5 Best Defensive Stocks to Buy Now

2. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 76

AbbVie Inc. (NYSE:ABBV) develops, manufactures, and sells pharmaceutical products worldwide. One key feature that makes AbbVie Inc. (NYSE:ABBV) rank among the top 5 defensive stocks to buy now is the company’s track record of growing its dividends. As of July 4, AbbVie Inc. (NYSE:ABBV) has gained 13.57% since the beginning of 2022 and is offering a forward dividend yield of 3.67%.

On June 23, AbbVie Inc. (NYSE:ABBV) declared a quarterly cash dividend of $1.41 per share of the company’s common stock. The dividend is payable on August 15 to investors of record on July 15. AbbVie Inc. (NYSE:ABBV) has consistently grown its dividends for almost a decade now and has a 5-year dividend CAGR of 17.50%.

As of May 23, SVB Leerink analyst David Risinger has an Underperform rating and a $140 price target on AbbVie Inc. (NYSE:ABBV).

At the end of Q1 2022, 76 hedge funds were long AbbVie Inc. (NYSE:ABBV) with stakes worth $3.66 billion. This is compared to 82 positions in the preceding quarter with stakes of $3.74 billion.

In the first quarter of 2022, Arrowstreet Capital raised its stakes in AbbVie Inc. (NYSE:ABBV) by 427%, bringing them to $754.15 million. Arrowstreet Capital is the most bullish hedge fund on AbbVie Inc. (NYSE:ABBV).

Here is what Carillon Tower Advisers had to say about AbbVie Inc. (NYSEABBV) in its first-quarter 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. AbbVie (NYSE:ABBV) is a research-based biopharmaceutical company. Shares gained after the company reported earnings that missed revenue but beat earnings-per-share estimates. Discussion around the report was mixed but skewed positive.”