Better Dividend: GlaxoSmithKline vs. AbbVie

Two of big pharma's best stocks offer high-yielding dividends, but is GlaxoSmithKline or AbbVie better for your long-term portfolio?

Mar 13, 2014 at 2:30PM

Big pharma's one of the best industries for investors hungry for high-yielding dividends. Some of the biggest stocks in this sector offer great dividends and stable cash flows, and both GlaxoSmithKline (NYSE:GSK) and AbbVie (NYSE:ABBV) rank among the top names in the industry. Glaxo's 5.4% dividend yield, in particular, is one of the best dividend draws among pharma stocks, but is that enough to recommend this stock over AbbVie for income investors?

Glaxo is coming off the fallout of its China scandal last year that cost the company dearly in the third quarter. However, Glaxo's pipeline is loaded for the long term, and the company is even optimistic about its future in China and other emerging markets. AbbVie, on the other hand, is all-in behind leading drug Humira, the immunology blockbuster that makes up nearly 60% of the company's total sales. While that reliance on one drug looks dangerous, Humira, as a biologic, won't be easily replicated in biosimilar form once its patent protection expires in 2016 -- and AbbVie is already looking to the future with its unnamed oral hepatitis C drug, which it hopes to launch at the end of the year pending regulatory approval.

Are Humira and the promises of the oral hep C market enough to make AbbVie your top dividend stock for the future, or is Glaxo's high yield and impressive pipeline the right choice? Find out in the video below, as Motley Fool contributor Dan Carroll takes you through where each of these blue-chip big pharma stocks is headed and which one's dividend looks the best for the long term.

How dividend stocks like Glaxo and AbbVie can make you rich
Why are great dividend stocks such as big pharma's best so valuable to your financial future? One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend-paying brethren. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.


Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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