5 Best Pharma Dividend Stocks To Buy

2. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 71

Dividend Yield as of October 27: 3.68%

AbbVie Inc. (NYSE:ABBV) manufactures and sells pharmaceuticals worldwide. On October 20, the company announced that it is acquiring the U.K.-based DJS Antibodies for $255 million in cash to expand its immunology pipeline. On September 9, AbbVie Inc. (NYSE:ABBV) declared a $1.41 per share quarterly dividend, which is payable to shareholders on November 15. The company delivered a dividend yield of 3.68% as of October 27. 

Morgan Stanley analyst Terence Flynn on October 13 maintained an Overweight rating and a $185 price target on AbbVie Inc. (NYSE:ABBV) while naming the stock his “Catalyst Driven Idea”, noting that AbbVie Inc. (NYSE:ABBV)’s anti-TNF ADC Phase 2 data could provide a new pipeline opportunity. 

Among the hedge funds tracked by Insider Monkey, AbbVie Inc. (NYSE:ABBV) was part of 71 hedge fund portfolios at the end of the second quarter of 2022, compared to 76 in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held the leading stake in the company, comprising 4.2 million shares worth over $654 million. 

Here is what Baron Funds specifically said about AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter:

“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”