Published Fri, 08 Nov 2019 12:32:57 -0500 on Seeking Alpha
It's been shown that dividend-paying stocks outperform their non-dividend-paying peers, but that doesn't mean that every dividend stock is worth owning in portfolios. A falling share price can quickly wipe away gains from dividends, making it important to focus on stocks that can benefit from both higher stock prices and future dividend increases. To help investors separate potential winners from losers, we rank hundreds of dividend stocks every week for our subscribers. This week, over 70 companies with money-making characteristics appear in our top dividend stocks list, but the highest-scoring among them is AbbVie (ABBV).
A little bit of background
AbbVie's shares have largely underperformed the S&P 500 over the past three years due to fear that expiring patents on its best-selling drug, Humira, would dent revenue and earnings and put its dividend at risk.
Used to treat a variety of autoimmune disorders, including rheumatoid arthritis, a multi-billion dollar global market indication; Humira is the world's top-selling medicine, with global sales of almost $20 billion. Since 2010, Humira's sales have more than doubled, contributing significantly to AbbVie's total revenue growth and its impressive track record of dividend increases.
Unfortunately, Humira's best days are likely behind it. On the market since 2002, Humira's patents are expiring and that's bad news for AbbVie because Humira accounts for nearly 60% of its quarterly... Read more