Dividend Focus Stock: Competitive Yield & Growth Potential Set This Healthcare Company Apart

Bucking its sector, this firm is maintaining both its innovation and its pricing power.

Our Dividend Informer analysts suggest taking a look at the long-term prospects of this top-quality, high-yielding pharmaceutical company, even if its valuation is stretched.

Many pharmaceutical companies sport hefty dividend yields. That is likely a bad sign for the industry’s growth prospects because it signals that companies can no longer reinvest their profits at the same rates of return they previously enjoyed.

AbbVie, however, seems to stand apart. Its yield is competitive, and it is still growing despite facing the biggest loss of exclusivity in industry history, Humira.

When we first profiled AbbVie last year, we said no healthcare stock has both a larger market capitalization and a higher dividend yield. That is still true. The combination of quality and yield remains compelling.