKP), AbbVie (NYSE: ABBV) and SpartanNash (NASDAQ: SPTN) all made the cut. AbbVie continues to be a great dividend play AbbVie's shares are up more than 22% year to date. AbbVie has grown revenue more than 48% over the past five years and through nine months this year, the company is on a torrid pace. | Westlake Chemical Partners (NYSE: WLKP), AbbVie (NYSE: ABBV) and SpartanNash (NASDAQ: SPTN) all made the cut. AbbVie continues to be a great dividend play AbbVie's shares are up more than 22% year to date. AbbVie has grown revenue more than 48% over the past five years and through nine months this year, the company is on a torrid pace. | Over the past five years, AbbVie has increased its dividend a whopping 128%. Westlake Chemical Partners (NYSE: WLKP), AbbVie (NYSE: ABBV) and SpartanNash (NASDAQ: SPTN) all made the cut. AbbVie continues to be a great dividend play AbbVie's shares are up more than 22% year to date. |
24290.0 | 2020-12-12 00:00:00 UTC | 2 High-Yielding Dividend Stocks to Buy if the Market Crashes Again | ABBV | https://www.nasdaq.com/articles/2-high-yielding-dividend-stocks-to-buy-if-the-market-crashes-again-2020-12-12 | nan | nan | When the markets crashed in March due to concerns surrounding the coronavirus, it happened suddenly and without warning. And while it was a scary ride for many investors, it didn't end up lasting all that long. By April, the Dow Jones was already on the path to recovering, and today it sits at all-time highs. A crash in the markets doesn't have to last months or years, and investors who are prepared can quickly take advantage if bad news triggers a sell-off.
When there's such a strong overreaction in the markets, it's a great time to look for possible deals to pick up. Dividend stocks are great options, given that lower prices mean a better-than-normal payout ratio. Two stocks you'll want to put on your watchlist in case there is another crash include AbbVie (NYSE: ABBV) and Kraft Heinz (NASDAQ: KHC). Here's why they would be attractive buys if the markets plummet again.
Image source: Getty Images.
1. AbbVie
AbbVie already offers investors a great dividend, paying $1.30 every quarter and yielding 4.9%. That's much higher than the 1.8% payout you can expect from the average stock on the S&P 500. And if there's a crash in the markets, this yield would get even larger. When AbbVie's stock crashed along with the markets in March, its share price fell below $65. At that price, its annual dividend of $5.20 per share would be 8% of the stock price -- a monstrous yield for a stock that's a pretty stable buy.
And don't forget, that dividend would also likely increase over time. AbbVie is a Dividend Aristocrat, and in October hiked its payouts by 10.2%. The company's business is robust, with the now-completed $63 billion acquisition of Botox maker Allergan adding to the diversity of its product mix. This has helped to alleviate some concerns about the upcoming loss of patent protection on AbbVie's blockbuster immunosuppressant, Humira, in 2023. Year to date, Humira has generated $14.7 billion in revenue for AbbVie, accounting for just under half (46%) of the company's total net revenue of $31.9 billion.
With the Allergan acquisition, AbbVie will have more opportunities to grow, which should provide more long-term stability for the drugmaker's stock and its dividend. That's why buying up the stock if the markets plunge again could be a great move that pays off for your portfolio. Year to date, shares of the healthcare stock are up 22% and have outperformed the S&P 500 and its 15% gains.
2. Kraft
Another stock that pays an attractive dividend today is Kraft. Its quarterly payments of $0.40 per share mean investors can earn a yield of 4.7% today, slightly lower than AbbVie's payout. Its wide assortment of products, including condiments and sauces, snack foods, and beverages, makes Kraft an especially appealing choice for investors looking to benefit in diverse ways from people spending more time at home.
Year to date, Kraft's sales of $19.2 million are up by 4.4% from the same period last year. Its top-growing segment this year has been what it calls "ambient foods" (products that normally have a long shelf life), where sales of $2.1 billion were up by more than 19% from the prior-year period.
It's been a challenging year for many businesses, but Kraft has done well thanks to brands that are known all over the world -- brands that should continue to provide the business with stability for many years. It's also hard to go wrong with a stock that Warren Buffett's Berkshire Hathaway has a 26.6% stake in.
In March, Kraft's stock fell to about $20 a share. At that price, its dividend yield would be as high as 8%. While there's no guarantee that it will reach that price again, there's plenty of incentive for investors to keep this stock on their watchlists. Kraft has a predictable, steady business, and coupled with a high dividend, it could help grow your portfolio's value for many years to come. Year to date, Kraft's stock is up 7%.
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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. | Two stocks you'll want to put on your watchlist in case there is another crash include AbbVie (NYSE: ABBV) and Kraft Heinz (NASDAQ: KHC). AbbVie AbbVie already offers investors a great dividend, paying $1.30 every quarter and yielding 4.9%. When AbbVie's stock crashed along with the markets in March, its share price fell below $65. | AbbVie AbbVie already offers investors a great dividend, paying $1.30 every quarter and yielding 4.9%. When AbbVie's stock crashed along with the markets in March, its share price fell below $65. Two stocks you'll want to put on your watchlist in case there is another crash include AbbVie (NYSE: ABBV) and Kraft Heinz (NASDAQ: KHC). | Two stocks you'll want to put on your watchlist in case there is another crash include AbbVie (NYSE: ABBV) and Kraft Heinz (NASDAQ: KHC). AbbVie AbbVie already offers investors a great dividend, paying $1.30 every quarter and yielding 4.9%. When AbbVie's stock crashed along with the markets in March, its share price fell below $65. | AbbVie AbbVie already offers investors a great dividend, paying $1.30 every quarter and yielding 4.9%. When AbbVie's stock crashed along with the markets in March, its share price fell below $65. Two stocks you'll want to put on your watchlist in case there is another crash include AbbVie (NYSE: ABBV) and Kraft Heinz (NASDAQ: KHC). |
24291.0 | 2020-12-12 00:00:00 UTC | 3 Stocks That Are Giving Their Investors Coal in Their Stockings | ABBV | https://www.nasdaq.com/articles/3-stocks-that-are-giving-their-investors-coal-in-their-stockings-2020-12-12 | nan | nan | No CEO should be evaluated on their company's stock performance in a single year. Strategies often take several years to play out. When a company's fortunes depend on drug development, the timeline can be even longer. That's why no investor should take it too hard that Galapagos NV (NASDAQ: GLPG), Sage Therapeutics (NASDAQ: SAGE), and bluebird bio (NASDAQ: BLUE) have had a rough year.
The stocks could have wildly different outcomes in 2021, although recent developments make it seem like they are as likely to stage a comeback as they are to throw in the towel. During the holiday season, parents often tell misbehaving kids that Santa won't bring them what they want for Christmas. With share prices down dramatically from all-time highs, let's find out why shareholders of these three biotechs are getting coal in their stockings this year.
Image source: Getty Images.
1. Galapagos
If you asked investors in July 2019, they probably would have been surprised to see Galapagos on a list like this one. Spirits were high at that time, as Gilead Sciences (NASDAQ: GILD) had just made a $5.1 billion investment in Galapagos for its research pipeline including filgotinib, the company's arthritis drug now marketed as Jyseleca. Although the drug was approved in Europe and Japan, the U.S. Food and Drug Administration rejected it due to toxicity concerns and doubts about the risk/benefit profile at dosage levels in the study.
The FDA's action will push approval out at least a year -- that is -- if Gilead wants to keep up the effort. Even if the drug were to make it through the regulatory gauntlet, it would face stiff competition from AbbVie's (NYSE: ABBV) Rinvoq, which gained approval in 2019. Galapagos has run more tests to allay the concerns, and if successful, Gilead could refile for approval next year. But today's investors don't seem confident. Shares in Galapagos are down 42% this year.
