2 of the Best Dividend Stocks to Buy and Hold Forever

Dividend investing is a proven way to grow your wealth over the long run. But for the strategy to work, investors need to pick quality income stocks, those with robust underlying businesses that are unlikely to cut their payouts anytime soon, if ever.

Here are two healthcare stocks that fit the bill: Johnson & Johnson (JNJ) and AbbVie (ABBV). Here’s why these two pharmaceutical leaders are among the best dividend stocks to buy and hold onto for good.

1. Johnson & Johnson
Johnson & Johnson is one of the oldest healthcare companies in the world, having been founded more than 100 years ago. This kind of longevity is exceedingly rare in business, and it speaks volumes about the company’s operations. Thanks to a large, diversified portfolio of products across pharmaceuticals and medical devices — and constant innovations that help it deal with competition and overcome patent cliffs — Johnson & Johnson tends to record fairly consistent revenue and earnings.

The drugmaker is still at it. Johnson & Johnson’s sales increased last year and should do so again in 2026, despite losing patent exclusivity for Stelara, an immunology product that was an important growth driver, and government price negotiations that will lead to lower revenue for some products.

Meanwhile, newer launches, including its Ottava robotic-assisted surgery device for which it recently requested marketing authorization in the U.S., will help drive top-line growth in the future. Lastly, Johnson & Johnson’s dividend program is outstanding, as the company is a Dividend King, or a corporation that has raised its payouts for 50 years straight, at least. Johnson & Johnson has the qualities long-term income seekers should look for. This is one dividend investors can take straight to the bank.

2. AbbVie
AbbVie became a publicly traded company in 2013, when it split from Abbott Laboratories. Taking into account the time it spent as a division of the medical device specialist, AbbVie has increased its dividends for 54 straight years, making it a Dividend King. Its Abbott-related legacy aside, though, AbbVie has a phenomenal business that has significantly underperformed its former parent company since going public. AbbVie boasts a deep product portfolio across immunology, oncology, neuroscience, aesthetics, and eye care.

The company’s immunology lineup is doing much of the heavy lifting right now, thanks to Skyrizi and Rinvoq, its biggest growth drivers. Other drugs, like cancer therapy Venclexta and Qulipta, a medicine for migraine, are also contributing.

Beyond its current lineup, though, AbbVie is an innovative company that should successfully develop new products to overcome patent cliffs. It showed as much when, the year after losing patent exclusivity for Humira — an immunology product that was its biggest growth driver and one of the best-selling drugs ever — AbbVie returned to top-line growth.

AbbVie won’t face any significant patent exclusivity losses this decade, but once they occur in the 2030s, the company will be ready to address them. AbbVie’s dividend streak, consistent financial results, and innovative profile in an industry whose products are in constant demand regardless of economic conditions, make the stock an attractive long-term option for dividend investors.

— Prosper Junior Bakiny

Source: The Motley Fool