3 Dividend Stocks I'd Buy Right Now
Dividend stocks can be a great source of income, especially during challenging times like these. They can help provide stability for your portfolio and minimize your losses during a market crash as well. Stable dividend stocks are in short supply lately, but the three stocks listed below offer investors a good mix of value and dividends, and they all look like solid long-term buys.
AbbVie (NYSE: ABBV) is a top drug manufacturer, and its Humira drug is critical for patients with various types of arthritis as well as people who have Crohn's disease. The drug made up 58% of the company's revenue in 2019. And while the drug did well with $19.2 billion in sales last year, that was less than the $19.9 billion it generated in 2018. AbbVie as a whole saw its top line rise by just 1.6% last year. It's an underwhelming result, but that's why the company's $63 billion purchase of Allergan (NYSE: AGN) could prove to be pivotal for its future. The move will add some high-profile drugs into AbbVie's portfolio that could help pad its growth, including Botox. The companies expect the deal to close as early as next month.
AbbVie's stock currently pays its shareholders a quarterly dividend of $1.18. That yields around 5.6% on an annual basis, and it's well above the 2% that investors can expect from the average S&P 500 stock. What makes the stock a great buy is that AbbVie is a Dividend Aristocrat and its payouts have increased by 195% since it separated from Abbott Laboratories in 2013. The acquisition of Allergan should strengthen AbbVie over the long term, and it could pave the way for more dividend increases in the future, making it an even better buy for income investors today.
Source Fool.com
