Key Points

• Healthcare giants AbbVie and Abbott Laboratories are both Dividend Kings.

• They should maintain their dividend growth habits for a long time to come.

• That's thanks to their solid businesses and promising product pipelines.

In 2013, AbbVie (NYSE: ABBV) became a publicly traded corporation after splitting from its former parent company, Abbott Laboratories (NYSE: ABT). Since then, both have produced strong returns and have been great picks for income-seeking investors, thanks to consistent payout hikes. That likely won't change soon.

These healthcare leaders should continue to perform well and reward shareholders with dividend increases for a long time. Read on to find out more.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

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1. AbbVie

AbbVie is a pharmaceutical leader with a large portfolio of approved products, none more important than a duo of immunology medicines: Skyrizi and Rinvoq. In the first quarter, the company's revenue increased by 8.4% year over year to $13.3 billion, while its adjusted earnings per share came in at $2.46, 6.5% higher than the year-ago period. These results are all the more impressive considering AbbVie faced a major patent cliff just two years ago; however, it has since recovered, largely thanks to Skyrizi and Rinvoq.

The former generated $3.4 billion in sales during the period, representing a 70.5% year-over-year increase. Rinvoq's revenue came in at $1.7 billion, 57.2% higher than the year-ago period. Management predicts their combined annual sales will exceed $31 billion by 2027. Not only is that significantly higher than the $17.7 billion they racked up last year, it's also $4 billion higher than their previous guidance.

Skyrizi and Rinvoq are expected to drive top-line growth well into the 2030s. Although they will eventually lose patent protection, they demonstrate AbbVie's ability to navigate even the biggest patent cliffs, a quality that is essential for any pharmaceutical company to thrive over the long term. AbbVie has other products that help drive revenue growth, and, equally important, it has a deep pipeline that it routinely strengthens through acquisitions.

In March, the company announced a licensing deal with Denmark-based Gubra A/S for GUB014295, an investigational weight management therapy. AbbVie paid $350 million up front for this candidate, with potential milestones of $1.9 billion, not including royalties. AbbVie entered the fast-growing weight loss market with this move; GUB014295 might not pan out, but AbbVie's large pipeline, with approximately 90 products in development, should allow it to launch brand-new products frequently, navigate patent cliffs, and remain successful over the long run.

Now turning to the company's dividend, AbbVie has increased its payouts by 310% since 2013. And counting the time it spent under Abbott Laboratories' name, AbbVie is a Dividend King with 53 consecutive years of payout increases. These facts, from AbbVie's underlying business to the company's dividend track record, point to a company capable of sustaining a passive income program for a long time.

2. Abbott Laboratories

Abbott Laboratories is best known for its leadership in the medical device space, where it markets dozens of products across multiple therapeutic areas. The company also operates a diagnostic business and has a presence in the pharmaceutical and nutrition industries. Abbott Laboratories' operations are diversified, which can help it overcome challenges in specific segments. That's one of the company's strengths.

Here's another: Abbott Laboratories has been a leader in the highly regulated healthcare sector for decades. The company has built a solid reputation with physicians and consumers, all of whom are more likely to gravitate toward the brands they know and trust. In the medical device field, Abbott is a trusted brand. And thanks to its vast portfolio, it generates consistent revenue and earnings.

Abbott's biggest growth driver in recent years has been its diabetes care segment, led by its continuous glucose monitoring (CGM) franchise, the FreeStyle Libre. As the company noted, the FreeStyle Libre has become the most successful medical device in history in terms of dollar sales. That's no small feat. Yet there is still massive whitespace ahead, since only a small portion of the world's diabetics use CGM technology despite its advantages.

Abbott's work in this niche should provide a powerful long-term tailwind, but there will be many others. The company boasts other growth drivers, including its structural heart segment, where it markets a range of successful devices, such as its MitraClip device, a leader in its mitral valve repair niche. Beyond any single product, Abbott Laboratories has a proven track record as an innovator and should continue launching newer and better ones.

Lastly, Abbott is also a Dividend King, and over the past decade, it has increased its payouts by almost 146%. Abbott Laboratories' business is built to last. Investors who purchase the company's shares today can expect consistent dividend growth over the long term.

