Top Dividend Stock AbbVie Runs Hot As Market Approves Of Acquisition Spree



Shares of
STOCK OF THE WEEK biotech
AbbVie(
ABBV) are hot. The stock is nearing a buy point, having risen for 11 consecutive days — the longest streak since December 2021.-
The Chicago-based company — best known for its rheumatoid arthritis drug Humira — has been busy. On Nov. 30, it
announced the acquisition of cancer-drug maker
ImmunoGen(
IMGN) for $10.1 billion.
Only a week later, on Dec. 6, AbbVie
announced yet another acquisition, this time of neuroscience company
Cerevel Therapeutics(
CERE) for $8.7 billion.
Market historians may need to chime in on the last time a company has seen such a run while also announcing multiple acquisitions.
Despite offering a 95% premium to ImmunoGen's stock price, AbbVie shares were still higher on the announced acquisition, highlighting confidence in management's ability to find and unlock shareholder value.
Dividend Stock Offers Yield In Biotech Sector
For investors chasing income, AbbVie fits the bill, boasting a 4% annualized dividend yield. This is particularly high for the biotech sector which often offers investors little to no yield.
AbbVie has increased its dividend for 10 straight years, which amounts to every year since its 2013 spinoff from
Abbott Laboratories(
ABT). The dividend will be once
again increased in 2024, this time to $1.55 quarterly, with the next dividend to trade with an ex-dividend date of Jan. 12.
As previously
highlighted in this column in August, AbbVie continues to represent a strong choice for conservative investors looking for yield in the biotech sector.
With a pipeline of essential drugs, AbbVie also offers security lacking in many other biotech names. Recent acquisitions, while adding debt, have also allowed AbbVie to diversify further away from its flagship drug Humira. Investors can take security in debt rated at a strong BBB+ by S&P Global.
Shares of AbbVie are forming a cup pattern while quickly
approaching a 154.88 buy point //