Daily Stock Pick: AbbVie

A portfolio of stocks I've been building since September 3 is named Volio Folio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the second of four healthcare stocks striving to be picked to join my Volio folio. This could be the thirteenth pick for Volio!

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Health 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.

My subject today is another large-cap drug manufacturer - a major company named, AbbVie Inc. Their trading ticker symbol is ABBV.

My last report on AbbVie was on February 25th, that week I chose AbbVie for my Ivy portfolio, ABBV was selected for my Safari Portfolio as a replacement.

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.

It has collaborations with Alector, Inc.; Janssen Biotech, Inc.; Galapagos; Bristol-Myers Squibb Company; Calico Life Sciences LLC; Cystic Fibrosis Foundation; and Dragonfly Therapeutics, Inc.

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

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

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.

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

ABBV Price

AbbVie's price per share closed at $87.93 yesterday. A year ago its price was $86.24. So, in the past year, its price rose  $1.69 or   nearly 2%

Assuming AbbVie's stock trades in a range of $70 to $100 this next year, it's recent $87.93 price could rise by $6.07  to reach $94.00 by late-November, 2020, assuming upward price momentum continues.

ABBV Dividends

AbbVie's latest declared quarterly dividend was $1.18, payable February 14th.

That $1.18 Q dividend equates to $4.72 annually and yields 5.37% based on yesterday's $87.93 closing price.

ABBV Gains?

Adding the $4.72 annual estimated dividend to my $6.07 estimate of AbbVie's price upside shows a $10.79 potential gross gain, per share, which will be reduced by any costs to trade these shares.

Say, for costs, we put a little under $1,000.00 today into AbbVie Inc at its recent $87.93 price, we'd buy 11 shares of ABBV.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.91 per share.

Subtract that $0.91 brokerage cost from the estimated $10.79 gross estimated gain per share leaves a net gain of $9.88 X 11 shares = $108.68 or a 10.9 % net gain on a $967.23 investment.

Therefore, AbbVie Inc, whose trading ticker symbol is ABBV shows a possible 10.9% net gain including a 5.37% 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 learn if AbbVie Inc is worth your time and money.

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, ...

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