Dividend stocks can be a pillar for long-term investing, generating passive income and offering stability even during tough environments. The current market volatility and geopolitical unrest have attracted investors to dividend stocks. However, every dividend stock isn’t the same.
You might find several high-yield companies, but it makes sense to pick stocks that have consistently paid dividends and raised their payouts. This shows that the company is committed to rewarding shareholders. A generous yield attracts investors, and there’s a chance for appreciation in leading stocks. I’ve been a dividend investor for decades, and here are the stocks I keep buying.
AbbVie
Pharmaceutical giant AbbVie (NYSE:ABBV | ABBV Price Prediction | ABBV Price Prediction) is known for a lineup of drugs that treat autoimmune diseases, migraines, cancer, and more. It has an impressive pipeline, and twelve of the company’s drugs have generated $1 billion in sales in the past year. While it is dealing with patent expirations, it also has the opportunity for other drug approvals. The company can handle the changing market situations and has products that can generate steady revenue growth.
AbbVie recently reported results and beat expectations. It reported a revenue of $15 billion, up 12.4% year over year. The adjusted EPS came in at $2.65, immunology being the top driver, generating $7.3 billion in revenue. Skyrizi brought in $4.5 billion, and Rinvoq generated $2.1 billion.
AbbVie reported strong demand across different segments and managed to balance the dip in Humira sales. It raised the full-year revenue guidance to $67.3 billion and increased the adjusted EPS guidance to $14.08-$14.28, up by $300 million from the previous guidance.
As a Dividend King, the stock has a yield of 3.27% and a payout ratio of 66%. ABBV stock has an annual payout of $6.92 per share and has increased dividends for 12 years. The stock is exchanging hands for $206 and is down 9.9% year to date. This is a buying opportunity for dividend investors.
Abbvie has multiple growth drivers and several strengths that appeal to investors. Considering the current market volatility, it is a solid pharma buy that can generate passive income in the long term.
Coca-Cola
Beverage giant Coca-Cola (NYSE:KO | KO Price Prediction) is a globally renowned name today. It enjoys pricing power and has managed to increase volumes despite the price hikes. The company recently reported the first quarter results and saw a 12% revenue jump to $12.47 billion. The organic sales soared 10%. Coca-Cola saw a significant jump in the Zero Sugar segment, with sales rising by 13%. It saw strong results across multiple regions. The adjusted EPS came at $0.86, up 18%.
Warren Buffett’s favorite stock, Coca-Cola, is a high-margin business and sells syrup concentrate, keeping the operating costs low. It has maintained its full-year forecast with revenue expectations in the range of 4% to 5% and adjusted EPS to increase by 2% to 3%. The stock has a dividend yield of 2.69% and pays $2.12 per share annually.
Coca-Cola has a payout ratio of 65.81% and has shown dividend growth for 63 years. The revenue acceleration across multiple regions is proof that Coca-Cola can withstand market volatility. Exchanging hands for $78, the stock is up 13% year-to-date and nearing the 52-week high of $82.
Coca-Cola sets itself apart with its stellar margins. It maintains strong margins due to the brand portfolio, global network, and marketing.
I believe KO is one of the best dividend stocks to own for decades.
PepsiCo
Up 10.6% year to date, PepsiCo (NASDAQ:PEP | PEP Price Prediction) is another beverage giant that doesn’t disappoint passive income investors. The stock has a yield of 3.61%, and it has increased dividends for 54 consecutive years. The company has always competed with Coca-Cola for global domination and has a higher yield. PepsiCo owns numerous brands, including food brands that offer diversity.
PEP stock has a payout ratio of 68.72% and pays $5.69 per share in annual dividends. International sales are driving growth for the company, and the turnaround story is impressive. PepsiCo leads the beverage sector along with Coca-Cola, and the stock is an ideal choice for income investors.
For the first quarter, it reported a revenue growth of 8.5% year over year and a 24% jump in the operating profit. The management expects the organic revenue to rise 2% to 4% this year and aims to return $9 billion to shareholders in the form of dividends and buybacks.
It is an iconic company that aligns its products with the changing consumer needs. Besides cola, it owns some of the more popular brands such as Doritos, Mountain Dew, and Quaker Oats. I believe PepsiCo is a buy in every dip. When it comes to dividends, the stock never disappoints.
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