1 No-Brainer Dividend Stock to Buy on the Dip

Despite its fourth-quarter results being beauteous solid, the stock terms of pharmaceutical giant AbbVie (NYSE: ABBV) fell aft the institution released net past week. The marketplace reacted poorly to details successful the drugmaker's net report, but the semipermanent outlook remains beardown contempt immoderate headwinds.

Here's wherefore the banal is worthy investing in, adjacent aft its caller setback.

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AbbVie's fourth-quarter gross accrued by 10% twelvemonth implicit twelvemonth to $16.6 billion. The company's cardinal maturation drivers, the immunology medicines Skyrizi and Rinvoq, proceed to bash overmuch of the dense lifting. Sales of some products grew astatine a bully clip during the period. On the surface, things look beauteous good.

But present is the problem: Humira, its erstwhile best-selling medicine that mislaid patent exclusivity successful 2023, remains its third-best-selling medicine and topped expectations, but its income proceed to diminution owed to biosimilar competition.

The study offered further confirmation that Humira gross volition proceed fading and relationship for little and little of AbbVie's wide revenue. As this driblet proceeds, investors privation to cognize that top-line wide maturation volition stay strong. But that's harder to expect if Humira's income are inactive higher than those of astir immoderate different azygous cause it has successful its lineup, immoderate 2 years aft losing patent exclusivity. The company's different maturation drivers aren't pulling their value -- that's wherefore the marketplace is worried.

AbbVie expects income maturation of 9.5% successful 2026, inactive a beardown show for a pharmaceutical leader. The institution is projecting combined income supra $31 cardinal for Skyrizi and Rinvoq. That's important since absorption had primitively predicted they would scope this full by adjacent twelvemonth -- and adjacent then, it had upped its guidance from erstwhile projections.

In different words, they are performing amended than expected and won't suffer patent exclusivity anytime soon. The institution expects nary large patent cliff done the extremity of the decade.

Will AbbVie unearth different maturation drivers? My presumption is that it can. The drugmaker has a heavy pipeline and immoderate signifier 3 wins past twelvemonth that could pb to brand-new approvals, including an investigational medicine for Parkinson's illness called tavapadon. It has besides invested successful promising assets done licensing agreements, including an investigational weight-management medicine.