7 Growth Stocks for Consistent Income in Retirement - 1 of 7

#1 - AbbVie (NYSE:ABBV)

AbbVie (NYSE: ABBV) - It stands to reason that a pharmaceutical stock would be a good dividend stock to consider in retirement. AbbVie is a name that may not be familiar to investors, but Abbott Labs probably is. AbbVie is a spin-off of Abbott Labs, allowing it to qualify as a dividend aristocrat even though it has only existed as a company for five years.

AbbVie has one of the more attractive dividend yields available at over 4%. In 2018, it increased its dividend by 50% from $2.56 per share to $3.89 per share. The stock also has a good valuation. It reached a high around $112 per share but has come down from that a bit. With a forward P/E ratio of around 11.8, it can be an attractive stock to add, particularly when investors consider the high dividend yield. Analysts are projecting a 40% increase in profits for the company in 2018 with future projections of 16% annual growth in the next five years.

But AbbVie is an attractive stock for another important reason. It owns the patent to Humira, the world’s best-selling drug. And even though that patent is set to expire which will bring in competition for Humira, the company has other drugs in its pipeline that should allow it to offset any losses from Humira’s patent expiration. And according to the research group, EvaluatePharma, AbbVie’s product pipeline was rated second-best in terms of value creation.

About AbbVie

Current Price

$176.94

Consensus Rating

Moderate Buy

Ratings Breakdown

19 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.

Consensus Price Target

$203.50 (15.0% Upside)