The Nasdaq has dipped into correction territory amid growing recession fears. While long-term investors may still see value in beaten-down tech names, those nearing retirement or with a lower risk tolerance are rotating into more stable, less volatile stocks. The healthcare sector, with its defensive characteristics and reliable dividends, is drawing attention.
Here’s a look at two pharma leaders worth considering: Amgen (AMGN) and AbbVie (ABBV).
Amgen is a biopharmaceutical giant with a solid defensive moat. Although the company lost patent exclusivity for its osteoporosis drug Prolia last year, its broad product portfolio and promising pipeline remain key strengths. Drugs like Tezspire (for asthma) and Repatha (for cholesterol) continue to drive sales growth.
Even more exciting is Amgen’s investigational GLP-1 candidate, MariTide, which has entered phase 3 trials. If successful, it could help Amgen tap into the booming weight-loss market. Over the next few years, the company is expected to launch several new medicines.
On the dividend front, Amgen has raised its payout every single year since initiating one in 2011. That track record gives investors confidence that the company can maintain – and even grow – its dividends even during an economic downturn.
AbbVie is another pharma heavyweight with essential, recession-resistant drugs. Its immunology blockbusters, Skyrizi and Rinvoq, continue to impress. Management has repeatedly raised its sales forecast for the pair, now expecting combined revenue to exceed $31 billion in 2026 – a full year ahead of schedule.
Meanwhile, AbbVie’s Botox franchise benefits from a complex molecular structure that makes a biosimilar version unlikely in the near term. Combined with decades of brand strength, Botox should deliver steady revenue for years to come.
More importantly, AbbVie is a Dividend King – having increased its dividend for over 50 consecutive years. For investors seeking stable cash flow in a volatile market, this is a rare and powerful advantage.
With tech stocks under pressure and market volatility rising, Amgen and AbbVie stand out as safe havens. Both offer essential medicines, robust pipelines, and reliable dividend histories. Amgen brings growth excitement via MariTide and other new drugs, while AbbVie provides defensive strength through its immunology stars and its Dividend King status. Together, they can help investors weather the storm.
