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2 High-Yield Dividend Stocks to Buy in May and Hold Forever

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).

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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.

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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, Abbott Laboratories, and Gilead Sciences. The Motley Fool has a disclosure policy.

2 Top Dividend Stocks That Could Set You Up for Life

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 Chart

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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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.

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