Should you invest $1,000 in AbbVie right now?

Before you buy stock in AbbVie, consider this:

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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool has a disclosure policy.

How would you like to get paid every quarter (and sometimes every month) to own a stock? That's exactly what happens when you invest in dividend stocks. Sometimes, the amount you are paid to own these stocks can be very attractive.

Three Motley Fool contributors believe they've found stocks you can buy right now that have mouthwatering dividends. Here's why they picked AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Pfizer (NYSE: PFE).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

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A top dividend stock for the long haul

Prosper Junior Bakiny (AbbVie): Several factors make for an above-average dividend stock. AbbVie, a pharmaceutical company, checks many of those boxes. Consider the company's forward yield, which currently tops 3.5% versus the 1.3% average for the S&P 500. Although a stock can be attractive for dividends with a relatively low yield, income seekers often like juicy ones, and AbbVie's is.

We can also point to AbbVie's fantastic track record. The company is a Dividend King with an active streak of 53 consecutive payout increases. That suggests AbbVie is unlikely to slash its payouts anytime soon, as doing so would force the company to start the streak from scratch and maybe rejoin this exclusive club in another 50 years. Of course, AbbVie might be forced to cut its dividends if the business faces significant headwinds. However, that's yet another area where the company excels, which makes it a top dividend stock.

AbbVie is a leading drugmaker with a deep lineup of products that generate consistent revenue and earnings. Some of the company's medicines continue increasing their sales at a good clip. AbbVie's two biggest growth drivers are Skyrizi and Rinvoq, a pair of immunology medicines. These therapies have surprised even the company's management, which recently increased Skyrizi and Rinvoq's combined 2027 guidance by $4 billion to more than $31 billion.

AbbVie's lineup features several other key products, including its Botox franchise. And although it will face patent cliffs, as every drugmaker does, AbbVie also has a deep pipeline of investigational compounds that will eventually allow it to move beyond its current crop of therapies. All these things (and more) make AbbVie an attractive dividend stock. Income investors can safely add shares of the company to their portfolios and hold on to them for a long time.

Bristol Myers stock pays 5% and has underrated growth potential

David Jagielski (Bristol Myers Squibb): A dividend stock that income investors might want to consider loading up on right now is that of pharma giant Bristol Myers Squibb. It currently yields 5.1%, which is a higher-than-typical payout for this top healthcare company. At such a high yield, you may be concerned that it's unsustainable, but that's not the case.

The company's fundamentals are sound. In the trailing 12 months, Bristol Myers generated free cash flow totaling $13.1 billion, which is more than double the amount it has paid out in cash dividends during that stretch ($4.9 billion). In each of the past four years, Bristol Myers' free cash flow has totaled at least $11 billion.

The company has been struggling with growth in recent years due to rising competition and the loss of patent protection on key drugs. But its growth portfolio has been giving investors a reason to remain optimistic. Through the first three months of the year, its non-legacy products generated year-over-year growth of 18% when excluding foreign exchange.

Bristol Myers has been a solid name in healthcare for years, and while it's facing adversity, it's still growing. Last year, it obtained approval for schizophrenia drug Cobenfy, which may generate peak sales of up to $10 billion, according to some analysts.

At 18 times trailing earnings, this can be a great, cheap dividend stock to add to your portfolio today.

A safer dividend than initially meets the eye

Keith Speights (Pfizer): Investors are right to be at least somewhat skeptical when they see a stock with a super-high dividend yield. For example, Pfizer's forward dividend yield is 7.38%. Is a dividend cut on the way for the big pharmaceutical company? I don't think so.

Granted, Pfizer's dividend payout ratio of 122.5% might seem worrisome. However, the company generates enough free cash flow to cover its dividend at the current level. The amount of free cash flow could also increase as a result of Pfizer's cost-cutting initiatives. The drugmaker's dividend is safer than initially meets the eye, in my view.

I believe Pfizer's underlying business is also stronger than it might look at first glance. It's easy to focus only on the negatives. There are several, including a steep decline in COVID-19 product sales, some notable pipeline setbacks, the upcoming loss of exclusivity for multiple top-selling drugs, and the Trump administration's threats of tariffs on pharmaceutical imports.

