My Favorite Dividend King to Buy in November: AbbVie

As an investor focused on stable, income-generating sectors, I'm always on the lookout for compelling dividend stocks. One standout choice for November is AbbVie (ABBV), a Dividend King with an impressive track record and attractive fundamentals.
AbbVie, a pharmaceutical giant, has increased its dividend payout by a staggering 310% since its 2013 spinoff from Abbott Laboratories. With a forward dividend yield of 3.26%, it's nearly 2.7 times higher than the S&P 500's yield. Despite its impressive growth, AbbVie's valuation remains attractive, with a forward P/E of 16.9 and a PEG ratio of 0.47.

AbbVie's primary growth drivers are its research and development efforts, strategic acquisitions, and the success of its successor products to Humira. The company's CEO, Rob Michael, expects Humira's successors, Skyrizi and Rinvoq, to generate combined sales of over $17 billion this year, with substantial growth opportunities ahead. AbbVie's acquisition of Allergan in 2020 added products like migraine therapies Qulipta and Ubrelvy, and antipsychotic drug Vraylar, which have shown double-digit percentage sales growth in Q3 2024.

AbbVie's strong free cash flow (FCF) positions it to maintain its dividend growth streak and fund strategic initiatives. In Q3 2024, AbbVie generated $4.3 billion in FCF, up 19% year-over-year. This strong FCF allows AbbVie to invest in R&D, with a pipeline of over 90 programs, and make strategic acquisitions like Cerevel Therapeutics. Additionally, AbbVie's FCF growth supports its dividend increases.
As an investor, I appreciate AbbVie's commitment to growth and innovation, as well as its attractive valuation and high dividend yield. Its robust pipeline, strategic acquisitions, and strong free cash flow make it an appealing choice for income-focused investors. In a market where AI ventures may lack profitability, AbbVie's consistent, inflation-protected income is a refreshing alternative.
In conclusion, AbbVie is my favorite Dividend King to buy in November, offering a compelling combination of yield, growth, and valuation. Its commitment to R&D, strategic acquisitions, and strong free cash flow position it well for continued success. As an investor focused on stable, income-generating sectors, AbbVie is an excellent choice for my portfolio.