On June 27th I purchased 32 shares of Abbvie Inc. (ABBV) for 69,28 $ per share plus commission. The total cost of the purchase was 1 965 €.
AbbVie Inc. is a fairly new biopharmaceutical company since it was founded in 2013. It originated as a spin-off of Abbott Laboratories, which is a Dividend Aristocrat with 45 consecutive years of dividend increases. The company is best known for their blockbuster drug called Humira.
About The Stock
The stock has been under pressure for a while now.
Their blockbuster drug Humira will see competition and they will have to find new products to replace the dropping sales. A few days ago Abbvie announced that it will acquire Botox maker Allergan for 63 billion USD. The shareholders did not like this at all and as a result the shares plunged over 15 %. The current price is about 31 % below 52 week high and stock is trading at a really low valuation and has a record high dividend yield.
I don’t think that this acquisition was a bad move by Abbvie even though their debt increases a lot. Currently Humira sales ($19BN) are bigger than the sales potential of the future drug pipeline ($14BN). Assuming this deal goes through, the new drug pipeline potential (>$29BN) will be much bigger, which means that the Abbvie will be less dependent on Humira.
I did not find the combined statistics of these two companies, so I will not post these this time. In any case, ABBV pays a quarterly dividend of 1,07 $ per share which equals a ridiculous 6,18 % yield.
Abbvie Inc. was already a part of my portfolio and I now hold a total of 58 shares. These new shares increase my annual passive income by 120,5
€ and after the purchase weight of ABBV is 4,4% of my portfolio.
Have you purchased any stocks this month? What do you think about this buy? Please share your thoughts in the comment section below!
Thanks for reading.