Is AbbVie the Best Dividend Stock in Big Pharma Today?

AbbVie Inc. (NYSE:ABBV) is one of the best dividend stocks for a bear market.

The company holds the title of a Dividend King, having raised its dividend for 52 straight years. That kind of track record makes a dividend cut highly unlikely, as it would break the streak and potentially take decades to regain entry into this elite group.

A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist.

AbbVie Inc. (NYSE:ABBV) is a leading pharmaceutical company with a strong product lineup that consistently delivers solid revenue and earnings. Its top growth drivers, Skyrizi and Rinvoq, have outperformed expectations, leading management to raise their combined 2027 sales forecast to over $31 billion. The company also benefits from other key products like Botox and a deep pipeline of new therapies to offset future patent expirations.

With strong cash flow and a reliable portfolio, AbbVie Inc. (NYSE:ABBV) remains an attractive pick for income investors looking for long-term dividend stability.

Naturally, if AbbVie encounters serious challenges, it could be pressured to reduce its dividend. One concern is its elevated payout ratio, currently at 267.66%. Typically, when a company’s payout ratio remains above 70% for an extended time, it raises the risk of a dividend cut or suspension.

However, AbbVie Inc. (NYSE:ABBV)’s next-generation immunology drugs are seeing strong growth, which could help offset the challenges it’s facing from Humira. The rheumatoid arthritis treatment has been under pressure due to its loss of market exclusivity in the US and the increasing competition from biosimilars.

ABBV currently offers a dividend yield of 3.5%, which is above S&P’s average dividend yield of 1.3%.

While we acknowledge the potential of ABBV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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