The FDA just approved our first pick, a mega-pharma company’s new migraine drug, Still trading at a discount, the shares have a current annual dividend yield of 4.75%, paid quarterly. Our second recommendation is taking some profits off the table, due to declining technical support.
Buy: AbbVie Inc. (ABBV)
From Cabot Dividend Investor
AbbVie hasn’t recovered from the selloff after the FDA announced it will require a warning label on its new immunology drug Rinvoq one month ago. It’s not good news because this is a star drug that AbbVie needs to overcome lost revenues when Humira loses its U.S. patent in 2023. But it isn’t a game changer. The story is still intact. Meanwhile, ABBV has strong technical support around the current level. BUY
Tom Hutchinson, Cabot Dividend Investor, cabotwealth.com, 978-745-5532, September 29, 2021
Sell: Digital Realty Trust, Inc. (DLR)
From Cabot Dividend Investor
Updated from WSBD 838, February 18, 2021
Digital Realty Trust has broken through technical support on the downside. We recently kept half of the position because the stock moves independently of the overall market at a time when the market is looking increasingly treacherous. But it appears to be independently heading lower. It should be okay over the long term, but I don’t want to hang on through many months of languishing. It’s also not a bad time to take some money off the table. SELL
Tom Hutchinson, Cabot Dividend Investor, cabotwealth.com, 978-745-5532, September 29, 2021