Prediction: Here's What $10,000 Invested in AbbVie Stock With Dividends Reinvested Could Be Worth in a Decade
It would be hard for investors to replicate the company's return over the past decade.
Overview
If you were fortunate enough to invest $10,000 in AbbVie (NYSE: ABBV) stock a decade ago and reinvested its dividends, you would be sitting on $61,425.56 right now, with an average annual return of 19.91%.
The pharmaceutical company, through those returns, richly rewarded the investors who bought its shares despite concerns about the patent cliff that awaited what was then the world's most lucrative drug, Humira.
Details
It's unlikely that history would repeat itself for anyone buying AbbVie stock today. Because the company has already hurdled that patent cliff, the stock has risen and is a lot pricier than it was back then, with a trailing price-to-earnings (P/E) ratio of 75. On top of that, the dividend yield is at one of the lowest points it has been over the past decade, at 2.6%.
Source
Originally published at www.fool.com.