What's better than a good thing? More of a good thing.
Income investors can find plenty of "good things" in the market these days. There are many stocks with exceptional dividends to check out. And some are especially worthy of investors' attention.
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Here are three dividend stocks to double up on right now.
1. AbbVie
AbbVie (NYSE: ABBV) topped Wall Street's revenue and adjusted earnings estimates with its 2024 fourth-quarter results. The big drugmaker also announced full-year 2025 guidance that was better than expected.
Any concerns about the loss of U.S. exclusivity for AbbVie's former top-selling drug Humira should be fully alleviated by now. Humira's two successors, Skyrizi and Rinvoq, combined to generate sales of $5.6 billion in Q4. AbbVie expects the drugs to rake in nearly $24 billion in 2025. That's more than Humira generated at its peak.
Even better, AbbVie now projects that Skyrizi and Rinvoq will make more than $31 billion of combined sales in 2027. That's $4 billion higher than the company's guidance from last year. Why such a big jump in forecasted sales? The drugs are overperforming in inflammatory bowel disease indications.
AbbVie's forward dividend yield remains attractive at 3.43%. The company is a Dividend King with 52 consecutive years of dividend increases. I think that streak will continue with AbbVie's growing free cash flow.
2. Enbridge
Some might have worried that President Trump's tariffs on Canadian imports to the U.S. could hurt Enbridge (NYSE: ENB). Nope. Even if the president hadn't paused the tariffs for 30 days, Enbridge would have been in good shape.
For one thing, Enbridge wouldn't have been impacted by the proposed 10% tariff on Canadian energy products. The prices of crude oil, natural gas, and natural gas liquids (NGLs) that flow through the company's pipelines don't impact its revenue.
Much of Enbridge's business is centered in the U.S. rather than Canada, anyway. That's especially the case now that the company is North America's largest natural gas utility, with major operations in North Carolina, Ohio, and Utah.
I view Enbridge as one of the best dividend stocks to buy. Its forward dividend yield tops 6%. The company has increased its dividend for an impressive 30 consecutive years. Enbridge's growth prospects look great, too, with data centers driving electric power demand and the conversion of coal power plants to natural gas.
3. Pfizer
Some investors could be worried about Pfizer (NYSE: PFE) with vaccine skeptic Robert F. Kennedy, Jr. potentially heading the U.S. Department of Health and Human Services (HHS). Not me. I think Pfizer will be fine regardless of who's at the helm of HHS.
Pfizer recently announced better-than-expected Q4 results. Products picked up with the acquisition of Seagen were big contributors to growth, including Adcetris and Padcev. So were other acquired drugs, especially Nurtec ODT. Pfizer's cost-cutting efforts also paid off, with adjusted diluted earnings per share soaring more than 6x.
Sure, Pfizer still faces patent expirations for several key products over the next few years. However, the company fully expects to deliver solid growth in the second half of this decade despite this patent cliff. Pfizer thinks its current growth drivers and pipeline programs will more than offset the sales declines for products that will lose exclusivity.
Meanwhile, Pfizer's dividend looks as attractive as ever. The forward dividend yield stands at 6.5%. CFO David Denton again confirmed in the Q4earnings callthat Pfizer remains committed to "maintaining and growing" the dividend.
Should you invest $1,000 in AbbVie right now?
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Keith Speights has positions in AbbVie, Enbridge, and Pfizer. The Motley Fool has positions in and recommends AbbVie, Enbridge, and Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
