In a market characterized by uncertainty and fluctuations, investors are increasingly turning to dividend stocks as a source of dependable income. Companies with robust business models typically offer consistent dividends, providing stability and predictability. Three such stocks stand out as suitable long-term investments: AbbVie, PepsiCo, and Realty Income.
AbbVie: A Leader in Biopharmaceuticals
Valued at $383 billion, AbbVie is a global biopharmaceutical company specializing in the discovery, development, and sale of medications focused on immunology, oncology, neuroscience, eye care, and aesthetics. The company’s diverse portfolio has resulted in strong cash flows and reliable earnings, allowing it to maintain a remarkable track record of increasing dividends for 54 consecutive years. AbbVie is part of the elite group of S&P 500 companies known as Dividend Kings, which have raised dividends for over 50 years.
Currently, AbbVie offers an attractive forward yield of 3.2%, significantly higher than the healthcare sector average of 1.6%. The company also boasts a sustainable payout ratio of 43.5%, indicating room for future dividend growth. Despite initial concerns over the impact of Humira’s patent expiration, AbbVie has demonstrated resilience. In the third quarter, net revenues reached $15.7 billion, reflecting a 9.1% year-over-year increase, driven by its immunology portfolio, which generated $6.8 billion in revenue. As a result, management has raised its full-year 2025 adjusted earnings per share (EPS) guidance to a range of $10.61 to $10.65 and announced a 5.5% dividend increase for 2026, effective from February.
Analysts hold a positive outlook on AbbVie, giving it an overall consensus rating of “Moderate Buy.” Among the 28 analysts covering the stock, 15 have a “Strong Buy” rating, while one suggests a “Moderate Buy,” and 12 recommend a “Hold.” The mean target price for ABBV stands at $245.52, indicating a potential upside of 14.2% from current levels, with a high price estimate of $289 suggesting a possible increase of 34.4% over the next year.
PepsiCo: A Resilient Consumer Staple
With a market capitalization of $200 billion, PepsiCo is a global leader in the food and beverage industry, producing some of the world’s most beloved snacks and drinks. The company benefits from consistent demand, making it a reliable source of cash flow. PepsiCo has a distinguished history of increasing dividends for 53 years, earning its status as another Dividend King.
PepsiCo currently offers an appealing forward yield of 3.9%, which is substantially higher than the consumer staples average of 1.9%. While its payout ratio stands at 63%, it remains sustainable as long as the company maintains its cash generation. In the third quarter, PepsiCo reported an organic revenue increase of 1.3%. For the entire year of 2025, the company anticipates returning $7.6 billion to shareholders in dividends.
As a defensive consumer staples company, PepsiCo’s strong brand portfolio contributes to its resilience, making it a favorite among long-term investors. The stock holds an average “Moderate Buy” rating among analysts. Out of the 20 analysts tracking the stock, seven have rated it as a “Strong Buy,” while 12 suggest a “Hold,” and one recommends a “Strong Sell.” The mean target price for PEP is $158.42, indicating an 8.4% upside potential, with the highest estimate reaching $172, implying a possible increase of 17.7% over the next year.
Realty Income: Monthly Dividends for Investors
Valued at $55.9 billion, Realty Income is a real estate investment trust (REIT) that specializes in owning and leasing commercial properties. It has earned the nickname “The Monthly Dividend Company” by paying dividends monthly, a rarity among its peers. Realty Income has a remarkable history of making 663 consecutive monthly dividend payments, regardless of economic conditions, and has increased its dividends 132 times since going public in 1994.
The company’s cash flows are underpinned by long-term net lease contracts with a weighted average remaining lease term of nine years, ensuring that tenants cover property taxes, insurance, and maintenance. Realty Income’s current yield of 5.3% is particularly appealing to income-focused investors. As a REIT, the company is required by law to distribute at least 90% of its taxable income to investors as dividends.
The overall rating for Realty Income is “Hold,” according to analysts. Among the 24 analysts monitoring the stock, three rate it a “Strong Buy,” one a “Moderate Buy,” 19 a “Hold,” and one a “Strong Sell.” Realty Income is trading close to its mean target price of $62.54, with the Street-high estimate of $69 suggesting a potential upside of 13% in the coming year.
Investors looking for reliable income in a fluctuating market may find these three dividend stocks to be solid options for long-term growth and stability.
