2 Dividend Stocks That Could Pay You For Life

People invest in dividend stocks for a variety of reasons. Some want passive income; others reinvest cash to increase long-term returns; still others believe that companies that can distribute consistent (and increasing) payouts are worth investing in. But few such investors would include dividend cuts on their wish list – most want the payments to last as long as possible.

Although many income stocks will eventually have to suspend or cut their dividends, some appear strong enough to pay investors for a lifetime. Consider two examples: AbbVie (NYSE:ABBV) And Visa (NYSE:V).

1. AbbVie

AbbVie was originally a subdivision of Abbott Laboratories. The drugmaker spun off from its former parent company in 2013. Since then, AbbVie has been known for at least two things: its blockbuster rheumatoid arthritis drug, Humira, and its ever-increasing dividends.

However, things are changing. Humira has been out of patent in the United States since last year. Given that the drug has been AbbVie’s main growth driver over the past decade, it’s understandable that shareholders are a little worried about the future of its payouts.

But AbbVie shows that it is a solid company with or without Humira. Although revenues and profits fell after the immunology drug lost exclusivity, AbbVie can count on two other drugs in this area to eventually fill the gap: Skyrizi and Rinvoq actually compete with Humira in several indications. Combined revenues from these two drugs are expected to reach $27 billion by 2027, according to management. That’s well above Humira’s peak annual sales.

AbbVie is an innovative company that should regularly continue to offer new drugs. The drugmaker foresaw the loss of Humira’s patent exclusivity in advance; the same will almost certainly be true for Skyrizi and Rinvoq, and whatever other key growth drivers it depends on after those two also lose patent protection. This is what makes AbbVie a stock worth buying and holding for good. Individual drugs will eventually stop driving revenue growth in a decade or so, but a culture focused on innovation can last a lifetime, or several, in fact.

Meanwhile, AbbVie continued to increase its dividends even after the Humira patent breach. And thanks to its membership of Abbott Laboratories, AbbVie is considered a King of dividends which has increased its payments for 52 consecutive years. The dividend has increased by 288% since the company was founded, which is impressive.

The pharmaceutical maker offers a solid forward yield of 3.6%, while its cash payout ratio appears reasonable at just under 49%. All of this makes this stock a great choice for long-term investors looking for income.

2. Visas

Carrying cash and checks is cumbersome, and these payment methods have other drawbacks as well. Chief among them is that they are poorly suited to much of modern retail activity, which takes place online. The use of cash and checks has been declining for years.

One of the companies helping to push this trend forward is Visa, which runs one of…

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