But Pfizer has plenty of positives that offset those negatives. For one thing, I think its valuation more than reflects all the challenges, with shares trading at only 8 times forward earnings. The company also has several new products with fast-growing sales and a robust pipeline.

Should you invest $1,000 in AbbVie right now?

Before you buy stock in AbbVie, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

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See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie, Bristol Myers Squibb, and Pfizer. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Bristol Myers Squibb, and Pfizer. The Motley Fool has a disclosure policy.

When it comes to dividend investing, I am less concerned with the dividend yield and more concerned with the dividend growth. Dividend investing is a total return strategy, and dividend growth stocks generally have higher share price appreciation potential.

In today's video, I will go through four stocks I deem forever dividend stocks that provide reliable and growing dividends backed by strong free cash flows. One of those stocks is Broadcom (NASDAQ: AVGO).

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Watch this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.

*Stock prices used were end-of-day prices of May 5, 2025. The video was published on May 6, 2025.

Should you invest $1,000 in Broadcom right now?

Before you buy stock in Broadcom, consider this:

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*Stock Advisor returns as of June 2, 2025

Mark Roussin, CPA has positions in AbbVie, Broadcom, and Prologis. The Motley Fool has positions in and recommends AbbVie, Prologis, and S&P Global. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.

Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Make money without even trying: That's what passive income is all about. But good investment alternatives are required to make this "easy" money.

Three Motley Fool contributors believe they have found some great dividend stocks that fit the bill. Here's why they think Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ) are magnificent stocks that are passive income machines.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

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A dividend stock you can buy and (almost) forget about

David Jagielski (Abbott Laboratories): When picking a top dividend stock to hold in your portfolio, you want to consider a company that not only has a solid track record for making payouts but that also has solid fundamentals. The former helps demonstrate its commitment to rewarding shareholders, while the latter ensures that it has the capacity to continue doing so.

Abbott Laboratories has been paying a dividend going back more than 100 years, to 1924. And it has also been increasing its dividend annually for more than 50 consecutive years. Investors have become accustomed to not only receiving a dividend from this stock every quarter, but also seeing their dividend income rise over the years.

The diversified healthcare company currently pays its shareholders a quarterly dividend of $0.59, and that has risen by 146% over the past 10 years. That averages out to a compound annual growth rate of 9.4%. The stock's 1.8% dividend yield may look modest, but the likelihood of further rate hikes is why it can make for a great long-term buy.

What's also attractive about Abbott's business is that it has diverse operations, which makes it less dependent on any one particular business unit. It has segments related to nutrition, diagnostics, pharmaceuticals, and medical devices.

The company has generated stable and solid results, with its top line coming in at more than $40 billion in each of the past four years. And with strong free cash flow of $6.7 billion over the trailing 12 months (more than the $3.9 billion it paid out in dividends during that time frame), it's in an excellent position to continue growing its dividend for the foreseeable future.

A drugmaker that's proved its resilience

Keith Speights (AbbVie): Abbott Labs spun off AbbVie as a separate entity in 2013. It inherited its parent company's outstanding track record of dividend increases and has kept the streak going. The big drugmaker has increased its dividend for an impressive 53 consecutive years.

Even better, AbbVie's dividend program is quite generous. The company's forward dividend yield stands at 3.64%.

What I like most about AbbVie, though, is its resilience. After the spinoff, management knew that it was only a matter of time before key patents for its autoimmune disease drug Humira would expire. The company was heavily dependent on Humira's sales.

However, AbbVie invested heavily in research and development. It made strategic acquisitions, notably including the 2020 purchase of Allergan. Those efforts paid off.

Today, the company's lineup features multiple growth drivers that more than offset Humira's sales decline that began after the drug lost U.S. patent exclusivity in 2023.

AbbVie's greatest new success stories are its two successors to Humira, Rinvoq and Skyrizi. These two autoimmune disease drugs should rake in combined sales of $31 billion by 2027, more than Humira achieved at its peak.

