In an uncertain and volatile market, dividend stocks are often the first choice for investors looking for reliable income. Companies that have a stable business model tend to consistently pay dividends, offering stability and predictability.
Here are three such reliable dividend stocks that investors can hold onto for years.
Reliable Stock No. 1: AbbVie (ABBV)
Valued at $383 billion, AbbVie (ABBV) is a global biopharmaceutical company that discovers, develops, and sells medicines focused on immunology, oncology, neuroscience, eye care, and aesthetics. A diversified focus area has led to strong cash flows and reliable earnings. This has allowed AbbVie to maintain a long track record of paying and increasing dividends for the last 54 years in a row. AbbVie belongs to the elite group of S&P 500 companies called the Dividend Kings that have paid and hiked dividends for 50 years or more.
AbbVie also pays an appealing forward yield of 3.2%, higher than the health care average of 1.6%. Its forward payout ratio of 43.5% also seems sustainable, with room for further dividend growth. While investors and analysts were concerned that AbbVie's business would suffer once the patent for Humira expired, the company proved otherwise.
In the third quarter, net revenues of $15.7 billion increased 9.1% year-over-year. Its immunology portfolio, led by Skyrizi and Rinvoq, generates $6.8 billion in revenue. AbbVie's Neuroscience portfolio also saw a 20% revenue increase. This performance led management to raise full-year 2025 adjusted earnings per share (EPS) guidance to a range of $10.61 to $10.65. Additionally, the company announced a 5.5% dividend increase for 2026 beginning in February.
AbbVie stock has an overall consensus rating of “Moderate Buy.” Out of the 28 analysts covering the stock, 15 have a “Strong Buy” rating, one suggests a “Moderate Buy,” and 12 recommend a “Hold” rating. The mean target price for ABBV is $245.52, which is 14.2% above its current levels. Its high price estimate of $289 implies potential upside of 34.4% over the next 12 months.
Reliable Stock No. 2: PepsiCo (PEP)
Valued at $200 billion, PepsiCo (PEP) is a global food and beverage giant that makes and sells some of the world’s most popular snacks and drinks. People often buy these products regardless of economic conditions. This steady demand leads to consistent cash generation, which is why PepsiCo has a long history of increasing dividends for the last 53 years, making it a Dividend King.
Besides consistent dividends, PepsiCo also pays an attractive forward yield of 3.9%, considerably higher than the consumer staples average of 1.9%. While its payout ratio of 63% is slightly high, it is sustainable as long as the company generates consistent cash flows.
In the third quarter, organic revenue increased by 1.3%. For the full year 2025, the company expects to return $7.6 billion in dividends to shareholders. PepsiCo is a defensive consumer staples company with strong brands, making it a resilient business and a favorite among long-term and dividend-focused investors.
Overall, PepsiCo stock has an average “Moderate Buy” rating. Out of the 20 analysts covering the stock, seven have a “Strong Buy" rating, 12 suggest a “Hold,” and one rates it as a “Strong Sell." The mean target price for PEP is $158.42, which is 8.4% above its current levels. The Street-high estimate for the stock is $172, which implies upside potential of 17.7% over the next 12 months.
Reliable Stock No. 3: Realty Income (O)
Valued at $55.9 billion, Realty Income (O) is a real estate investment trust (REIT) that owns commercial properties and leases them to businesses. It then collects rents as income and pays dividends out to investors. While most companies pay dividends annually or quarterly, Realty Income pays dividends monthly, earning it the nickname of “The Monthly Dividend Company.” The company has a record of paying 663 consecutive monthly dividend payments, regardless of economic cycles. It has also increased its dividends 132 times since going public in 1994.
Its cash flows are backed by long-term net lease contracts with a weighted average remaining lease term of nine years, wherein tenants pay property taxes, insurance, and maintenance. Realty’s high yield of 5.3% is also appealing to income-focused investors. Furthermore, as a REIT, the company is legally bound to pay out 90% of its taxable income to investors as dividends.
Overall, the REIT has a “Hold” rating. Out of the 24 analysts that cover Realty Income, three rate it a “Strong Buy,” one rates it a “Moderate Buy,” 19 rate it a “Hold,” and one rates it as a “Strong Sell.”
The stock is trading close to its mean target price of $62.54. The Street-high estimate of $69 implies upside of 13% over the next 12 months.
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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