09-12-2021, 07:40 AM
(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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