Should Investors Worry About AbbVie's Dividend?
There's not much point in buying a passive-income stock like AbbVie (NYSE: ABBV) if it's going to fail to deliver its quarterly dividend into your account. Even reliable companies can sometimes run into problems that require them to level off or even slash their payment.
As it turns out, there is indeed a risk that within the next few years, AbbVie's shareholders get left high and dry instead of getting refreshed with cash as usual. Let's evaluate the situation and determine whether anxiety about this company's dividend is warranted or whether it's overblown.
AbbVie just celebrated its 10th birthday since its spinoff from Abbott Laboratories at the start of 2013. In each of those 10 years, the company hiked its dividend, causing the payout to rise by 270% and ensuring the continuation of its status as a Dividend King that it inherited from Abbott Labs. Management plans to keep hiking the dividend in the future, which makes the issue of its sustainability all the more important.
Source Fool.com
