Key Points

• Abbott Laboratories is a Dividend King with a great track record of consistency.

• You don't have to be retired to love AbbVie.

• Johnson & Johnson is a dream stock for those looking for reliability.

• 10 stocks we like better than AbbVie ›

Priorities change as you enter new seasons of life. That's especially true for your retirement years. And the changing priorities can include what you want from your investments. Income usually becomes much more important than growth when you stop receiving a paycheck.

With this in mind, three Motley Fool contributors have identified dividend stocks that they think retirees should absolutely love. Here's why they picked Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ).

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 Dividend King with a great track record of consistency

David Jagielski (Abbott Laboratories): If you're a retiree looking for a solid income-generating stock to buy and hold, Abbott Laboratories looks like one of the best options to consider today. Not only does it offer an above-average dividend that yields 1.9% as I write this, but the company has also been increasing its dividend for 53 straight years. And since 2020, its payout has increased by 64%, from $0.36 to $0.59, which averages out to a compounded annual growth rate of 10.4%. Dividend growth allows you to generate more recurring income from the same investment, helping to offset the effects of inflation.

What's encouraging is that there's still plenty of room for Abbott to continue raising its payout. When the company last reported earnings on July 17, its diluted per-share profit for the second quarter (which ended on June 30) was $1.01. If it were to maintain that level of profitability, its payout ratio would be around just 58% of earnings.

Plus, with the company also expecting its business to grow organically (excluding COVID-19 testing sales) by at least 7.5% this year, its bottom line is likely only going to get stronger. With strong and diverse operations spanning pharmaceuticals, nutritional products, diagnostics, and medical devices, Abbott is one of the better options for both retirees and risk-averse investors.

In five years, the healthcare stock has risen by 26% and, when including its dividend, its total returns are around 38%. This is a great investment to buy and hold, as it can do well under myriad economic conditions.

You don't have to be retired to love this stock

Keith Speights (AbbVie): I think AbbVie is an ideal stock for retirees. Like its parent company, Abbott, it's a Dividend King with 53 consecutive years of dividend increases. However, AbbVie's forward dividend yield of 3.3% is even more attractive than Abbott's.

Retirees like the stocks they own to be highly resilient. AbbVie checks off this box. The company's longtime top-selling drug, Humira, lost U.S. patent exclusivity in early 2023. Sales of the autoimmune disease drug tanked in the face of biosimilar competition. But AbbVie easily weathered the storm thanks to a strong product lineup featuring newer stars.

Humira's two successors, Skyrizi and Rinvoq, are on track to generate sales of $25 billion this year. That's well above Humira's peak annual sales of $21.2 billion in 2022. It's a great sign of resilience when a drugmaker can develop replacements that eclipse the sales of its best-seller within three years of its loss of exclusivity.

You don't have to be retired to love AbbVie, though. In a stock market that's priced for perfection, the big pharma company's shares are surprisingly cheap, with a forward price-to-earnings ratio of only 16.4.

AbbVie should also have solid growth prospects. CEO Rob Michael said in the recent second-quarter earnings call that the company is "very well positioned to drive growth in this decade" with its current portfolio. He also noted, "Without any significant LOEs [losses of exclusivity] this decade, we have the flexibility to invest more in R&D and to continue to acquire external innovation, and we will absolutely do that."

This stock is a retiree's dream come true

Prosper Junior Bakiny (Johnson & Johnson): Once one hits retirement, the focus often shifts away from investing in speculative stocks and turns instead to steady, reliable corporations. That description fits Johnson & Johnson well. The company has been a healthcare leader for decades, consistently generating growing revenue and profits. Johnson & Johnson's business is diversified across pharmaceuticals and medical devices. Even within these segments, Johnson & Johnson has a vast product portfolio spanning many therapeutic areas.

Furthermore, the company routinely develops newer and better products, which enables it to navigate patent cliffs and stiff competition. The drugmaker has indeed encountered some challenges in recent years. Johnson & Johnson is dealing with thousands of lawsuits related to its talc-based products, which may have given defendants cancer. Johnson & Johnson has also faced patent expiration for some of its products, including Stelara, a medication for plaque psoriasis and other autoimmune conditions.

