Not wasting any time, AbbVie(ABBV) declared a $.40 quarterly dividend on Friday, two days after its spin off from Abbott Laboratories(ABT). At Friday’s closing price of $34.39, the stock yields 4.65%. The dividend will be paid on February 15, 2013 to shareholders as of the close of business on January 15, 2013.
For former Abbott shareholders continuing to hold both stocks, this represents a slight dividend increase. Pre-spin, Abbott paid a quarterly dividend of $.51. It now plans to pay a dividend of $.14, so the total quarterly dividend for the two stocks is now $.54. As long as the Humira cash cow continues and there is sufficient remaining cash flow to fund pipeline development, expect AbbVie to continue to offer its juicy yield.
Disclosure: The author holds no position in any stock mentioned