This morning when I woke up, I didn’t think there would be any more surprises this October. I check my phone to see where the market is pre-market and I remembered that there were some earnings reports being released today. Come to find out that one of the stocks that I’ve been holding onto has increased their dividend by over 10%! They had a very good quarter based on their earnings report and they were able to raise the dividend because of it.
$ABBV is the company that I’m so fond of as of this moment. They already had a great yield of over 5.5% and now with this dividend increase from $1.18 to $1.30, their yield is almost reaching 6.5%! Their payout ratio is still between 40-60% which means their growing dividend is safe in my opinion.
They were able to raise their dividend because of their other financial metrics highlighted in the earnings report. Their revenue has increase 52.1% from last year which was higher than expected. Their earnings per share (EPS) was $0.06 higher than expected as well. With $ABBV being a health care company that deals with pharmaceuticals, it’s no wonder why they’ve done so well during the pandemic.
With the current political landscape, they have no reason to be doing badly for the upcoming years. Although, if we had a candidate who was fighting for a universal healthcare system, drug prices would be lowered and companies like $ABBV would suffer from it. But I think we’re a long ways away from that and until that day comes, my portfolio will just keeping reaping the rewards that they give me.
I just wanted to share my thoughts about this morning and the surprise I found for my portfolio! As always, thank you so much for reading the blog and I’ll catch you on the next one!
Marcus