Dividend Yield: 3.5%
Next up, we have AbbVie (ABBV) — the research-based pharma company recently spun off from Abbott Laboratories (ABT). Its main drug is arthritis treatment Humira, but the company also has an impressive pipeline of new products in its back pocket. And although Humira comes off patent in 2016 here in the states, many suggest it’s a difficult product to substitute.
The spun-off company has enjoyed a strong start, climbing nearly 30% since it started trading in December 2012. And despite that red-hot run, its dividend still yields an attractive 3.5%.
While there’s no payout history to reflect on, AbbVie’s projected annual payout of $1.60, paid in 40-cent quarterly increments, is less than half next year’s expected earnings. Plus, those earnings are expected to grow at a double-digit rate over the next half-decade.
Also, as of March, ABBV had nearly $7.5 billion in cash and short-term investments, while operating cash flow came to $6.3 billion at the end of last year.
That’s a recipe for a steady, if not growing, dividend.