AbbVie, Inc. (ABBV) is a global, research-based biopharmaceutical company; the firm develops and markets advanced therapies that address some of the world's most complex and serious diseases, notes value investing expert Kelley Wright, dividend expert and editor of Investment Quality Trends.

AbbVie's products are focused on treating conditions such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and HIV.

The company is also involved in neurological disorders, such as Parkinson's disease; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis; pain associated with endometriosis; as well as other serious health conditions.

The firm also has a pipeline of promising new medicines in clinical development across such important medical specialties as immunology, oncology and neuroscience, with additional targeted investment in cystic fibrosis and women's health.

In June 2019, AbbVie entered into a definitive transaction agreement to acquire Allergan plc (AGN). The transaction is expected to close in early 2020 and would create a massive biopharmaceutical company with about $48 billion in combined 2019 revenue.

Management expects that shareholders will see 10% EPS accretion in the first full year of the combination and that the company can achieve annual pre-tax synergies and other cost reductions of over $2 billion by year 3.

The company’s combined net debt of approximately $95 billion will be reduced by $15 to $18 billion by 2021-end, while continuing to support dividend growth and pipeline investment.

Historically the shares offer good value when the dividend yield is 4.50%. Based on the current dividend of $4.72 per share, a 4.50% dividend is realized at $105 per share. Trading recently around $88 per share, the stock is about a 20% discount from its historically repetitive area of high yield.  

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