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AbbVie’s Dividend Yield Is Near Its Lowest Since 2018. Is the Stock Still an Income Pick?

AbbVie’s dividend rose in 2026, but its yield fell as the share price outpaced the payout. Here’s what the growth of Skyrizi and Rinvoq—and Humira’s decline—means for income investors.
From TheFinanceBase Team4 min to read
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AbbVie’s dividend yield was about 2.6% in reports dated October 11, 2026, and one contemporaneous article described it as the lowest since early 2018. That does not mean AbbVie cut its dividend: the quarterly payment rose to $1.73 in 2026, while the share price’s faster rise lowered the yield. The income case rests on that growing payout and rising sales from Skyrizi and Rinvoq; the counterweight is continued Humira erosion and the fact that neither dividend history nor sales growth proves the stock is attractively valued or that future payments are assured.

Why can AbbVie’s yield fall while its dividend rises?

Dividend yield is annual dividend per share divided by the share price. When the price rises faster than the dividend, yield falls even though the company has increased its cash payment. That is the explanation given for AbbVie’s lower yield, rather than a dividend cut. The Motley Fool reported a yield around 2.6% and called it the lowest since early 2018 on October 11, 2026; Fidelity International reported a 2.61% 2026 yield figure using data accessed that day, with its latest financial report dated October 8, 2026. These are dated provider snapshots, not a fixed return, and their methods or dividend assumptions may differ.

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AbbVie’s investor-relations dividend history lists $1.73 per share in each 2026 quarter, or $6.92 across the year. The higher quarterly rate followed a 5.5% increase from $1.64, announced October 30, 2025, and applied to the payment due February 17, 2026. The company also said its dividend had risen by more than 330% since its 2013 inception. Those are historical declarations, not a commitment to future increases.

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What supports the income-growth case?

A larger declared payout

The 2026 quarterly dividend gives an investor a current cash-payment rate to evaluate, while the historical increases show that AbbVie has raised its payout in the past. Neither fact alone establishes that the dividend is covered by cash flow or will keep growing. AbbVie CEO Robert A. Michael said in the October 30, 2025 announcement, “Based upon the strength of our business and its promising outlook, we are once again raising our quarterly cash dividend.” That is management’s rationale for the increase, not independent proof that the dividend is risk-free.

Growth from Skyrizi and Rinvoq

AbbVie reported $16.990 billion in second-quarter 2026 revenue, up 10.2% year over year on a reported basis. Immunology contributed $8.786 billion, including $5.505 billion from Skyrizi and $2.525 billion from Rinvoq. In the company’s Form 10-Q for the quarter ended June 30, 2026, Skyrizi revenue rose 24% and Rinvoq revenue rose 24% for the quarter on a constant-currency basis. The filing attributed their growth primarily to market-share uptake and market growth across indications.

The broader 2025 results also show the scale of the transition: AbbVie reported $61.160 billion in full-year revenue, up 8.6% on a reported basis. Immunology revenue was $30.406 billion, including $17.562 billion from Skyrizi and $8.304 billion from Rinvoq. These figures describe recent sales and portfolio mix; they do not by themselves forecast future earnings or dividend coverage.

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What is the main business risk to the thesis?

Humira continues to decline

Humira generated $756 million in second-quarter 2026 revenue, down 35.9% year over year on a reported basis. AbbVie’s Form 10-Q attributed a 36% quarterly decline and a 38% first-half decline to direct biosimilar competition following loss of exclusivity; those filing comparisons are on a constant-currency basis, so they differ from the reported-dollar rate in the earnings release. The filing indicates that the pressure continued through the first half of 2026, not that the decline is over.

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Skyrizi and Rinvoq are important sources of current growth, but their sales growth does not prove that they will fully replace Humira’s contribution or guarantee dividend coverage. The income-growth thesis therefore depends in part on how the business performs as Humira faces competition and the newer products grow.

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Does the yield make AbbVie a great buy?

Not on its own. A yield near 2.6% can be relevant to an income investor, but it is not a measure of valuation, future total return, or personal suitability. A rising share price can reduce the yield while benefiting an existing shareholder through price appreciation; it can also mean a new buyer pays more for each dollar of dividend. The cited dividend and sales figures do not establish whether AbbVie’s current share price is attractive.

Before treating the stock as an income investment, consider the evidence separately:

  • Income now: the 2026 declared rate is $1.73 per quarter per share, while the reported yield is a date- and method-dependent snapshot.
  • Income growth: AbbVie has increased its dividend in the past, but previous increases do not guarantee future ones.
  • Operating momentum: Skyrizi and Rinvoq grew in the latest reported quarter, while Humira revenue fell under biosimilar competition.
  • Valuation and risk: the cited data do not provide a valuation analysis, cash-flow coverage calculation, or investor-specific assessment.

Investors who need a reliable income stream should assess dividend sustainability using current cash flow, debt and payout information in addition to the company’s dividend record, and should consider whether pharmaceutical-business and share-price risks fit their financial plan.

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