Better Dividend: GlaxoSmithKline vs. AbbVie

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.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 14, 2014, at 4:57 PM, ddemee01 wrote:

    I understand that GSK may have more drugs in their pipeline for the future but when looking at ABBV growth in 2013 and raising their dividend to $0.42 a share, I'll pick ABBV over GSK. This is my choice for real growth.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2873337, ~/Articles/ArticleHandler.aspx, 9/19/2014 4:14:30 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement