Dividend income is a great way to help pad your portfolio's overall returns. Whether you need the extra cash or just want to see your portfolio grow at a quicker pace, dividend stocks can be a great way to accomplish either goal. Below are three stocks that you can buy and just sit back and watch as the dividends roll in to your portfolio.
AbbVie (ABBV -1.04%) is a global biopharmaceutical stock that has operations all over the world. What makes AbbVie, the company behind the popular Humira drug, an attractive long-term buy for investors is that it makes drugs that patients desperately need. From hepatitis to oncology to chronic kidney disease, AbbVie helps many patients around the world with its products. One way that AbbVie has been able to grow over the years has been via acquisitions. However, its latest acquisition, a $63 billion deal to buy Allergan Plc, is still currently being reviewed by the Federal Trade Commission.
In three years, the company's sales have grown from $22.9 billion to $32.8 billion this past year, for an increase of 43%. The stock's dividend of around 5.7% per year makes it even more attractive. Abbvie has also raised its dividend payments by nearly 170% over the past six years and is considered a Dividend Aristocrat, as it was spun off from Abbott Labs, a company that has increased its dividends for 47 straight years.
Enbridge Inc (ENB 0.99%) is another promising dividend stock that could be a great addition to any portfolio. The Canadian pipeline company is definitely in a bit of a tougher environment, exposed to the risk of fluctuating oil prices and consumers pushing toward greener sources of energy. However, there's still a significant need for oil and transportation of it safely for the foreseeable future.
And for all of the adversity that the company has faced in the industry, Enbridge has been able to generate strong, consistent profits. In each of the past three years, Enbridge has posted a profit, and each time it has been north of 2 billion in Canadian dollars (more than $1.5 billion).
With the stock struggling in recent years, Enbridge's dividend yield is now over 6.1%. Enbridge has increased its payouts over the years and plans to continue to do so at a rate of 10% per year through 2020. Previously, the company averaged dividend increases of more than 12%.
HSBC Holdings (HSBC 1.25%) is one of the largest banks in the world. The bank has had a history of scandals that have contributed the stock's struggles, ranging from money laundering to it helping clients avoid taxes.
Concerning as those scandals may be, the bank still generated more than $13.7 billion in profit last year as it continues to be a dominant company. One of the benefits of buying a stock that has been rocked by scandal is that it's normally a cheaper buy. And with HSBC trading slightly below its book value , it could be an opportune time for investors to buy the stock and reap its dividend, which is yielding close to 6.7%.
All three stocks listed above provide investors with some great options for dividend income. While their risk certainly varies, all three companies still have bright futures ahead and have produced strong results. For an investor looking for a mix of dividend income and diversification, the stocks above could be great investments to build around for many years.