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AbbVie Stock Buying Opportunity
When you find a great long term growth company like AbbVie Pharma, that pays a good dividend, the share price is oversold, and they have a presentation coming up in a few days why wait any longer to add to a position or start one?

I added AbbVie Pharmaceuticals to my portfolio today for four reasons.


This is a great company to own as they have a Great Pipeline. They pay a great dividend, the chart is in oversold territory, and they will participate in the Goldman Sachs 42nd Annual Global Healthcare Conference on Tuesday, June 8, 2021. These four reasons had me spend 10% of my monthly income on ABBV Stock this month. Let us look closer.  

    
  1. 1.  AbbVie Pharmaceuticals is one stock to own in the pharma sector. Their pipeline covers areas from Eye care, Immunotherapy, Neuroscience, Oncology, and Virology. They carry an average buy rating with an average price target of $122 per share. The institutional ownership is around 66%Check out the company snapshot from E-Trade Snapshot and check out AbbVie Website.


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  1. 2.  AbbVie is considered a Dividend Aristocrat and pays on the average around 4-5% dividend. This is a good range of passive income when you decide to sit back and live off dividends. If you had a million dollars in AbbVie stock you would receive around 40-50K in income every year. I know the million-dollar mark sounds like a lot, but you can get there. Most dividend stocks that pay more than this are a lot riskier for your investment. There are stocks and ETF’s that 10% yield a year and could get you 100k a year on those million dollars but at a higher risk. Remember a key to being wealthy is not only getting good returns on your investments but also keeping your money safe. Any stock, ETF’s or the entire market could crash, but I feel like this is a very safe 4-5% dividend income plus growth of the stock every year.  



  1. 3.  The chart has recently seen a 5% pullback from its recent high and has entered oversold territory. This of course does not always mean it will go up from here but makes it a good opportunity to start or add to a position. We are buying this for the long haul, but as always, we want to have an acceptable position in anything we own so we can make money on the stock price as it increases, not just the dividends. If this stock continues to drop, I would be looking to double my position when it hits the 200sma or reaches around a ten percent loss on my current cost basis. You want to keep your average low. Let us say I bought 10 shares at $112.92, and the stock dropped to $100 a share, that would be an 11% loss I would have on this position.  


  2. My plan would be to add another 10 shares at $100 giving me an average share price of $106.46 and I would be only down 6% on the position. Keep your cost basis low, this gives you an opportunity to make more money when the stock price turns around. The monthly chart looks like it could turn around and could go as low as $50 a share, I doubt that, but I will continue to build a low-cost basis position every chance I get, and we should always look at the longer turn charts. If something fundamentally goes wrong with the company, I will keep my cost basis low until I get an opportunity to exit my position with profit. 

AbbVie Stock chart
ABBV Monthly Chart

  1. 4.  They are also participating in the Goldman Sachs 42nd Annual Global Healthcare Conference on Tuesday, June 8, 2021. This does not mean it will drive the stock up, but it does give me another reason to enter. I have seen a ton of pharma companies jump as they give presentations into new data on something they are working on. This may have no impact on share price at all, but if there is any reason for investors to run the stock price back up in that presentation, I wanted to enter ABBV stock now.  

 

Conclusion 

When you find a great long term growth company like AbbVie Pharma, that pays a good dividend, the share price is oversold, and they have a presentation coming up in a few days why wait any longer to add to a position or start one? This is not a stock I plan on trading but one I plan to build a position that I plan to hold during retirement. We should be focused on creating an income stream for retirement and this companies' dividend will be one source of many for mine.  

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