A seasoned dividend payer for all seasons

Prosper Junior Bakiny (Johnson & Johnson): In the past few years, Johnson & Johnson's solid performance has been somewhat overshadowed by its legal and regulatory issues. More recently, the threat of tariffs has created new challenges to overcome. Despite these problems, Johnson & Johnson remains an excellent passive income stock. Here are three reasons:

First, it's a leading healthcare company that makes most of its money thanks to its pharmaceutical business, although its medical device unit also contributes significantly. Healthcare is a defensive industry that performs relatively well even during challenging economic times. So, even if a recession eventually hits, as some investors fear, well-established and consistently profitable healthcare players like Johnson & Johnson will be much more resilient than those in most other industries.

Second, it has a rock-solid financial foundation. As evidence of the strength of its balance sheet, the drugmaker has an AAA rating from S&P Global. That's the highest available -- even higher than the U.S. government's.

Third, Johnson & Johnson has an impeccable dividend track record. The company has increased its payouts for 62 consecutive years, making it part of the elite clique of Dividend Kings. It might be facing some headwinds, but its solid business and expertise in the healthcare sector, coupled with significant financial flexibility, make it likely to overcome these obstacles. Meanwhile, the company should continue growing its dividends for many more years. That's why the stock is an excellent pick-up for income-seeking investors.

Should you invest $1,000 in AbbVie right now?

Before you buy stock in AbbVie, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

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See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and S&P Global. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

When investing in dividend stocks, paying attention to the right things is essential. A high yield can be attractive, but the most critical factor to consider is a company's underlying operations.

Businesses that are solid enough to perform well over extended periods, while consistently raising their payouts, are precisely what income investors should gravitate toward. Here are two corporations which fit that description: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

These two healthcare dividend payers are worth investing in this month since they have the profile of "forever" stocks, in addition to above-average yields. Read on to learn more about these companies.

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1. AbbVie

There are hundreds of dividend-paying stocks on equity markets, and a select few have earned the title of Dividend Kings after raising their payouts for at least 50 consecutive years. AbbVie is part of this elite group.

The company's streak stands at 53 years when factoring in the time it spent as a division of its former parent company, Abbott Laboratories. That alone makes AbbVie worth serious consideration for income investors, but there's more to this company.

AbbVie markets drugs across a range of therapeutic areas but is best known for its work in immunology. Its two top-selling medicines, Skyrizi and Rinvoq, are both immunosuppressants.

These therapies are surprising even AbbVie's management with how fast their sales are growing. After losing patent exclusivity for its former top-selling drug in 2023, rheumatoid arthritis medicine Humira, AbbVie predicted it would return to top-line growth this year. However, it happened last year, ahead of schedule, thanks largely to Skyrizi and Rinvoq.

Recently, management increased its 2027 combined guidance for these medicines to more than $31 billion from the previous projection of about $27 billion.

Besides these two products, AbbVie's lineup features a slew of other key medicines, including its Botox franchise. More importantly than any single medicine, though, AbbVie proved it can survive any patent cliff by navigating one for the most lucrative drug in history, Humira.

That speaks volumes about the company's underlying business. Its pipeline boasts dozens of programs that should lead to more key approvals and label expansions in the future.

AbbVie has an impeccable dividend track record and a rock-solid business. Its forward yield tops 3.5%, well above the S&P 500's average of 1.3%. AbbVie has the makings of a dividend stock that's worth holding forever.

2. Gilead Sciences

Gilead Sciences is another leading drugmaker. The company made its name, in part, due to its dominance in the market for HIV medicines, where it's the leader. Gilead's work in HIV continues to be its most important. In the first quarter, the company's sales remained flat, compared to the year-ago period of $6.7 billion. That was due to lower sales from its coronavirus medicine Veklury.

However, the company's HIV business grew its revenue by 6% year over year to $4.6 billion. Biktarvy remains the top prescribed HIV regimen in the U.S., while Descovy for PrEP is among the leading therapies in its niche.

