High Yield vs. Sustainable Growth: Why AbbVie’s Dividend Beats Pfizer’s Despite the Lower Payout

• AbbVie (ABBV) generated $17.82B successful escaped currency travel against $11.66B successful dividend payments (1.53x coverage), with Skyrizi reaching $5.01B successful Q4 revenue, up 32.5% year-over-year.

• Pfizer (PFE) reported $17.56B successful Q4 gross but faces dividend sustainability issues with escaped currency travel of $9.08B covering lone 0.93x of $9.77B successful dividend payments, forcing reliance connected equilibrium expanse borrowing arsenic COVID merchandise gross collapsed 33% to 70%.

• AbbVie’s blockbuster immunology drugs Skyrizi and Rinvoq are replacing Humira-era gross portion backing dividend growth, whereas Pfizer is racing to standard its non-COVID portfolio and execute $7.2B successful outgo savings by end-2027 earlier its unsustainable dividend erodes the equilibrium expanse further.

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AbbVie's quarterly results showed a concern that has genuinely replaced Humira. Skyrizi generated $5.01B successful Q4, up 32.5% twelvemonth implicit year, making it AbbVie's largest product. Rinvoq added $2.37B, up 29.5%. Together, those 2 drugs powered immunology conception gross of $8.63B, up 18.3%.

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Pfizer's communicative is much complicated. The gross came successful astatine $17.56B, down 1.2% twelvemonth implicit year, but bushed estimates by 4.09%. The non-COVID portfolio did the existent work, increasing 9% operationally. Eliquis contributed $2.02B, up 10%. The Prevnar household added $1.71B, besides up 10%. Vyndaqel reached $1.69B, up 7%. But COVID gross kept shrinking: Paxlovid fell 70% to $218M, and Comirnaty dropped 33% to $2.27B.

Pfizer's 6.13% dividend output looks charismatic astatine a glance. AbbVie yields astir 3.31% based connected its existent terms and yearly dividend of astir $6.92 per share. Pfizer wins connected earthy yield, but the sustainability representation flips the comparison.