2 Dividend Stocks Defying the Market Dip to Buy for a Lifetime of Passive Income

2 weeks ago 7

Unlock banal picks and a broker-level newsfeed that powers Wall Street.

Prosper Junior Bakiny, The Motley Fool

Wed, Mar 26, 2025, 3:30 AM 5 min read

Equities haven't performed good this twelvemonth owed to a operation of factors. Macroeconomic tensions are astatine the apical of that list. Still, immoderate companies are doing conscionable good amid the volatility, including AbbVie (NYSE: ABBV) and Abbott Laboratories (NYSE: ABT). These 2 healthcare leaders whitethorn oregon whitethorn not proceed beating the marketplace successful the adjacent fewer weeks -- it's challenging to foretell the absorption of immoderate azygous banal oregon the broader equities successful specified a abbreviated period.

However, nary substance what happens successful the adjacent term, AbbVie and Abbott Laboratories are fantabulous semipermanent picks for dividend-focused investors. Here's why.

AbbVie's shares dropped disconnected a cliff successful November aft it announced a objective setback for emraclidine, an investigational schizophrenia attraction it got successful an $8.7 cardinal acquisition. Investors were disquieted the institution spent astir $9 cardinal for nothing, which is understandable.

However, AbbVie's shares person been connected a teardrop since that dip, and it has maintained that momentum done 2025, astatine slightest truthful far. Though the emraclidine setback was concerning news, AbbVie inactive has fantabulous prospects that didn't warrant the important drop. The company's fiscal results stay beardown contempt losing patent exclusivity for 1 of the astir lucrative therapies ever, Humira, astir 2 years ago.

In 2024, AbbVie's gross totaled $56.3 billion, up 3.7% twelvemonth implicit year. That's a spot beneath what's considered beardown top-line maturation for a pharmaceutical giant, but considering the inactive (relatively) caller Humira patent cliff, it's alternatively awesome that the drugmaker's income are moving north. AbbVie's lineup of approved products is excellent, from its immunology medicines Skyrizi and Rinvoq to its Botox, for which we are improbable to spot biosimilars, arsenic absorption argued immoderate years ago, and newer products similar migraine attraction Qulipta.

Clinical disappointments and patent cliffs volition happen, but AbbVie looks acceptable to grip them all. The company's pipeline has respective twelve programs. AbbVie precocious penned a woody with a Denmark-based company, Gubra A/S, to make an investigational value nonaccomplishment therapy, an country that has caught occurrence successful caller years. AbbVie's efforts successful this tract whitethorn oregon whitethorn not wage off, but the company's coagulated pipeline volition apt output much blockbusters to regenerate its existent medicines, which are inactive driving top-line growth.

Lastly, AbbVie is simply a Dividend King erstwhile we number the clip it spent arsenic a part of Abbott Laboratories -- it is connected a streak of 53 consecutive years of payout increases. And since splitting from Abbott, AbbVie has accrued its dividends by 310%. The banal offers a guardant output of 3.1%, good supra the S&P 500 index's mean of 1.3%. Whether oregon not AbbVie's shares support performing good this year, the institution is simply a beardown everlastingly dividend banal to buy.