ABBV - 2 Top Dividend Stocks to Buy Hand Over Fist

2024-03-17 08:15:00 ET

Finding high-yielding companies isn't everything when investing in dividend stocks. Sometimes, companies' yields increase after their share prices drop significantly, which can occasionally be a sign that the business could be in trouble and may have to decrease its payouts. So before investing in a high-yield dividend stock, it's essential to ensure that its underlying business is solid and will likely continue to hike its dividends.

Let's look at two companies with yields higher than the S&P 500 average that are worth buying and holding on to now: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) .

Every good thing must come to an end. AbbVie experienced that firsthand last year with the loss of patent exclusivity for its superstar rheumatoid arthritis drug, Humira, in the U.S. Though this was a significant loss, considering how successful Humira has been, all drugmakers eventually run into patent cliffs. The important question is whether the company can bounce back after a short period of sales decline. The answer seems to be yes.

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