2. Sage Therapeutics
Zuranolone, Sage's drug that helps treat depression, failed a phase 3 trial in 2017. That was strike one. Last December, shares fell nearly 60% in a day after the drug once again failed a clinical trial. That was strike two. At one point in 2020, shares of Sage were down 86% from their 2019 highs. Clearly not quitters, management restructured to conserve cash, and launched three new phase 3 studies of the drug as a treatment for major depressive disorder and postpartum depression. Then, a funny thing happened on the way to the results expected next year.
In November, Biogen (NASDAQ: BIIB) injected $1.5 billion into the company to jointly develop and commercialize zuranolone. Shares sold off on the news but still sit about where they began 2020. The stock is up 160% since the beginning of April. For its money, Biogen earns 50% of profits in the U.S., and shoulders the costs in most non-U.S. markets while paying royalties to Sage from any sales. While one analyst applauded Biogen for "getting the milk without having [to] buy the whole cow," Sage shareholders are on the other end of that colorful analogy. Three years after the first failure of zuranolone, the best shareholders can now hope for is to share any windfall with Biogen.
3. bluebird bio
Bluebird bio is trying to cure sickle cell disease and beta thalassemia through gene therapy. Despite the company's LentiGlobin product showing promise in clinical trials, bluebird's stock is down 50% in 2020 and more than 80% from all-time highs in 2018. The therapy candidate is essentially a stem cell transplant that takes a functioning gene, inserts it into the patient's harvested stem cells, and then reinserts those stem cells into the body.
After receiving approval in Europe, as well as both fast-track and breakthrough designation from the FDA, progress has been slow due to pricing negotiations, COVID-19 constraints, and an FDA request for the company to prove it can scale up from clinical trials. Bluebird also ran afoul of the FDA in May for the same issue, when the agency refused to review the application for ide-cel -- a CAR-T therapy for multiple myeloma being developed with Bristol Myers Squibb (NYSE: BMY). Although bluebird still plans to file for approval of LentiGlobin in mid-2021, the delays are costing the company its head start in the race for a cure. CRISPR Therapeutics (NASDAQ: CRSP) and partner Vertex Pharmaceuticals (NASDAQ: VRTX) have received advanced therapy designation for their cure using gene editing to target the same diseases. If CRISPR and Vertex get there first, shareholders might as well forget next Christmas too.
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Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bluebird Bio, Bristol Myers Squibb, and CRISPR Therapeutics. The Motley Fool recommends Biogen 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. | Even if the drug were to make it through the regulatory gauntlet, it would face stiff competition from AbbVie's (NYSE: ABBV) Rinvoq, which gained approval in 2019. Spirits were high at that time, as Gilead Sciences (NASDAQ: GILD) had just made a $5.1 billion investment in Galapagos for its research pipeline including filgotinib, the company's arthritis drug now marketed as Jyseleca. Bluebird also ran afoul of the FDA in May for the same issue, when the agency refused to review the application for ide-cel -- a CAR-T therapy for multiple myeloma being developed with Bristol Myers Squibb (NYSE: BMY). | Even if the drug were to make it through the regulatory gauntlet, it would face stiff competition from AbbVie's (NYSE: ABBV) Rinvoq, which gained approval in 2019. That's why no investor should take it too hard that Galapagos NV (NASDAQ: GLPG), Sage Therapeutics (NASDAQ: SAGE), and bluebird bio (NASDAQ: BLUE) have had a rough year. Sage Therapeutics Zuranolone, Sage's drug that helps treat depression, failed a phase 3 trial in 2017. | Even if the drug were to make it through the regulatory gauntlet, it would face stiff competition from AbbVie's (NYSE: ABBV) Rinvoq, which gained approval in 2019. That's why no investor should take it too hard that Galapagos NV (NASDAQ: GLPG), Sage Therapeutics (NASDAQ: SAGE), and bluebird bio (NASDAQ: BLUE) have had a rough year. 10 stocks we like better than Sage Therapeutics When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Even if the drug were to make it through the regulatory gauntlet, it would face stiff competition from AbbVie's (NYSE: ABBV) Rinvoq, which gained approval in 2019. That's why no investor should take it too hard that Galapagos NV (NASDAQ: GLPG), Sage Therapeutics (NASDAQ: SAGE), and bluebird bio (NASDAQ: BLUE) have had a rough year. Shares in Galapagos are down 42% this year. |
24292.0 | 2020-12-11 00:00:00 UTC | AbbVie: CHMP Recommends Approvals Of RINVOQ - Quick Facts | ABBV | https://www.nasdaq.com/articles/abbvie%3A-chmp-recommends-approvals-of-rinvoq-quick-facts-2020-12-11 | nan | nan | (RTTNews) - AbbVie (ABBV) announced the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) recommended the approval of RINVOQ (upadacitinib, 15 mg) for the expanded use in two additional rheumatic indications: the treatment of adult patients with active psoriatic arthritis and adult patients with active ankylosing spondylitis.
Thomas Hudson, senior vice president, research and development, AbbVie, said: "If approved, RINVOQ will become an oral, once daily targeted treatment option across three rheumatic indications in the European Union."
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) announced the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) recommended the approval of RINVOQ (upadacitinib, 15 mg) for the expanded use in two additional rheumatic indications: the treatment of adult patients with active psoriatic arthritis and adult patients with active ankylosing spondylitis. Thomas Hudson, senior vice president, research and development, AbbVie, said: "If approved, RINVOQ will become an oral, once daily targeted treatment option across three rheumatic indications in the European Union." 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) announced the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) recommended the approval of RINVOQ (upadacitinib, 15 mg) for the expanded use in two additional rheumatic indications: the treatment of adult patients with active psoriatic arthritis and adult patients with active ankylosing spondylitis. Thomas Hudson, senior vice president, research and development, AbbVie, said: "If approved, RINVOQ will become an oral, once daily targeted treatment option across three rheumatic indications in the European Union." 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) announced the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) recommended the approval of RINVOQ (upadacitinib, 15 mg) for the expanded use in two additional rheumatic indications: the treatment of adult patients with active psoriatic arthritis and adult patients with active ankylosing spondylitis. Thomas Hudson, senior vice president, research and development, AbbVie, said: "If approved, RINVOQ will become an oral, once daily targeted treatment option across three rheumatic indications in the European Union." 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) announced the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) recommended the approval of RINVOQ (upadacitinib, 15 mg) for the expanded use in two additional rheumatic indications: the treatment of adult patients with active psoriatic arthritis and adult patients with active ankylosing spondylitis. Thomas Hudson, senior vice president, research and development, AbbVie, said: "If approved, RINVOQ will become an oral, once daily targeted treatment option across three rheumatic indications in the European Union." The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
24293.0 | 2020-12-10 00:00:00 UTC | AbbVie's Upadacitinib Achieves Superiority Versus Dupilumab In Phase 3b Study On Atopic Dermatitis | ABBV | https://www.nasdaq.com/articles/abbvies-upadacitinib-achieves-superiority-versus-dupilumab-in-phase-3b-study-on-atopic | nan | nan | (RTTNews) - AbbVie's (ABBV) upadacitinib achieved superiority to dupilumab for the primary and all ranked secondary endpoints, as per a phase 3b head-to-head study in adults with atopic dermatitis.
The safety profile of upadacitinib was consistent with previous atopic dermatitis studies, with no new safety risks observed, the company said in a statement.
The company noted that 71 percent of patients treated with upadacitinib (30 mg, once daily) achieved the primary endpoint of at least a 75 percent improvement in the Eczema Area Severity Index or EASI 75 compared to 61 percent of patients treated with dupilumab (300 mg, every other week) at week 16 in adults with moderate to severe atopic dermatitis.
