My 2 Favorite Dividend Kings to Buy Right Now

Just when we thought things were going in a good direction, tensions in the Middle East escalated again. If things worsen, it may eventually impact broader equities. Even if that doesn't happen, it's always useful for investors to buy shares in solid, dividend-paying corporations that can perform relatively well -- and continue raising their payouts -- regardless of economic conditions.

Let's consider two excellent stocks that fit the bill: AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ). Both are Dividend Kings, or companies with at least 50 consecutive years of dividend increases. Here's why they are among my favorite stocks in this elite group to buy right now.

Image source: The Motley Fool.

1. AbbVie

AbbVie, a pharmaceutical leader, boasts a deep portfolio of medicines across several therapeutic areas. The company is best-known for its work in immunology, with its two growth pillars, Skyrizi and Rinvoq, performing even better than management had anticipated. They should maintain sales growth for a while, and by the time they run into patent cliffs, the drugmaker will almost certainly have found new growth drivers. AbbVie is developing promising products, including an investigational weight-loss medicine, ABBV-295, that performed well in early stage studies.

The anti-obesity market is growing rapidly, and AbbVie's candidate could prove a highly differentiated asset, as it can be administered monthly (the current leaders are taken weekly).

Further, AbbVie recently announced the acquisition of Apogee Therapeutics (NASDAQ: APGE), and its highly promising immunology candidate, zumilokibart, an investigational therapy for eczema. AbbVie has a deep pipeline beyond that and should make significant clinical and regulatory progress over the next few years.

Lastly, given its past as a division of Abbott Laboratories (NYSE: ABT), AbbVie has increased its payouts for an impressive 54 straight years. The company's current forward dividend yield is 2.8%, compared to an average of 1.1% for the S&P 500. AbbVie won't succumb to economic troubles, given that it offers products that are always in high demand. Income investors can count on this stock for consistent dividend growth.

2. Johnson & Johnson

Johnson & Johnson has a diversified healthcare business spanning pharmaceuticals and medical devices. It is also highly diversified within both niches. For instance, the company develops and markets products across immunology, oncology, neuroscience, and more. The drugmaker's deep portfolio of medical products makes it likely to handle whatever storm is coming much better than most other corporations. Johnson & Johnson is also a great option for long-term investors. The company routinely launches new products to overcome headwinds such as patent cliffs and government-led price negotiations.

Johnson & Johnson is looking to enter new areas with attractive prospects. The company is seeking clearance for Ottava, a robotic-assisted surgery device that could help it dip its toes in this underpenetrated market. Johnson & Johnson has survived recessions, depressions, significant regulatory changes in the healthcare sector, pandemics, and much more over its long and storied history -- and it still has a business that is solid enough to survive the next troubles, whatever they may be.

Lastly, the company has increased its payouts for 64 consecutive years, which makes it quite impressive even by the standards of Dividend Kings. Its forward dividend yield is 2.1%. All these factors make a strong case for Johnson & Johnson, especially for income-seeking investors.

Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.