AbbVie Stock: Buy, Sell, or Hold in October?
Key Points
AbbVie survived Humira’s patent cliff.
Its new billion-dollar drugs are picking up the slack.
- 10 stocks we like better than AbbVie ›
AbbVie (NYSE: ABBV), one of the world's largest pharmaceutical companies, has been a reliable long-term investment. It's raised its dividend annually for 53 consecutive years, making it a Dividend King that has increased its payout for at least 50 years in a row, and a dozen of its drugs generate more than $1 billion in annual revenue. But as the 10-year Treasury yield stays above 5% -- its highest level since 2007 -- is it still smart to buy and hold this dividend stock?
Image source: Getty Images.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
AbbVie's core strengths
In 2023, AbbVie lost its U.S. patent exclusivity for Humira, the blockbuster autoimmune drug that once accounted for over 60% of its sales.
However, it offset that slowdown by launching two new immunology drugs, Skyrizi and Rinvoq, in 2019. It acquired Allergan, the developer of Botox, in 2020, as well as additional companies (including ImmunoGen and Cerevel Therapeutics) to further expand its portfolio.
From 2025 to 2028, analysts expect AbbVie's revenue and adjusted EPS to grow at CAGRs of 9% and 21%, respectively. That growth should be driven by its soaring sales of Skyrizi and Rinvoq, along with its new drugs from ImmunoGen (oncology) and Cervel (neuroscience).
At $264 per share, AbbVie still looks reasonably valued at 16 times next year's earnings, and it pays a decent forward yield of 2.6%. It's not an exciting investment, but I'd rather buy and hold this stock in this turbulent market rather than sell it.
Should you buy stock in AbbVie right now?
Before you buy stock in AbbVie, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 30, 2026.
Leo Sun has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.
Recommended Articles
