AbbVie Raises Quarterly Dividend 5.5% to $1.73 as Key Investors Trim Stakes
AbbVie increased its quarterly dividend by 5.5% to $1.73 per share, boosting its annual payout to $6.92 and yielding 3.2%, with the ex-dividend date on January 16 and payment on February 17. Commerzbank and First Citizens trimmed their stakes by 30.5% (39,586 shares) and 6.5% (2,433 shares), respectively.
1. Institutional Trading Activity
In the most recent 13F filing, Commerzbank Aktiengesellschaft FI reduced its position in AbbVie by 30.5%, selling 39,586 shares and ending the quarter with 90,102 shares valued at approximately 20.9 million dollars. Other major investors made notable adjustments: Norges Bank initiated a new position worth roughly 4.29 billion dollars, Laurel Wealth Advisors LLC expanded its stake by over 18,000% to 5.7 million shares, Vanguard Group added 3.38 million shares (a 1.9% increase), DZ BANK AG raised its holdings by 169.3% to 4.72 million shares, and Raymond James Financial increased its position by 41.8% to 9.34 million shares. Institutional and hedge fund ownership now stands at just over 70%.
2. Analyst Ratings and Price Targets
Research firms have recently updated their views on AbbVie. Two analysts have assigned a Strong Buy rating, thirteen have issued Buy ratings and eight maintain Hold. Morgan Stanley upgraded to Overweight with a target of 269, Berenberg Bank set a 275 objective, Guggenheim raised its target from 227 to 242 and retained a Buy stance, while Citigroup and UBS both kept Neutral ratings, with Citigroup trimming its target to 235. BMO Capital Markets reiterated an Outperform rating with a 258 target. The consensus from MarketBeat indicates a Moderate Buy sentiment and an average price objective of 248.11.
3. Q3 Earnings Results and Guidance
AbbVie reported third-quarter earnings per share of 1.86, beating consensus by 0.09, on revenue of 15.78 billion, exceeding expectations by 0.20 billion and reflecting 9.1% year-over-year growth. Net margin was 4.0% and return on equity reached 3,216.5%. The company noted that prior-year quarterly EPS included a one-time gain, explaining the year-over-year decline from 3.00. Full-year guidance for 2025 was reiterated at an EPS range of 3.320 to 3.360, and analysts forecast 12.31 EPS for the current year.
4. Dividend Increase and Yield
AbbVie’s board approved a quarterly dividend increase from 1.64 to 1.73 per share, marking a 5.5% hike. The dividend will be paid on February 17 to shareholders of record as of January 16. On an annualized basis the payout amounts to 6.92 per share, representing a yield of approximately 3.2%. The new payout ratio stands at 524.2%, underscoring the company’s commitment to returning cash to shareholders despite elevated reinvestment in R&D.