Jim Lebenthal AbbVie Inc. ABBV-N BUY Oct 25, 2024

The drug companies are in the dog house. If you buy this, you must be patient. It yields 4%.

It is a large cap biotech with a temporary pullback. Humera went off patent so there are some declines in revenue. He really likes the re-iteration of Humera which has taken off. Also it is re-designing a mistrial.          Buy 20  Hold 10  Sell 0

His best performer so far this year, up 12%. Well-managed. They replaced Humira with hit drugs and added key companies; pays a 3.2% dividend. 

Skyrizi continues to work.

Has no patent cliff. They have great franchises in oncology, immunology and others. Shares are down because bond yields are rising. Dividend pays only 3.7%, below interest rates. That said, good to start a position now given their drugs, including Botox.

It's up over 8% this year, beating the market. The PE is 15x. Has consistent topline growth due to Skyrizi as well as Botox and arthritis. High-quality. Pays a 3.5% dividend.

Has owned this over a decade. Loves it when they bought Allergan. The concern lay with Humira coming off patent a year ago, but they used Humira's cash flow to diversify their entire franchise. Pays a solid yield and offers around 9% EPS growth.

Seems to have grown to a bigger piece of the portfolio than the investor is comfortable with. Doesn't have too strong an opinion on this particular stock. If you want to trim, a great way is to sell a covered call -- you sell somebody the right to buy the stock from you at a higher price. 

With shares right now around $194, you can sell a September $200 call for about $4.50. If the stock doesn't go up, then you end up just hanging on to your stock.

Abbvie and AZN are two good healthcare stocks, a sector in which you must be picky because of weakness. Both trade around 15x and pay around a 3% dividend yield.

Is up 10% this year despite losing Humira. They have a strong drug pipeline, like Rinvoq up 40% YOY.