Though Gilead relies quite a bit on its HIV business, it's working on diversifying its portfolio. Veklury was the first therapy for COVID-19 to earn approval in the U.S. and has been a net benefit for the company, despite its somewhat unpredictable year-to-year trajectory. Without it, the biotech's financial results in the past five years would have been worse, and it has remained effective despite evolving strains of the virus.

Gilead is looking to build a strong oncology business, too. Over a third of the company's 58 pipeline programs are in this area. The company will continue to make innovations within HIV as it has for a long time. The stock should perform well in the long run, thanks to its innovative abilities and well-established position in the difficult-to-navigate healthcare industry. It should also be able to sustain its dividend program.

Gilead Sciences' forward yield is 3.2%, and its dividends increased by almost 84% in the past 10 years. This is another stock that long-term income-seeking investors can't go wrong with today.

Should you invest $1,000 in AbbVie right now?

Before you buy stock in AbbVie, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $714,958!*

Now, it’s worth noting Stock Advisor’s total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and Gilead Sciences. The Motley Fool has a disclosure policy.

Many income investors would love to have a low-maintenance portfolio that doesn't require constant attention. They'd prefer to buy great stocks and rake in the dividends without any hiccups.

Three Motley Fool contributors believe they've identified fantastic dividend stocks to buy and hold for the next decade. Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Pfizer (NYSE: PFE).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

A diversified dividend stock with a growing payout

David Jagielski (Abbott Laboratories): If you're looking for a solid, safe dividend stock you can buy and hold for years, Abbott Laboratories makes for an easy choice. The healthcare company has a terrific track record for paying and increasing its dividend, plus its diversified business makes it the type of buy-and-forget stock that long-term investors won't have to worry about.

What makes Abbott Laboratories a great investment is the stability it offers. With the company announcing its latest dividend in February, this marks the 405th consecutive quarterly payout it will make to investors (the dividend is payable next month). That means the company has been making dividend payments to investors on a regular basis since 1924.

Amid all that has happened over the past century, the company hasn't interrupted its dividend. On top of that, the stock is a Dividend King, with Abbott having increased its dividend for 53 consecutive years. Currently, it yields 1.8%, which is better than the S&P 500's average of 1.5%.

The company reported its first-quarter numbers recently, and it was another stellar performance for the business. For the first three months of the year, Abbott's sales totaled $10.4 billion, representing a 4% year-over-year increase. Its pharma business grew, as did nutritional and medical device sales.

The only area where it didn't generate positive growth was diagnostics, which declined by 7% (largely due to a decline in COVID-19 testing). Even amid economic uncertainty, the company is forecasting an organic growth rate of between 7.5% and 8.5% for its entire business this year.

Abbott trades at 17 times its trailing earnings and is reasonably priced, given the dividend income and long-term stability you get from this top healthcare stock. It's a great stock to buy and hold for the next decade or longer.

A reliable dividend payer to hold for the long term

Prosper Junior Bakiny (AbbVie): Income-seeking investors want stocks that won't suspend their dividends or, better yet, will increase their payouts year after year. There are several factors to consider when determining whether a company belongs to this class, including its track record of dividend increases (or lack thereof) and its underlying business.

AbbVie, a leading pharmaceutical giant, excels on both counts. The company is a Dividend King -- it has now raised its payouts for 53 consecutive years, taking into account the time it spent under the wing of Abbott Laboratories.

Since splitting from its former parent company in 2013, AbbVie has increased its dividend by an impressive 310%. The company checks our first box, but what about the second?

One of the best pieces of evidence that AbbVie's underlying operations are rock-solid is that, despite losing U.S. patent exclusivity in 2023 for the most lucrative drug in the industry's history, it returned to top-line growth last year, an impressive achievement. It wouldn't have been odd (by industry standards) for AbbVie to see its revenue decline for even a couple of years, but thanks to newer products with fast-growing sales, it didn't have to. Over the next decade, expect AbbVie to continue doing what it has been doing since 2013.

Generate consistent revenue and earnings, develop and market newer products, and increase its dividends every single year. It's a great income stock to buy and hold through 2035.

