3 Unstoppable Dividend Stocks for Income Investors
Seeking Reliable Dividend Stocks
Investors looking for income typically prefer stocks that are stable with reliable dividends. It's not advantageous to consider stocks tied to uncertain companies with dividends that may decline. Instead, wise investors aim for practically unstoppable dividend stocks that promise consistent returns and growth.
A Dividend King with a Diverse Business
Abbott Laboratories (NYSE: ABT) is a leading choice for those who want a top dividend stock to hold securely for the long term. Abbott Laboratories has built a reputation for consistently paying and increasing dividends. The company's broad and diverse operations make it likely that it will continue to increase its dividends for years to come.
Abbott's Remarkable Track Record
Despite having a modest dividend yield of 2%, Abbott is a Dividend King that has successfully raised dividends for 52 consecutive years. The company has a century-long history of paying dividends, underlining its resilience.
Growth Potential
Abbott boasts a variety of business units including pharmaceuticals, nutrition, medical devices, and diagnostics, providing numerous avenues for growth. Recently, Abbott reported over 9% organic growth across all operations when excluding the impact of COVID-19 tests, indicating robust performance in its segments compared to the previous year.
Amgen's Strong Dividend Program
Amgen (NASDAQ: AMGN) is another attractive option for dividend investors. This biotech giant has established a strong record of innovation and success with numerous products, many generating over $1 billion in sales every year.
Robust Pipeline and Revenue Growth
Amgen's pipeline looks promising, particularly with its candidate MariTide showing strong results in phase 2 studies, highly regarded in the weight loss market. Although Amgen's organic revenue growth has lagged in recent years, the projected success of candidates like MariTide is expected to improve its trajectory. Furthermore, Amgen has consistently raised its payouts, with a 55% increase over the past five years, yielding 2.74%, which is significantly higher than the S&P 500's average of 1.32%.
AbbVie: The New Dividend Champion
AbbVie (NYSE: ABBV), spun off from Abbott in 2013, also shines in the dividend space. AbbVie inherits Abbott's strong history of dividend increases, earning its title as a Dividend King.
Strong Growth Prospects
AbbVie offers a forward dividend yield of nearly 3.2%. Despite recent challenges following the loss of patent exclusivity for its top-selling drug, Humira, AbbVie is expected to rebound strongly. Sales are surging for newer blockbuster drugs like Rinvoq and Skyrizi, which are driving revenue growth alongside other promising therapies.
Extensive Development Pipeline
With over 90 programs in its development pipeline, including treatments for cancer and immunology, AbbVie is well-positioned for future growth. Several drugs are in late-stage testing, highlighting the company's commitment to sustaining its dividend growth through innovative products.
Should you invest in AbbVie right now?
Investors should evaluate if it’s the right time to buy AbbVie stock. With a strong track record and future potential, there's a compelling case for inclusion in any income-focused portfolio.
Frequently Asked Questions
1. What makes Abbott Laboratories a good investment?
Abbott has a strong track record of dividend growth and a diverse business model, making it a stable investment choice for income investors.
2. Why is Amgen considered a strong dividend stock?
Amgen's history of innovation, robust product portfolio, and consistent dividend increases make it a reliable choice for dividend investors.
3. What is AbbVie’s dividend yield and why is it attractive?
AbbVie offers a forward dividend yield of nearly 3.2%, appealing to income investors despite recent challenges in revenue.
4. How does the performance of these stocks compare to the S&P 500?
All three companies provide yields significantly higher than the S&P 500's average, with a focus on consistent growth and stability.
5. What factors should an investor consider before buying these stocks?
Investors should consider each company’s track record, dividend history, growth potential, market conditions, and overall portfolio strategy before investing.
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