Daily Stock Analysis: AbbVie

A new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista. I will select its fourth stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we'll review the first of five healthcare sector stock candidates vying to be the fifth selection for the Vista portfolio.

My subject today is a large-cap drug manufacturer, general, named, AbbVie Inc. Its trading ticker symbol is ABBV. This is my first report on AbbVie Inc for this Vista dog of the week portfolio. I have reviewed it for others, however.  

AbbVie is a drug company with a strong presence in immunology and oncology. 

The company's top drug, Humira, represents over half of the company's current profits. 

The company was spun off from Abbott in early 2013. 

The recently announced acquisition of Allergan will add several new drugs in aesthetics and women's health.

Also, it has collaborations with Calico Life Sciences LLC; Alector, Inc.; Janssen Biotech, Inc.; Jacobio Pharmaceuticals; I-Mab; and Genmab A/S. 

The company was incorporated in 2012 and is based in North Chicago, Illinois.

I use three key data points to gauge dividend equities or funds like AbbVie Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

ABBV Price

AbbVie's price per share closed at $86.12 on Friday. A year ago its price was $74.66. Price rose $11.46 or just over 15.3% last year.

If AbbVie's stock trades in the range of $65 to $105 this next year, its recent $86.12 price might rise by $13.88 to reach $100.00 by October 5, 2021. 

ABBV Dividends

AbbVie's most recently declared quarterly dividend was $1.16 payable November 16th. It will total $4.72 annually and yield 5.48% at yesterday's $86.12 closing price.

ABBV Gains?

Adding the $4.72 annual anticipated dividend to my $13.88 optimistic estimate of AbbVie's price upside shows an $18.60 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little over $1,000.00 today in AbbVie Inc at $86.12, we would buy 12 shares of ABBV stock.

A $10 broker fee paid half at purchase and half at sale could cost us  $0.83 per share.

Subtract that $0.83 brokerage cost from my estimated $18.60 gross gain per share results in a net gain of $17.77 X 12 shares = $213.24 for a 21.3% net gain on a $1,033.44 investment.

So it goes that AbbVie Inc shows a possible 21.3% net gain including a 5.48% dividend yield. It could be more, it could be less.   

All of the estimates above are speculation based on the past history of AbbVie Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
William K. 3 years ago Member's comment

An interesting description of an organization doing well. Thanks