Investing in stocks may not look particularly appealing at the moment, given that the 10-year U.S. Treasury bond is offering a near 5% annualized yield. After all, most stocks outside the areas of artificial intelligence and weight-loss care have lost ground over the last two years because of various economic and geopolitical factors, along with a wide swath of investors opting for safer alternatives to stocks like high-yield savings accounts and fixed rate CDs. 

However, history has unequivocally shown that high-quality dividend stocks tend to outperform most other asset classes in the long run. As such, value and income investors probably shouldn't be overly concerned about these short-term obstacles. 

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Which high-quality dividend stocks stand out from the crowd? Biotech heavyweights AbbVie (ABBV -0.68%) and Amgen (AMGN 0.24%) are both working through a multiyear portfolio churn, but their proven ability to maintain a strong competitive edge through industry-leading levels of innovation should comfort anxious investors. Here's a brief overview of the pros and cons associated with buying each of these defensively oriented dividend stocks right now.

AbbVie: A 3.99% yield

AbbVie is a dividend powerhouse. The company has increased its dividend every year since it separated from Abbott Laboratories in 2013, resulting in a remarkable 270% growth in its payout over the past decade. As a result, AbbVie now offers one of the highest yields within its biopharma peer group at 3.99%. The drugmaker also sports a moderate cash payout ratio of 42%, implying that it can comfortably support additional increases to the dividend in the years ahead. 

Now, there are a couple of important risk factors associated with this blue-chip dividend stock. AbbVie recently lost U.S. patent protection for Humira, an anti-inflammatory biologic therapy that has historically accounted for roughly 40% of the biopharma's annual sales and 50% of its profits. The company's next-generation immunology therapies, Skyrizi and Rinvoq, have both been experiencing exponential sales growth since coming on the market, but analysts doubt that they will fully compensate for Humira's decline until 2030. 

AbbVie, on the other hand, has expressed more optimism, claiming that Skyrizi and Rinvoq, along with its other pipeline products, should enable it to generate robust top-line growth as soon as 2025. In any case, both management and analysts agree that the company's healthy free cash flows should comfortably support its generous dividend program for at least the next decade, if not longer. That may not be the most convincing outlook for a dividend stock (analysts usually prefer a competitive advantage that lasts for at least 20 years), but it should be enough to make AbbVie's shares a valuable part of a diversified income portfolio.

Amgen: A wide economic moat

Amgen is a leading biotechnology company that develops and markets innovative medicines for various therapeutic areas, such as oncology, cardiovascular, inflammation, and bone health. The company has a strong and diversified portfolio composed of 27 approved products, with nine of these products generating more than $1 billion in sales last year. Moreover, Amgen has a deep and diverse pipeline of novel candidates that could drive future revenue growth and value creation.

Amgen also rewards its shareholders with a generous dividend policy and a consistent share buyback program. The company pays an annual dividend of $8.52 per share, which corresponds to a yield of about 3.18% at the current price. The company has increased its dividend every year since 2011 at an above-average compound annual growth rate of about 10%. 

With a moderate payout ratio of 54.8%, the company also has ample room to continue raising its dividend in the coming years. Additionally, Amgen has reduced its outstanding share count by an impressive 42.9% since its becoming a publicly traded company, demonstrating its commitment to returning capital to shareholders.

AMGN Average Diluted Shares Outstanding (Quarterly) Chart

AMGN Average Diluted Shares Outstanding (Quarterly) data by YCharts

In all, Amgen screens as a compelling defensive play for investors looking for sustainable income and growth. The company has a solid competitive advantage due to its diversified and innovative product portfolio and pipeline, along with a top-shelf shareholder rewards program. While the biotech does have a high debt level, its core business is inherently economically insensitive and it generates enormous free cash flows ($9.3 billion per year on average over the past five years) capable of servicing its debt obligations and maintaining its dividend payments.