Here's How Many Shares Of AbbVie You Would Need To Earn $500 Per Month In Dividends

With 52 consecutive years of dividend growth and a dividend yield of over 3.6%, AbbVie Inc. ABBV is one of the most notable dividend stocks. The company is widely known for Humira, its treatment for autoimmune diseases such as Crohn's disease, ulcerative colitis and rheumatoid arthritis.

During the first quarter, AbbVie’s revenue inched up 0.7% year over year to $12.31 billion, surpassing Wall Street estimates by $370 million. Adjusted EPS in the quarter came in at $2.31, beating analyst consensus by $0.05. The company also increased its full-year 2024 adjusted EPS guidance. It expects the metric to range from $11.13 to $11.33, up from its prior range of $10.97 to $11.17.  Despite solid results, the stock fell as AbbVie’s top-selling drug Humira saw a 36% decline in sales amid competition from cheaper biosimilars. However, AbbVie Inc. bulls believe Skyrizi and Rinvoq could offset the declines from Humira. Earlier this year, AbbVie increased its sales estimates for Skyrizi and Rinvoq to $27 billion, up $6 billion from its previous forecast.

Over the past five years, AbbVie Inc. has increased its dividend at an annual growth rate of 10.3%. Given the company’s strong dividend growth record and catalysts, learning how to make $500 a month from AbbVie dividends would be interesting.

Let’s calculate how many AbbVie shares you’d need to earn $500 monthly from the stock.

Earning $500 per month means you will generate $6,000 per year in dividends from AbbVie. Since AbbVie currently pays a quarterly dividend of $1.55 per share, its annual dividend is $6.20 per share ($1.55 x 4 quarters).

We will divide our annual income goal by the annual dividend per share to find the number of shares:

Number of shares needed = $6,000 / $6.20 = 967.74

You would need approximately 968 shares of AbbVie to make $500 a month in dividends from the company.

Now let’s calculate how much investment you need to buy these shares.

Given that AbbVie’s closing price on June 10 was $170.46, you would need about $165,005 to buy enough AbbVie shares to reach your monthly income goal of $500.

Total Investment Required to Make $500 a Month from ABBV: 968 shares X $170.46 = $165,005

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