3 High-Yield Dividend Stocks to Buy and Hold Forever (Hint: AbbVie Makes the List)

Maximizing dividend income isn't all about chasing high yields. A company must have a healthy, growing business to generate the profits needed to pay dividends and raise them over time. A high dividend yield can even be a red flag, a trap that ultimately costs investors more than they bargained for.

Fortunately, there are some fantastic high-yield dividend stocks out there. That's especially true in healthcare. It's an evergreen industry, and an enormous one; in the United States, healthcare spending in 2025 reached $5.7 trillion.

These three healthcare stocks will pay you generously to hold them, and have the stability and growth to own them for the long haul. While AbbVie (NYSE: ABBV) tops this list, you don't want to miss the other two.

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1. AbbVie

The pharmaceutical industry is a major driver of the broader healthcare sector, and AbbVie is one of its top players. The company boasts an impressive portfolio spanning immunology, oncology, neuroscience, eye care, and aesthetics. AbbVie has increased its dividend for at least 50 consecutive years, dating back to its years as part of Abbott Laboratories. This impressive feat makes the stock a Dividend King.

AbbVie has proven capable of replenishing its drug portfolio as patents expire. It faced a significant threat when Humira lost patent exclusivity, but has continued to grow thanks to smart acquisitions and the success of newer drugs such as Skyrizi and Rinvoq. As a result, Wall Street analysts expect AbbVie to grow earnings by an average of 12% to 13% annually over the next three to five years.

Investors get an initial yield of 2.5% at AbbVie's current share price. Plus, the dividend is only 48% of the company's estimated 2026 earnings, so there's plenty of financial cushion in case the business sees an unexpected downturn. AbbVie is a textbook example of what long-term dividend investors should look for.

2. Medtronic

Medical devices are arguably just as crucial to healthcare as pharmaceuticals. Medtronic (NYSE: MDT) is one of the world's leading health technology companies, with over 41,000 active patent matters and 174 active clinical trials. It divides its business into three segments: cardiovascular, medical/surgical, and neuroscience. That said, the sheer breadth of its product portfolio has made Medtronic a very steady business for decades.

Medtronic has increased its dividend for 49 consecutive years, so it should soon join AbbVie as a Dividend King. There's plenty of room to raise the dividend, as the payout ratio is only 48% of 2026 earnings estimates. That doesn't even factor in the 5% to 6% annualized earnings growth analysts anticipate over the long term.

There could be upside to Medtronic's growth if it successfully establishes itself in robotics-assisted surgery. It could challenge the industry leader, Intuitive Surgical, with its new Hugo system over the coming years. Overall, Medtronic is the type of dividend investment that allows you to sleep well at night. The added upside of its Hugo system is an intriguing wildcard.

3. Bristol Myers Squibb

This list will circle back to the pharmaceutical industry with Bristol Myers Squibb (NYSE: BMY). BMS specializes in treatments across healthcare's most lucrative fields, including cardiovascular, hematology, immunology, neuroscience, and oncology. Shares currently yield 4.3%, offering investors tantalizing income for their portfolios from the jump.

But Bristol Myers Squibb is also riskier. Several of its key drugs will lose revenue to generic competition as their patents expire over the next few years. This situation, referred to as a patent cliff, creates a massive hole in sales that BMS will have to fill. Fortunately, the company's developmental pipeline is loaded. Management hopes to bring 10 new medicines to market by the end of the decade.

Wall Street is currently worried about growth. Analysts currently see earnings shrinking at an annualized rate of 1% over the long term. That could change with a blockbuster drug or two. Bristol Myers Squibb will have plenty of swings at bat as its pipeline matures over the next three to four years. In the meantime, the dividend is only 40% of 2026 earnings estimates, so there's a big cushion there. Priced at just 9 times forward earnings, the stock could look like a bargain in hindsight.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, Bristol Myers Squibb, Intuitive Surgical, and Medtronic. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.