Zacks just upgraded this pharma stock to ‘Buy’, based on rising earnings estimates. The shares have a current dividend yield of 6.65%, paid quarterly.
AbbVie Inc. (ABBV)
From The Lancz Letter
When you are dealing with liquidity events combined with human emotion, one can never know the exact bottom. We started buying too early (end of November 2008) after the global financial crisis because we simply started buying when valuations hit our parameters. Considering the U.S. banking system has been restructured for strength and the enormous cash levels on the sidelines (not just us), combined with a historically low interest rate and low energy environment, LanczGlobal deems equities are back at attractive valuations.
The pendulum typically swings to maximum swings, so the volatility will continue and may likely head lower, so gradually and selectively accumulate into this weakness.
Those with cash can gradually accumulate here, but also energy prices going lower should save consumers at the gas pump and with their monthly utility bills. Gold is at a 7-year high in the face of most other commodities getting slammed. The timing is great to refinance your mortgage, any floating rate loans you have should start charging you lower interest. Interest rates have never been lower; it’s actually quite remarkable.
AbbVie is an impressive income generator in the pharma space as management has nearly tripled its annual dividend pay-out in over the past eight years. Nobody knows where the bottom is considering we recommended buying in the 60’s last summer and back in 2017. The stock here should be accumulated with half of typical position with interest to buy more into an aggressive buying range in the $60’s.
Alan B. Lancz, The Lancz Letter, www.lanczglobal.com, 419-536-5200, March 9 & 13, 2020
Nancy’s Note: Until we make progress in defeating the coronavirus, we expect continued volatility in the markets, and recommend remaining defensive. That doesn’t mean Sell; remember, you don’t have real losses until you sell your stocks. But it does mean being judicious when buying. For the near future, I’m going to include this message as an alert that, certainly, you may buy these recommendations, but for most of us, they will provide entries into a ‘watch’ list that can be acted upon as the volatility disperses. Thank you for your loyalty, and please don’t hesitate to reach out to me with your questions