Upadacitinib also showed superiority compared to dupilumab for all ranked secondary endpoints, including additional measures of skin clearance and itch reduction.
After one week of treatment, the upadacitinib treatment group had a 31 percent reduction in itch compared to 9 percent in the dupilumab group. Itch improvements were maintained through week 16. Additionally, after two weeks of treatment, 44 percent of upadacitinib-treated patients achieved EASI 75 response versus 18 percent of dupilumab-treated patients.
The Heads Up study evaluated the efficacy and safety of upadacitinib versus dupilumab in adults with moderate to severe atopic dermatitis who are candidates for systemic therapy. Patients were randomized to receive upadacitinib or dupilumab, both as monotherapy treatments, for 24 weeks.
Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as a once-daily oral therapy for moderate to severe atopic dermatitis and in several other immune-mediated diseases.
Atopic dermatitis is a chronic, relapsing inflammatory condition affecting an estimated 10 percent of adults and 25 percent of adolescents.
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's (ABBV) upadacitinib achieved superiority to dupilumab for the primary and all ranked secondary endpoints, as per a phase 3b head-to-head study in adults with atopic dermatitis. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as a once-daily oral therapy for moderate to severe atopic dermatitis and in several other immune-mediated diseases. Upadacitinib also showed superiority compared to dupilumab for all ranked secondary endpoints, including additional measures of skin clearance and itch reduction. | (RTTNews) - AbbVie's (ABBV) upadacitinib achieved superiority to dupilumab for the primary and all ranked secondary endpoints, as per a phase 3b head-to-head study in adults with atopic dermatitis. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as a once-daily oral therapy for moderate to severe atopic dermatitis and in several other immune-mediated diseases. The company noted that 71 percent of patients treated with upadacitinib (30 mg, once daily) achieved the primary endpoint of at least a 75 percent improvement in the Eczema Area Severity Index or EASI 75 compared to 61 percent of patients treated with dupilumab (300 mg, every other week) at week 16 in adults with moderate to severe atopic dermatitis. | (RTTNews) - AbbVie's (ABBV) upadacitinib achieved superiority to dupilumab for the primary and all ranked secondary endpoints, as per a phase 3b head-to-head study in adults with atopic dermatitis. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as a once-daily oral therapy for moderate to severe atopic dermatitis and in several other immune-mediated diseases. The company noted that 71 percent of patients treated with upadacitinib (30 mg, once daily) achieved the primary endpoint of at least a 75 percent improvement in the Eczema Area Severity Index or EASI 75 compared to 61 percent of patients treated with dupilumab (300 mg, every other week) at week 16 in adults with moderate to severe atopic dermatitis. | (RTTNews) - AbbVie's (ABBV) upadacitinib achieved superiority to dupilumab for the primary and all ranked secondary endpoints, as per a phase 3b head-to-head study in adults with atopic dermatitis. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as a once-daily oral therapy for moderate to severe atopic dermatitis and in several other immune-mediated diseases. The company noted that 71 percent of patients treated with upadacitinib (30 mg, once daily) achieved the primary endpoint of at least a 75 percent improvement in the Eczema Area Severity Index or EASI 75 compared to 61 percent of patients treated with dupilumab (300 mg, every other week) at week 16 in adults with moderate to severe atopic dermatitis. |
24294.0 | 2020-12-10 00:00:00 UTC | Boehringer gets into 'guided-missile drugs' with $1.5 bln deal for NBE | ABBV | https://www.nasdaq.com/articles/boehringer-gets-into-guided-missile-drugs-with-%241.5-bln-deal-for-nbe-2020-12-10 | nan | nan | By John Miller
ZURICH, Dec 10 (Reuters) - Boehringer Ingelheim is paying 1.18 billion euros ($1.5 billion) for Swiss-based NBE Therapeutics, the German drugmaker said on Thursday, adding pipeline candidates including a drug in early trials against triple-negative breast cancer and lung cancer.
Basel-based biotech NBE, in which Boehringer's venture fund previously had a stake along with Denmark's Novo Nordisk Foundation and Prague-based PPF Group, is hoping to develop so-called Antibody-drug Conjugates (ADCs) from its own platform against a series of cancers.
ADCs combine a monoclonal antibody with a chemical drug payload, aiming to pack a one-two punch against cancers and potentially other diseases.
Though this class of "guided-missile" cancer medicines got off to a hit-and-miss start due to challenges of safely and effectively combining the two drug classes, advances have led to several recent approvals, including medicines from companies such as AstraZeneca AZN.L, Roche ROG.S and Seattle Genetics (Seagen) SGEN.O.
"Boehringer Ingelheim gains access to an innovative and unique platform that it will use to build a leading ADC portfolio and develop potential combinations with other assets from its cancer immunology portfolio," the company said in a statement.
The deal is a bet on the future, with the triple negative breast cancer hopeful, called NBE-002, only having just started human trials, and four other candidates either in discovery or preclinical stages.
In August, NBE added Erich Schlick as chairman.
Schlick, now a venture capitalist, in the early 1990s worked with the partnership that eventually led to the development of Humira, AbbVie's ABBV.N drug for auto-immune disorders like psoriasis that is the world's top-selling medicine at about $20 billion annually.
($1 = 0.8241 euros)
(Reporting by John Miller; Editing by Steve Orlofsky)
((J.Miller@thomsonreuters.com; +41 58 306 7734; Reuters Messaging: j.miller.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. | Schlick, now a venture capitalist, in the early 1990s worked with the partnership that eventually led to the development of Humira, AbbVie's ABBV.N drug for auto-immune disorders like psoriasis that is the world's top-selling medicine at about $20 billion annually. Basel-based biotech NBE, in which Boehringer's venture fund previously had a stake along with Denmark's Novo Nordisk Foundation and Prague-based PPF Group, is hoping to develop so-called Antibody-drug Conjugates (ADCs) from its own platform against a series of cancers. The deal is a bet on the future, with the triple negative breast cancer hopeful, called NBE-002, only having just started human trials, and four other candidates either in discovery or preclinical stages. | Schlick, now a venture capitalist, in the early 1990s worked with the partnership that eventually led to the development of Humira, AbbVie's ABBV.N drug for auto-immune disorders like psoriasis that is the world's top-selling medicine at about $20 billion annually. By John Miller ZURICH, Dec 10 (Reuters) - Boehringer Ingelheim is paying 1.18 billion euros ($1.5 billion) for Swiss-based NBE Therapeutics, the German drugmaker said on Thursday, adding pipeline candidates including a drug in early trials against triple-negative breast cancer and lung cancer. "Boehringer Ingelheim gains access to an innovative and unique platform that it will use to build a leading ADC portfolio and develop potential combinations with other assets from its cancer immunology portfolio," the company said in a statement. | Schlick, now a venture capitalist, in the early 1990s worked with the partnership that eventually led to the development of Humira, AbbVie's ABBV.N drug for auto-immune disorders like psoriasis that is the world's top-selling medicine at about $20 billion annually. By John Miller ZURICH, Dec 10 (Reuters) - Boehringer Ingelheim is paying 1.18 billion euros ($1.5 billion) for Swiss-based NBE Therapeutics, the German drugmaker said on Thursday, adding pipeline candidates including a drug in early trials against triple-negative breast cancer and lung cancer. Basel-based biotech NBE, in which Boehringer's venture fund previously had a stake along with Denmark's Novo Nordisk Foundation and Prague-based PPF Group, is hoping to develop so-called Antibody-drug Conjugates (ADCs) from its own platform against a series of cancers. | Schlick, now a venture capitalist, in the early 1990s worked with the partnership that eventually led to the development of Humira, AbbVie's ABBV.N drug for auto-immune disorders like psoriasis that is the world's top-selling medicine at about $20 billion annually. By John Miller ZURICH, Dec 10 (Reuters) - Boehringer Ingelheim is paying 1.18 billion euros ($1.5 billion) for Swiss-based NBE Therapeutics, the German drugmaker said on Thursday, adding pipeline candidates including a drug in early trials against triple-negative breast cancer and lung cancer. Basel-based biotech NBE, in which Boehringer's venture fund previously had a stake along with Denmark's Novo Nordisk Foundation and Prague-based PPF Group, is hoping to develop so-called Antibody-drug Conjugates (ADCs) from its own platform against a series of cancers. |
24295.0 | 2020-12-10 00:00:00 UTC | The Only Warren Buffett Stock Worth Buying | ABBV | https://www.nasdaq.com/articles/the-only-warren-buffett-stock-worth-buying-2020-12-10 | nan | nan | Warren Buffett is well known for his investing savvy. He's a particular favorite among long-term buy-and-hold investors who appreciate great companies with stocks at good prices.
