Investing

5 Highest-Yielding Dividend Aristocrat Stocks to Buy Now for 2021

AbbVie

This is one of the top pharmaceutical stocks picks across Wall Street, and 34% of the fund managers own the shares. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories. The company develops and markets drugs in areas such as immunology, virology, renal disease, dyslipidemia and neuroscience.

One of the biggest concerns with AbbVie is what might happen eventually with anti-inflammatory therapy Humira, which has some of the largest sales for a drug ever recorded. The company was concerned, so in June of 2019 it announced that it has agreed to pay $63 billion for rival drugmaker Allergan, the latest merger in an industry in which some of the biggest companies have been willing to pay a high price to resolve questions about their future growth. The purchase officially closed in May of this year.

AbbVie may be nearing the limits of how far it can boost Humira’s price as cheaper competitors come to market, a problem Allergan is already grappling with as more alternatives to Botox emerge.

Shareholders receive a 5.03% dividend. Morgan Stanley recently lifted the $108 price target to $120. The consensus price target is lower at $115.71. AbbVie stock closed at $103.28 on Wednesday.

Exxon Mobil

This energy giant finally has been removed from the penalty box at Goldman Sachs, which recently upgraded the shares to Buy. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.

Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.

In the report on the long-awaited upgrade to Buy, the analysts noted that Exxon has meaningfully cut its capital spending outlook for next year to a range of $17 billion to $19 billion, compared with an earlier estimate of between $30 billion and $35 billion. Its guidance for 2022 to 2025 is a range of $20 billion to $25 billion.

Exxon expects to exceed its initial guidance of a 15% reduction in cash operating expenses in 2020, due in part to a global workforce reduction of the same percentage point magnitude by the end of 2021.

Investors receive an 8.44% dividend, which probably will continue to be defended. The $52 Goldman Sachs price target is above the $47.98 consensus target. Exxon Mobil closed most recently at $41.77.

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