Dividends4Life: Beyond the Growing Dividend, Abbvie Stock Is a Good Buy Here

Dividend Growth Stocks News

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

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