While the newly formed AbbVie may seem to have a lot of debt on its balance sheet, it's important for investors to take that debt in context. In this video, Motley Fool health-care bureau chief Brenton Flynn discusses AbbVie's debt in relation to some of its peers and tells us why the company's cash on hand, the low cost of that debt, and the time to maturity are all factors that mean the company's debt isn't as big of a concern as it may seem to investors hoping for dividend growth.

Wondering about that new position in your portfolio? For some Abbott Labs shareholders, the new year brought with it a new company called AbbVie. Formerly Abbott's branded-pharmaceuticals business, shares of the new stock were distributed to investors on Jan. 2. To help investors better understand the situation, The Fool has created a brand-new premium report on both stocks. Inside, we outline all of the must-know opportunities and risks facing both companies, so be sure to claim this report by clicking here now.


The article Don't Sweat This Pharma's Debt originally appeared on Fool.com.

Brenton Flynn has no position in any stocks 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Investor’s Toolbox

Improve your investing savvy with the right financial toolset.

View Course »

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum