Is AbbVie the Most Underrated Dividend Growth Stock in the S&P 500?

AbbVie is a dividend growth stock offering investors the right mix of value, growth, and yield.

The pharmaceutical company inherited Dividend King status from its former parent, and the company is maintaining its strong dividend track record.

When it comes to major dividend growth stocks, many come to mind, particularly widely held consumer staples stocks . However, because of their popularity, many have arguably become stretched in terms of valuation and potential upside.

In contrast, AbbVie (NYSE: ABBV) , while one of the well-known dividend stocks among the S&P 500 , has yet to become overvalued. It continues to offer investors a fantastic mix of value, growth, and yield.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Based in North Chicago, Illinois, AbbVie went public in 2013, when Abbott Laboratories spun off its pharmaceutical business. Because of its connection to Abbott, AbbVie "inherited" Abbott's dividend history. Five years ago, Abbott reached Dividend King status, when it had its 50th consecutive year of annual dividend growth. Because of this, AbbVie is considered to be a Dividend King as well.

AbbVie's dividend growth history suggests it's maintaining its tradition as a reliable dividend stock. Since the spinoff 13 years ago, , AbbVie has increased its quarterly cash payout from $0.40 per share to $1.73 per share. This equates to nearly 12% in annualized dividend growth since going public.

Alongside its strong dividend-growth track record, the stock offers a relatively high yield given its share price. Currently, AbbVie has a forward dividend yield of around 3%. Valuation-wise, the stock trades for around 16 times forward earnings.