Top Dividend Stocks: Abbott, AbbVie, and Johnson & Johnson Shine

Investors consider Abbott Laboratories, AbbVie, and Johnson & Johnson as leading passive income stocks due to their strong dividend history and financial fundamentals.

Date: 17-05-2025

AI Rating: 7

Strong Dividend Payouts and Resilience
According to the latest report, Abbott Laboratories has a commendable history, paying dividends since 1924, with increases for over 50 consecutive years. Their current dividend stands at $0.59 per share, reflecting a 146% increase over the last decade, equating to a compound annual growth rate (CAGR) of 9.4%. Furthermore, Abbott generated over $40 billion in revenue each year for the past four years and produced a solid free cash flow of $6.7 billion in the trailing 12 months. This places Abbott in an advantageous position to maintain its dividend growth and meet investor expectations.

AbbVie's Strategic Acquisitions and Growth Potential
AbbVie, spun off from Abbott in 2013, continues its own streak of increased dividends for 53 consecutive years. With a forward dividend yield of 3.64%, AbbVie has successfully navigated patent expirations of its flagship product, Humira, by investing in research and acquisitions. Its new autoimmune disease drugs, Rinvoq and Skyrizi, are projected to deliver significant sales growth, potentially reaching $31 billion by 2027, which suggests robust revenue growth and a strong outlook for profit margins.

Johnson & Johnson's Stability amidst Challenges
Despite facing legal issues and tariff threats, Johnson & Johnson remains an attractive investment due to its stable earnings. With an AAA credit rating, it showcases a strong financial foundation that supports ongoing dividend growth, having raised its payouts for 62 years. The resilience of its pharmaceutical and medical device operations indicates not only sustained revenue but also an enduring commitment to shareholders.

In conclusion, all three companies reflect stability, dependable dividends, and strong fundamentals. The focus on maintaining investor returns indicates excellent opportunities for income-seeking investors.

Stocks: ABT ABBV JNJ