At 24/7 Wall St., we know how important dividend size, stability and growth are to growth and income investors who need a dependable stream of passive income. We often have written about the opportunities that the Dividend Aristocrats offer for long-term investors. These are the companies that meet the guidelines for inclusion and have raised their dividends for 25 consecutive years. In 2022, 66 stocks made the cut and remain top picks across Wall Street.
For those seeking even greater dividend dependability, investors may be drawn to the Dividend Kings. These 44 S&P 500 companies have raised their dividends for a stunning 50 years in a row.
With the market wobbling and looking like we are headed much lower, it may be time for investors to check for momentum or high-beta stocks lurking in their portfolios, especially if they are still profitable or flat, and move the capital invested in them to one of the safest Dividend Kings. The following seven fit the bill, and they are rated Buy at major Wall Street firms. It is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.
AbbVie
This is a top pharmaceutical stock pick across Wall Street. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories. The company develops and markets drugs in areas such as immunology, virology, renal disease, dyslipidemia and neuroscience.
One of the biggest concerns with AbbVie is what might happen eventually with anti-inflammatory therapy Humira, which has some of the largest sales for a drug ever recorded. The company was concerned, so in June of 2019 it announced that it has agreed to pay $63 billion for rival drugmaker Allergan, the latest merger in an industry in which some of the biggest companies have been willing to pay a high price to resolve questions about their future growth. The purchase officially closed in May of 2020.
The bad news for shareholders is that AbbVie may be nearing the limits of how far it can boost Humira’s price as cheaper competitors come to market, a problem Allergan is already grappling with as more alternatives to Botox emerge.
Shareholders receive a 4.20% dividend. J.P. Morgan has a Wall Street high target price of $180. The consensus target is $158.61, and AbbVie stock closed trading on Thursday at $140.29.
Altria
This maker of tobacco products offers value investors a great entry point now as it has been hit as cigarette sales have slowed, and it has increased its dividend for 52 consecutive years. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.
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