Retirement Stock Portfolio: 7 Safe Dividend Stocks To Invest In

1. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 68

AbbVie Inc. (NYSE:ABBV) is an Illinois-based pharmaceutical and biotech company, offering related products and services to its shareholders. In the past 12 months, the stock has delivered an over 14.3% return to shareholders, reflecting investor confidence in its ability to navigate Humira’s patent expiration. Humira, which was a top-selling drug with peak sales of $21 billion in 2022, experienced a sharp revenue drop after losing patent protection last year. However, AbbVie’s management successfully addressed the impact, offsetting the decline in Humira’s sales, which had previously contributed to about a third of the company’s total revenue.

In the third quarter of 2024, AbbVie Inc. (NYSE:ABBV) reported revenue of $14.46 billion, a 4% increase from the same quarter last year. Its Immunology Portfolio generated over $7 billion in revenue, also showing a 4% year-over-year growth. In August, the company acquired Cerevel Therapeutics, a pharmaceutical firm specializing in neuroscience, for $8.7 billion in cash. This acquisition brought a promising pipeline of drug candidates, including emraclidine, a potential treatment for schizophrenia.

AbbVie Inc. (NYSE:ABBV), one of the best stocks for a retirement stock portfolio, has increased its payouts for 52 years. The company currently pays a quarterly dividend of $1.64 per share and has a dividend yield of 3.74%, as of December 17.

As of the end of Q3 2024, 68 of the 900 hedge funds tracked by Insider Monkey had invested in AbbVie Inc. (NYSE:ABBV), up from 67 in the prior quarter. The total value of these holdings exceeded $2.5 billion.

Overall, AbbVie Inc. (NYSE:ABBV) ranks first on our list of the best stocks for a retirement stock portfolio. While we acknowledge the potential for ABBV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ABBV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

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