3 Reasons to Buy AbbVie Stock Like There's No Tomorrow
2026-07-21 22:30
•Prosper Junior Bakiny •The Motley Fool
•••• ••• Axe Capital view
AbbVie’s Recovery Story Has Limits for SA Investors
AbbVie’s post-Humira bounce looks strong, but South African investors should be cautious given local market dynamics.
AbbVie rebuilt itself well after Humira lost patent protection, thanks largely to Skyrizi and Rinvoq, which are hitting sales targets and won’t have biosimilar competition until 2033. Their pipeline also shows promise with weight-loss and eczema drugs. The company’s long history of dividend growth is solid, offering a 2.7% yield that appeals to income seekers. But for JSE investors, AbbVie is an overseas play with currency risk via USD/ZAR fluctuations. A strengthening rand will reduce rand returns, and given South African markets’ limited direct pharma exposure, the company’s story won’t directly move the local bourse. Local banks or miners remain more responsive to domestic and commodity swings. That said, if you want international pharma exposure to balance local risks, AbbVie is a decent option. Watch the rand closely and be prepared to trim if the currency strengthens or the company’s pipeline disappoints. this is just my opinion and not financial advice
Consider a modest position in AbbVie as part of a diversified portfolio, but hedge or monitor USD/ZAR closely. Avoid overweighting given its indirect link to the JSE.
- ABBV
- USD/ZAR
- Rand strengthening reducing rand returns
- AbbVie’s pipeline delays or regulatory setbacks
6/10
AbbVie has demonstrated strong recovery after Humira's patent loss, with immunology drugs Skyrizi and Rinvoq exceeding sales expectations and not facing biosimilar competition until 2033. The company maintains a promising pipeline including weight-loss therapy ABBV-295 and acquired eczema treatment zumilokibart. AbbVie's Dividend King status with 203.5% dividend increases over the past decade and a 2.7% yield makes it an attractive long-term investment despite near-term headwinds from Humira decline and Imbruvica pricing pressure.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Prosper Junior Bakiny
Categories: Rates, Equities, Earnings, Capital Returns
Tickers: ABBV, ABT, APGE
Sentiment: Positive - Strong revenue recovery post-Humira patent loss, exceptional performance of Skyrizi and Rinvoq exceeding management expectations, promising pipeline candidates (ABBV-295, zumilokibart), and exceptional dividend track record as a Dividend King with consistent increases over the past decade. Mentioned only as AbbVie's former parent company for historical context regarding dividend history; no specific analysis or investment recommendation provided in the article.
Keywords: pharmaceutical, dividend growth, immunology drugs, patent expiration, pipeline candidates, weight-loss therapy, biosimilars, long-term investment
Insights:
- ABBV: Positive: Strong revenue recovery post-Humira patent loss, exceptional performance of Skyrizi and Rinvoq exceeding management expectations, promising pipeline candidates (ABBV-295, zumilokibart), and exceptional dividend track record as a Dividend King with consistent increases over the past decade.
- ABT: Neutral: Mentioned only as AbbVie's former parent company for historical context regarding dividend history; no specific analysis or investment recommendation provided in the article.
- APGE: Positive: Acquired by AbbVie for $10.9 billion; its key asset zumilokibart is positioned as a promising eczema treatment with differentiated dosing schedule that could strengthen AbbVie's immunology portfolio.
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