Please assign a menu to the primary menu location under MENU

Recent Buys

Recent Buy – AbbVie (ABBV)

Abbvie (ABBV) Stock LogoCan’t believe it has been two whole months today since my last buy of T. Guess that is what happens when you need to save up capital for Christmas as well as upcoming tuition payments. December 2017 ended on a big note with milestones broken on dividends collected in a single month and year. Let’s keep that snowball rolling. I am pleased to announce my first buy of 2018!

 

I purchased 5 shares of AbbVie Inc. (ABBV) at a cost basis of $98.52. You can find more info on ABBV below.

 

ABBV Stats
Annual Dividend: $2.84
Yield: 2.89%
Years Paying/ Increasing: 5 years
Dividend increase from prior year: 9.9%
Payout Ratio: 51.2%
P/E Ratio: 23.98
EPS: $4.11

 

“AbbVie is a pharmaceutical company that discovers, develops and markets both biopharmaceuticals and small molecule drugs. It originated in 2013 as a spin-off of Abbott Laboratories (ABT)” (Wikipedia). ABBV has been on my watch list for some time now. I failed to pull the trigger on buying them back when the share price was in the $70s. Now I am paying the price as its share price touches the triple digit mark.

 

Yes, I realize the current price is upward towards that of its 52 week high. Buying dividend stocks at a discounted value is ideal. But even at the current levels I think it still shows value and we can’t forget about the opportunity cost of not having it.

 

There are a few of reasons why I choose ABBV. One is the solid history of itself as well as ABT. Both show great history of paying and increasing dividends which is key in any dividend investor’s portfolio. Second, it is located in the Healthcare sector. I find myself lacking in that department currently, so this buy will help a little bit more with diversification.

 

If you follow Roadmap2retire, every year he polls members of the community about what their top investment pick will be for the year. If you haven’t guessed by now, my choice was ABBV. You can see all picks from the community as well as my reasoning for mine here. My thought process is “How can you support something you wouldn’t or don’t currently own yourself?” So in order to stand by my pick, I decided to put my money where my mouth is and purchase some myself. Should be interesting to see how it performs over the course of this year as well as long term.  I can also use this buy as a benchmark price as to lower my cost basis later if I see a dip.

 

As shown above, ABBV has a dividend yield of 2.89% or $2.84 annually. This will add another $14.20 to my yearly dividend income. Broken down quarterly, it will add $3.55 per quarter. Even though this was a small buy, every little bit counts! And I am happy to finally have this company in my portfolio. It should perform well in the long run.

 

What do you think of this buy? Do you like ABBV or do you currently own any? What other companies are on your watch list right now? Comments are always welcome below.

 

22 Comments

  1. Way to stand by your predictions.
    I was looking into the pharma sector myself and decided that when the time comes I would most likely purchase Pfizer. Mostly, this is due to their very interesting pipeline for the next 5 years. Mayne potential blockbusters. I have a feeling pharma will see some interesting movements in 2018-2019 with the tax cuts, regardless of the specific stock chosen.
    Best of luck! Cheers

    1. Yeah that sector will be fun to watch. Pfizer is on my watch list as well. Prob should have bought it back at the $30 mark but missed that too. I am really bad at timing haha. Good thing this is a long term game.

    1. Even though ABT has an outstanding history, seems like this younger cousin/ sibling has been outperforming them since the spin-off. Both would be solid choices long term in any portfolio.

  2. Hi Mr. Daze. I also own ABBV. I like your pick and think you will do well with it over the long term. Personal story…I worked in Corporate Finance and Accounting for Abbott Labs for 10 years in the early part of my career. For 4 of those years I worked in what was called the Pharmaceutical Products Division. This is the Division that Abbott spun off into ABBV so it holds a special place in history for me. They have obviously changed a lot since those days and I doubt I know many people that work there anymore. But it’s still interesting for me to follow them as an investor. Glad to have you as a fellow owner. Tom
    Tom @ Dividends Diversify recently posted…I’ve Heard Smoking Used To Be CoolMy Profile

    1. Glad to call myself a fellow shareholder now. Thanks for sharing that story. That is really interesting. Always like hearing stories of people who actually worked for the companies. Really solidifies the buy and adds to the quality knowing the employees have good thoughts about the establishment as well. Thanks for your input!

