5 Safe Stocks To Buy According To Hedge Funds

In this article, we take a look at 5 safe stocks to buy according to hedge funds. If you want to read our detailed analysis of safe stocks, go directly to see the 11 Safe Stocks To Buy According To Hedge Funds.

05. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders as of Q2, 2022: 71

AbbVie Inc. (NYSE:ABBV) is a Chicago, Illinois-based pharmaceutical company that came into being following its spin-off from Abbott Laboratories (NYSE:ABT) in 2013. AbbVie Inc. (NYSE:ABBV) is a dividend king, given that it has increased its annual dividend for 50 consecutive years. With a forward dividend yield of 3.67% as of October 28, AbbVie Inc. (NYSE:ABBV) also has a higher yield than some comparable companies in the pharmaceutical sector. On October 13, Morgan Stanley analyst Terence Flynn kept his Overweight rating and $185 price target on AbbVie Inc. (NYSE:ABBV) while naming the stock his “Catalyst Driven Idea”.

According to Insider Monkey’s data, 71 hedge funds were bullish on AbbVie Inc. (NYSE:ABBV) at the end of the second quarter of 2022, compared to 76 funds in the prior quarter. Rajiv Jain’s GQG Partners is the company’s largest stakeholder, with 9.82 million shares worth $1.2 billion.

Here is what Baron Funds specifically said about AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter:

“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”