2 High-Flying Dividend Stocks to Buy and Hold for a Decade

Two healthcare companies, Merck (MRK) and AbbVie (ABBV), have outperformed the broader market this year, making them strong long-term investment options. Merck's shares have risen 39%, while AbbVie's have gained 24%, compared to the S&P 500's 12% increase year-to-date. Both companies demonstrate robust earnings growth and attractive dividend programs.

Merck's Keytruda franchise posted $8.4 billion in sales, up 5% year-over-year, while its HPV vaccines, Gardasil and Gardasil 9, increased revenue by 4% to $1.2 billion. The company is set to lose patent exclusivity for Keytruda by 2028, but the newer Keytruda Qlex, a subcutaneous version, could help retain market share. Merck has also approved newer products, such as Winrevair for pulmonary arterial hypertension, and has a promising pipeline, including a personalized cancer vaccine with Moderna.

AbbVie's second-quarter revenue grew 10.2% year-over-year to almost $17 billion, with adjusted EPS rising 22.9% to $3.65. Its core growth drivers, Skyrizi and Rinvoq, are performing well, with sales growing by about 24% year-over-year. AbbVie's pipeline includes promising candidates like zumilokibart for eczema and ABBV-295, an investigational long-acting anti-obesity medicine.

The company boasts a 54-year streak of consecutive dividend increases, making it a Dividend King, a rare achievement that ensures its commitment to returning value to shareholders.