Yet as much as Buffett's favorite holding period is forever, the portfolio at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) that the Oracle of Omaha runs has seen a lot of turnover in 2020. Airline stocks got the boot early this year, as Buffett concluded that the coronavirus pandemic had fundamentally and permanently changed the dynamics for passenger carriers. Berkshire has also made big shifts in its bank stock holdings, selling off stakes in many Wall Street banks while building up its position in favored Bank of America.
Selling went well beyond what anyone expected. Buffett even jettisoned long-held Costco Wholesale and also dramatically reduced his somewhat surprising stake in mining giant Barrick Gold.
On the buy side, we've seen a lot of new companies enter the field. Pharmaceutical stocks won big in the third quarter, as Buffett bought shares of Merck (NYSE: MRK), AbbVie (NYSE: ABBV), and Bristol Myers Squibb (NYSE: BMY). The Berkshire CEO even played the IPO game by participating in the initial offering of Snowflake (NYSE: SNOW) shares, jumping into the SaaS stock realm.
As a Buffett fan, I don't think all this activity tells me much about what stocks I should buy for my own individual portfolio. I see only one Buffett stock with real appeal for devotees of the investing legend.
Warren Buffett. Image source: The Motley Fool.
This is the Buffett stock to buy
If you're looking for the true Buffett stock to put in your portfolio, the best choice is Berkshire Hathaway itself. There are two reasons why: One is fundamental, and the other is based more on its stock price.
The fundamental reason why Berkshire Hathaway is a strong investment has to do with its core insurance business model. The Buffett-led company has money to invest in the stocks that Berkshire picks because the insurance unit collects premiums upfront and doesn't have to pay claims until later -- much later, in some lines of insurance policies. As Berkshire's insurance businesses grow, the capacity to expand its portfolio also grows.
Meanwhile, Berkshire Hathaway's stock price remains attractive, even after a significant rally of nearly 35% since March. In the past three years, Berkshire shares are up only 16%, compared to S&P 500 returns of close to 50% over the same timeframe.
Why buy a poor-performing stock?
Some Buffett detractors argue that the very thing that's made Berkshire shares value-priced is the reason not to buy the stock. Buffett's lost his touch, they argue. The pop in airline stocks right after Berkshire sold them off is just the most recent example critics cite.
I've been an investor long enough to remember the last time the stock market community counted Buffett out. During the late 1990s, Buffett refused to jump into the tech boom. Berkshire shares massively underperformed. But in the tech bear market that followed, Berkshire gained ground while those tech giants plunged.
I'm not saying the current boom in high-growth digital disruptors will inevitably sink the market. I'm convinced, though, that investing styles come in and out of fashion. At some point -- likely when momentum plays have burned the maximum number of investors possible -- the Buffett approach will come back into vogue.
Berkshire itself sees the value in its stock, having dramatically ramped up its share repurchases in 2020. Buffett doesn't put much importance on book value anymore, but with the stock at 1.3 times book even after its recent run-up, few would argue that Berkshire is overpriced.
Add some Buffett exposure to your portfolio
Warren Buffett is 90, but the investments he's put together will continue to generate solid returns long after he stops leading the company he brought to prominence. Whether you want to add a value favorite to counterbalance growth stocks elsewhere or just want Buffett on your side, Berkshire Hathaway is still a Buffett stock worth buying.
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Dan Caplinger owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Bristol Myers Squibb, Costco Wholesale, and Snowflake Inc and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 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. | Pharmaceutical stocks won big in the third quarter, as Buffett bought shares of Merck (NYSE: MRK), AbbVie (NYSE: ABBV), and Bristol Myers Squibb (NYSE: BMY). Airline stocks got the boot early this year, as Buffett concluded that the coronavirus pandemic had fundamentally and permanently changed the dynamics for passenger carriers. Buffett even jettisoned long-held Costco Wholesale and also dramatically reduced his somewhat surprising stake in mining giant Barrick Gold. | Pharmaceutical stocks won big in the third quarter, as Buffett bought shares of Merck (NYSE: MRK), AbbVie (NYSE: ABBV), and Bristol Myers Squibb (NYSE: BMY). Berkshire has also made big shifts in its bank stock holdings, selling off stakes in many Wall Street banks while building up its position in favored Bank of America. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Bristol Myers Squibb, Costco Wholesale, and Snowflake Inc and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares). | Pharmaceutical stocks won big in the third quarter, as Buffett bought shares of Merck (NYSE: MRK), AbbVie (NYSE: ABBV), and Bristol Myers Squibb (NYSE: BMY). This is the Buffett stock to buy If you're looking for the true Buffett stock to put in your portfolio, the best choice is Berkshire Hathaway itself. Whether you want to add a value favorite to counterbalance growth stocks elsewhere or just want Buffett on your side, Berkshire Hathaway is still a Buffett stock worth buying. | Pharmaceutical stocks won big in the third quarter, as Buffett bought shares of Merck (NYSE: MRK), AbbVie (NYSE: ABBV), and Bristol Myers Squibb (NYSE: BMY). This is the Buffett stock to buy If you're looking for the true Buffett stock to put in your portfolio, the best choice is Berkshire Hathaway itself. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Dan Caplinger owns shares of Berkshire Hathaway (B shares). |
24296.0 | 2020-12-10 00:00:00 UTC | 3 Warren Buffett Dividend Stocks You Can Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-warren-buffett-dividend-stocks-you-can-buy-right-now-2020-12-10 | nan | nan | Warren Buffett has never pushed for his own Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to initiate a dividend program. He has always maintained that the best ways for Berkshire to reward shareholders are through investing cash in other companies and in Berkshire itself through buybacks.
But don't think for a second that Buffett doesn't like the companies he invests in to pay dividends. Berkshire raked in nearly $3.8 billion in dividends in 2019 from its 10 largest holdings. The giant conglomerate has also added several strong dividend stocks to its portfolio this year.
Not all of the Berkshire-owned stocks pay great dividends. However, here are three Warren Buffett dividend stocks you can buy right now.
Image source: The Motley Fool.
1. AbbVie
Buffett loaded up on big pharma stocks for Berkshire in the third quarter. One of the biggest new positions was AbbVie (NYSE: ABBV).
AbbVie boasts one of the most impressive dividend track records on the market. It's a Dividend Aristocrat, with 49 consecutive years of dividend increases including the time the company was part of Abbott Labs. Since being spun off from Abbott in 2013, AbbVie has increased its dividend by 225%. Its dividend yield currently stands at a mouth-watering 4.85%.
