Dividend Paying Stocks With Stability: AbbVie's (ABBV) Consistent Record

AbbVie Inc. (NYSE:ABBV) is included among the 12 Best Dividend Paying Stocks to Buy Now.

AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company that was spun off from Abbott Laboratories in 2013 and is worth considering for a long-term portfolio. One of the strongest reasons to invest in the company is its dividend. The company’s recent dividend yield stood at a solid 2.9%, compared with just 1.2% for the broader market. Even better, the dividend has been growing steadily, with room for more increases.

Over the past five years, AbbVie Inc. (NYSE:ABBV) has raised its dividend by an average annual rate of 7%. The annual payout recently reached about $6.56 per share, up from $5.20 in 2021 and $3.59 in 2018, showing strong growth over time.

AbbVie Inc. (NYSE:ABBV)’s payout ratio, which is the portion of earnings paid out as dividends, is also at a comfortable level of less than 50%. This gives the company plenty of flexibility to continue raising dividends in the future.

Like other drugmakers, AbbVie Inc. (NYSE:ABBV) has experienced the loss of patent protection on key products, most notably its blockbuster Humira. However, this was expected, and the company has built a strong pipeline of around 90 treatments. In 2024 alone, it invested nearly $11 billion in research and development, with most of those treatments now in the mid to late stages of progress.

AbbVie Inc. (NYSE:ABBV) currently offers a quarterly dividend of $1.64 per share and has been growing its payouts for 53 consecutive years, which makes it one of the best dividend paying stocks to buy.

While we acknowledge the potential of ABBV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Best Consistent Dividend Stocks to Buy Now and Dividend Stock Portfolio For Income: 12 Stocks to Buy Now.

Disclosure: None.