Top 20 Dividend Stocks of 2024

6. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 68

AbbVie Inc. (NYSE:ABBV) is an American biotech and pharmaceutical company. The stock is up by over 10% in the past 12 months, which makes it one of the best dividend stocks on our list. Analysts predict that the company will rely heavily on two blockbuster drugs, Skyrizi and Rinvoq, in the coming years. These drugs generated over $4.8 billion in revenue during the third quarter and are expected to surpass $27 billion in annual sales by 2027, targeting a range of conditions such as rheumatology, dermatology, psoriatic diseases, and inflammatory bowel disorders. Overall, the company reported a revenue of $14.46 billion for Q3 2024, marking a 4% year-over-year increase. Its Immunology Portfolio contributed more than $7 billion, also growing by 4%. In addition, in August, the company completed an $8.7 billion acquisition of Cerevel Therapeutics, a company specializing in neuroscience, enhancing its pipeline with promising treatments like emraclidine, a potential schizophrenia therapy.

Polaris Capital Management also highlighted this in its Q3 2024 investor letter. Here is what the firm has to say:

“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) is a favorite among income investors due to its impressive 52-year record of dividend increases. Additionally, the company has maintained an average annual dividend growth rate of 7.69% over the past five years. It offers a quarterly dividend of $1.64 per share and has a dividend yield of 3.72%, as of December 30.

Insider Monkey’s database of Q3 2024 indicated that 68 hedge funds held stakes in AbbVie Inc. (NYSE:ABBV), up from 67 a quarter earlier. The stakes are worth nearly $2.6 billion. With over 1.7 million shares, AQR Capital Management was the company’s leading stakeholder in Q3.