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Buy this High-Yield Large Cap Pharma Stock for Income Amid Coronavirus

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AbbVie (ABBV - Free Report) stock popped on Tuesday. This is part of the global pharmaceutical giant’s larger 20% surge in the last week as the market tries to mount a comeback amid the coronavirus uncertainty.

AbbVie’s portfolio boasts one of the world’s top-selling drugs, Humira. That said, patent protections for Humira are running out outside of the U.S., which has hurt its sales recently. Luckily, Humira biosimilars aren’t due out in the U.S. for at least a few years and it has expanded its portfolio.

AbbVie topped our Q4 fiscal 2019 earnings and revenue estimates in February. Plus, AbbVie is in the process of acquiring Botox maker Allergan, though it is still awaiting regulatory approval. “The launches of Skyrizi and Rinvoq are going extremely well, and we are entering 2020 with substantial momentum,” CEO Richard  Gonzalez said in prepared remarks. “We also look forward to completing the planned Allergan acquisition in the first quarter.”

Looking ahead, our Zacks estimates call for AbbVie’s sales and adjusted earnings to climb in fiscal 2020 and 2021. Meanwhile, ABBV’s longer-term earnings estimate revisions have remained positive. This helps AbbVie stock earn a Zacks Rank #2 (Buy) right now, alongside its “B” grades for Value and Growth in our Style Scores system.

Along with its growth outlook, AbbVie’s dividend yield is a strong 6.12% right now, which helps it crush Pfizer’s (PFE - Free Report) 4.65%, Eli Lilly’s (LLY - Free Report) 2.13%, and its highly ranked industry’s 3.09% average. And its next quarterly cash dividend is payable on May 15, to stockholders of record on April 15.

AbbVie also consistently raises its dividend, with its payout up 195% since 2013. Plus, despite its recent climb, ABBV shares sit 20% below their 52-week highs at roughly $77 a share, which might make it attractive to longer-term investors. In the meantime, AbbVie’s business is somewhat immune to the coronavirus.

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Pfizer Inc. (PFE) - free report >>

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