Despite lingering economic issues, the broader stock market has recovered this year. But some companies are failing to keep up for a variety of reasons. Take AbbVie (ABBV -0.08%) and Amgen (AMGN 2.29%), two drugmakers that have significantly underperformed the stock market this year. Both healthcare giants are encountering near-term issues that explain their poor performances over the past six months.

However, AbbVie and Amgen have enough in the tank to survive their current ordeals and continue doing what they do best over the long run: reward shareholders with solid dividend increases. Let's find out why.

1. AbbVie

AbbVie started the year with a lot to prove. The company's naysayers had long considered it a one-trick pony that relied too much on its blockbuster drug Humira, whose patent exclusivity in the U.S. expired this year. The rheumatoid arthritis medicine is, after all, one of the best-selling drugs in the history of the industry, so it's not surprising that it was responsible for a large chunk of AbbVie's revenue.

AbbVie's financial results aren't looking too good now that it faces generic competition for Humira. In the first quarter, the company's revenue dropped by 9.7% year over year to $12.2 billion. AbbVie's adjusted earnings per share (EPS) of $2.46 declined by 22.2% compared to the prior-year quarter. Humira's patent cliff was a highly anticipated event that the market should have seen coming from miles away.

Perhaps reality finally set in once AbbVie released its first post-patent quarterly update. But it is also likely that investors do not appreciate the work the drugmaker did to prepare for a post-Humira world. In that case, the current decline in its stock price is an opportunity for investors to scoop up AbbVie's shares. What did AbbVie do to ensure a bright future after Humira?

The company developed two immunology medicines, Skyrizi and Rinvoq, whose combined approvals and indications substantially overlap with that of its former crown jewel. AbbVie thinks Skyrizi and Rinvoq's combined revenue will eventually exceed Humira's. AbbVie also acquired Allergan and its Botox franchise. Management once said they think it is highly unlikely that we will ever see biosimilars for Botox.

The company has also developed newer medicines to pick up the slack, including migraine treatment Qulipta. That's to say nothing of the dozens of programs in its pipeline, including more than 50 in the mid and late stages of development. Even with a 20% success rate, AbbVie should add plenty of new indications for new medicines and launch several brand-new products over the next five years.

AbbVie is a Dividend King. It has raised its payouts for 51 consecutive years. That's not an easy thing to pull off. Management is dedicated to continuing to grow the company's dividend despite these challenging times. And with a yield of 4.39% and a cash payout ratio of 43%, AbbVie remains an excellent dividend growth stock for income-seeking investors.

2. Amgen

Amgen's revenue growth has been inconsistent over the past three years. The company also faced stiff competition (biosimilar or otherwise) for some of its products. In 2020, Amgen entered into a collaboration with Eli Lilly to help manufacture and distribute the latter's coronavirus antibodies.

Amgen's revenue from this collaboration has recently declined as the pandemic receded. The biotech giant did earn new approvals that helped. Perhaps the two most important were cancer medicine Lumakras and asthma treatment Tezspire, both of which first earned the green light in 2021.

The former targeted a mutation found in 13% of lung cancer patients and became the first drug to be approved by the U.S. Food and Drug Administration specifically tailored to this narrow group of patients. Tezspire, which Amgen developed with AstraZeneca, produced such excellent results in clinical trials in treating severe asthma that both companies see it as an important growth driver.

Lumakras and Tezspire still haven't significantly impacted Amgen's financial results, which is why the company is seeking to acquire Horizon Therapeutics for $27.8 billion in cash. The transaction would beef up Amgen's lineup and pipeline. However, the U.S. Federal Trade Commission is seeking to block the merger.

It could still go through, but that won't doom Amgen's prospects even if it doesn't. In all likelihood, the company will find another acquisition target. In the first quarter, Amgen's revenue declined by 2% year over year to $6.1 billion, largely due to a decline in revenue from its collaboration with Eli Lilly.

The company's adjusted EPS dropped by 4% year over year to $3.98, which it blamed on a rise in expenses, especially those related to research and development. Still, Amgen should be fine over the long run. The company's Lumakras and Tezspire should make slow and steady progress, it will earn brand-new approvals from its more than four dozen ongoing programs, and a new acquisition should also help.

Amgen is currently offering a yield of 4.39% and a reasonable cash payout ratio of 56%; it has raised its payouts by 61% in the past five years. Even with its recent struggles, dividend investors can't go wrong with this excellent stock.