This video is an alert, everyone, that I'm buying this #dividend #value #stock immediately. I believe a tremendous stock market buying opportunity has presented itself, and I am going to seize the opportunity. I'll be making a lump sum (chunk) investment, followed by some monthly averaging (for the next year) to bring the position to size. It will be a smaller position in my dividend stock portfolio, but one that I cannot ignore at these prices. I'm talking about AbbVie (ABBV), my friends! Let's start with the timestamps to today's video:
0:00 Introduction to this tremendous stock buying opportunity in AbbVie (ABBV).
1:33 AbbVie is down 16% in a single day.
2:12 AbbVie and Humira background.
3:01 Humira patent will expire in 2023.
4:01 AbbVie is acquiring Allergan due to their exposure to Humira coupled with their upcoming patent expiration.
5:00 ABBV will be much more diversified and they have a strong dividend starting yield.
5:42 What do I like about the Allergan acquisition?
7:40 Abbvie is priced as if it is going out of business at a PE of 7.49 (forward 2019).
8:36 What do I NOT like about the merged company?
11:38 AbbVie dividend history.
12:00 This is a deep discount value now. I will likely buy this value stock.
13:15 AbbVie is like Altria - High current yield AND a high growth rate. Sweet spot stock.
14:35 Forward PE ratio for ABBV is 7.49.
14:45 The dividend payout ratio is 49% (2019 forward). Just fabulous!
15:21 Huge $63 billion Allergan acquisition.
15:30 AbbVie will likely take on a ton of debt.
19:03 ABBV annual report analysis.
22:09 Cash flow growth is really strong.
23:18 Biosimilar drugs coming to the market, challenging Humira. ABBV will get royalties!
25:25 9.7% Humira price hike in 2018.
27:20 Pharma space can be risky. I'm happy to be a bit more diversified.
27:44 Allergan annual report analysis.
30:15 Abbvie is paying a PE of 11 for Allergan - not bad!
33:30 Lowering Humira concentration for the combined company. Humira is now 41% of the total combined company revenue.
35:30 I look at this as a gift. Here's how I plan to buy this stock.
37:40 Conclusion
Next, here are the videos referenced in today's investing video. Please check them out!
As referenced in today's video, here is my recent video on sin stocks (I see many parallels between sin stocks and pharmaceutical stocks):
And, of course, here is my last video on AbbVie from 2018, when it was still too expensive for me:
Last, here are some important points about this AbbVie(ABBV) - Allergan (AGN) acquisition (check out my blog for a more detailed write-up):
* Dividend is $1.07 per quarter or $4.28 per year. That's a starting yield of 6.51%.
* Most recently, they increased the dividend (January this year) by 11.46% (from $0.96 to $1.07).
* 2019 analyst consensus estimate for ABBV is $8.78, placing the forward PE at 7.49.
DISCLOSURE: I am long Apple (AAPL), Altria (MO), Johnson & Johnson (JNJ), Pfizer (PFE), and General Mills (GIS). I own these stocks in my stock portfolio. I plan on initiating a position in AbbVie (ABBV) in the next few days.
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