A better story than meets the eye

Keith Speights (Pfizer): I'll readily admit that a quick glance at Pfizer's stock performance might raise questions about buying and holding its stock. Shares of the big drugmaker have plunged more than 60% since late 2021, when Pfizer enjoyed smooth sailing because of its COVID-19 vaccine. The pharma stock is also down by a double-digit percentage year to date.

Pfizer certainly faces some challenges. Its COVID-19 product sales will likely never be as high as they were three years ago. Several of the company's key drugs are set to lose patent exclusivity in the coming years. Pfizer has also experienced some pipeline setbacks, most recently due to safety data for danuglipron, which led the company to discontinue development of the experimental obesity drug.

But I think Pfizer has a better story than meets the eye. Its forward dividend yield stands at a lofty 7.57%. This dividend is also pretty safe, in my view, thanks to Pfizer's solid cash flow. The company's management has consistently reiterated a commitment to maintaining and growing the dividend.

Pfizer's valuation is attractive, with shares trading at only 7.6 times forward earnings. The average forward earnings multiple for the S&P 500 healthcare sector is roughly 16.4.

Don't rule out Pfizer's ability to deliver solid growth, either. The company has beefed up its product lineup and pipeline through investments in research and development, as well as acquisitions. I wouldn't be surprised if Pfizer makes another deal to pick up a promising weight-loss drug in the wake of the danuglipron flop.

Pfizer will be most appealing to income and value investors. However, I think any investor who buys and holds this beaten-down stock over the next decade will enjoy market-beating total returns.

Should you invest $1,000 in AbbVie right now?

Before you buy stock in AbbVie, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie and Pfizer. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and Pfizer. The Motley Fool has a disclosure policy.

Passive income is essential in retirement, but building a dependable stream isn't easy. Fortunately, top-tier dividend stocks can do the heavy lifting. The key is focusing on companies with strong yields, reliable payouts, and recession-resistant business models.

In today's volatile market, where uncertainty is the only constant, dividend investing has regained its shine. High-quality stocks that return capital to shareholders offer income stability and a cushion against downside risk.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

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The healthcare sector stands out in this environment. Its essential nature and steady demand make it a natural haven and a fertile ground for income investors.

Two healthcare heavyweights screen as particularly attractive buys in this turbulent market. With generous yields, durable business models, and products the world can't live without, these stocks deliver a potent mix of income and long-term upside. Here's why they belong on your radar right now.

Pfizer: Pharmaceutical giant with an exceptional yield

Pfizer (NYSE: PFE) shares currently offer an eye-catching 7.8% dividend yield, putting this pharmaceutical titan among the highest-yielding stocks in the healthcare sector. This exceptional payout level reflects the market's concerns about the company's growth trajectory following the pandemic revenue boom. With shares trading at just 7.5 times forward earnings, investors are essentially being paid handsomely to wait for the company's next phase of growth.

While Pfizer's payout ratio stands at an elevated 119%, high payout ratios are commonplace in the pharmaceutical industry due to its inherently cyclical nature. Moreover, the company maintains one of the strongest balance sheets in the industry following its COVID windfall, providing ample financial flexibility to sustain its dividend while investing in future growth. Pfizer's diverse portfolio of patent-protected drugs also generates enormous cash flows that support shareholder rewards and ongoing research initiatives.

What's the core value proposition? The drugmaker faces potential policy tailwinds under the new administration, which has signaled interest in correcting the "pill penalty" that currently gives small-molecule drugs just nine years of protection from Medicare negotiation versus 13 years for biologics. Such a change could enhance the economics of Pfizer's substantial small-molecule research programs.

Additionally, Pfizer's decision to divest its off-patent division has resulted in a more focused, innovative organization better positioned for long-term growth. So, with a promising pipeline of new drugs in cancer and immunology, Pfizer offers income investors not just an exceptional current yield but also the potential for meaningful capital appreciation as new blockbuster treatments leave the lab and enter commercial production.

AbbVie: Diversified pharmaceutical giant with steady income

AbbVie (NYSE: ABBV) offers investors a 3.9% dividend yield right now, with shares trading at a forward price-to-earnings ratio of just 14. For context, the benchmark S&P 500 trades at around 19 times forward earnings estimates. The drugmaker has successfully built a diversified portfolio spanning immunology, oncology, and aesthetics that generates consistent cash flow to support shareholder returns.

