Dividend Stock Fast Analysis - Abbvie Inc.

As you can see in my portfolio, Abbvie Inc (ABBV) is one of my largest holdings, and one of my most significant dividend producers. I've made multiple purchases of the stock throughout the past few years, and as recently as this past month.

But how do I like the stock at its current price? Let's take a look at the metrics and break them down. 

The Breakdown

With a yield over 5%, Abbvie impresses. And even more impressive, this yield is backed up by 47 consecutive years of dividend increases (adjusted for spin-off from Abbot Labs), and the company has grown their dividend at an average rate of nearly 20% over the past five years. 

The trailing P/E of 16x is lower than the typical level ABBV trades, though the forward ratio is a bit higher than has been typical over the past couple years. However, the P/E is not at a level I'd consider concerning, and forward analyst earnings estimates likely take into account any additional costs of the company's upcoming merger with drug maker Allergan. Further, with a current ratio of over 3x, the company should have a strong enough balance sheet to cushion the blow of any merger-related expenses without sacrificing the dividend. 

The payout ratio of almost 80% is a bit higher than I'd like to see, but the idea of the Allergan merger is to build a drug pipeline to continue their EPS growth into the future. 

The Summary

Overall, I like Abbvie at these levels, though I wish I would have picked more up earlier in the month when it was trading in the low $80s. While the yield is an obvious attention-grabber, I'm further excited about the recent dividend growth, long history of dividend increases, and the growth prospects associated with the merger with Allergan. Abbvie is a stock that I see myself continuing to build a position for years to come. 

What do you think about the stock? 

- FI Anon