Despite these issues, Johnson & Johnson remains an attractive investment. The company's rock-solid balance sheet, as evidenced by its credit rating that exceeds that of the U.S. government, should enable it to address legal challenges effectively. Furthermore, it has dealt with biosimilar threats to Stelara quite effectively and even recently increased its revenue and earnings guidance for 2025, despite a decline in Stelara's sales.

That should give investors even more confidence in Johnson & Johnson's ability to overcome obstacles. Finally, the company is a Dividend King and has raised its payouts for 62 consecutive years. All these reasons make Johnson & Johnson an ideal pick for retirees.

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

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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 and Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

Abbott Laboratories(NYSE:ABT) reported its second-quarter 2025 results on July 17, 2025, posting 7.5% organic sales growth (excluding COVID testing), 12% medical device growth, and adjusted EPS of $1.26, an 11% increase compared to the prior year and a 16% rise compared to the first quarter. Management reaffirmed its view of 2025 as a transition year marked by transient headwinds -- primarily in diagnostics -- while affirming a commitment to high single-digit percentage organic sales growth and double-digit non-GAAP EPS expansion amid robust margin gains.

Structural Heart and Electrophysiology Drive Medical Devices Leadership

Revenues from the company's medical devices segment grew 12% in the quarter, fueled by double-digit gains in diabetes care, heart failure, electrophysiology, and rhythm management, with continuous glucose monitor sales reaching $1.9 billion (up 19.5%). The launch of the Volt PFA catheter and the completion of enrollment in the PACIFLEX DUO US trial reflected its rapid innovation cadence in the electrophysiology indication.

"In electrophysiology, we had several key accomplishments in the quarter, including delivering another quarter of double-digit sales growth, initiating the launch of our new Volt PFA catheter, and completing enrollment ahead of schedule in our PACIFLEX DUO US pivotal trial."
— Phil Boudreau, Executive Vice President of Finance & Chief Financial Officer

These milestones underscore an agile R&D model that rapidly iterates and commercializes next-generation technologies, fortifying Abbott Laboratories' long-term position in high-growth and high-barrier medtech categories.

Diagnostics Faces Temporary but Significant Headwinds, Core Lab Remains Resilient

Diagnostics revenue declined 1.5%, with a $700 million full-year 2025 expected headwind from declining COVID test sales and China Core Lab volume-based procurement, although Core Lab Diagnostics (excluding China) grew 8%. Sales growth in Latin America region saw growth in the high teens, evidencing demand strength despite regional variance.

"So really the challenge that we've had is twofold here. It's really a drop-off on our COVID test sales and some challenges in the China Core Lab market together with some changes that we've seen in the U.S. foreign aid funding for HIV testing. So you look at that and say, okay, I'm not sure these are impacts that are 100% definite in the second half of the year, but I'm not gonna sit here and try and kind of forecast what COVID testing is gonna do. We had expected to see a China recovery in volume. We knew the price impact in China Core Lab, David, and we rolled that into our guidance. We had expected a market volume recovery to start happening in quite frankly, starting in Q2. We haven't seen that, so we've moved that out and into, you know, into Q4. But you put all that together, it's together with the U.S. with the funding for HIV testing that's over a billion dollars of, I guess, of headwind. And even with that billion dollars, we're still forecasting high single-digit growth and absorbing the impact of tariffs. We now expect to be just under $200 million of impact. FX, you know, as Phil kind of said in his comment, is still a headwind versus prior year on the EPS side, but much less of a headwind than what we had originally kind of anticipated back in January and quite frankly, people too. So that helps offset some of the tariff impact. So, yeah, I put this all together, and it'll be nice, David, to see these headwinds behind us next year. And then as you look to next year, you got all this great launch activity across all the businesses, whether it's Volt in the U.S., Tactiflex Duo internationally, the dual analyte sensor, the launch of the new Alinity system, the biosimilar kind of rollout. So I look at all of that, and I say, okay. You've got this headwind that we're facing here. Still, we're committing to high single-digit growth and double-digit EPS growth. And then as you look into 2026, those headwinds aren't gonna be there. And then you've got all this kind of great momentum I'm sure we'll talk about in other parts of the business. So I looked at 2026. I know what the consensus is. They look very reasonable to me, in that range of high single digits, double EPS. It's in line with our historical growth. It's in line with the guidance we've given this year, and it's in line with, you know, what our long-term sustainable growth targets are. So, yeah, it'll be good to see these elements here that I've just kind of highlighted that are specific to diagnostics. And I'll just take it a step further here. I mean, you look at our, and I mentioned this in the opening comments here. Our Core Lab business outside, and I hate doing this, but I think it gets context. If you look at the U.S., it was up 7%, 8%. The European region was up 8%. Our Latin America region was high teens. So our Core Lab business is doing very well. Alinity is doing very well. We just got this issue that, you know, we're gonna have to go through this year as it relates to VBP and the disruption that happened in our core lab business in China. But we're still very bullish on this segment. We still believe it's a very important part of the healthcare system. So like I said, looking forward to these headwinds being behind us, and we're well set up for next year."
— Robert Ford, Chairman & Chief Executive Officer

