AbbVie Stock: Buy, Sell, or Hold in October?
2026-09-30 16:30
•Leo Sun •The Motley Fool
••••• • Axe Cap view
AbbVie’s Patent Loss Doesn’t Spell Trouble Yet
Despite losing Humira exclusivity, AbbVie’s growth prospects and dividend track record remain solid.
AbbVie’s recent loss of patent protection for Humira, its blockbuster drug, raised flags for many investors. But this company isn’t just a one-hit wonder. They’ve filled the gap with newer immunology drugs like Skyrizi and Rinvoq and shored up their portfolio with Allergan’s Botox, which helps offset declining Humira sales. With analysts forecasting about 9% annual revenue growth and 21% earnings growth through 2028, the numbers suggest real resilience. Trading at roughly 16 times next year’s earnings and offering a 2.6% dividend yield, AbbVie looks fairly priced. For South African investors, it’s worth watching USD/ZAR since currency swings can impact returns on US-based pharma holdings significantly. The downside risk lies in any further regulatory setbacks or weaker-than-expected uptake of new drugs. But AbbVie’s long history of raising dividends for over five decades gives some comfort. this is just our opinion and not financial advice
Buy AbbVie for steady dividends and growth, but hedge currency risk via USD/ZAR exposure. Consider trimming if the rand weakens sharply or pipeline disappoints.
- ABBV
- USD/ZAR
- Regulatory challenges to new drugs
- Rand volatility compressing local returns
6/10
AbbVie, a pharmaceutical giant with 53 consecutive years of dividend increases, remains a stable long-term investment despite losing U.S. patent exclusivity for its blockbuster drug Humira in 2023. The company has offset this decline through new immunology drugs (Skyrizi and Rinvoq) and strategic acquisitions including Allergan (Botox). Analysts project 9% revenue CAGR and 21% adjusted EPS CAGR from 2025-2028. At $264 per share with a 2.6% forward yield and 16x forward P/E, the stock is reasonably valued for buy-and-hold investors.
Our take is based on reporting first published by The Motley Fool.