2 Dividend Stocks to Buy for a Lifetime of Passive Income

Prosper Junior Bakiny, The Motley Fool

Fri, Mar 7, 2025, 2:03 AM 5 min read

Dividend investors don't bargain shares of companies hoping they volition suspend their payouts soon. The longer a corp maintains its dividend program, the much charismatic it is to income seekers, each other being equal. However, fewer businesses connected Wall Street tin prolong accordant -- and increasing -- dividends for a agelong time.

Let's sermon 2 that person what it takes to wage investors regular dividends for good: Amgen (NASDAQ: AMGN) and AbbVie (NYSE: ABBV).

Biotech elephantine Amgen archetypal declared a dividend successful 2011. Since then, the drugmaker has accrued its payouts regularly, increasing them by a whopping 750% successful that period. That's a beauteous bully way record, and determination is much wherever that came from, fixed Amgen's fantabulous underlying business. The institution has a heavy lineup of medicines that includes maturation drivers similar Repatha, a cause utilized to alteration the hazard of bosom attacks successful definite patients; asthma therapy Tezspire; Teppezza, which treats thyroid oculus illness (TED), and more.

In 2024, Amgen's gross accrued by 19% twelvemonth implicit twelvemonth to $33.4 billion. Though that was partially owed to acquisitions, the drugmaker's income grew organically by 7% twelvemonth implicit year, which is inactive bully for a biotech of this size. Sure, Amgen has encountered issues. Late past year, the company's shares dropped disconnected a cliff aft its investigational value nonaccomplishment treatment, MariTide, delivered positive, but not affirmative enough, results successful signifier 2 studies.

However, Amgen has already recouped astir of these losses, unsurprisingly. For one, MariTide could inactive spell connected to carve retired a niche successful the lucrative and fast-growing value nonaccomplishment space. Further, Amgen has respective different pipeline candidates that should gain support successful the adjacent fewer years. Even immoderate of the company's existent maturation drivers volition gain statement expansions and amended their income implicit time. That includes Tezspire, which delivered affirmative signifier 3 results successful patients with chronic rhinosinusitis successful November.

Tepezza remains the lone cause approved by the U.S. Food and Drug Administration for TED, and Amgen has been launching it successful different countries. Amgen tin consistently make newer and amended drugs, conscionable arsenic it has for a agelong time, and present coagulated fiscal results that volition let it to support its dividend program. Amgen offers a guardant output of astir 3%, compared to the S&P 500's mean of 1.3%.

The company's currency payout ratio is astir 47%, giving it plentifulness of country to turn its dividend. Here's the bottommost line: Amgen is an fantabulous banal for long-term, income-seeking investors.