Daily Stock Pick: AbbVie Inc

This week, I'm looking for the third healthcare sector representative of six for my Ivy portfolio.

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.

Today I'm reviewing a large-cap drug manufacturer - major named AbbVie. Its trading ticker symbol is ABBV.

AbbVie is a drug company with strong exposure to 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.

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products worldwide. The company offers HUMIRA, a therapy administered as an injection for autoimmune diseases; IMBRUVICA, an oral therapy for treating chronic lymphocytic leukemia; and VIEKIRA PAK, an interferon-free therapy to treat adults with genotype 1 chronic hepatitis C.

AbbVie Inc. has collaborations with Alector, Inc.; C2N Diagnostics; Voyager Therapeutics, Inc.; Janssen Biotech, Inc.; International Myeloma Foundation; Calibr and Scripps Research; The Institute for Research in Immunology and Cancer – Commercialization of Research; the Université de Montréal; Tolero Pharmaceuticals, Inc.; Galapagos; Mission Therapeutics Ltd; Bristol-Myers Squibb Company; Voluntis; and Tizona Therapeutics, Inc.

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

I use three key data points to gauge the value of any dividend equity-like AbbVie:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

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

ABBV Price

ABBV's price per share closed at $80.02 Friday. A year ago its price was $121.54. Price fell  $41.52 per share last year, or over 34%.

Assuming ABBVs stock trades in the range of $75 to $100 ABBV's recent $80.02 price could rise by $9.98 and go to $90.00 by mid-February, 2020.

ABBV Dividends

ABBV's most recent Quarterly dividend was $1.07 paid February 15th.

That quarterly dividend equates to a  $4.28 annual payout and a yield of 5.34% at Friday's $8.02 closing price.

Gains For ABBV?

Adding the $4.28 annual estimated dividend to my $9.98 ABBV estimated price upside shows a $14.26 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little under $1,000.00 today at the $80.02 recent stock price would buy us 12 AbbVie shares.

A $10 broker fee paid half at purchase and half at sale costs $0.83 per share.

Subtract that $0.83 brokerage cost from the estimated $14.26 gross annual gain leaves a net gain of $13.43 X 12 shares

= $161.16  or a 16.25% net gain on a $960.34 investment.

Therefore, AbbVie Inc whose trading ticker symbol is ABBV now shows a possible net gain of 16.925% including a 2.94% dividend yield.

Eighteen brokers cover this stock:

Five say "buy" ABBV.

One says ABBV will "outperform" peers

Nine say "hold" on to your ABBV shares.

Two says ABBV will "underperform" peers

One says 'sell" ABBV

Therefore, you can look at  AbbVie Inc and see it has made money, is making money, and could throw a net gain of 16.25% including a 5.34% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if AbbVie Inc is worth your time and money.

Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com;  www.finance.yahoo.com; analyst median target price by YCharts ...

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