Unlocking the Power of Dividend Kings: Two Stocks that Combine Stability and Growth
When it comes to investing in dividend stocks, stability and income are often top priorities. However, some exceptional companies can deliver both consistent payouts and impressive growth, providing the best of both worlds for investors. Two standout examples are AbbVie (NYSE: ABBV) and Walmart (NYSE: WMT), both Dividend Kings that have more than doubled their value in just five years.
AbbVie: A Pharmaceutical Powerhouse
Spun off from Abbott Laboratories in 2013, AbbVie has leveraged its focus on drug development to drive remarkable growth. With a dividend growth streak spanning over 50 years, this pharmaceutical giant has produced returns of nearly 150% for its shareholders over the past five years. Today, AbbVie yields 3.3% and continues to generate solid growth, as evident in its recent quarterly earnings report. The company’s net sales reached $14.5 billion, a 5% gain excluding foreign exchange.
To fuel further growth, AbbVie has pursued strategic acquisitions, including the $63 billion purchase of Botox maker Allergan in 2020. More recently, it acquired cancer company ImmunoGen and neuroscience drugmaker Cerevel Therapeutics for $10 billion and $8.7 billion, respectively. With growth remaining a top priority, AbbVie’s stock is poised to continue its upward trajectory.
Walmart: A Retail Giant with Enduring Appeal
As a big-box retailer, Walmart is a household name, boasting a stable business model and consistent dividend payments since 1974. Over the past five years, its stock has generated returns of approximately 110%, with a modest yield of just over 1%. However, this retail giant is far from stagnant, with plans to open more stores and expand its online delivery capabilities.
Walmart’s acquisition of TV maker Vizio could also become a catalyst for its advertising business. Furthermore, its Walmart+ subscription service presents another growth opportunity. With $665 billion in sales and $15.6 billion in profit over the trailing 12 months, Walmart’s stability and growth potential make it an attractive option for investors seeking both income and long-term appreciation.
Don’t Miss Out on These Exceptional Opportunities
AbbVie and Walmart are shining examples of Dividend Kings that have delivered impressive growth alongside their consistent payouts. By investing in these stable-but-growing businesses, you can unlock the power of compounding returns and create a robust portfolio for the long haul.
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