2 Healthcare Stocks That Can Diversify a Tech-Heavy Portfolio

• AbbVie and Johnson & Johnson person resilient, noncyclical businesses.

• They are besides outstanding dividend payers.

• 10 stocks we similar amended than AbbVie ›

The exertion assemblage is an fantabulous spot to find high-growth stocks with promising prospects. However, it is simply a cyclical assemblage that doesn't execute arsenic good erstwhile the system tanks. It's captious for investors to diversify their tech holdings, possibly by putting their wealth into much antiaircraft industries that behave otherwise during downturns.

One specified manufacture is healthcare. And present are 2 healthcare stocks to see for diversification, if you are heavy invested successful tech stocks: AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ).

AbbVie and Johnson & Johnson are some pharmaceutical leaders. Between them, they make and marketplace drugs crossed respective therapeutic areas, including oncology, neuroscience, immunology, and more. Many of their products code serious, life-threatening, oregon chronic conditions -- not the benignant of happening radical volition chopped archetypal erstwhile they request to prevention money. Even arsenic request for tech-related products and services fluctuates significantly, theirs remains reasonably stable.

That's wherefore AbbVie and Johnson & Johnson thin to execute comparatively good successful recessions. Now, nary of that means they won't person their ain problems. Patent cliffs, competition, and ineligible troubles (as with Johnson & Johnson's lawsuits related to its talc-based products) tin each hinder their progress.

However, AbbVie and Johnson & Johnson person demonstrated their quality to make newer and amended products to circumvent patent cliffs and make increasing gross and net contempt competition, and they person achieved this adjacent successful caller years. AbbVie overcame the nonaccomplishment of patent exclusivity for Humira, portion Johnson & Johnson is performing good contempt losing patent extortion for Stelara. Johnson & Johnson has different prime investors should instrumentality enactment of.

It boasts a higher recognition standing than the U.S. authorities and the highest overall. While immoderate whitethorn interest astir the ineligible headwinds it has faced successful caller years, Johnson & Johnson's rock-solid equilibrium expanse means it is improbable to deed superior fiscal troubles adjacent successful a terrible economical downturn.

Here's thing other that makes AbbVie and Johnson & Johnson large options to diversify a tech-heavy portfolio: their outstanding dividend way records. When accounting for the clip it spent arsenic a part of Abbott Laboratories, AbbVie has accrued its dividend payouts for 54 consecutive years, portion Johnson & Johnson's parallel streak stands astatine 63. That means some are Dividend Kings, oregon companies that person accrued their dividends for astatine slightest 50 consecutive years.