So far this year, the U.S. stock market has performed sluggishly, with the S&P 500 index down more than 3%. Geopolitical uncertainties, high valuations at the start of the year, and concerns over the economic outlook continue to weigh on investors.
However, for investors seeking high-quality, high-dividend stocks, there is no shortage of noteworthy targets as of April 2026. AbbVie (ABBV) and Novo Nordisk (NVO) are both stocks with high dividend yields and low price-to-earnings ratios. Here is why they can be added to your portfolio as income-oriented investment options right now.
Pharmaceutical company AbbVie’s stock has fallen 10% this year, but its fundamentals remain solid and its dividend returns are attractive. The company’s dividend yield is approximately 3.4%, nearly three times the average dividend yield of the S&P 500 (1.2%). Even more appealing to long-term investors is that since its inception in 2013, AbbVie’s dividend payments have increased by more than 330% cumulatively.
On the surface, AbbVie’s price-to-earnings ratio of 88 times appears expensive. However, this is primarily due to acquisition-related expenses, and the actual valuation is far lower than the surface data. According to analyst estimates, its forward price-to-earnings ratio is only 14 times. For this globally leading healthcare company with a market capitalization of approximately $370 billion, this valuation level is not high.
Last year, AbbVie generated $61.2 billion in revenue and $20.1 billion in operating profit, with an operating profit margin as high as 33%. If investors rely solely on surface data from stock screeners, they might overlook this highly profitable and reasonably valued company. As a dividend investment, AbbVie is an excellent choice.
Another high-quality healthcare stock trading at a significant discount is Danish pharmaceutical company Novo Nordisk, which manufactures well-known drugs such as Ozempic and Wegovy. Due to intensifying competition, Novo Nordisk expects its revenue to decline by up to 13% this year. This guidance has worried investors, and the company’s stock has fallen 28% in total.
But over the long term, this remains a highly profitable and successful enterprise. Similar to AbbVie, Novo Nordisk’s profit margin is equally impressive, with operating profit accounting for 41% of revenue over the past four quarters. The company has the ability to remain competitive on price while still generating robust profits.
Due to recent challenges, Novo Nordisk’s forward price-to-earnings ratio has dropped to just 11 times, making it highly attractive for long-term holding. Many investors are overlooking the stock because of short-term difficulties, but at the same time, its dividend yield stands at 4.9%. Therefore, if the share price recovers in the future, coupled with the dividend income accumulated in the meantime, investors could expect substantial total returns from Novo Nordisk.
Summary: AbbVie and Novo Nordisk are both healthcare stocks with currently low valuations and high dividend yields. Although each faces short-term pressures such as one-time charges and intensified competition respectively, their fundamentals remain solid and their profitability stands out. For investors seeking long-term income-generating assets, these two stocks offer good allocation value as of April 2026.
