Dividend Lovers Eye AbbVie and W.P. Carey for 2025 Gains

Investors are intrigued as AbbVie and W.P. Carey present attractive dividend options. With AbbVie raising its dividend yield to 3.6% and W.P. Carey boasting a significant 6.4% yield, both stocks appear to be solid buys for those seeking passive income in 2025.

Date: 06-01-2025

AI Rating: 7

**AbbVie Analysis:** AbbVie has made a name for itself among dividend investors, showcasing a remarkable dividend increase of 310% since its separation from Abbott Laboratories in 2013. This rise has led to the current dividend yield of 3.6%. Despite a recent setback due to an $8.7 billion investment in Cerevel Therapeutics that didn’t pan out, AbbVie’s positive developments in drug trials, notably the promising results from Tavapadon in Parkinson’s disease, assure potential revenue growth. The company’s sales from its lead drugs, Skyrizi and Rinvoq, have demonstrated impressive growth of 48% and 52% year-over-year, resulting in $15.6 billion in free cash flow, of which only 70% is being used for dividends. This empowers AbbVie to maintain, if not raise, its dividends significantly moving forward.

**W.P. Carey Analysis:** W.P. Carey stands out as a REIT with a healthy 6.4% dividend yield. The company undertook a strategic spin-off of its office portfolio, which initially pressured its stock price. However, the dividend cut made in 2023 seems manageable, and W.P. Carey has already raised dividends four times since then. With expectations of adjusted funds from operations reaching $4.68, well above the annual dividend requirement of $3.52, W.P. Carey appears well-positioned to provide stable dividend income. Despite some recent financial drag from increased Treasury yields affecting REITs in general, the diversified nature of W.P. Carey mitigates potential risks, offering investors a viable option for passive income stability. Both AbbVie and W.P. Carey offer dividends while maintaining commendable growth trajectories and sound financial management.

Stocks: ABBV WPC