While attractive growth stocks often steal the spotlight, some of the market’s most consistent winners are hiding in plain sight. This year, the two dividend kings, companies with a decades-long track record of growing payouts, have not only delivered reliable earnings but also quietly outperformed the broader market.
AbbVie ( ABBV ) is a global biopharmaceutical company that develops and markets therapies in immunology, oncology, neuroscience, and aesthetics, including blockbuster drugs such as Humira and Scierizi. AbbVie has quietly stood out this year, backed by resilient revenue growth, blockbuster franchise expansion, and a renewed commitment to dividend growth. It is up 29% year-to-date (YTD), outperforming the S&P 500 Index ($SPX)’s 17.4% gain.
With Humira’s patent expiring, AbbVie was worried that it might lose steam. However, the company reported net revenue of $15.7 billion, representing 9.1% year-over-year (YoY) growth. The company’s immunology and neuroscience portfolios drove growth, offsetting significant declines in Humira sales. The immunology portfolio alone delivered $7.8 billion in quarterly revenue, an increase of nearly 12%, led by Skyrizi and Rinvoq. Skyrizi generated $4.7 billion in revenue, up more than 47%, while Rinvoke grew more than 35% to $2.18 billion.
Neuroscience was another bright spot, with revenue up more than 20% to $2.841 billion. Key drugs such as Vraylar, Botox Therapeutic, Ubrelvy, and Qulipta experienced strong growth, highlighting AbbVie’s diversification beyond immunology. Meanwhile, oncology sales were flat at $1.682 billion, with gains in Venclista and Elahere declining in Imbruvica.
AbbVie reported adjusted diluted earnings per share of $1.86 for the quarter. Importantly, management raised its full-year 2025 adjusted EPS outlook to $10.61 from $10.65. AbbVie has paid and grown dividends for the past 54 years, earning the title of a Dividend King. What really cements AbbVie’s status as the dividend king is its shareholder return profile. The company announced a 5.5% dividend increase starting in February 2026, increasing the quarterly payout to $1.73 per share. Since its founding in 2013, AbbVie has increased its dividend by more than 330%, highlighting its long-term commitment to income-focused investors. The company pays an attractive yield of 3.04%, higher than the healthcare average of 1.6%.
Overall, on Wall Street, AbbVie stock is a “moderate buy.” Of the 27 analysts covering the stock, 15 have a “strong buy”, one suggests a “moderate buy”, and 11 recommend a “hold” rating. The average target price for ABBV is $245.84, which is 7.8% above its current level. Its high price estimate of $289 indicates a potential upside of 26.8% over the next 12 months.
Johnson & Johnson (J&J) (JNJ) is a global healthcare company that develops pharmaceuticals, medical devices and healthcare products with a focus on areas such as oncology, immunology, cardiology, neuroscience, and surgical technologies.
J&J’s diversified healthcare business, which includes pharmaceuticals and medical devices, has enabled the company to achieve consistent profitability even during economic turmoil.
What sets J&J apart as the dividend king is its unparalleled commitment to shareholders. The company has consistently raised its dividend for more than six decades, placing it in a rare group of companies with proven cash flow stability. This steady dividend growth, combined with consistent earnings generation, has helped J&J deliver reliable total returns in the face of increased market volatility. J&J pays a forward yield of 2.5% higher than the healthcare average.
In the third quarter, J&J reported global sales of $24 billion, reflecting 5.4% operating growth despite significant headwinds due to the loss of the STELARA specialty. Importantly, J&J showed its ability to grow through the STELARA decline by delivering double-digit growth across 11 brands. Oncology stood out, with operational sales growth approaching 20%. DARZALEX grew nearly 20% and maintained more than 50% market share across all lines of multiple myeloma therapy, while CARVYKTI posted more than 80% growth, boosting confidence in its $5 billion peak sales potential.
Immunology also remained strong, led by TREMFYA, which delivered significant operational growth of 40%, driven by new indications in inflammatory bowel disease. Management now sees TREMFYA as a potential $10 billion-plus asset. In neuroscience, SPRAVATO sales increased by more than 60%, benefiting from continued demand in treatment-resistant depression, while the recent acquisition of CAPLYTA added further depth to the portfolio. The MedTech business added another layer of stability and growth. Operating sales increased 5.6%, with cardiovascular results particularly strong.
Adjusted diluted EPS of $2.80 increased 15.7% YoY. Management raised full-year 2025 guidance, reaffirming adjusted EPS expectations of approximately $10.85 at the midpoint. Strong free cash flow generation and a resilient balance sheet continue to support shareholder returns.
As a longtime dividend king, Johnson & Johnson’s ability to deliver consistent growth, navigate key patent expirations, and invest heavily in innovation explains why it has quietly outperformed the market this year.
Overall, Wall Street has assigned JNJ a “Moderate Buy” rating. Of the 25 analysts covering the stock, 13 rated it a “strong buy”, two rated it a “moderate buy” and 10 rated it a “hold”. The average target price on the stock is $211.12, which is 1.8% above current levels. Meanwhile, its high target price of $240 indicates a potential upside of 15.7% over the next 12 months.
As of the date of publication, Ms. Mohanty did not hold positions (directly or indirectly) 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
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