AbbVie and Pfizer Boost Dividends, Pfizer Makes Strategic Acquisition
Dividends have been a significant driver of stock market returns over the past century, with reinvested dividends accounting for the majority of total returns in global equity markets since 1900. Two prominent pharmaceutical companies, AbbVie and Pfizer, have recently made headlines with their dividend policies and strategic acquisitions.
AbbVie, currently trading at around 199.40 EUR or 233.64 USD, offers investors a 2.95% yield. The company has a remarkable 50-plus year dividend growth streak, making it a Dividend King. Since its 2013 spinoff, AbbVie's dividend has increased by an impressive 310%. The company's quarterly dividend payment has risen to $1.64 per share, representing a 5.8% increase from 2024. Forward payout ratios are expected to drop to 65% for 2025 and 53% for 2026.
Pfizer, trading at approximately 26.27 USD, has made a strategic move by acquiring obesity drug developer Metsera for $7.3 billion. This positions Pfizer in the fastest-growing pharmaceutical market. Pfizer boasts a substantial 7.13% yield and has maintained a 346th consecutive quarterly dividend payment. It is trading at 7.7 times forward earnings with a 90% payout ratio.
Tennant (TNC), with a current stock price not found, offers a 1.45% yield and has raised its dividend for an impressive 50 consecutive years. With a 36.3% payout ratio, Tennant has substantial room for continued dividend increases.
Both AbbVie and Pfizer demonstrate strong dividend growth and yield, providing attractive options for income-oriented investors. AbbVie's consistent dividend increases and Pfizer's strategic acquisition in the obesity drug market show their commitment to shareholder value and growth.
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