Turbulent Times? Not with These Two Crisis-Resistant Dividend Pearls
The world is becoming increasingly uncertain, with global risks and uncertainties on the rise. But amidst this turmoil, there are two dividend-paying stocks that could provide investors with a sense of security. In this article, we’ll explore why AbbVie and Lockheed Martin are well-positioned to weather the storm.
A Crisis-Resistant Industry: Pharmaceuticals
The pharmaceutical industry is often considered one of the most crisis-resistant sectors. People will always need their medication, regardless of the economic situation or global conflicts. AbbVie, a US-based pharmaceutical company, is one of the largest players in this industry, with a market capitalization of $335 billion.
Despite the patent loss of its best-selling drug, Humira, AbbVie has managed to adapt and grow. The company’s stock price has increased by 28% over the past 12 months, driven by the success of its new immunology medications, Skyrizi and Rinvoq. These two drugs have shown impressive growth rates of 46% and 57%, respectively, in the first six months of 2024.
AbbVie’s oncology and neuroscience segments have also contributed to the company’s growth, with increases of 11% and 15% in the last quarter. The company’s quarterly revenue has risen to $14.5 billion, and its dividend yield currently stands at 3.3%.
A Beneficiary of Geopolitical Conflicts: Lockheed Martin
While many companies suffer from geopolitical conflicts, some benefit from them. Lockheed Martin, a US-based defense contractor, is one such company. The ongoing conflicts in the Middle East and the increasing tensions between China and Taiwan have created a new awareness of the importance of defense capabilities.
As a result, Lockheed Martin’s stock price has increased by 23% over the past 12 months. The company’s revenue has grown by 9% in the second quarter of 2024, reaching $16.7 billion. For the first half of 2024, Lockheed Martin’s revenue has increased by 11%, totaling $31.8 billion.
The company has also raised its outlook for the rest of the year, expecting revenue between $70.5 billion and $71.5 billion. This growth is driven by the increasing demand for defense systems and the company’s strong position in the market.
Conclusion
In times of uncertainty, it’s essential to invest in companies that can weather the storm. AbbVie and Lockheed Martin are two such companies, with their crisis-resistant industries and strong growth prospects. While the world may be becoming increasingly uncertain, these two dividend-paying stocks could provide investors with a sense of security and stability.
Image: Pharmaceuticals and defense industries are crisis-resistant
Image: AbbVie and Lockheed Martin logos
