AbbVie Raises Quarterly Dividend 5.2% to $1.82

AbbVie Inc. raised its quarterly dividend 5.2% to $1.82 a share from $1.73, extending its dividend-growth streak to 12 consecutive years. The next ex-dividend date is January 15, 2027, and the payment date is February 16, 2027.

Why the dividend changed

AbbVie announced the increase with third-quarter results that showed continued growth despite the erosion of Humira sales. Worldwide quarterly revenue reached $17.404 billion, up 10.3% from a year earlier. Immunology revenue increased 16.3% to $9.165 billion, led by Skyrizi and Rinvoq, while Humira revenue fell 31.2% as biosimilar competition continued to reshape the company’s largest established franchise. AbbVie’s third-quarter release provides the operating context for the dividend decision.

AbbVie also raised its full-year adjusted diluted earnings guidance to a range of $13.95 to $13.99 from $13.76 to $13.96. Chairman and Chief Executive Robert Michael tied the dividend increase to what he called the company’s “strong outlook and significant momentum.” The combination of higher guidance and growth from newer medicines helps explain why the board continued raising the payout while Humira declines.

Capital allocation remained active beyond the dividend. AbbVie completed its acquisition of Apogee Therapeutics, adding clinical-stage immunology programs in areas including atopic dermatitis and asthma. When the transaction was announced, AbbVie said it would be debt-funded but would not change its capital-allocation priorities, including its commitment to a strong and growing dividend. The company’s transaction overview also identified debt reduction and credit-rating maintenance as priorities following the acquisition.

Dividend track record

The new rate follows four 2026 payments of $1.73 a share, producing an annual dividend of $6.92. The four 2025 payments were $1.64 each, for a full-year total of $6.56. AbbVie’s dividend history confirms that the company has followed a regular quarterly schedule rather than relying on special distributions.

The longer record shows steady but moderating growth. Annual payments rose from $4.72 in 2020 to $5.20 in 2021, $5.64 in 2022, $5.92 in 2023, $6.20 in 2024 and $6.56 in 2025. Annual growth slowed after the 10.2% increase in 2021: the following changes were 8.5%, 5.0%, 4.7% and 5.8%. The five-year dividend growth rate is 6.8% annual growth.

The 5.2% increase therefore fits the recent pattern of measured annual raises. It extends AbbVie’s record to 12 consecutive years of dividend growth, covering the period since the company became independent.

Is the dividend covered?

AbbVie’s payout ratio is 190% of earnings. That means the dividend exceeds reported earnings on the measure used for the ratio, so earnings coverage viewed in isolation is weak. The figure also illustrates why AbbVie’s reported earnings, which can be affected by acquired research and development expenses, amortization and acquisition-related items, need to be read alongside its operating performance.

SmarterDividends rates the dividend A, with a safety score of 80. That grade means very safe within the 80-100 range. The grade and payout ratio convey different information: the grade indicates a strong overall dividend-safety assessment, while the 190% earnings payout ratio identifies a specific coverage constraint that remains relevant.

Yield and valuation

At a share price of $294.89, AbbVie’s forward yield is 2.35%. That exceeds the Healthcare sector median forward yield of 1.66%, giving the shares a higher income rate than the sector benchmark at the stated prices.

The shares have recorded a 29.5% gain over one year. SmarterDividends estimates fair value at $192.09 and classifies the stock as overvalued, with 35% downside to that estimate. The valuation assessment is separate from dividend safety: an A safety grade addresses the reliability of the payment, while the fair-value estimate compares the share price with an estimate of underlying value.

What to watch

The immediate calendar items are the January 15, 2027 ex-dividend date and the February 16, 2027 payment. That February distribution will be the first at the new $1.82 quarterly rate.

AbbVie’s next results will provide evidence on whether Skyrizi, Rinvoq and the neuroscience portfolio are continuing to offset Humira’s decline. Investors can also track performance against the raised full-year adjusted earnings guidance, spending related to acquired research programs and the integration of Apogee Therapeutics.

Capital allocation after the Apogee transaction is another concrete item to monitor. AbbVie has paired its dividend commitment with stated goals for debt reduction and credit-rating maintenance. Progress on those goals will help frame the financial flexibility available for dividends, pipeline investment and future transactions.