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Worried About a Market Meltdown? 2 Dividend Stocks to Own Forever.
ABBVAbbVie(ABBV) The Motley Fool·2025-03-12 11:10

Market Overview - The market is currently experiencing significant uncertainty, with the S&P 500 down 8.6% and the Nasdaq down 13.4% from recent highs [2] - Artificial intelligence stocks, such as Nvidia, have also seen declines, with Nvidia approximately 14% off its year-to-date high [3] Investment Strategies - To protect capital during market downturns, investors are advised to consider stable dividend stocks that offer reliable income and lower volatility compared to high-growth tech stocks [3] Real Estate Investment Trusts (REITs) - REITs are attractive for income-focused investors due to their requirement to distribute 90% of taxable income to shareholders, resulting in higher yields [4] - Vici Properties owns "trophy properties" that are difficult to replace, including major Las Vegas casino resorts and an entertainment complex in New York, which positions it favorably in the market [5] - Vici Properties collected 100% of its rents during the COVID-19 pandemic and has consistently increased its dividend since inception, indicating strong financial health [6][7] Pharmaceutical Sector - AbbVie has transitioned from reliance on its blockbuster drug Humira to a more diversified portfolio following its acquisition of Allergan, which added products like Botox and Juvederm [10] - Despite a decline in Humira sales from over 21billionin2022to21 billion in 2022 to 9 billion in 2024 due to competition from biosimilars, AbbVie is expected to see significant growth from new anti-inflammatory drugs, projected to generate 27billioninsalesby2027[9][11]AbbViehasmaintainedagrowingdividendsinceitsspinofffromAbbottLaboratoriesin2013,currentlypaying27 billion in sales by 2027 [9][11] - AbbVie has maintained a growing dividend since its spinoff from Abbott Laboratories in 2013, currently paying 1.64 quarterly, providing a forward yield of 3% [11] Conclusion - Vici Properties and AbbVie are highlighted as strong investment options for generating steady, growing dividends regardless of market conditions, making them suitable for long-term holding [12]