Management's ability to absorb outsized diagnostics shocks and maintain high-single-digit organic growth reflects strong portfolio diversification and operational discipline amid persistent global market volatility.

Pipeline Momentum and Biosimilars Expand Future Growth Potential

Launch activity scheduled for Volt in the U.S, Tactiflex Duo internationally, a dual analyte (glucose/ketone) sensor, next-generation Alinity systems, and the debut of biosimilars in key emerging markets reveal the broad innovation depth in the pipeline. Abbott's Established Pharmaceutical Division completed 10 biosimilar submissions to regulators targeting 2026 rollouts.

"This is an opportunity for us to really look at how do you sustain that growth rate in this business. I think we'll leverage our existing presence in these emerging markets. We're gonna bring cutting-edge medicines into these countries that I say that historically lack the access. So I think this can be a nice contributor here to our growth in this business in the next few years."
— Robert Ford, Chairman & Chief Executive Officer

Combining established market platforms with new biosimilars leverages Abbott's reach for growth outside mature geographies while requiring relatively limited incremental SG&A investments, enhancing its long-term ROIC prospects.

Looking Ahead

Abbott forecasts adjusted EPS in the range of $1.28 to $1.32 for Q3 and expects a favorable foreign exchange impact of approximately 2% on reported sales, with the full-year FX impact now anticipated to be neutral. Management called the current Street consensus for 2026 "very reasonable," as it expects recent headwinds to abate with pipeline launches supporting acceleration. No explicit biosimilar revenue targets or granular 2026 guidance figures were provided in the earnings call.

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This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.

Key Points

• Q2 revenue beat expectations at $11.14 billion, up 7.4% year over year.

• Adjusted EPS exceeded estimates, reaching $1.26 for Q2 2025, representing 10.5% growth year over year.

• Medical Devices achieved strong double-digit growth, while the Diagnostics segment in China saw ongoing pressure.

• These 10 stocks could mint the next wave of millionaires ›

Abbott Laboratories (NYSE:ABT), a global healthcare company known for its medical devices, diagnostics, nutrition, and pharmaceuticals, reported fiscal 2025 earnings on Thursday, July 17, that narrowly topped analysts' consensus estimates. Q2 revenue climbed to $11.14 billion, surpassing the analyst estimate of $11.06 billion, and adjusted earnings per share came in at $1.26, beating the consensus by $0.01.

These results reflect robust year-over-year growth, especially in the company’s Medical Devices segment, which reported year-over-year sales growth of 13.4%, but also highlight continued headwinds in its Diagnostics business, mainly in China. Overall, the company achieved margin expansion and affirmed management’s full-year outlook despite tariff pressures and competitive and regulatory challenges overseas.

Source: Abbott Laboratories. Note: Analysts' consensus estimates for the quarter provided by FactSet. YOY = Year over year. bps = basis points.

