• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

A Positive Income Stock That Steadily Delivers

Biotech Letter

Even the most aggressive and high-risk investor would appreciate a passive income.

Now would be an excellent time to consider stocks that could offer robust returns throughout your lifetime for those with some cash stored up.

One stock that fits this description is AbbVie (ABBV).

Spun off from Abbott Labs (ABT) in 2013, AbbVie is widely recognized as a dependable Dividend King thanks to its 50-year track record of consecutive dividend increases. Since going solo, it has boosted its dividend by over 250%. 

In the latest report, AbbVie’s annual dividend has reached $5.64 per share and is paid at a yield of 3.71%. This is roughly double the 1.86% long-term average of the S&P 500.

In the first-quarter earnings report, AbbVie’s year-over-year revenue climbed by 4.1% to reach $13.5 billion, pushing its earnings higher by 9%.

However, the company’s shares declined by approximately 10% after these results were released.

While the update wasn’t that disappointing, the impending patent loss of AbbVie’s top-selling rheumatoid arthritis drug Humira affected the market’s perception.

In fact, sales of Humira have already started to weaken, falling by 2.7% year-over-year to report $4.7 billion.

This report is hardly shocking, especially since the drug continues to battle it out against the generic competition.

Actually, Amgen (AMGN) and Biogen (BIIB) already have approved biosimilar versions of Humira out in the market since 2018.

Humira sales are anticipated to continue to fall in 2023 when the drug loses its patent exclusivity. Its competitors have started to apply for FDA approvals in the US for their biosimilars of this blockbuster treatment.

Another reason for the sell-off of AbbVie shares following its first-quarter results is the drop in sales of other products, particularly Imbruvica.

Since the competition in the oncology sector has become more intense, this treatment struggled to keep its share, resulting in a 7.4% decline in its revenue year-over-year to report $1.2 billion.

Although the decline in the sales of any company’s product is never a good sign, it should be noted that Imbruvica has been dealing with various issues even prior to this quarter.

In 2021, the global sales for Imbruvica only exhibited a meager 1.8% increase to reach $5.4 billion.

Like what happened in the first quarter of 2022, this unimpressive contribution also resulted from more intense competition.

The good news is that the critical products anticipated to offset the decline of Humira sales continue to reap excellent results.

AbbVie showed off a 21% year-over-year boost in revenue across its neuroscience and aesthetics segment, which was led by the solid performance of the recently launched migraine drug Ubrelvy as well as the in-demand Botox Cosmetic and Juvederm.

Meanwhile, momentum continues to grow for immunosuppressants Skyrizi and Rinvoq, which are projected to have practically all the major indications earned by Humira.

In the first quarter, Skyrizi sales went up 63.7% to reach $940 million while Rinvoq recorded a 53.6% increase to rake in $465 million.

Looking at their trajectory, both products are estimated to generate over $15 billion in sales in 2025.

These are promising numbers for AbbVie’s immunology segment. Plus, bear in mind that Humira actually hit peak sales in 2021 at $20.7 billion.

That means this treatment can still contribute meaningfully to the company. After all, it’s highly unlikely that Humira sales would immediately drop to zero just because generics start to infiltrate the US market. 

Needless to say, AbbVie’s portfolio appears to be increasingly well-prepared for a post-Humira era. 

Given that its revenue and earnings clearly show growth, and a strategy firmly in place to continue expanding its portfolio, AbbVie can easily sustain its yearly dividend boosts and offer passive income to its shareholders for many years.

 

abbvie dividends

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-05-19 19:00:362022-05-23 20:30:57A Positive Income Stock That Steadily Delivers
You might also like
September 28, 2023
The Future of Surgery
The Players Guide to Biotech Investing
May 25, 2023
A Dividend Derby Winner
December 30, 2024

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: May 19, 2022 Link to: May 19, 2022 May 19, 2022 Link to: May 19, 2022 Link to: May 19, 2022 May 19, 2022
Scroll to top