Great dividend stocks don't always have particularly high yields. Still, it's nice to see a solid income stock that boasts one that's higher than average. And if this company can reward its shareholders by constantly raising its payouts -- and if it can do so for long periods -- that's even better. A number of dividend stocks on the market fit this description.

Let's consider two in the healthcare sector: Bristol Myers Squibb (BMY -0.63%) and Novartis (NVS 0.01%). These drugmakers have plenty to offer to long-term, income-seeking investors.

1. Bristol Myers Squibb

Bristol Myers looks like a great pick for income seekers looking for reasonably valued stocks. The drugmaker has lagged the market over the past year due to slow top-line growth following important patent cliffs. As a result, Bristol Myers' forward price-to-earnings (P/E) ratio currently sits at 14.3 -- the average for the pharmaceutical industry is 17.4.

Despite its recent issues, Bristol Myers has maintained its dividend program. The company has increased its payouts by 46% in the past five years and offers a juicy dividend yield of about 5%.

Further, though revenue growth is slow right now, Bristol Myers should be able to bounce back. The key, as always, is to develop newer medicines to replace ones that have lost patent exclusivity or will soon do so. Bristol Myers has been working on that project for years and boasts a lineup of newer drugs approved since 2019.

With the company's product mix changing significantly, it should eventually return to delivering strong financial results. Bristol Myers expects more than $10 billion in revenue from its new product portfolio in 2026. For context, these products generated $3.6 billion in revenue last year, making that projection an increase of 77% year over year.

The drugmaker estimates $25 billion in sales from this portfolio by 2030. Of course, Bristol Myers will earn other brand-new approvals in the meantime, judging by its vast pipeline. The company is running several dozen clinical trials. Although this transition period might be somewhat challenging, Bristol Myers should still deliver competitive returns, bolstered by the strength of its pipeline and a newer product portfolio.

So, the company can still deliver in the next decade. Income-seeking investors shouldn't be scared away by Bristol Myers' recent downturn.

2. Novartis

Novartis' recent financial results have been pretty solid. Last year, the Swiss drugmaker's net sales increased by 8% year over year to $45.4 billion. The company had 13 blockbusters for the year, most of which saw their sales moving in the right direction.

Entresto, a medicine for heart failure, is the most important of the bunch. Its 2023 sales of $6 billion increased 30% year over year. Novartis' overall lineup is pretty diversified, with no single product that accounts for a significant percentage of its top line.

Further, the drugmaker is moving forward with brand-new medicines. Last year, it earned approval for one that could become an important growth driver. It is a treatment for paroxysmal nocturnal hemoglobinuria (a rare blood disorder) called Fabhalta. Some analysts expect Fabhalta to hit peak sales of $3.6 billion, which is nothing to sneeze at.

Novartis also made a significant move last year when it decided to spin off its generic and biosimilar unit, Sandoz, into a stand-alone company. Several pharmaceutical giants have opted to conduct similar transactions in recent years. The goal for Novartis was to streamline its operations, pour more money into developing novel therapies, and, eventually, boost top-line growth. In my view, the transaction does little to change Novartis' fundamental thesis -- it remains an excellent stock to buy for the long term.

The drugmaker's dividend history is another piece of evidence supporting that view. Novartis is a little more than halfway to Dividend King status; it has increased its payouts for 27 years in a row. The company currently offers a dividend yield of 4.04%. Novartis stock doesn't look too expensive, either, with a forward P/E of 13.5. All of these factors make it an outstanding passive income stock to hold on to for a while.