Thirteen years ago, AbbVie (ABBV 1.03%) didn't exist -- at least not as a stand-alone company. It was an important part of Abbott Labs (NYSE: ABT) before being spun off as a separate entity. Today, AbbVie ranks as the world's third-largest healthcare company by market cap.
I invested in AbbVie several years ago and have never sold a share. Here's one reason I plan to never sell this pharma stock.
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Arguably, the most important trait for a company to possess
To be sure, there are quite a few reasons why I own shares of AbbVie. I like that the company is a Dividend King (a group of stocks that have increased their dividends for at least 50 consecutive years) with an attractive forward dividend yield of 3.1%.
The drugmaker is innovative. AbbVie's pipeline includes roughly 90 programs in clinical development. Around 60 of them are either in mid- or late-stage studies.
AbbVie has been a solid winner for me in the past, more than doubling over the last five years. I expect the stock will continue its winning ways over the next few years. AbbVie's lineup features multiple blockbuster drugs with strong sales growth, with autoimmune disease drugs Skyrizi and Rinvoq especially standing out.
NYSE: ABBV
Key Data Points
However, none of those is the top reason I don't plan to ever sell AbbVie stock. Instead, I intend to hold onto my AbbVie shares because the company has proven it can adapt to changes and challenges while continuing to thrive.
I think the ability to evolve is arguably the most important trait for a company to possess. Without it, a business can decline over time or even be rendered obsolete. I don't see that happening with AbbVie.
As the mutual fund disclosures say, past performance isn't necessarily indicative of future success. But a track record of surviving and thriving increases the chances of long-term success, in my view.
AbbVie has an impressive record of adapting through the years. It's been in business since 1888 (initially as part of Abbott). The company faced one of the most challenging patent cliffs ever when Humira, which reigned as the world's best-selling drug for several years, lost exclusivity. But AbbVie quickly returned to robust growth thanks to its investments in research and development and shrewd acquisitions.
Never say never?
Can I honestly say that I'll never sell AbbVie stock? Not really. The adage that you should "never say never" is true. It's possible that AbbVie could lose its step and fail to continue innovating and changing. Based on what I know about the company, though, I don't expect that will happen anytime soon. AbbVie is a stock I believe investors can count on to deliver solid dividends and growth over the long run.
