If AbbVie Buys Shire, Dividend Investors Should Cheer

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AbbVie has made another offer to acquire Shire in a bid to offset looming patent risk and lower its tax rate.

Since Shire is generating a significant amount of free cash and currently doesn't pay much in the way of a dividend, acquiring the company should give AbbVie financial flexibility that will allow it to reward shareholders.

In the following slideshow, you'll learn why I believe that dividend investors should applaud if AbbVie succeeds in courting Shire.

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The article If AbbVie Buys Shire, Dividend Investors Should Cheer originally appeared on Fool.com.

Todd Campbell has no position in any stocks mentioned. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned. Todd owns Gundalow Advisors, LLC. Gundalow's clients do not have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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