1 Month Lows

[fenders53]

(09-12-2021, 07:40 AM)bankerboy Wrote:

(09-12-2021, 07:24 AM)fenders53 Wrote: I don't see an issue with the dividend.  Dividend growth will be dependent on replacing patent loss revenue.   They do have a very good pipeline.  BTW I don't own a single share.  I missed the big dip.  I own JNJ and a lot of BMY in this space.  IMO ABBV will see 100 if the market struggles.  The yield gets very attractive above 5% even if earnings growth is flat for several years, which I expect.  PE is already low.

I was just reading this article this morning on my phone discussing their dividends hence my comment. It said:


AbbVie paid out 136% of its profit as dividends over the trailing twelve-month period. However, given the circumstances of 2020, this should not be a surprise.
We also measure dividends paid against a company's levered free cash flow to see if enough cash was generated to cover the dividend. AbbVie paid out a conservative 45% of its free cash flow as dividends last year.
It's good to see that while profits did not cover AbbVie's dividends, at least they are affordable from a cash perspective. If executives continued paying more in dividends than the company reported in profits, we'd view this as a warning sign. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits.


I haven’t verified their articles truthfulness however thru other sources but definitely part of the due diligence process. I’m beginning to really like this stock however!


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When I get a chance I will find a link for you.  A youtube guy who does some extremely thorough cashflow analysis.  CFA and he is VERY good at reading company financials in great detail.  ABBV passes fine.  My concern is 2023 growth is going to be about zero when Humira fades.  Market knows this and hasn't cared, for now.  Doesn't make ABBV overvalued, but it's not a screaming buy at 120 either IMO.  Maybe ABBV does a token div increase for a few years.  So what, the stock is already paying double their peers and long-term will likely grow the same as they do.  One of the better longterm buys in the market until we correct.

Here it is. Warning, he will put you to sleep but he is all numbers, no hype.

https://www.youtube.com/watch?v=xUZrvcsMlg4