If you can get a safe 5% yield in the markets right now, you shouldn't pass up the opportunity to do so. With many companies slashing or suspending their dividend payments amid the coronavirus pandemic, finding a safe dividend stock that pays a decent yield is not as easy as it once was.
However, there's one health-care stock that could be an attractive buy for income investors today and that's Illinois-based AbbVie Inc (NYSE:ABBV). Not only has the company not cut its dividend payments, it raised them recently, from $1.18 every quarter to $1.30.
On an annual basis, that's a yield of around 5.2%. If you were to invest $25,000 into the stock, it would generate just under $1,300 in annual dividend income for your portfolio.
The company released its third-quarter results on Oct. 30 where sales of $12.9 billion were up 52% year over year. The big boost was mainly due to the inclusion of Botox-maker Allergan (NYSE:AGN), which AbbVie acquired for $63 billion this year.
However, the company also saw growth among its immunology portfolio with sales in that segment rising 15% while its oncology revenue rose by more than 16%.
With the business looking to be in great shape, not only does the dividend look solid but the stock could be poised to deliver some great returns for investors as well. Shares of AbbVie are up 14% thus far in 2020 and with the stock trading at a forward price-to-earnings multiple of just eight, it's looking like a steal of a deal right now.
