Abbvie (NYSE:ABBV) is up over 40% since its mid-August 2019 lows, but amazingly Abbvie stock still offers great value to investors. For example, ABBV has a dividend yield of 4.8% and a prospective price-to-earnings ratio of just 9 times. This is significantly below the averages for the S&P 500.
Abbvie has a great track record raising its dividend. Abbvie sells for less than 9 times forward earnings. I have shown that if the dividend hike trends continue Abbvie is likely worth at least $135.62 per share. This assumes only a slightly better dividend yield of 4% versus its present 4.8% yield. That sounds like a pretty good deal for investors. The closing of the Allergan deal in the next few months is likely to act as a catalyst for higher earnings and cash flow. Even though the stock has risen in the past few months, it is probably worth buying now.
Source: InvestorPlace
Related Articles:
- How To Know When To Sell A Dividend Stock
- Your Greatest Wealth Building Asset
- 5 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
Beyond the Growing Dividend, Abbvie Stock Is a Good Buy Here
Posted by D4L | Sunday, February 02, 2020 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The quick rise in interest rates over the past year turned investor sentiment toward REITs negative. Higher interest rates make it harder fo...
-
Indeed, with recession on the horizon, investors are increasingly emphasizing quality, safety and dividends in their portfolio selections. W...
-
A great year for dividend growth stocks is one in which there are few dividend cuts and fewer companies that failed to raise their dividends...
-
Ultimately, dividend income and capital appreciation come out of one bucket. So focusing on total return, not just dividend yield, will help...
-
Countless people dream of being able to pay their bills with the cash they receive from their investments. But it doesn't have to be jus...
-
Verizon (VZ -1.75%) pays one of the biggest dividends in the S&P 500. The telecom giant currently yields 6.5%. That's one of the top...
-
Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to re...
-
Cash is king when you’re looking to add dividend stocks to your portfolio There’s ample reason for caution. In case you haven’t noticed, a l...
-
The Financial Services Sector includes insurance companies, banks, brokerages, mutual funds and other similar companies. Before the 2008-09 ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.