Humira's loss of exclusivity has created headwinds as biosimilar competition erodes market share. However, AbbVie's newer immunology treatments, Skyrizi and Rinvoq, have demonstrated stronger clinical outcomes for psoriasis, rheumatoid arthritis, and Crohn's disease than conventional therapies. The market has responded favorably to these medications, helping to counterbalance Humira's declining sales.

Beyond immunology, AbbVie maintains strong positions in aesthetics with Botox and oncology with Imbruvica, providing revenue diversification that strengthens the company's overall financial stability. This multifaceted portfolio approach reduces dependence on any single product while creating multiple avenues for future growth.

Despite an elevated payout ratio of 259%, AbbVie's dividend remains well supported by consistent cash-flow generation from its broad product lineup. For income investors seeking healthcare exposure with reliable dividends, AbbVie offers a generous yield with the potential for moderate capital appreciation, as it fortifies its core immunology franchise and expands into other lucrative market segments.

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George Budwell has positions in AbbVie and Pfizer. The Motley Fool has positions in and recommends AbbVie and Pfizer. The Motley Fool has a disclosure policy.

With equity markets in shambles due to President Donald Trump's trade policies, now might be as good a time as any to invest in excellent dividend stocks.

For one, dividend-paying companies tend to be more resilient than their non-dividend-paying peers. They are more likely to emerge from challenging economic periods in one piece. Second, their regular payouts can help smooth out losses during a downturn. That's precisely what some investors are looking for in this uncertain environment.

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With that said, let's consider two top dividend stocks that should navigate the current storm relatively well and continue performing long after: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD).

1. AbbVie

AbbVie went public in 2013, splitting from its former parent company, Abbott Laboratories. Since then, the drugmaker has produced market-beating returns.

ABBV Total Return Level data by YCharts

More importantly, the stock has the qualities of a forever investment. AbbVie consistently develops newer medicines to replace older, off-patent ones. It recently successfully navigated the most significant patent cliff in the history of the pharmaceutical industry. The company's rheumatoid arthritis drug Humira, the most lucrative therapy ever, lost U.S. patent exclusivity in early 2023. AbbVie returned to top-line growth last year, and investors can expect it to maintain that momentum.

The drugmaker expects its two immunology superstars, Skyrizi and Rinvoq, to generate about $31 billion in sales by 2027 (they should rack up about $24 billion this year). Humira's sales peaked at $21.2 billion. Further, Skyrizi and Rinvoq should continue their northbound trajectory well into the next decade. These two medicines are more than filling Humira's shoes.

They will eventually run out of patent protection, but AbbVie can handle the most serious patent cliffs as it did with Humira. The company does have other growth drivers -- including its Botox franchise -- not to mention a deep pipeline.

What about its dividend? When counting the time it spent under Abbott Laboratories, AbbVie has increased its payouts for 53 consecutive years. It's not like the drugmaker has been slacking off since 2013, either; its payouts have grown by 310% since its IPO. The stock offers a juicy forward yield of 3.5% and a reasonable cash payout ratio of just under 62%.

AbbVie looks like a fantastic dividend stock to buy and hold for a long time.

2. Gilead Sciences

Gilead Sciences is a leading biotech company that develops products across several therapeutic areas. The company is best known for its work in the HIV drug market, where it is arguably the leader. Last year, Gilead's Biktarvy -- the top-selling HIV regimen in the U.S. -- generated $13.4 billion in sales, 13% higher than the previous fiscal year. Descovy, used for the treatment and prevention of HIV (a leader in the PrEP niche) racked up $2.1 billion in sales, an increase of 6%.

Some might argue that Gilead Sciences is too dependent on its HIV portfolio, which recorded total revenue of $19.6 billion last year, up 8% year over year. The biotech's top line grew 6% to $28.8 billion in 2024. However, the company has been ramping up other parts of its business. Its oncology and liver disease units have grown faster in recent quarters, though they still make up a relatively small portion of its revenue compared to HIV. These other segments should grow in prominence in the coming years.

