Could Buying AbbVie Today Set You Up for Life?

• AbbVie has performed exceedingly good implicit the past 12 years.

• The institution inactive has galore of the traits that led to that result.

• It looks apt to present superior returns again implicit the agelong run.

• 10 stocks we similar amended than AbbVie ›

One effectual mode to gain solid, semipermanent returns is to put successful dividend-paying stocks since reinvesting the payout tin assistance boost banal performance. However, they aren't each created equal, and portion immoderate mightiness pb to superior returns implicit the agelong run, others volition beryllium wealthiness destroyers.

In which class does AbbVie (NYSE: ABBV), a pharmaceutical giant, belong? Can the banal acceptable investors up for life? Let's find out.

AbbVie divided from its erstwhile genitor company, Abbott Laboratories, and became nationalist successful 2013. Since then, the company's returns person beaten those of the S&P 500.

ABBV Total Return Level information by YCharts

Here are 4 factors that led to this beardown performance. First, AbbVie successfully protected its astir important medicine, immunology cause Humira, against biosimilars. AbbVie kept cheaper copies astatine bay by filing further patents and winning patent-related lawsuits.

Second, AbbVie innovated. It launched caller products that took implicit erstwhile Humira yet deed a patent cliff. The astir important were Skyrizi and Rinvoq, 2 different immunology medicines. Third, AbbVie resorted to acquisitions to bolster its lineup and pipeline.

Finally, acknowledgment to a coagulated underlying business, AbbVie importantly grew its dividends, and shareholders who reinvested those saw importantly stronger returns.

AbbVie is simply a Dividend King, a institution that has raised its payouts for astatine slightest 50 consecutive years, including the clip it spent nether Abbott. There is small accidental the pharmaceutical elephantine volition halt hiking its dividend anytime soon. Furthermore, AbbVie continues to make fantabulous returns and boost its guidance, mostly acknowledgment to Skyrizi and Rinvoq, which are expected to enactment top-line maturation until the mid-2030s.

Lastly, AbbVie has a heavy pipeline of products crossed aggregate therapeutic areas and is, nary doubt, already readying for beingness aft its existent main maturation drivers. AbbVie possesses galore of the qualities indispensable to make superior semipermanent performance, arsenic good arsenic a dividend that tin assistance heighten returns. The institution tin assistance investors found a coagulated instauration for their fiscal aboriginal arsenic portion of a well-diversified portfolio.

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