Is AbbVie's 4.9% Dividend Yield Safe?
Drugmaker AbbVie (NYSE: ABBV) pays a relatively high yield of 4.9%. That's well above the average S&P 500 stock, which offers just 1.3% in recurring income. On a $10,000 investment, that's $360 more in annual dividend income you could earn through AbbVie. Multiply that by several years of owning the stock, plus the regular increases the company makes to its payouts, and the difference becomes even more significant.
AbbVie's yield went up a bit earlier this month after investors dumped the stock, which fell by more than 7% on Sept. 1 after the U.S. Food and Drug Administration said it would require the company to add a warning label to its arthritis medication, Rinvoq. The drug will also be made available to fewer patients. Below, I'll look at what that means for the business and its dividend, and whether this dip in value has made the stock a better buy.
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Source Fool.com