Some investors have soured on AbbVie because the company's top-selling drug Humira faces biosimilar competition in the U.S. beginning in 2023. After all, sales of the drug that's generated nearly half of AbbVie's total revenue so far in 2020 will likely begin sinking soon. But Warren Buffett has always looked to the long-term and not just the immediate future.
Buffett likely realized that AbbVie remains in a solid position thanks to new autoimmune disease drugs that should take the baton from Humira. The Oracle of Omaha also was almost certainly aware of AbbVie's blood cancer drugs delivering fast-growing sales and its overall financial strength. AbbVie probably won't be a huge growth story in the near term, but it should provide solid total returns over the long run to patient investors.
2. Bank of America
Bank of America (NYSE: BAC) has been a longtime holding for Berkshire Hathaway. It's no secret that Buffett has liked big banks for quite a while. And Bank of America stands as one of his favorites, with Berkshire owning nearly 11% of the company.
The financial services company ranked as the third-largest source of dividends for Berkshire last year, contributing $682 million in dividends to the conglomerate's coffers. Bank of America cut its dividend during the Great Recession period and didn't provide any dividend hikes for a few years afterward. However, the company has increased its dividend payout by an impressive 260% over the last five years. Its dividend now yields close to 2.5%.
A struggling economy combined with low interest rates isn't a great recipe for success for a big bank. Bank of America, though, appears to be in a strong position to soar once the pandemic ends and the economy recovers. Warren Buffett is no doubt banking (pun fully intended) on that happening.
Bank of America should even be a winner in the "war on cash" in the coming years. The company has ramped up its online and digital operations more significantly than most of its rivals. Increasing profits from a major trend such as the shift from physical currency to digital payments should help ensure that Bank of America's dividends continue to flow and grow.
3. Pfizer
Pfizer (NYSE: PFE) is another recent big pharma addition to Berkshire's holdings. And, like AbbVie, Pfizer is a great dividend stock.
No, Pfizer isn't a Dividend Aristocrat like AbbVie is. You can blame the company's dividend cut more than a decade ago related to its acquisition of Wyeth. However, Pfizer has steadily raised its dividend every year since 2010. Its dividend currently yields around 3.6%.
Pfizer will soon reduce its dividend a little, but investors shouldn't be concerned. The coming cut stems from the company's merger of its Upjohn unit with Mylan to form Viatris. This deal was a smart move for Pfizer because it will enable the company to return to solid growth after several dismal years weighed down by sinking sales of older drugs.
With Upjohn gone, Pfizer's lineup includes several growth drivers such as blood thinner Eliquis and rare disease drug Vyndaqel. Of course, the company also could soon add a blockbuster COVID-19 vaccine to the mix. Buffett won't just get attractive dividends with Pfizer; he'll likely get attractive growth, too. Investors who aren't legendary billionaires can benefit from both as well.
10 stocks we like better than Pfizer
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 Pfizer wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Keith Speights owns shares of AbbVie, Bank of America, Berkshire Hathaway (B shares), and Pfizer. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Viatris Inc and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 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 probably won't be a huge growth story in the near term, but it should provide solid total returns over the long run to patient investors. AbbVie Buffett loaded up on big pharma stocks for Berkshire in the third quarter. One of the biggest new positions was AbbVie (NYSE: ABBV). | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bank of America, Berkshire Hathaway (B shares), and Pfizer. AbbVie Buffett loaded up on big pharma stocks for Berkshire in the third quarter. One of the biggest new positions was AbbVie (NYSE: ABBV). | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Bank of America, Berkshire Hathaway (B shares), and Pfizer. AbbVie Buffett loaded up on big pharma stocks for Berkshire in the third quarter. One of the biggest new positions was AbbVie (NYSE: ABBV). | And, like AbbVie, Pfizer is a great dividend stock. AbbVie Buffett loaded up on big pharma stocks for Berkshire in the third quarter. One of the biggest new positions was AbbVie (NYSE: ABBV). |
24297.0 | 2020-12-07 00:00:00 UTC | 7 Medical Marijuana Stocks for a Healthcare Revolution | ABBV | https://www.nasdaq.com/articles/7-medical-marijuana-stocks-for-a-healthcare-revolution-2020-12-07 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For the past few years, the cannabis sector has been mostly in a bear market. Lately, though, things have been picking up. The supply-demand dynamics have gotten better in Canada and the political situation is turning more favorable in the United States. There are also encouraging developments in healthcare applications for cannabis. In fact, there are some very interesting medical marijuana stocks available right now.
One reason for this is that the academic research surrounding marijuana continues to show promise. It looks like cannabis has a wide range of applications, from treating diseases to helping with pain management.
Next, the medical sector is also less prone to competitive pressures, especially when compared to the consumer market. That’s because the regulations are a barrier to entry. Likewise, the considerable time spent researching new treatments makes it hard for competitors to break into the industry.
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So, what are some of the best medical marijuana stocks to consider right now? Well, let’s take a look:
GW Pharmaceuticals (NASDAQ:GWPH)
Charlotte’s Web (OTCMKTS:CWBHF)
AbbVie (NYSE:ABBV)
Aurora Cannabis (NYSE:ACB)
Cronos Group (NASDAQ:CRON)
Harvest Health & Recreation (OTCMKTS:HRVSF)
Aleafia Health (OTCMKTS:ALEAF)
Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH)
Source: Yarygin / Shutterstock.com
When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. The company got its start back in 1998. Since then, it has been a major innovator.
However, when the company went public in 2013, there was not much interest. But this was temporary. Soon enough, GWPH stock become red hot.
As of now, the company’s lead cannabinoid product is Epidiolex, which targets seizures caused by Lennox-Gastaut syndrome, Dravet syndrome and other conditions. The drug hit the markets in late 2018. GWPH has since been seeking regulatory approval for other indications like Rett syndrome, although these efforts have been put on hold due to Covid-19.
In the latest quarter, revenues shot up by 51% to $137 million, up from $91 million the previous year. Additionally, net loss was $12.2 million, compared to $13.8 million in 2019. The company also announced its pivotal Phase 3 program for nabiximols, which is being developed for multiple sclerosis (MS). If approved, this will certainly be a nice driver for growth in the coming years.
Charlotte’s Web (CWBHF)
CWBHF) branded hemp product" width="300" height="169">
Source: Kevin McGovern / Shutterstock.com
Next on my list of medical marijuana stocks is Charlotte’s Web, a company that develops wellness products with CBD oil (cannabidiol) derived from hemp. CWBHF is vertically integrated so as to provide better control over the quality. As for manufacturing, it is FDA-registered and received NCF International’s “Good Manufacturing Practices” mark of approval.
The company also has wide distribution. There are about 22,000 retail locations that carry its products, including Harmony Hemp and CBD Clinic.
Even though the pandemic has weighed on growth, Charlotte’s Web has been offsetting some of this with aggressive investments in ecommerce and direct-to-consumer selling. This business jumped by nearly 28% year-over-year (YOY) in the latest quarter.
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Finally, with the election of Joe Biden, CWBHF stock might get a boost on the regulatory front as well. That is, there may be more opportunity to sell CBD products because of the new administration.
AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
Many of the medical marijuana stocks out there are relatively small. That often means that the volatility can be severe.
So, if you are looking for a more stable way to get exposure to the burgeoning cannabis market, you should consider AbbVie. Of course, ABBV is a traditional pharma company with treatments that span oncology, immunology, neuroscience and so on. But the company also has Marinol.
Marinol is an FDA-approved drug that uses a dronabinol, a synthetic substitute for THC (tetrahydrocannabinol). THC is a natural part of the marijuana plant which has proven effective to treat vomiting from chemotherapy as well as loss of appetite in AIDS patients.
