The S&P 500 Shiller CAPE ratio has climbed to levels last seen in late 1999, driven by artificial intelligence enthusiasm. This environment mirrors the dot-com boom, but dividend stocks remain cheap.
AbbVie (ABBV) trades below 18 times forward earnings—a discount justified by near-term catalysts. Skyrizi and Rinvoq, its autoimmune franchises, grew 23 percent year over year in Q3 2026. Migraine therapies Qulipta and Ubrelvy accelerated even faster. The company has 90 programs in clinical trials, two-thirds in mid- or late-stage development.
Watch ABBV-466, a Phase 3 combination of Skyrizi and trosunilimab. If it replicates Phase 2 efficacy, the drug could reach blockbuster status. AbbVie is a Dividend King with 50 consecutive years of dividend increases, up 23 percent over five years and yielding 2.5 percent.
Enterprise Products Partners (EPD) offers similar defensive characteristics. Midstream operators generate cash flow regardless of commodity prices—a trait that proved valuable during the dot-com collapse. EPD trades at 11.5x forward earnings with an A- credit rating. Insiders and affiliates own one-third of outstanding units, ensuring management skin in the game. The company has raised its distribution for 28 consecutive years and yields over 6 percent.
