Dividend stocks can make for great long-term investments. They can generate a steady stream of income for your portfolio, not only padding your overall returns but also providing you with a way to generate cash without having to sell any of your positions.
Finding quality dividend stocks, however, can be challenging. A seemingly good dividend stock may suddenly cut or suspend its dividend if its operations are facing challenges and its results aren't strong. Then, not only can your dividend income come to an abrupt halt, but the stock could also end up in a freefall.
One stock that looks to be in excellent financial shape and which could perhaps be the ultimate dividend investment to hang on to is AbbVie (ABBV 0.49%). Here's why this pharmaceutical giant can be a great option to consider if you want a top dividend stock to buy and hold.
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AbbVie has a terrific, growing dividend
AbbVie offers investors a solid dividend that yields 2.9%, which is well above the S&P 500 average of 1.1%. What's also encouraging is that the company has been routinely increasing its dividend. Since its inception in 2013, AbbVie has boosted its dividend by over 330%. It has been a dependable dividend growth stock to own, which can give investors confidence that their dividend income may not only be safe but also rise at a higher rate than inflation.
While investors may be worried about AbbVie's payout ratio (which is currently over 100%), that can sometimes be unreliable due to one-time charges and expenses. In the case of AbbVie, the company has incurred acquisition-related expenses that have impacted its bottom line over the past year. However, from a cash flow standpoint, the payout looks rock solid. Last year, AbbVie's free cash flow totaled $17.8 billion -- far higher than the $11.7 billion it paid in dividends.
NYSE: ABBV
Key Data Points
This is a solid, all-around stock to buy for the long term
Not only is AbbVie an excellent dividend investment, but it's also a promising growth stock to hang on to. In 2025, the company generated 9% growth, with its net revenue totaling $61.2 billion. The drugmaker has shown that it can continually find opportunities to develop new drugs and acquire companies that can help enhance its long-term prospects.
This is a diversified healthcare company that has many growth opportunities in oncology, neuroscience, aesthetics, eye care, and immunology. With a wealth of products in its portfolio, it's a solid all-around business to invest in. On top of having a high-yielding dividend that has been growing over the years, it also has some encouraging growth prospects, which makes it a fantastic all-around buy.
