November 2, 2018

Recent Buy - AbbVie Inc. (Healthcare)

On November 1 I initiated a position in AbbVie Inc. I Purchased 26 shares for 78,57 $ per share plus commission. The total cost of the purchase was 1 807 €.

AbbVie Inc. is a fairly new biopharmaceutical company since it was founded in 2013. It originated as a spin-off of Abbott Laboratories, which is a Dividend Aristocrat that has raised the dividend for 45 consecutive years.

I have followed this stock for a while now and it is starting to look like a bargain after falling 37 % since January.

The biggest reason for recent stock price drop seems to be that their blockbuster drug Humira will see competition from biosimilars in Europe. They recently offered a 80 % price discount for Humira in Europe to defend against biosimilars so we will have to wait and see how this affects their total earnings. Even with these current challenges Humira is still the best-selling prescription drug in the world and they have a promising drug pipeline so I'm not too worried.

With current 4,89 % yield it increases my annual passive income by 87,6 €. After the purchase weight of AbbVie Inc. is 2,7 % of my  portfolio.

3 comments:

  1. Nice pickup Deluge! It seems to be a pretty popular company in the dividend investing community these days. Enjoy those dividends!

    Bert

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  2. That's a nice buy. ABBV is on my short list for November. Seeing a quality name get punished should cause many to look at it.

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  3. nice buy. Would love to add them to my portfolio but no usd at the moment.

    keep it up
    cheers

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