Healthcare stocks are rarely seen as top high-dividend picks among investors. Even so, several firms in the sector deliver steady dividend payouts and appealing high yields, and are highly likely to lift dividends soon following their long-standing payout track records. AbbVie (ABBV) and Medtronic (MDT) are two leading choices.
As a leading pharmaceutical player, AbbVie once faced market jitters over expiring patents for its core drug Humira. With patents gradually lapsing, many worried the firm would lose competitive edges and lag behind peers.
Contrary to expectations, AbbVie has outperformed its prime era when Humira held full patent advantages. By leveraging in-house R&D and strategic acquisitions, it has built a solid product pipeline covering 12 blockbuster drugs with annual sales above $1 billion, and Humira still maintains strong sales momentum.
Sufficient cash flow firmly underpins its dividend policy. The stock boasts a 3.3% dividend yield with a quarterly payout of $1.73 per share, and it last raised dividends in April. Spun off from dividend-raiser veteran Abbott Laboratories, AbbVie is officially a Dividend King, having lifted dividends annually for no less than 50 straight years.
As the world’s largest pure medical device enterprise, Medtronic posts annual revenue over $33.5 billion, supplying essential medical products to countless patients and medical practitioners.
Though its large scale limits rapid revenue expansion, the firm keeps stable profitability with net margins staying above 10%. Its free cash flow has remained robust, standing between nearly $4.6 billion and under $6 billion each year since 2020.
Solid capital strength sustains continuous dividend growth. Medtronic has achieved 48 consecutive dividend increases, closing in on Dividend King status. It currently offers a 3.7% dividend yield and pays out $0.71 per share quarterly, with the latest hike taking place in May 2025. In the long run, global population aging will boost medical demand, securing Medtronic’s steady growth and profitability.
Backed by rich industry experience, stable operation and mature dividend growth mechanisms, AbbVie and Medtronic are premium healthcare assets with high yields and sustainable dividend upside. In line with their regular dividend adjustment rhythm, further payout rises are widely expected in the near term. It is a proper window for long-term investors chasing stable cash income to make layouts.
