If AbbVie Buys Shire, Dividend Investors Should Cheer

AbbVie's (ABBV) proposed acquisition of Shire (SHPG) may benefit investors.

Jul 8, 2014 at 5:00PM

AbbVie (NYSE:ABBV) has made another offer to acquire Shire (NASDAQ:SHPG) in a bid to offset looming patent risk and lower its tax rate.

Since Shire is generating a significant amount of free cash and currently doesn't pay much in the way of a dividend, acquiring the company should give AbbVie financial flexibility that will allow it to reward shareholders.

In the following slideshow, you'll learn why I believe that dividend investors should applaud if AbbVie succeeds in courting Shire.

Dividend stocks to keep your portfolio cheering
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Todd Campbell has no position in any stocks mentioned. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned. Todd owns Gundalow Advisors, LLC. Gundalow's clients do not have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

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