Some actions stand out more than others. Who takes the action makes a difference, of course. How big the action is matters as well.
I mention this because one of the world's wealthiest and most successful investors recently did something that especially stood out to me. Billionaire Israel "Izzy" Englander loaded up on a certain Dividend King in the second quarter of 2025. (If you're not familiar with Dividend Kings, they're a group of elite stocks that have increased their dividends for at least 50 consecutive years.)
And when I say loaded up, I'm not exaggerating.
Izzy's dizzying dividend buy
Englander boosted his Millennium Management hedge fund's stake in AbbVie (ABBV 0.81%) by a whopping 416% in Q2. AbbVie has been a member of the Dividend Kings club since 2022. The company has increased its dividend for an impressive 53 consecutive years, including the time it was part of Abbott Laboratories (ABT +0.20%).
Granted, Englander made even bigger purchases in Q2. For example, he bought another 2.3 million shares of Applovin (APP 1.60%), a move that increased Millennium Management's position by more than 9x. However, Applovin is a sizzling hot tech stock. It's not surprising for a billionaire to decide to invest more heavily in such a stock.
AbbVie, on the other hand, is a big pharma company. It has faced a huge patent cliff over the last couple of years with the loss of U.S. exclusivity for its longtime best-selling autoimmune disease drug Humira.
But while the size of Englander's increased position in AbbVie might be somewhat surprising, the fact that the stock is in his portfolio isn't. After all, Millennium Management has over 3,900 holdings. It would probably be more stunning if one of the world's biggest healthcare companies weren't on the list.
AbbVie's attractions
Why did Englander aggressively buy shares of AbbVie in Q2? To the best of my knowledge, he hasn't commented publicly on the reasons behind his decision. However, we can make some educated guesses as to his rationale.
For one thing, AbbVie has navigated Humira's loss of exclusivity exceptionally well. The company has two successors to what was once the best-selling drug in the world -- Skyrizi and Rinvoq. These two therapies are expected to rake in combined sales of more than $25 billion this year. Humira's peak annual sales were around $21 billion.
AbbVie's lineup includes other strong performers as well. Five of them generated double-digit percentage year-over-year sales growth in Q2, with migraine drugs Qulipta and Ubrelvy especially standing out.
Englander might have considered the strength of AbbVie's pipeline when more than quintupling Millennium Management's stake in the drugmaker. AbbVie has roughly 90 programs in development. Around 50 of them are in mid- and late-stage clinical testing.
I wouldn't be surprised if valuation played a role in the billionaire's decision, either. AbbVie's shares trade at a forward price-to-earnings ratio of 16.8. That's attractive in a stock market that's trading at a historically high premium. Importantly, AbbVie was even cheaper when Englander significantly increased his position. The big pharma stock has jumped around 20% since the end of Q2.
NYSE: ABBV
Key Data Points
Should you buy this Dividend King, too?
No one should buy any stock solely because a wealthy, famous investor bought it. However, buying for the same underlying reasons why that rich investor might have bought it is a different story altogether.
I believe that AbbVie offers something for nearly any investor. If you're seeking income, it's a Dividend King with a dividend yield of 2.9%. If you're a value investor, the stock is priced attractively. AbbVie is also poised to deliver solid growth over the next decade and beyond.
It can be smart to pay attention when a billionaire investor such as Izzy Englander dramatically increases his stake in a given stock. In AbbVie's case, I think it could also be smart to follow his lead.
