3 Excellent Dividend Stocks to Buy on the Dip

Many investors are chasing life-changing gains by buying shares in top artificial intelligence companies. That makes sense. The industry could offer (and already has offered) multiple transformative investment opportunities. It's a great idea to try to capitalize on this. However, it's also important not to forget about other proven strategies for earning solid long-term returns, one of which is to invest in strong dividend-paying corporations. With that in mind, let's consider three dividend stocks that are worth buying right now: AbbVie (NYSE: ABBV), Walmart (NASDAQ: WMT), and Becton, Dickinson (NYSE: BDX).

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1. AbbVie

AbbVie, a leading pharmaceutical company, has not performed well this year. The company's shares are down 5% year to date. However, that has as much to do with broader weakness in the healthcare sector as anything AbbVie did wrong. In fact, the company's financial results have been pretty strong. The drugmaker exceeded expectations in the first quarter. Further, AbbVie's long-term outlook remains bright. The company's two main growth pillars, Skyrizi and Rinvoq, continue to defy expectations and should remain important growth drivers into the next decade.

AbbVie has several other important products, including its Botox franchise, among others. The company also has a deep pipeline, with several exciting products that could eventually become meaningful growth drivers, including in the weight loss market. AbbVie has overcome significant patent cliffs in the past and should do so again, thanks to its innovative qualities. Finally, AbbVie is a fantastic dividend stock. It is a member of the Dividend Kings, a group of companies that have achieved at least 50 consecutive years of payout increases. All these factors make AbbVie a solid dividend stock to buy and hold onto for a while.

2. Walmart

Walmart's shares dropped significantly after its latest earnings. Though its results were pretty good, the company's outlook did not inspire confidence. There is no question that Walmart may have a rough go of it in the near term. Broader economic problems, such as inflation and tariffs, may lead to lower foot traffic in its stores and overall unimpressive sales. However, it remains an excellent stock to buy and hold. Here are three reasons why. First, even in the current environment that will be unfriendly to much of the retail industry, Walmart should perform better than most of its peers thanks to its ability to offer competitive prices. Walmart is known for its Everyday Low Price guarantee, and combined with its significant retail footprint, it should help the company generate somewhat decent sales and earnings even if we enter a recession.

Second, Walmart is tapping into important long-term opportunities that should help improve its profits and margins. The company's higher-margin e-commerce operations have been growing faster than the rest of the business for years and are also helping it ramp up its digital advertising unit, another highly profitable business. Both e-commerce and digital advertising have a long runway for growth, and that's great news for Walmart. Finally, the company also has an impressive dividend track record. It has recorded 53 consecutive years of dividend increases, making it a Dividend King. Walmart is a great income play for investors focused on the long haul.

3. Becton, Dickinson

Becton, Dickinson has been facing challenges for years. Between broader economic problems and slow revenue and earnings growth, the company's shares have lagged the market. However, the stock could still deliver competitive returns -- especially with dividends reinvested -- for investors willing to be patient. Despite the headwinds it has faced, the medical device specialist remains a leader in its niche, providing a range of devices and tools healthcare professionals use regularly. The list includes items such as needles and syringes, specimen collection tools, infusion systems, and more.

Crucially, over 90% of the company's revenue is from recurring consumables. Also, the company has spun off several parts of the business -- including most recently its biosciences and diagnostic solutions segment. Getting rid of this lower growth unit should help boost the company's sales growth.

Further, Becton, Dickinson has several attractive opportunities, one of the most important being in the GLP-1 market. The company provides pharmaceutical leaders with prefillable syringes that patients use to inject themselves with GLP-1 medications. Becton, Dickinson set a goal of reaching $1 billion in GLP-1-related revenue by the end of the decade, and the company said earlier this year that it was almost halfway there. Beyond that, Becton, Dickinson's innovative qualities should help it pounce on other growth avenues. Finally, the company is also a Dividend King, having raised its payouts for 54 consecutive years. It'd be a great move for dividend seekers to buy this company's shares on the dip.

Prosper Junior Bakiny has positions in Walmart. The Motley Fool has positions in and recommends AbbVie and Walmart. The Motley Fool has a disclosure policy.