---
title: "How Will AbbVie's $10.9 Billion Acquisition of Apogee Impact Its Dividend?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293142991.md"
description: "AbbVie announced a $10.9 billion cash acquisition of Apogee Therapeutics to add the eczema drug zumilokibart to its portfolio. Despite concerns that the large spend might impact dividends, the author argues income seekers need not worry. AbbVie, a Dividend King, will fund the deal with debt rather than depleting cash reserves. Historical precedent from the $63 billion Allergan acquisition shows dividend growth continued post-merger. The deal is viewed as net positive, strengthening free cash flow and diversifying revenue beyond Humira's patent cliff."
datetime: "2026-07-20T01:05:53.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293142991.md)
  - [en](https://longbridge.com/en/news/293142991.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293142991.md)
---

# How Will AbbVie's $10.9 Billion Acquisition of Apogee Impact Its Dividend?

On June 22, **AbbVie** (ABBV +0.04%) announced that it would acquire **Apogee Therapeutics** (APGE 0.05%) for $10.9 billion in cash. Some investors celebrated the move, since it will add zumilokibart, a promising investigational medicine for eczema, to AbbVie's lineup and help it solidify its leadership in immunology. However, others may fear that, given how much it will spend on this buyout, the transaction may impact AbbVie's dividend program, one of the company's key selling points. My view is that income seekers have nothing to worry about. Here's why.

![AbbVie logo.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84Nzg5NTcvYWJidmllLWxvZ28ucG5nJnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Image source: The Motley Fool.

## A precedent that speaks volumes

Expensive acquisitions can put downward pressure on a company's dividend program if they significantly reduce the cash available to be returned to shareholders. With AbbVie ending 2025 with $17.8 billion in free cash flow, some fear that this is what will happen. But it's worth noting that AbbVie is a Dividend King, or a corporation with 50 (or more) consecutive years of dividend increases, once we factor in the time it spent under **Abbott Laboratories**' wing.

Management is committed to maintaining this streak, because if AbbVie misses a single year of dividend increase, it will have to start from scratch and hope to join the ranks of Dividend King again in another 50 years. Besides, AbbVie will fund the acquisition with debt, meaning it won't deplete its cash balance.

It's worth considering how the largest acquisition in AbbVie's history -- and one of the largest ever in the pharmaceutical industry -- impacted its dividend program. The company bought Allergan for $63 billion in a mix of cash and stock in May 2020. This massive transaction did not harm AbbVie's dividend. Since 2020, the drugmaker's payouts have increased by 46.6%.

Expand

![AbbVie Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FCQlYucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

## NYSE: ABBV

AbbVie

Today's Change

(0.04%) $0.09

Current Price

$254.48

### Key Data Points

Market Cap

$450BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$254.47 - $260.86

52wk Range

$184.63 - $261.63

Volume

188K

Avg Vol

7.1M

Gross Margin

70.58%

Dividend Yield

2.68%

## The business is improving

AbbVie's acquisition of Apogee Therapeutics may also lead to the company launching zumilokibart. This product could help drive solid revenue, earnings, and free cash flow growth, thereby strengthening the business and helping it maintain its dividend program. Once again, that's arguably what the Allergan acquisition did for AbbVie. The drugmaker was able to expand and diversify its lineup thanks to it, and products such as its Botox franchise and Vraylar, a schizophrenia medicine, helped it move beyond Humira's patent cliff.

So, this buyout will arguably be a net positive for AbbVie, especially if zumilokibart becomes as successful as the company expects. In the meantime, AbbVie is still depending on its two biggest growth drivers, Skyrizi and Rinvoq, to post strong financial results. And the company boasts several other exciting pipeline candidates, including in the fast-growing weight loss market. AbbVie remains a strong buy, given all these factors, especially for dividend-seeking investors.

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