Now, this drug is not a big part of ABBV stock’s business. But then again, the experience with this type of medical innovation could lead to others, especially as restrictions lift.
Aurora Cannabis (ACB)
ACB) logo in green" width="300" height="169">
Source: ElRoi / Shutterstock.com
Aurora Cannabis has a substantial medical business, with close to 90,000 patients. The company also maintains a solid global presence, such as in countries like Germany.
Not long ago, though, the prospects for ACB stock looked bleak. The company was running low on cash and the overall business was lagging.
Yet, with the recent bull move in medical marijuana stocks, Aurora got aggressive with its fundraising. Soon enough, it was able to raise a cool $150 million.
The underlying business is also showing signs of improvement. In fact, in the recent U.S. election, there were various states that passed favorable cannabis laws. This should help increase sales next year.
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Additionally, Miguel Martin — the company’s new CEO — is a proven leader in the consumer products space. Martin’s focus on discipline should help propel Aurora to profitability. In the latestearnings call he noted, “We intend to demonstrate that Aurora can be a profitable, growth-oriented leader in the global cannabinoid market.”
Cronos (CRON)
Source: Shutterstock
Cronos is one of the best-capitalized medical marijuana stocks out there right now. As it stands, the company has roughly $1.1 billion in cash and equivalents in the bank. And when you exclude this from the market capitalization, the value of the remaining equity is only about $1.8 billion. That actually makes CRON stock one of the more interesting value plays in the cannabis sector.
Admittedly, a large part of the business does come from the consumer segment. Note that the company’s largest equity holder is Altria (NYSE:MO), which has been a key strategic partner.
But Cronos’ medical business is also important. The company has a line of wellness and health products under its PeaceNaturals brand. It also has a variety of CBD topicals and injectables, like Lord Jones.
Finally, Cronos has been ramping up its partnerships in the medical area. For instance, the company made a notable deal with Gingko Bioworks, an innovator in biological manufacturing of cannabis strains. Many of the products that come out of this partnership will prove quite effective for medical use.
Harvest Health & Recreation (HRVSF)
Source: Shutterstock
Harvest Health & Recreation is a vertically integrated cannabis company, with 38 retail locations and 11 cultivation and processing facilities. It is also one of the largest operators in Arizona, one of the larger markets for medical cannabis. In other words, Harvest Health & Recreation has extensive experience selling medical marijuana and dealing with state regulations.
What’s more, Arizona voters just passed a ballot measure to legalize recreational marijuana during the recent election. As such, the growth prospects look good for HRVSF stock.
In the meantime, though, the company’s management has been focused on building a solid organization. Harvest Health & Recreation is adjusted EBITDA positive and is on track to generate over $225 million in revenues this year (Page 19).
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Finally, this pick of the medical marijuana stocks has a growing presence in states like Florida, Maryland and Pennsylvania — all of which have positive trends for the cannabis market.
Aleafia Health (ALEAF)
Source: Shutterstock
Last on my list of medical marijuana stocks is Aleafia Health, a nationwide network of medical clinics across Canada. In addition to its clinical reach, the company also an extensive cultivation system, supply chain, R&D capabilities and distribution facilities.
One of the keys to this company’s success has been its low-cost model. Last year, the production cost from its outdoor facilities — which meet strict regulatory requirements — was about 10 cents per gram.
Another advantage for ALEAF stock is its strong financial position. The company possesses about $43 million in the bank and has maintained positive adjusted EBITDA for three of the past four quarters.
Moreover, the company is gearing up for a pick up in growth. For example, it has completed major facility buildouts — like the expansion of its outdoor site — which will greatly increase capacity.
On the date of publication, Tom Taulli did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Tom Taulli (@ttaulli) is the author of various books on investing and technology, including Artificial Intelligence Basics, High-Profit IPO Strategies and All About Short Selling. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s.
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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. | Well, let’s take a look: GW Pharmaceuticals (NASDAQ:GWPH) Charlotte’s Web (OTCMKTS:CWBHF) AbbVie (NYSE:ABBV) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Harvest Health & Recreation (OTCMKTS:HRVSF) Aleafia Health (OTCMKTS:ALEAF) Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH) Source: Yarygin / Shutterstock.com When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Many of the medical marijuana stocks out there are relatively small. So, if you are looking for a more stable way to get exposure to the burgeoning cannabis market, you should consider AbbVie. | Well, let’s take a look: GW Pharmaceuticals (NASDAQ:GWPH) Charlotte’s Web (OTCMKTS:CWBHF) AbbVie (NYSE:ABBV) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Harvest Health & Recreation (OTCMKTS:HRVSF) Aleafia Health (OTCMKTS:ALEAF) Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH) Source: Yarygin / Shutterstock.com When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Many of the medical marijuana stocks out there are relatively small. So, if you are looking for a more stable way to get exposure to the burgeoning cannabis market, you should consider AbbVie. | Well, let’s take a look: GW Pharmaceuticals (NASDAQ:GWPH) Charlotte’s Web (OTCMKTS:CWBHF) AbbVie (NYSE:ABBV) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Harvest Health & Recreation (OTCMKTS:HRVSF) Aleafia Health (OTCMKTS:ALEAF) Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH) Source: Yarygin / Shutterstock.com When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Many of the medical marijuana stocks out there are relatively small. So, if you are looking for a more stable way to get exposure to the burgeoning cannabis market, you should consider AbbVie. | Now, this drug is not a big part of ABBV stock’s business. Well, let’s take a look: GW Pharmaceuticals (NASDAQ:GWPH) Charlotte’s Web (OTCMKTS:CWBHF) AbbVie (NYSE:ABBV) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Harvest Health & Recreation (OTCMKTS:HRVSF) Aleafia Health (OTCMKTS:ALEAF) Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH) Source: Yarygin / Shutterstock.com When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Many of the medical marijuana stocks out there are relatively small. |
24298.0 | 2020-12-07 00:00:00 UTC | 7 Cheap Stocks to Buy Before the Market Realizes their Worth | ABBV | https://www.nasdaq.com/articles/7-cheap-stocks-to-buy-before-the-market-realizes-their-worth-2020-12-07 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
No one likes to be the investor who watched a stock soar higher and higher, then bought it in right near the top. That’s one of the worst feelings and once it happens, it can scar investors. Rather than look for the high flyers, it leaves investors looking for value plays. These cheap stocks are ones they can comfortably accumulate.
However, cheap stocks are usually cheap for a reason. Sometimes it’s the debt load, others times it’s a volatile revenue stream. In other occasions, the stock is just flat out misunderstood.
We want to avoid value traps the same way we want to avoid buying a high-flying stock near its peak. It’s a similar feeling to buying a stock that trades at 8 times earnings, only to watch it drop to 5 times earnings.
With low-valuation stocks though, we tend to get slower growth and a larger dividend yield. In some cases, though, these cheap stocks have double-digit growth and a strong forward outlook. So, why are they cheap? That’s part of the puzzle.
7 Auto Stocks to Watch Going Into 2021
With that in mind, let’s look at seven cheap stocks to buy before the market picks up on the value:
AbbVie (NYSE:ABBV)
AT&T (NYSE:T)
Qualcomm (NASDAQ:QCOM)
Gogo (NASDAQ:GOGO)
Goldman Sachs (NYSE:GS)
Nautilus (NYSE:NLS)
Ford (NYSE:F)
Cheap Stocks to Buy: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
Wall Street started realizing AbbVie’s value after its latest earnings report. The company beat on top- and bottom-line expectations. However, it wasn’t just a quarter’s worth of business that investors suddenly decided to pivot on. At least, not in my opinion.
Instead, they are starting to see the bigger picture.
