The board of AbbVie Inc. (NYSE:ABBV) has announced that it will be paying its dividend of $1.55 on the 15th of February, an increased payment from last year’s comparable dividend. This takes the dividend yield to 3.8%, which shareholders will be pleased with.
See our latest analysis for AbbVie
AbbVie’s Dividend Is Well Covered By Earnings
If the payments aren’t sustainable, a high yield for a few years won’t matter that much. Based on the last payment, AbbVie’s profits didn’t cover the dividend, but the company was generating enough cash instead. Healthy cash flows are always a positive sign, especially when they quite easily cover the dividend.
EPS is set to grow by 121.4% over the next year. Assuming the dividend continues along recent trends, our estimates say the payout ratio could reach 85% – on the higher side, but we wouldn’t necessarily say this is unsustainable.