Understanding Abbott Laboratories’ Business

Abbott Labs operates across four main segments: medical devices, diagnostics, nutrition, and pharmaceuticals. Its product range includes continuous glucose monitors for diabetes care, implantable heart devices, laboratory diagnostic analyzers, and nutritional products such as Ensure and Glucerna. The company serves customers in over 160 countries, generating a significant portion of sales internationally.

The company’s ongoing strategy centers on technological innovation, shown in products like its FreeStyle Libre system for continuous glucose monitoring, and compliance with evolving global health regulations. Its global footprint supports market access and supply chain resilience. Success depends on delivering new technology, defending market share, and adapting to changing healthcare policies and competitive pressures.

Second-Quarter Highlights

The Medical Devices segment was the standout performer. Sales for the segment reached $5.37 billion, up 13.4%, with especially strong contributions from Diabetes Care, Heart Failure, Structural Heart, and Electrophysiology subsegments. Continuous glucose monitoring systems, like the FreeStyle Libre, generated $1.9 billion in revenue -- up 21.4% on a reported basis -- helped by robust adoption in both the U.S. and international markets. New launches, such as Navitor for heart valves and AVEIR leadless pacemakers, also fueled growth.

Diagnostics segment sales came in at $2.17 billion, declining 1% from last year. The primary factor was a sharp drop in COVID-19 testing sales, now down to $55 million from $102 million a year earlier. Core Laboratory Diagnostics grew slightly, but ongoing price cuts from China’s volume-based procurement program pressured overall segment results. While diagnostics achieved roughly 7% growth outside China in Q1 2025, this did not fully make up for the shortfall in that market. CEO Robert Ford noted the challenge, highlighting that recent changes in Chinese procurement have led to lower prices without offsetting volume gains -- a departure from past patterns.

Nutrition revenue was $2.21 billion, up 2.9% on a reported basis. Adult Nutrition -- driven by Ensure and Glucerna brands -- grew 6.1% on a reported basis, while Pediatric Nutrition organic sales remained nearly flat, reflecting a continuing squeeze in international pediatric sales, which fell 5.7%. The adult product growth offset ongoing softness in pediatric lines. Pharmaceutical sales, mostly in established branded generics outside the United States, rose 6.9% on a reported basis, with double-digit gains in emerging markets across Asia, Latin America, and the Middle East.

Adjusted operating margin rose to 22.9%, a 100 basis point increase from the prior year. Management cautioned that tariffs introduced in 2025 posed a “few hundred million dollar” headwind for the second half of the year, but indicated that mitigation strategies -- such as adjusting manufacturing footprints and leveraging foreign exchange rates -- remain in progress. Net earnings reached $2.21 billion. Abbott Laboratories also maintained a quarterly dividend of $0.59 per share, extending its streak of increases to 53 consecutive years.

Future Outlook and What to Watch

Looking ahead, management reaffirmed its full-year guidance despite new tariff costs. For fiscal 2025, it projects organic sales growth (excluding COVID-19 testing-related sales) of 7.5% to 8.0%, and full-year adjusted EPS in the $5.10–$5.20 range. Third-quarter 2025 adjusted EPS is expected to be between $1.28 and $1.32. Abbott also guided to an adjusted operating margin of 23.5%, implying further focus on efficiency and cost controls. Management sees new product launches and recovery in underperforming segments as growth drivers for the back half of 2025.

Investors should closely monitor the ongoing impact of global tariffs, continued performance in the Diagnostics segment -- especially in China -- and the pace at which the company launches new products in its medical devices pipeline. International pediatric nutrition trends also bear watching, given ongoing weakness. Planned mitigation efforts around tariffs and supply chain reshuffling, along with the evolving clinical and regulatory landscape, are likely to influence the company’s performance as 2025 progresses.

Note: Revenue and net income are presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.

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.

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Image source: Getty Images.

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?

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*Stock Advisor returns as of June 30, 2025

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.

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.

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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.

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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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*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.

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.

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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.