Unfortunately, shares are up 30% after reporting earnings. Fortunately though, there is still value. Trading at just 10x this year’s earnings, ABBV stock is far from expensive. Add in its 5% dividend yield and income-oriented investors may have a hard time avoiding this name.
After acquiring Allergan in a massive, $63 billion deal, the company did bloat up the balance sheet. However, in doing so, the company also bought a steady stream of free cash flow. That free cash flow is worth a lot, even though it hasn’t gotten the value it deserves.
Investors have had concerns, ranging from the debt, expiring drug patents and even how well (or unwell) Botox is selling during the pandemic.
But management has proved it can reduce debt, cover the dividend and generate growth. Next year alone, revenue is forecast to climb more than 17%, while earnings are forecast to grow 16.5%. Not bad for one of our cheap stocks.
AT&T (T)
Source: Roman Tiraspolsky / Shutterstock.com
AT&T doesn’t get much love — but that’s exactly why it’s on our list of cheap stocks. Coming into the year, investors were finally realizing its worth, as shares hovered near $37.
Compared to where it was a year before, that was up about $10 a share, so really, the value realization was there. But then T stock plunged with the market in March, bottoming just below $25.
Unlike the rest of the market though, AT&T shares never really bounced back with any rigor. As such, the stock remains almost 22% below its 2020 high.
The biggest thing critics attack is AT&T’s debt. With long-term debt of $151.2 billion, one can see why. The company has made some great acquisitions in the past (like TimeWarner) and some horrible acquisitions as well, (like DirecTV).
Thankfully, the TimeWarner deal was the company’s most recent and has given AT&T a significant boost in its free cash flow. As it stands, only about 60% of that free cash flow is needed for the dividend, which yields a whopping 7.12%.
7 Growth Stocks Flying Under the Radar
However, that free cash flow ratio should dip as the company continues to benefit from an economic recovery. Further, management continues to attack its debt pile aggressively, while low rates allow for refinancing and major savings down the stretch.
Put it all together and this stock has a big yield, trades at 9x this year’s earnings and has the free cash flow to last a lifetime.
Qualcomm (QCOM)
Source: Katherine Welles / Shutterstock.com
Investors have been realizing the value that Qualcomm brings to the table, gobbling up its shares this year. QCOM stock has more than doubled from the March low and are up more than 52% from the pre-coronavirus 2020 high.
As the 5G revolution is underway, Qualcomm is set to benefit in a major way.
The company’s chips are going to be part of what makes this blazingly fast technology a reality. With a new deal in place with Apple (NASDAQ:AAPL), the company has turned its fortunes around in a major way over the last 12 to 18 months.
And really, it’s just getting started.
Qualcomm just started its fiscal 2021 year, where estimates call for 39% revenue growth and almost 70% earnings growth! That leaves the stock trading at just 20 times earnings.
Throw in the fact that analysts expect more growth in 2022 (albeit, at a lower rate) and a 1.8% dividend yield, and Qualcomm stock still seems undervalued. Let’s see if we get a dip in this name to buy. It’s one of the few cheap stocks out there that’s near new highs.
Gogo (GOGO)
Source: Shutterstock
With a market capitalization of $940 million, Gogo is far from the biggest name on the list. However, the company continues to work on ways to unlock value.
Admittedly, GOGO stock faced a potential liquidity situation earlier this year. Not known for its robust financial footing, the company faced a serious risk when airline traffic plunged due to Covid-19. With less traffic, revenue dried up and cash flow was a major concern. Now though, there is a major potential opportunity in this stock.
Gogo has two business segments, commercial aviation and business aviation. The former is how we have WiFi on regular planes, but it’s not profitable and drags down Gogo’s financials. While its business aviation unit also provides WiFi, it does so on private planes and is in much better financial shape.
Now, wouldn’t it be nice if Gogo could sell the commercial aviation unit, allowing it to pay down debt while focusing on its profit-generating business?
7 Auto Stocks to Watch Going Into 2021
Truth be told, it would be a win if Gogo could give away its commercial business. Instead, it’s selling the unit for $400 million in cash.
From CEO Oakleigh Thorn: “The Transaction will give us the ability to de-lever, generate positive free cash flow, take advantage of our substantial NOL carryforwards, and invest in strengthening our Business Aviation franchise.”
In that earnings update, management expected the deal to close by the end of Q1 2021. However, a more recent update has the closing in a few weeks.
Goldman Sachs (GS)
Source: Shutterstock
I love Goldman Sachs for this list, even if the stock has rallied more than 25% from its recent low. Simply put, this company is killing it right now.
Here’s the problem (and the opportunity). GS stock gets lumped in with the shares of big banking giants, like JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC) and others. That’s fine under most circumstances.
While the banks are actually doing quite well from a business perspective during such trying times, Goldman Sachs is making a fortune. That’s because it’s not a traditional bank.
Instead of being a traditional lending bank, it’s an investment bank that derives most of its revenue from trading and deal-making. With volatile markets to trade and plenty of deals coming through the pipeline via M&A and IPOs, Goldman is busier than ever.
Let’s put it this way: Last quarter, the company reported revenue of $10.78 billion, up almost 30% year over year and ahead of estimates by $1.4 billion. Earnings of $9.68 per share were almost double analysts’ expectations for $5.50 per share. That was up 102% year over year.
The best part is, Goldman pays out a 2.1% dividend yield and trades at just 12x this year’s earnings estimates. Its robust growth should continue through Q4 with a number of new deals being announced as well.
Nautilus (NLS)
Source: New_World/Shutterstock.com
For a stock that’s gone from $1.20 at its March low to more than $28 in November, readers may be hard-pressed to believe that Nautilus belongs on a list of cheap stocks.
But hear me out, because while there is risk with this one, there is also opportunity.
When Covid-19 hit, Nautilus was crushed. That’s presumably on the assumption that without any gyms open, demand would dry up for the company’s products. That part was true, but it didn’t account for new demand from consumers.
Now, Nautilus can’t even keep up. The most recent earnings report was very bullish, with revenue soaring more than 150% year over year and GAAP earnings of $1.05 per share easily crushing estimates by more than 70 cents.
7 Growth Stocks Flying Under the Radar
Expected to earn $2.30 per share this year, NLS stock trades at just over 8 times earnings. With its $580 million market cap, it trades at about par with revenue. If all it ever does it produce workout equipment, that valuation is probably fair.
However, if Wall Street even gets a whiff that a recurring revenue stream is realistic — via a workout subscription service — then this valuation is going far higher. That’s how Peloton (NASDAQ:PTON) pedaled its way higher.
Off the recent dip, bulls may find Nautilus to be a reasonable investment on this potential revenue stream, which by the way, the company was working on before Covid-19 came along.
Ford (F)
Source: Jonathan Weiss / Shutterstock.com
Ford belongs on our list of cheap stocks, simply because it has almost always had a low valuation. Being an automaker doesn’t exactly excite investors. Or at least, hasn’t excited them enough to bid up F stock to a premium.
But will all that change? Tesla (NASDAQ:TSLA) is admittedly more than an automaker, but as its market cap swells beyond $500 billion, it has brought a premium valuation to those who make electric vehicles (EVs).
Ford is now busting into that realm as well.
The company’s Mach-E vehicle and push to electrify the top-selling vehicle in the country — the F-Series pickup — has investors excited. Coupled with its recently announced Ford Bronco and investors have really started to perk up.
Between the pre-release excitement of the Bronco — due out in the spring — and the push toward electrification, Ford has a lot of momentum right now. Obviously Covid-19 hasn’t done Ford any favors, but at less than 10 x forward earnings, there could be room to the upside. Particularly if it reinstates its dividend.
Recently, Barron’s suggested that Ford stock could double.
