In an uncertain and volatile market, dividend stocks are often the first choice for investors looking for reliable income. Companies that have a stable business model tend to pay dividends consistently, providing stability and predictability.
Here are three such reliable dividend stocks that investors can hold onto for years.
Valued at $383 billion, AbbVie (ABBV) is a global biopharmaceutical company that discovers, develops and sells medicines focused on immunology, oncology, neuroscience, eye care and aesthetics. A diversified focus has led to strong cash flows and reliable earnings. This has allowed AbbVie to maintain a long history of paying and increasing dividends for the past 54 years in a row. AbbVie belongs to the elite group of S&P 500 companies called Dividend Kings, which have paid and increased dividends for 50 years or more.
AbbVie also pays an attractive term yield of 3.2%, higher than the medical average of 1.6%. Its forward payout ratio of 43.5% also looks sustainable, with room for further dividend growth. While investors and analysts were worried that AbbVie’s business would suffer with the expiration of Humira’s patent, the company proved otherwise.
In the third quarter, net income of $15.7 billion was up 9.1% year over year. Its immunology portfolio, led by Skyrizi and Rinvoq, generates $6.8 billion in revenue. AbbVie’s Neuroscience portfolio also saw a 20% increase in revenue. That performance prompted management to raise full-year 2025 adjusted earnings per share (EPS) guidance to a range of $10.61 to $10.65. Additionally, the company announced a 5.5% dividend increase for 2026 as of February.
AbbVie shares have an overall consensus rating of “Moderate Buy.” Of the 28 analysts covering the stock, 15 have a “Strong Buy” rating, one suggests a “Moderate Buy” and 12 recommend a “Hold” rating. The average price target for ABBV is $245.52, which is 14.2% above the current level. Its high price estimate of $289 implies a potential upside of 34.4% over the next 12 months.
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Valued at $200 billion, PepsiCo ( PEP ) is a global food and beverage giant that produces and sells some of the world’s most popular snacks and beverages. People often buy these products regardless of economic conditions. This constant demand leads to consistent cash generation, which is why PepsiCo has a long history of dividend growth over the past 53 years, making it a Dividend King.
In addition to hefty dividends, PepsiCo also pays an attractive forward yield of 3.9%, considerably higher than the consumer staples average of 1.9%. While the 63% payout ratio is slightly high, it is sustainable as long as the company generates consistent cash flow.
In the third quarter, organic revenue rose 1.3%. For the full year 2025, the company expects to return $7.6 billion in dividends to shareholders. PepsiCo is a defensive consumer staples company with strong brands, making it a resilient business and a favorite among long-term, dividend-focused investors.
Overall, PepsiCo shares have an average rating of “Moderate Buy”. Of the 20 analysts covering the stock, seven have a “Strong Buy” rating, 12 suggest “Hold” and one rates it a “Strong Sell”. The average target price for PEP is $158.42, which is 8.4% above the current level. The Street-high estimate for the stock is $172, implying a potential upside of 17.7% over the next 12 months.
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Valued at $55.9 billion, Realty Income ( O ) is a real estate investment trust (REIT) that owns commercial properties and leases them to businesses. It then collects rents as income and pays dividends to investors. While most companies pay dividends annually or quarterly, Realty Income pays dividends monthly, earning it the nickname “The Monthly Dividend Company.” The company has a record of 663 consecutive monthly dividend payments regardless of economic cycles. It has also increased its dividend 132 times since going public in 1994.
Its cash flows are supported by long-term net leases with a weighted average remaining lease term of nine years, where tenants pay property taxes, insurance and maintenance. Realty’s high yield of 5.3% is also appealing to income-focused investors. Additionally, as a REIT, the company is legally required to pay 90% of taxable income to investors in the form of dividends.
Overall, the REIT has a “Hold” rating. Of the 24 analysts covering Real Estate Income, three rate it a Strong Buy, one rates it a Moderate Buy, 19 rates it a Hold and one rates it a Strong Sell.
The stock is trading close to its average price target of $62.54. The Street-high estimate of $69 implies upside of 13% over the next 12 months.
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At the time of publication, Sushree Mohanty did not hold (either directly or indirectly) any position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
