3 Dividend Stocks That Are No-Brainer Buys Right Now, Starting With This Healthcare Giant

When it comes to long-term success with dividend investing, you need to focus on criteria beyond just yield. While some high yield dividend stocks can be worth the risk, there are plenty that are trading at a high yield for a good reason.

That is, either they are at risk of cutting or suspending their payouts, and/or other risks may lead to stock price declines that outweigh the returns generated by their large payouts. So, instead of focusing on yield alone, consider criteria such as dividend coverage and dividend growth, along with metrics like valuation.

Taking all of these into account, three blue chip dividend stocks stand out as strong, dare I say, "no brainer," buys right now: AbbVie (NYSE: ABBV), Realty Income (NYSE: O), and Procter & Gamble (NYSE: PG).

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Further runway for AbbVie post-Humira

Several years ago, uncertainty ran high about AbbVie, mostly due to concerns about the impact of losing patent exclusivity for its flagship drug product, the rheumatoid arthritis treatment Humira. Yet while this did hurt AbbVie's revenue and earnings after exclusivity ended in 2023, the company has staged a comeback, largely thanks to the success of the anti-inflammatory drugs Skyrizi and Rinvoq.

Last quarter, for instance, Skyrizi sales topped $5.5 billion, a 24% jump from the prior year's quarter. For Rinvoq, sales came in at $2.5 billion, a 25% year-over-year increase. Alongside success with new drug products, AbbVie continues to soften the blow by further building its immunology pipeline through acquisitions. A strong example is the company's recently completed acquisition of Apogee Therapeutics for 11 billion.

Although one-time in-progress research and development (IPR&D) charges from these acquisitions are impacting GAAP earnings, based on 2027 earnings forecasts, AbbVie's 2.7% dividend appears well covered. The stock has a forward payout ratio of around 42.3%. AbbVie has also raised its dividend each year since its spin-off from Abbott Laboratories in 2013.

Dividend growth has averaged 6.8% over the past five years. Trading for around 16 times forward earnings, AbbVie is in the middle of the pack when it comes to the valuation of pharmaceutical stocks. Still, while there's uncertainty over whether Apogee and other deals ultimately add more blockbuster drugs to its pipeline, the stock could continue to bounce back. Coupled with the dividend, this could lead to solid returns for AbbVie investors.

Realty Income: A steady monthly income stream

Monthly dividends are a distinct feature of shares in the Real Estate Investment Trust (REIT), Realty Income. However, that's not all. This net-lease property REIT also has an over three-decade track record of dividend growth.

Currently, Realty Income has a forward dividend yield of around 5.5%. However, there are a few caveats to consider, specific to this type of stock. Due to it prioritizing cash flow, long-term growth is not particularly high, with the latest increases to the monthly dividend coming in at a fraction of a cent per share.

Shares in this REIT have also experienced turbulence in recent years, due to the run-up in interest rates. Still highly rate-sensitive, further rate hikes could trigger further near-term volatility. That said, for income-focused investors, the relatively higher yields account for this. Also, Realty Income's current dividend strategy isn't leaving it stretched too thin.

Instead of the traditional payout ratio, which measures dividends against net income, investors typically use a different figure, measuring dividends against adjusted funds from operations (AFFO) to assess dividend health. Realty Income, whose leases typically have built-in annual lease rate increases, pays around 73% of its AFFO as dividends, within what's considered the "healthy range" for REIT stocks.

Management is also guiding for 3% to 3.7% AFFO growth this year. As AFFO growth exceeds dividend growth, this will further strengthen ability to remain one of the best monthly dividend stocks.

Procter & Gamble remains positioned to stay a Dividend King

Income-focused investors consider Dividend Kings, or stocks with at least 50 years of consecutive dividend growth, some of the highest-quality dividend stocks around. Procter & Gamble is not only a Dividend King. With a 70-year track record of raising its payouts each year, it's within the top tier of this already-exclusive club.

Currently, Procter & Gamble shares have a 3% forward dividend yield. Over the past five years, dividend growth has averaged between 4% and 5%. Although this consumer products company, best known for brands like Gillette and Tide, only implemented a 3% dividend increase for 2026, much suggests that this dividend growth slowdown may prove temporary.

Management may have implemented a modest increase in light of near-term headwinds related to recent geopolitical events. As discussed in management guidance for its fiscal 2027, the company expects factors like "higher raw materials, energy, and transportation costs" to have a 56 cent per share, or 8%, drag on earnings growth.

However, as macroeconomic conditions normalize, Procter & Gamble, a defensive business with steady demand drivers, will likely get back to prior high single-digit levels of annual earnings growth. In the meantime, with a forward payout ratio of around 62.5%, P&G has the earnings and cash flow necessary to sustain its Dividend Kings status. Trading at around 21 times forward earnings, slightly below its 10-year average valuation, shares could rerate to a mid-20s forward multiple once the headwinds clear, as has occurred during periods of stronger growth.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and Realty Income. The Motley Fool has a disclosure policy.