On the date of publication, Bret Kenwell held a long position in ABBV, GS and GOGO.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 7 Cheap Stocks to Buy Before the Market Realizes their Worth 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 Auto Stocks to Watch Going Into 2021 With that in mind, let’s look at seven cheap stocks to buy before the market picks up on the value: AbbVie (NYSE:ABBV) Qualcomm (NASDAQ:QCOM) Gogo (NASDAQ:GOGO) Goldman Sachs (NYSE:GS) Nautilus (NYSE:NLS) Ford (NYSE:F) Cheap Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Wall Street started realizing AbbVie’s value after its latest earnings report. Trading at just 10x this year’s earnings, ABBV stock is far from expensive. | Qualcomm (NASDAQ:QCOM) Gogo (NASDAQ:GOGO) Goldman Sachs (NYSE:GS) Nautilus (NYSE:NLS) Ford (NYSE:F) Cheap Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Wall Street started realizing AbbVie’s value after its latest earnings report. 7 Auto Stocks to Watch Going Into 2021 With that in mind, let’s look at seven cheap stocks to buy before the market picks up on the value: AbbVie (NYSE:ABBV) Trading at just 10x this year’s earnings, ABBV stock is far from expensive. | Qualcomm (NASDAQ:QCOM) Gogo (NASDAQ:GOGO) Goldman Sachs (NYSE:GS) Nautilus (NYSE:NLS) Ford (NYSE:F) Cheap Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Wall Street started realizing AbbVie’s value after its latest earnings report. 7 Auto Stocks to Watch Going Into 2021 With that in mind, let’s look at seven cheap stocks to buy before the market picks up on the value: AbbVie (NYSE:ABBV) Trading at just 10x this year’s earnings, ABBV stock is far from expensive. | Qualcomm (NASDAQ:QCOM) Gogo (NASDAQ:GOGO) Goldman Sachs (NYSE:GS) Nautilus (NYSE:NLS) Ford (NYSE:F) Cheap Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Wall Street started realizing AbbVie’s value after its latest earnings report. 7 Auto Stocks to Watch Going Into 2021 With that in mind, let’s look at seven cheap stocks to buy before the market picks up on the value: AbbVie (NYSE:ABBV) Trading at just 10x this year’s earnings, ABBV stock is far from expensive. |
24299.0 | 2020-12-06 00:00:00 UTC | 3 Value Stocks Warren Buffett Owns That You Should Consider Buying Too | ABBV | https://www.nasdaq.com/articles/3-value-stocks-warren-buffett-owns-that-you-should-consider-buying-too-2020-12-06 | nan | nan | As a young man, Warren Buffett learned from Benjamin Graham, a man who would come to be known as "the father of value investing." Graham wrote the classic book on value investing, The Intelligent Investor. Buffett has called it "the best book about investing ever written."
Thanks in large part to the influence of Benjamin Graham, Buffett became a value investor himself. Through the years, he became more open to buying stocks that didn't totally adhere to Graham's principles. However, Buffett still likes a bargain when he can find one for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio.
Are there some value stocks in Berkshire's holdings right now? Absolutely. Here are three value stocks Buffett owns that you should consider buying too.
Image source: The Motley Fool.
1. AbbVie
Berkshire recently loaded up on big pharma stocks, including the purchase of nearly 21.3 million shares of AbbVie (NYSE: ABBV). Buffett probably liked the idea of buying a cash cow that trades well below nine times expected earnings.
AbbVie's bargain-bin valuation stems primarily from the looming headwinds for its top-selling drug, Humira. The autoimmune disease drug already has lost market share in Europe because of biosimilar competition. Humira faces biosimilar rivals in the U.S. beginning in 2023.
However, AbbVie has known for a long time that the day would come when it couldn't rely on Humira's huge sales. The company has built a solid lineup of other winners, notably including blood cancer drugs Imbruvica and Venclexta. It has also developed worthy successors to Humira with Rinvoq and Skyrizi now on the market and gaining major momentum.
The upcoming challenges for Humira will likely constrain AbbVie's growth prospects for a while. Buffett is a patient investor, though, and usually doesn't mind waiting when he knows he invested at an attractive price. In this case, he'll be paid handsomely to wait: AbbVie's dividend yields nearly 5%.
2. Bristol Myers Squibb
Bristol Myers Squibb (NYSE: BMY) is another big pharma stock recently added to Berkshire's portfolio. And like AbbVie, BMS is a bargain. Its shares currently trade at a little over eight times expected earnings.
With its acquisition of Celgene last year, BMS picked up Revlimid, a megablockbuster blood cancer drug. The bad news is that Revlimid will begin to face limited-volume generic competition in 2022. The good news is that the Celgene deal gave BMS plenty of other rising stars, including another blood cancer drug, Pomalyst, and multiple sclerosis drug Zeposia.
BMS already had some big winners of its own. Sales continue to climb for blood thinner Eliquis, autoimmune disease drug Orencia, and cancer immunotherapy Yervoy. The company has gained new indications for its other top cancer immunotherapy, Opdivo, that should fuel additional growth.
These products along with a robust pipeline should enable BMS to generate average annual earnings growth of more than 20% over the next few years. BMS also pays a dividend that yields a little under 3%. This stock looks like a great pick for Buffett and for ordinary investors.
3. Pfizer
Continuing with the pharma theme, Berkshire also scooped up shares of Pfizer (NYSE: PFE) in the third quarter of 2020. Although Pfizer isn't as cheap as AbbVie and Bristol Myers Squibb, its shares trade at only 12 times expected earnings. That's a lot lower than the S&P 500's forward price-to-earnings multiple of 22.
Pfizer's discount valuation is directly connected with its abysmal revenue and earnings growth in recent years. Sales for a basket of the company's older drugs have plunged as they lost patent exclusivity. However, that's in the past.
It's a whole new ballgame for Pfizer now. The company recently completed the merger of its Upjohn unit (home to those older drugs with declining sales) with Mylan to form a new company, Viatris. This paves the way for Pfizer to return to much stronger growth. And that growth could be accelerated thanks to Pfizer's promising COVID-19 vaccine.
Pfizer's dividend will be a little lower going forward after the Upjohn-Mylan transaction. However, the yield will still be attractive. There's a good chance that Pfizer will deliver market-beating total returns over the next decade. Buffett probably won't regret buying the big pharma stock. Investors who aren't famous billionaires probably won't, either.
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Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb. The Motley Fool recommends Viatris Inc and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 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 Pfizer isn't as cheap as AbbVie and Bristol Myers Squibb, its shares trade at only 12 times expected earnings. AbbVie Berkshire recently loaded up on big pharma stocks, including the purchase of nearly 21.3 million shares of AbbVie (NYSE: ABBV). AbbVie's bargain-bin valuation stems primarily from the looming headwinds for its top-selling drug, Humira. | AbbVie Berkshire recently loaded up on big pharma stocks, including the purchase of nearly 21.3 million shares of AbbVie (NYSE: ABBV). AbbVie's bargain-bin valuation stems primarily from the looming headwinds for its top-selling drug, Humira. However, AbbVie has known for a long time that the day would come when it couldn't rely on Humira's huge sales. | AbbVie Berkshire recently loaded up on big pharma stocks, including the purchase of nearly 21.3 million shares of AbbVie (NYSE: ABBV). See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. AbbVie's bargain-bin valuation stems primarily from the looming headwinds for its top-selling drug, Humira. | See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Pfizer. AbbVie Berkshire recently loaded up on big pharma stocks, including the purchase of nearly 21.3 million shares of AbbVie (NYSE: ABBV). AbbVie's bargain-bin valuation stems primarily from the looming headwinds for its top-selling drug, Humira. |
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