Gilead Sciences' pipeline features about 30 oncology clinical trials, including several phase 3 studies. And while Veklury -- Gilead Sciences' coronavirus medicine -- had a negative impact on its revenue growth in 2024, the medicine hardly features in the drugmaker's long-term growth plans. Veklury's sales have fluctuated significantly in the past few years.

However, its core franchises -- HIV, oncology, and liver disease -- have slowly and steadily moved in the right direction. In the long run, the company should significantly expand its lineup and continue delivering strong financial results.

Lastly, Gilead Sciences has an attractive dividend track record. The company has increased its payouts by almost 84% in the past 10 years. Its forward yield of 3% and cash payout ratio of 38% look competitive. Income-seeking investors can safely add this stock to their portfolios for good.

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From TV star to powerful government official. That's the path taken by President Donald Trump and his new administrator of the Centers for Medicare and Medicaid Services (CMS) -- Dr. Mehmet Oz.

Oz was a heart surgeon and medical school professor for years. He achieved fame thanks to frequent appearances on The Oprah Winfrey Show, which led to his hosting his own TV program, The Dr. Oz Show. Oz ran unsuccessfully for a U.S. Senate seat in Pennsylvania in 2022.

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But that didn't end his political career. The Senate officially confirmed Oz to head CMS on April 3. Here's what retirees need to know so far.

Image source: Getty Images.

1. Oz's confirmation went along party lines

All 53 Republican senators voted to confirm Oz to head CMS. None of the 45 Democratic senators voted for his confirmation. What were the minority party's objections to having Oz run CMS?

For one thing, some Democrats were concerned about Oz's potential conflicts of interest. He has disclosed investments in big drugmakers AbbVie and Eli Lilly and giant health insurer UnitedHealth Group, among others. These healthcare companies receive payments from Medicare. Oz did commit to divesting any financial interests in these companies.

There were also questions raised during Oz's Senate confirmation hearing about his past support for controversial therapies. For example, ranking Democratic member of the Senate Finance Committee, Sen. Ron Wyden of Oregon, asked Oz about his advocacy of green coffee extract, which the senator said was fraudently marketed as a "miracle weight-loss drug."

Probably the biggest objection to Oz's confirmation, though, was that he wouldn't commit to fighting attempts to cut Medicaid.

2. Oz has previously promoted Medicare Advantage

Oz has been a longtime proponent of Medicare Advantage plans. He and former Kaiser Permanente CEO George Halvorson proposed expanding Medicare Advantage because they believed it's better than traditional Medicare.

It remains to be seen how aggressively Oz will promote Medicare Advantage now that he's running CMS. During his Senate confirmation hearing, he promised to "go after" a fraudulent practice that can be problematic for Medicare Advantage called upcoding, by which healthcare providers file claims for more expensive procedures or diagnoses than the actual procedure or diagnosis to receive a higher reimbursement from Medicare.

3. What Oz says his Medicare priorities are

Oz acknowledged several problems for Medicare during his confirmation hearing, including the fact that healthcare costs are growing faster than the economy and that the Medicare Trust Fund will run out of money within the next decade. He told the told the Senate Finance Committee that he had three top priorities as the administrator of CMS.

First, Oz wants to "empower beneficiaries with better tools and more transparency, so the American people can better navigate their health, as well as dealing with the complex healthcare system we have created for them." He specifically mentioned increasing transparency related to prescription drug costs.

Second, he wants to provide incentives to healthcare providers to "optimize care." Oz thinks that using artificial intelligence (AI) can "liberate doctors and nurses from all the paperwork" and allow them to focus more on patients.

Third, Oz plans to aggressively reduce waste, fraud, and abuse with Medicare and Medicaid. The previously mentioned upcoding issue was one area that he discussed targeting.

4. There has been one Medicare surprise so far

Oz has been at the helm of CMS for less than a week. There has already been one Medicare surprise. On April 8, 2025, CMS announced a higher-than-expected payment increase for Medicare Advantage plans. It's unclear if Oz was involved in the decision, but the move could indicate that he'll continue his previous support for Medicare Advantage plans as head of CMS.

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Keith Speights has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.