US Healthcare company and dividend aristocrat AbbVie (NYSE:ABBV) announced Friday that its board of directors has declared a quarterly dividend of $1.18 per share. The dividend will be distributed on November 16th to investors of record as of October 15th. The stock will trade ex-dividend on October 14th. The forward dividend yield is 5.14% and the 5-year dividend growth rate (CAGR) is above 20% which is well above the market average.
Dividend aristocrat AbbVie
AbbVie has been a dividend growth stock since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. Since Abbott is a Dividend Aristocrat, AbbVie is considered to be one, according to the S&P rules too. Abbott has consistently increased its dividends for 48 years.
AbbVie Inc.’s current dividend yield of 5.14% is 39% above its 5-year average. The 5-year average dividend yield is 3.69% (see red-line in the chart). This indicates the stock may be undervalued today.