Key Points
AbbVie has managed its patent-cliff concerns better.
Pfizer has a higher-yielding dividend, but it may not be safe.
AbbVie has the better path to growth in 2026.
Pfizer(NYSE: PFE) and AbbVie(NYSE: ABBV) are two pharmaceutical giants that seem to be headed in opposite directions. Pfizer's stock is up by more than 10% this year, while AbbVie's shares have fallen more than 7%.
But when you look at their finances, AbbVie is the clear winner. Here are three reasons why I prefer AbbVie stock right now.
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AbbVie is better at managing patent cliffs
Once a pharmaceutical company is granted a patent for a new drug or therapy, the clock starts running on its exclusivity. According to the Food and Drug Administration (FDA), drug patents have a 20-year statutory term from their filing day, but their commercial exclusivity usually only lasts seven to 14 years. That's a short period of time to cash in on a profitable drug.
Thanks in part to an enormous thicket of 130 patents surrounding it, AbbVie's immunology therapy Humira was the world's top-selling drug for six consecutive years. It finally ceded the top spot in 2021 to Comirnaty, the COVID-19 vaccine from Pfizer and BioNTech. But Pfizer has struggled to find its footing in a changed pandemic landscape.
Meanwhile, AbbVie has demonstrated a master class in portfolio diversification, developing two immunology drugs -- Skyrizi and Rinvoq -- that together sell more per year than Humira ever did. In 2025, Skyrizi had $17.6 billion in sales, while Rinvoq had $8.3 billion; combined, that's $25.9 billion, considerably higher than Humira's top yearly sales figure of $21.2 billion in 2022.
Comirnaty's sales collapsed as the COVID-19 pandemic ebbed, and its sales slid by 35% last year to $4.4 billion. On top of that, Pfizer's leading therapy by revenue -- blood thinner Eliquis, with $7.9 billion in 2025 sales -- is expected to face generic competition in the U.S. by 2028. The company shares Eliquis revenue with Bristol Myers Squibb.
AbbVie's dividend is safer
Both Pfizer and AbbVie have above-average dividends at their current share prices. Pfizer's dividend yield has been impressive at around 6.3%, nearly double AbbVie's yield of 3.2%. But Pfizer's ultra-high dividend has an unsustainable payout ratio of 107%, while AbbVie's is 65%.
Pfizer has a strong commitment to its dividend, raising it for 16 consecutive years, including a 2.3% bump last year to $0.43 per share. I don't think it would cut its dividend, but until its cash from operations improves, any dividend increases will be small.
AbbVie is a Dividend King, having increased its dividend for 54 consecutive years, including its history as part of Abbott Laboratories. That includes a 5.4% increase this year to $1.73 per share. The growth of Skyrizi and Rinvoq sales, along with the rest of its improved oncology portfolio, is driving growth of free cash flow to pay for future increases.
AbbVie has better financial growth
In 2025, Pfizer's revenue declined by 2% to $62.6 billion, and earnings per share (EPS) fell by 3% to $1.36, though adjusted EPS was up 4% to $3.22. In 2026, the company is guiding for revenue of $59.5 billion to $62.5 billion, a drop of 2.5% at the midpoint, and for adjusted EPS to be between $2.80 and $3, a fall of 9% at the midpoint.
AbbVie, on the other hand, reported 2025 revenue of $61.2 billion, up 8.6%. EPS fell 1.3% to $2.36 and adjusted EPS fell 1.2% to $10. In 2026, Chief Financial Officer Scott Reents said he expects revenue of around $67 billion, up 9.5%, while company guidance puts adjusted EPS between $14.37 and $14.57, up 44.7% at the midpoint.
Look past Pfizer's high yield
AbbVie's finances are on a solid footing, while Pfizer's dividend is stretched thin. Pfizer must prove that its research and development spending and recent acquisitions can return it to top-line growth.
AbbVie, however, has already survived its greatest trial. With the Humira transition largely in the rearview mirror and a powerhouse duo of immunology drugs leading the charge, AbbVie offers a clearer path to capital appreciation and reliable income.
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James Halley has positions in AbbVie and Pfizer. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, Bristol Myers Squibb, and Pfizer. The Motley Fool recommends BioNTech Se. The Motley Fool has a disclosure policy.
