10 Best Dividend Kings Stocks to Invest in Now

6. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 68

AbbVie Inc. (NYSE:ABBV) is an American biopharmaceutical company that specializes in the development and commercialization of advanced therapies and treatments in various areas of healthcare.

Analysts are optimistic about the company’s future growth, with expectations that it will rely heavily on two blockbuster drugs, Skyrizi and Rinvoq, in the years ahead. These drugs generated over $4.8 billion in revenue during Q3 2024 and are projected to exceed $27 billion in annual sales by 2027, targeting conditions such as rheumatology, dermatology, psoriatic diseases, and inflammatory bowel disorders.

AbbVie Inc. (NYSE:ABBV) reported a total revenue of $14.46 billion for Q3 2024, a 4% increase compared to the previous year. Its Immunology Portfolio contributed more than $7 billion, also growing by 4%. Moreover, in August 2024, the company completed an $8.7 billion acquisition of Cerevel Therapeutics, a neuroscience company, which strengthened its pipeline with promising treatments, including emraclidine, a potential therapy for schizophrenia.

This was also highlighted by Polaris Capital Management in its Q3 2024 investor letter:

“U.S. biopharma/biotech companies topped the health care sector, with the majority of holdings posting returns in excess of 10%. AbbVie Inc. (NYSE:ABBV) showed positive top-line growth from its immunosuppressive drugs, Skyrizi and Rinvoq. Abbvie’s management continues to work through the loss of exclusivity from Humira, switching patients to Skyrizi or Rinvoq rather than Humira biosimilars.”

AbbVie Inc. (NYSE:ABBV) has a strong dividend history with 52 consecutive years of dividend growth under its belt. Moreover, the company has raised its payouts at an annual average rate of nearly 8% in the past five years. Currently, it pays a quarterly dividend of $1.64 per share and has a dividend yield of 3.71%, as of January 13.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 68 funds held stakes in AbbVie Inc. (NYSE:ABBV), up from 67 in the preceding quarter. These stakes have a total value of nearly $2.6 billion. With over 1.7 million shares, AQR Capital Management was the company’s leading stakeholder in Q3.