2 Healthcare Dividend Stocks to Buy as the Tech-Heavy Nasdaq Dips Below Correction Territory

Many tech stocks have moved lower, along with the tech-heavy Nasdaq Composite, in recent months. This is partly because there are growing fears of a recession. While some beaten-down companies could eventually bounce back -- making them worth sticking with for those with a long investment horizon -- some investors are choosing to rotate their cash into more stable companies, perhaps because they are relatively close to retirement and are looking to avoid significant volatility.

For investors on the hunt for more stable stocks, let's consider two in the healthcare sector that may be worth buying right now: AbbVie (NYSE: ABBV) and Amgen (NASDAQ: AMGN).

Image source: Getty Images.

1. AbbVie

AbbVie is a leading pharmaceutical company with a drug portfolio that spans multiple therapeutic areas. The company's immunology lineup features Skyrizi and Rinvoq. In oncology, it markets medicines such as Imbruvica and Venclexta, while its neuroscience portfolio includes Qulipta, a migraine drug. None of these products is the kind patients will stop taking even if a recession hits and the purse strings tighten.

That makes AbbVie a relatively safe stock to own during downturns. The company also boasts excellent long-term prospects. AbbVie's biggest growth drivers, Skyrizi and Rinvoq, have impressed even management, which has increased its guidance for the duo multiple times. AbbVie now expects Skyrizi and Rinvoq to surpass $31 billion in combined sales in 2026, a year ahead of schedule.

AbbVie's Botox franchise is also performing well. The company's management once argued that due to the complexity of the molecule, it's unlikely we will see a biosimilar version of Botox. That, combined with the strong brand name it has built over the years make it an important product for AbbVie's future, and the company could generate consistent revenue from this franchise for a very long time.

Meanwhile, AbbVie should also launch newer products, given its deep and diversified pipeline. And finally, AbbVie is a great income stock given its status as a Dividend King, a company with at least 50 consecutive annual payout increases. All these factors make AbbVie stock an excellent pick for investors looking to manage portfolio volatility.

2. Amgen

Amgen is another leading drugmaker whose business should remain stable in tough economic times. The company has encountered its share of challenges of late, including the loss of patent exclusivity for one of its growth drivers last year, Prolia, a medicine for osteoporosis (a bone disease). That said, Amgen has a vast portfolio and an even more attractive pipeline. Products such as Tezspire for asthma and Repatha, a cholesterol-lowering medicine, continue to drive sales growth.

Meanwhile, Amgen is developing new medicines such as MariTide, an investigational GLP-1 therapy currently in phase 3 trials. MariTide could be Amgen's way of cashing in on the vast and growing weight loss market. Over the next few years, Amgen should make meaningful clinical progress and launch several new medicines, even beyond the highly promising weight management area.

Lastly, Amgen is also a solid dividend stock. Though it isn't a Dividend King, the biotech has increased its payouts every year since initiating one in 2011. That's the sort of track record investors can trust will stay intact even in a recession, especially given Amgen's robust underlying business.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Amgen. The Motley Fool has a disclosure policy.