(281)-719-8904 KenFaulkenberry@AAAMP.com

AbbVie (ABBV) Dividend Analyzer Analysis

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AbbVie Dividend

(updated 7/14/2017)

The AbbVie dividend has been paid continuously since 1924 and increased for 44 consecutive years; qualifying the company as a Dividend Aristocrat. (Technically AbbVie has only existed since 2013. For reasons beyond my understanding AbbVie has been allowed to use Abbott Labs (AbbVie was spun-off by Abb0tt) dividend record and is considered a Dividend Aristocrat.

Price: $73.13
Current Dividend: $2.56

Dividend Yield: 3.5%
Cash Dividend Payout Ratio: 58%

Market Capitalization: 116 B
Enterprise Value: 146 B

Description

Sector: Healthcare
Industry: Drug Manufacturers – Major

AbbVie is a global, research-based biopharmaceutical company formed in 2013 (spin-off from Abbott Laboratories). The company’s mission is to use its expertise, dedicated people, and unique approach to innovation to develop and market advanced therapies that address some of the world’s greatest health challenges.

The Company is engaged in the discovery, development, manufacture and sale of a broad line of pharmaceutical products for treating chronic autoimmune diseases, virology and neurological disorders. Together with its wholly-owned subsidiary, Pharmacyclics, AbbVie has 23 billion in annual sales, employs more than 28,000 people worldwide, and markets medicines in more than 170 countries.

Source: AbbVie Company Website

Dividend Analyzer Checklist

(updated February 2017)

Dividend Safety Score (14/33 points)

Dividend Per Share (ttm): $2.28
Dividend Payout Ratio (ttm): 60%
Dividend Per Share (10 Year Growth): n/a
Cash From Operations (CFO) Per Share (ttm): $4.56
CFO Dividend Coverage (CFO / DPS): 2.0 (2/6 points)
Free Cash Flow (FCF) Per Share (ttm): $4.25
FCF Dividend Coverage (FCF / DPS): 1.9 (4/6 points)
Net Financial Debt: $29360 M
Total Assets: $66626 M
Net Financial Debt / Total Assets: 44% (3/12 points)
Net Financial Debt to EBITDA (ttm): 346%
Total Liabilities to Assets Ratio (Qtr.): 90%
Piotroski Score (1-9) (TTM): (5/9 points)

Profitability & Growth Score (12/33 points)

Revenue (10 Year Growth) *CAGR > 4.14%: n/a (0/4 points)
EPS Basic Cont. Operations (10 Year Growth) CAGR > 4.14%: n/a (0/4 points)
Cash From Operations (10 Year Growth) CAGR > 4.14%: n/a (0/6 points)
Operating Earnings Yield (ttm): 9.3% (5/7 points)
Net Income (ttm): $6079 M
Gross Profit (ttm): $19489 M
Total Assets: $66626 M
Gross Profitability Ratio = GP / Total Assets: 29% (7/12 points)
Cash Return On Invested Capital (CROIC)(tttm): 18%
Return on Invested Capital (ROIC): 15%
Return on Invested Capital (ROIC) (5 Year Median): n/a
Return on Invested Capital (ROIC) (10 Year Median): n/a

Valuation Score (16/34 points)

Free Cash Flow Yield (ttm): 6.9% (7/9 points)
EV to EBIT (ttm): 14.4 (5/9 points)
EV to EBITDA (ttm): 13.2 (4/9 points)
PE10: n/a  (0/7 points)
Price to Sales Ratio (ttm): 4.2
Price to Book Value (ttm): 16.1
Price to Earnings Ratio (P/E) (ttm): 17.3

TOTAL POINTS – (42/100) (50 is an average score)

*Compound Annual Growth Rate (CAGR)
**A Compound Annual Growth Rate of 4.14% = a 50% gain over 10 years.

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Conclusion

(updated November 2016)

AbbVie is ranked #179 (out of 257) overall and #12 (out of 16) in the Healthcare Sector by the Dividend Analyzer.

 

Type of Investor / Recommendation

Large Diversified Dividend Portfolios / Can Be Considered
Looking For Exposure to Healthcare  Sector / Can Be Considered
Deep Value Investors / AVOID

Portfolio Position Disclosures:
DVB Foundation Portfolio: None
DVB Dividend Growth: None
DVB High Income: None
Arbor Asset Allocation Model Portfolio (AAAMP): None

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Disclaimer: While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.
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