Better Buy: Pfizer vs. AbbVie
Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) are both top-notch dividend stocks. At current levels, Pfizer's shares sport a ginormous yield of 3.99%. AbbVie, on the other hand, is the home of one of the industry's most generous payouts, with a forward-looking annualized yield of 5.11%.
Nonetheless, these two elite income stocks have been headed in drastically different directions over the past half-year. While AbbVie's shares have produced total returns on capital of 48% (when including dividends) over the last six months, Pfizer's stock has generated a far more modest return on capital of only 6% during the same period.
The central issue behind this stark divergence is that Pfizer and AbbVie have taken markedly different approaches toward solving the same problem: namely, the loss of exclusivity for key revenue generators.
Source Fool.com
