This Pharmaceutical Dividend Has Grown Every Year for More Than a Decade

AbbVie (NYSE: ABBV), which was spun off from Abbott Laboratories in 2013, has consistently increased its quarterly dividend since becoming a standalone publicly traded entity. This achievement is notable despite the challenges faced by the North Chicago-based pharmaceutical company, particularly the loss of exclusive patent rights for its flagship product, Humira. However, AbbVie has managed to bolster its market position with the introduction of new therapies like Skyrizi for autoimmune conditions and Rinvoq for inflammatory diseases. These innovations have helped mitigate the decline in Humira's sales, allowing AbbVie to maintain its streak of dividend growth for over twelve years. With anticipated increases in sales for Skyrizi and Rinvoq, along with contributions from other product lines, AbbVie investors should expect both share appreciation and further dividend growth. Current forecasts predict that revenue from Skyrizi and Rinvoq could soar from $31 billion in 2025 to about $50 billion by 2030. Additionally, AbbVie’s neuroscience segment, featuring products such as Vraylar, Botox Therapeutic, and Ubrelvy, is experiencing low-teens percentage growth year-over-year, which helps offset decreases in sales from other areas like oncology and aesthetics. As sales of Skyrizi and Rinvoq are projected to remain strong through 2026, AbbVie is well-positioned for significant earnings growth in the future. Late last year, the company raised its quarterly dividend by 5.5%, bringing it to $1.73 per share, or an annual total of $6.92 per share, resulting in a forward yield of around 3.2%. With earnings expected to increase by approximately 45.4% in 2026 and 10.8% in 2027, there is potential for even larger dividend increases ahead. The stock is currently valued at about 17 times forward earnings, which is higher than that of some peers but may be justified by AbbVie’s robust growth outlook. Although AbbVie is still years away from achieving the status of a Dividend King—companies known for over 50 consecutive years of dividend growth—its historical roots and newer product successes suggest promising future prospects for dividends and share prices. Before considering an investment in AbbVie, note that it was not included in a recent recommendation from The Motley Fool's Stock Advisor, which highlighted ten other stocks with significant upside potential. The performance of these stocks has suggested impressive returns historically. Take care to stay informed about these investment opportunities.