3 Unstoppable Dividend Stocks to Buy Right Now

3 Unstoppable Dividend Stocks to Buy Right Now

Income investors will not be happy with dividends that are not sustainable. Instead, they want to own dividend stocks they can rely on. Three Motley Fool contributors have identified stocks that should please income investors. Here's why he thinks AbbVie, Johnson & Johnson (NYSE: JNJ ) and Novartis are unstoppable dividend stocks to buy right now. At first glance, AbbVie might seem pretty stoppable. Sales of its top-selling drug Humira are falling in the face of biosimilar competition. As a result, the company's sales and profits fall. Its stock is down year-over-year while the overall market has surged.

However, AbbVie is more unstoppable than you might think. The pharmaceutical giant has planned well for the day when Humira sales begin to decline. It has invested heavily in research and development. The company has also made smart acquisitions.Not surprisingly, AbbVie felt the pain when Humira, the former world's best-selling drug, lost patent exclusivity. But the pain shouldn't last long.

Sales of Humira's two successors, Rinvoq and Skyrizi, continue to rise. AbbVie vice chairman and president Rob Michael said in a second-quarter conference call that the two drugs should "deliver robust growth into the next decade and significantly exceed Humira's peak revenues." The company also has several other growth drivers, notably including the antipsychotic drug Vraylar and its migraine drugs Qulipta and Ubrelva.Then there's the dividend. AbbVie has increased its dividend every year for 51 consecutive years (40 of those years were as a subsidiary of Abbott Laboratories). Its dividend yield is 3.9%. The drugmaker remains in a strong position to continue increasing its dividend payout in the future.

It will take a lot to beat this pharmaceutical giant

Prosper Junior Bakiny (Johnson & Johnson): Is any company truly unstoppable? After all, every business faces challenges and risks, so there is always the possibility, however remote, that things will go wrong. Still, some corporations are about as unstoppable as it gets, and drugmaker Johnson & Johnson fits the bill.For 61 years in a row, the company has increased its dividend payout. That makes it the Dividend King, a status they've worked hard to achieve and are unlikely to threaten anytime soon.

Investors tend to be more interested in a company's future potential than its past performance, and there are good reasons to be optimistic about Johnson & Johnson's prospects. Consider the company's extensive portfolio of drugs and medical devices. Many of them help to solve serious, sometimes life-threatening conditions; The company's drugs are mainly concentrated in the immunology and oncology segments. Johnson & Johnson products remain in high demand regardless of economic conditions

In addition, the healthcare giant is constantly innovating, so it should continue to deliver decent results. Johnson & Johnson's AAA credit rating also shows how robust the company's balance sheet is. Risks? Yes, Johnson & Johnson is facing some, especially those related to its legal problems. Thousands of lawsuits allege that Johnson & Johnson talc products caused cancer to customersBut even that shouldn't stop Johnson & Johnson. The company works to solve problems in a way that keeps the business running and growing. Investors can safely count on this company to continue to generate solid revenues, profits, dividend growth and stable stock market returns for a long time to come.

Novartis pays a high yield and has excellent growth prospects

David Jagielski (Novartis): Swiss pharmaceutical company Novartis is not a flashy stock to hold, but it may be a solid investment to hold for the long term. It generates consistent growth, and its dividend yield of 3.4% is more than double the S&P 500 average of 1.5%.Earlier this year, the company announced that it would increase its dividend for the 26th year in a row. Even with a 3.2% increase, Novartis estimates that its payout ratio will be roughly 61% of free cash flow. That's a healthy and sustainable dividend and suggests there could be room for even more rate hikes going forward.

The drugmaker reported revenue of $26.6 billion in the first six months of the year, representing 8% growth excluding the impact of foreign exchange. Heart drug Entresto played a key role in the company's growth, with revenue of $2.9 billion during the first half of 2023, up 35% year-over-year in constant currency. During the first two quarters, the company's free cash flow was just under $6 billion, an increase of 23% over the same period last year.

Novartis will spin off its generics and biosimilars business Sandoz later this year, which should help it focus more on new drug development and boost its future growth prospects. By slimming down, Novartis' growth rate could improve even further. The company has a large pipeline, currently developing 129 innovative drugs, of which 44 are in phase 3 trials and seven are in the registration process.

For long-term investors, there's a lot to like about Novartis' business. It has many opportunities for growth. It offers an incredibly attractive payout. With shares trading at just 15 times estimated future earnings, the stock provides good value and is a great long-term buy.When our team of analysts has a stock tip, it can pay to listen. After all, the Motley Fool Stock Advisor newsletter they've been running for over a decade has tripled the market.*They just revealed what they believe are the ten best stocks investors can buy right now... and Novartis wasn't one of them . from them! That's right - he thinks these 10 stocks are an even better buy.

David Jagielski has no position in any of the mentioned stocks. Keith Speights has positions in AbbVie. Prosper Junior Bakiny holds positions at Johnson & Johnson. The Motley Fool has and recommends positions in Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.