2 Dividend Stocks to Buy Hand Over Fist in April

One factor that keeps some investors away from healthcare stocks is the sector's dearth of generous and reliable dividend payers. This stands to reason, as nearly every stage of drug development and marketing is resource- and capital-intensive, and as a result, cash can be in short supply.

In this wide and deep sector, though, there are some notable exceptions. Let's take a look at two outliers with dividend policies that have looked especially attractive lately -- pharmaceutical companies Amgen (NASDAQ: AMGN) and AbbVie (NYSE: ABBV).

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1. Amgen

Amgen's involvement in the high-demand obesity drugs race has attracted attention recently, but the pharmaceutical sector star has been on the radar of clever investors for years. These days, it's a very healthy and thriving company with an enviable lineup of blockbuster drugs, and a strong pipeline.

Last year was a standout one for Amgen. No fewer than 10 of its medications posted double-digit percentage sales growth. High cholesterol treatment Repatha vaulted higher with a 36% increase over 2023 to more than $1.6 billion. In pure dollar terms, the company's champion was osteoporosis drug Prolia, with its nearly $4.4 billion in sales posting sturdy 8% growth.

For the year, overall revenue rose by 19% to a bit over $33.4 billion. Net income was down because of notably higher costs in areas such as research and development, but Amgen was still well in the black on the bottom line (at nearly $4.1 billion, against 2023's $6.7 billion).

Although last year's bottom line was skinnier, Amgen isn't going on a dividend diet. In fact, the company declared one of its habitual dividend raises last month, cranking its quarterly payout 6% higher to $2.38 per share. That would amount to a 3% yield on the most recent closing stock price, a percentage rate nearly double that of the average dividend yield of the S&P 500 index component companies.

There's still plenty of time to jump on Amgen's dividend raise. The new payout is to be dispensed on June 6 to investors of record as of May 16.

2. AbbVie

Like Amgen, AbbVie also places much importance on its quarterly dividend. It's also a relative high yielder at over 3%. There's probably more fuel in the tank, as management likes to declare regular dividend raises, as it did in mid-February. With its latest hike, a 6% bump to $1.64 per share, the company has lifted the distribution over 25 years in a row.

Those hikes aren't necessarily incremental. Over the past 10 years, the per-share payout has more than tripled to the present level. Again as with Amgen, the window to take advantage of the latest dividend raise is currently open -- the payout will be distributed on May 15 to stockholders of record as of April 15.

In recent times, AbbVie was closely associated with its blockbuster anti-inflammatory drug, Humira. That wasn't necessarily beneficial after it lost U.S. patent exclusivity in 2023, but management expertly pivoted into the future. It used the company's vast resources well, rebuilding its business around acquisitions and self-developed pipeline drugs such as the very well-marketed and versatile Rinvoq.

Led by Rinvoq and its portfolio mate Skyrizi, AbbVie also had a solid 2024. Total net revenue was up by almost 4% to $56.3 billion, while for reasons similar to Amgen, higher costs dampened profitability -- although not alarmingly, as this slipped to just under $4.3 billion from 2023's less than $4.9 billion.

With both an existing portfolio and a pipeline that are well-stocked and diverse across therapeutic areas, AbbVie looks set for continued improvement. Management is guiding for a compound annual growth rate (CAGR) in revenue in the high single-digit percentages through 2029. It also boosted its sales forecast for Rinvoq and Skyrizi combined, to $31 billion as soon as 2027.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Amgen. The Motley Fool has a disclosure policy.