A growing dividend and an expanding portfolio are two reasons to invest in ABBV shares
AbbVie (NYSE: ABBV) it is a conventional stock for unconventional times. And that’s exactly why it makes sense to add or keep to your bear market portfolio. The company offers a stable and growing dividend that helps increase your overall return no matter what happens in the daily market.
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I want you to focus on the last part of this sentence. Every active investor has a little speculator inside them. It’s part of the fun and the challenge. However, bear markets can humiliate the best of us, and they are a good time to get back to basics.
This does not mean withdrawing your cash from the market or just investing in fixed income securities. It means putting quality first. This allows you to take a less passionate look at the daily ups and downs of the market … and maybe also sleep better at night. This peace of mind is at the heart of my reasoning for investing in ABBV shares during this bear market.
What will AbbVie report this earnings season?
AbbVie reports its second-quarter earnings on July 29, 2002. That will be fair when the Federal Reserve makes its announcement about interest rates. So things can get a little noisy for reasons that have nothing to do with the basics of AbbVie.
In its latest earnings call, AbbVie projected revenue of $ 14.6 billion with earnings per share (EPS) between $ 3.38 and $ 3.42. Analysts followed by MarketBeat are adopting a bearish tone with a consensus EPS of $ 3.29. This may be due to AbbVie narrowly outperforming EPS last quarter and losing revenue.
On the other hand, Morgan Stanley (NYSE: MS) recently increased its target price for ABBV shares to $ 191. This is approximately 20% higher than the consensus estimate.
A company with a deep bank
Investors are worried about the loss of the company’s patent protection on Humira, its flagship drug. However, as I and others have written before, AbbVie has launched new drugs like Skyrizi and Rinvoq that are starting to help the company diversify away from Humira.
In addition, AbbVie is in the early stages of building what could be a profitable portfolio through the acquisition of Allergan. And in June, the company received a recommendation for approval from the Committee for Medicinal Products for Human Use of the European Medicines Agency.
The recommendation allows to extend the label with Rinvoq in the treatment of adults with active non-radiographic axial spondyloarthritis. The company may receive official approval during the current quarter.
A suitable investment for a king
Whenever I write about AbbVie, I always mention the dividend. This is not without reason. In 2021, AbbVie became part of the Dividend Kings club. This is a group of companies that have increased their dividends for at least 50 consecutive years. ABBV shares currently pay $ 5.64 per share annually.
Protect your wealth with ABBV Stock
To invest is to build wealth slowly. This is the advantage of buying shares of a company like AbbVie. The company has products on the market now and an expanding portfolio that will allow it to offer stable revenue and earnings in the future.
History says the average bear market has lasted 289 days (about nine months). But several of the 26 bear markets since 1929 have lasted more than a year. In addition, the average drop in a bear market is around 34%. This suggests that major indices may have a way to go.
That knowledge and about $ 5 these days will buy you a cup of coffee. The fact is that it is impossible to say how long this bear market will last. Which is even more reason to put your portfolio in a position to succeed with quality stocks of companies that have products that will stay in demand and pay you a dividend for your patience.