In a challenging market environment, dividend stocks are gaining attention from investors seeking stable income sources. Companies with robust business models tend to provide consistent dividends, making them appealing for those looking to secure their financial future. Here, we explore three reliable dividend stocks that investors can consider for long-term growth.
AbbVie: A Leader in Biopharmaceuticals
Valued at $383 billion, AbbVie (ABBV) is a global biopharmaceutical company renowned for developing medicines across various fields, including immunology, oncology, neuroscience, and aesthetics. With a diversified approach, AbbVie has achieved strong cash flows and reliable earnings, enabling it to maintain a solid history of dividend payments. The company has increased its dividends for an impressive 54 years, placing it among the elite S&P 500 companies known as Dividend Kings.
AbbVie currently offers a forward yield of 3.2%, significantly higher than the healthcare sector average of 1.6%. Its payout ratio stands at 43.5%, indicating a sustainable dividend growth potential. Despite initial concerns regarding the expiration of Humira’s patent, AbbVie demonstrated resilience with a third-quarter net revenue of $15.7 billion, reflecting a year-over-year increase of 9.1%. The company’s immunology portfolio, led by Skyrizi and Rinvoq, contributed $6.8 billion to this revenue, while AbbVie’s Neuroscience division saw a remarkable 20% growth in revenue.
Management recently raised the full-year 2025 adjusted earnings per share (EPS) guidance to a range of $10.61 to $10.65. Furthermore, AbbVie announced a 5.5% dividend increase for 2026, effective from February. Analysts maintain a consensus rating of “Moderate Buy” for AbbVie, with a mean target price of $245.52, suggesting a potential upside of 14.2%.
PepsiCo: A Staple in Consumer Goods
Another strong contender is PepsiCo (PEP), valued at $200 billion. As a global leader in the food and beverage sector, PepsiCo produces some of the most recognized snacks and drinks worldwide. Its consistent demand, even during economic downturns, allows the company to generate stable cash flow, which has led to a history of increasing dividends for 53 years, also earning it the Dividend King designation.
PepsiCo offers an attractive forward yield of 3.9%, exceeding the consumer staples average of 1.9%. While its payout ratio is slightly elevated at 63%, it remains sustainable due to the company’s robust cash generation capabilities. In the third quarter, PepsiCo reported an organic revenue growth of 1.3%. For the entire fiscal year 2025, the company anticipates returning $7.6 billion in dividends to shareholders.
Analysts regard PepsiCo stock with an average “Moderate Buy” rating. Among the 20 analysts monitoring the stock, seven have assigned a “Strong Buy” rating, while twelve suggest a “Hold” position. The mean target price is set at $158.42, indicating an expected increase of 8.4% from current levels.
Realty Income: The Monthly Dividend Provider
Valued at $55.9 billion, Realty Income (O) operates as a real estate investment trust (REIT) that purchases commercial properties to lease to businesses. This model allows the company to collect rent, which it then distributes to shareholders as dividends, earning it the nickname “The Monthly Dividend Company.” Realty Income has a remarkable record of 663 consecutive monthly dividend payments, a feat achieved through various economic cycles.
Since going public in 1994, Realty Income has increased its dividends 132 times. The company’s cash flows are supported by long-term net lease agreements, with a weighted average remaining lease term of nine years, during which tenants bear property taxes and maintenance costs. Realty Income currently offers a high yield of 5.3%, appealing to income-focused investors.
The stock has a “Hold” rating overall. Out of the 24 analysts covering Realty Income, three rate it as a “Strong Buy,” while one gives it a “Moderate Buy.” The majority, totaling 19 analysts, recommend a “Hold,” with one suggesting a “Strong Sell.” The stock is trading near its mean target price of $62.54, with the Street-high estimate at $69, implying a potential upside of 13% over the next year.
In summary, for investors navigating the current market landscape, these three companies—AbbVie, PepsiCo, and Realty Income—offer reliable dividend opportunities backed by strong fundamentals and a history of consistent performance.