  3. Nice daze congrats abbvie is a great company/ buy long term.

    Pretty funny post as i got mine scheduled for today saying how i picked tahoe resources for the stock of the yr and couldn’t do that without owning any stock! So i bought some of them. Good luck and congrats on the buy.
    Cheers
    Passivecanadianincome recently posted…TFSA Vs RRSPMy Profile

    1. Haha that is pretty funny. Great minds think alike I guess right? Not complaints here. Gave me an opportunity to finally add this quality company into my portfolio that I have been after for so long. Good luck with your pick as well! Cheers!

  4. Div Daze, I think ABBV is a solid company. I also own it in my portfolio. In fact, ABBV is one of the few companies in which I buy the stock directly from the company through its DRIP program. So, I definitely think you made a good choice. I wish their yield was higher, but I guess you can’t have it all.
    Dividend Portfolio recently posted…My Financial PlanMy Profile

    1. That is cool. Glad the stock has been performing well for you. When I wanted to buy it back when, the yield was about 4%. Kinda kicking myself now that it is under 3%. Oh well. Still a good long term hold. Thanks for your comment!

  5. Nice buy Daze.

    Abbvie has been a great performer for me, up 53% as of today and a double digit divi growth. It’s a fairly large position, but I will buy more when and if the yield gets above 3%. I’ve also been building my PFE position which is about the same size now as Abbvie.

    If I were to pick one of the two stocks right now, I would pick PFE to add more shares, mainly due to a higher div yield.

    Both are great companies, and should do fine in the long run.

    Take care

    1. Glad you like the choice. PFE was also a consideration and will continue to be on my watch list. Wish I could issue larger sums of capital into my buys but don’t see that happening this year. But every smaller buy here and there still helps in the long term. Maybe PFE will be added sometime this year. Guess we will just have to wait and see. Thanks for stopping by and commenting!

    1. Glad I could finally make a buy. I have only heard good things. Had my eye on them as well as PFE for a while now. Glad I was finally able to add one. I just wish I had more capital for a bigger position. I will add to it later if I see a good price since I foresee it being a good long term hold. As always, I appreciate your comments. Thanks for stopping by!

  6. I think ABBV is an excellent buy. It has been on my short list for awhile, but I keep waiting for the price to drop. Yes, I’ve been waiting a long time. That’s always the toughest decision – do I buy a stock I think may be overvalued, or hold out waiting for a price drop that usually never comes, and then end up paying even more down the road. Market timing! You may have inspired me to finally buy some shares. I really like the stock, as do most pundits. But I already own Pfizer and Merck, so I may sit on the sidelines awhile longer. Morningstar says it’s a buy at $85.

    Over the last few days I added Archer Daniels Midland (ADM) with a 3.19 percent yield, Edison International (EIX) with a 3.77 percent yield, Procter and Gamble (PG) with a 3.01 percent yield, and Blackstone (BX) with a 6.97 percent yield. Trying to increase my portfolio yield (currently at 2.44 percent). Good luck – I am very interested to see how ABBV turns out for you!

    1. Glad I was finally able to jump in and buy it too. I tend to do the same thing. Wait for the price to drop then it never happens. Those are all good names with nice yields. It is nice to have a higher yield percent, as long as it comes from all solid growing companies.

      There are a few positions I won that have lower yields, but the dividend growth rate is large so it makes up for it in the long run. HRL is a good example with a 2% something yield but it grows by about 10% a year. They all average out though. Thanks for stopping by and commenting. Hope to see you around the site more often!

    1. I wasn’t expecting anyone guess that. Especially at the price of these levels. Every little bit helps. I got it right before the ex-dividend date too so I should start seeing those dividends roll in next month. Thanks for your comment!

    1. Always nice to start the year out with a buy. Got it a week before the ex-dividend date too so should see it pay out soon. Looking forward to it.

  7. I own ABBV, but I sold a covered call that might be executed soon (taking my shares away). That would mean that I would be faced with a similar position as you… do I buy shares near $100?

    Take care and happy investing in 2018!

    1. Right. The price is pretty steep right now. But doesn’t mean the price may go even higher over the year. Who knows? The market is a funny thing and only time will tell. Thanks for stopping by and commenting!

Leave a Response

CommentLuv badge