Pharma Stocks AbbVie and Merck Offer Dividend Resilience

Investors may be wise to consider two dividend stocks that have proven resilient in challenging times: AbbVie and Merck. These pharmaceutical giants offer essential products and have navigated patent cliffs successfully.

A key reason why AbbVie stands out is its diverse pipeline, which includes investigational weight-loss medicine ABBV-295 and other promising products. The company has already begun planning for when its immunology drugs Skyrizi and Rinvoq lose patent exclusivity.

AbbVie's financials are also strong, with revenue increasing 10% year over year in the second quarter to $17 billion. Adjusted earnings per share were up almost 23%, and the company is a Dividend King with at least 50 straight annual payout increases.

Merck has also performed well this year, with financial results improving compared to 2025. The company's HPV vaccines Gardasil and Gardasil 9 saw combined sales grow 4% year over year to $1.2 billion, while Keytruda sales grew 5% to $8.4 billion.

Both companies have strong dividend programs, with AbbVie offering a forward yield of around 3.5% and Merck offering a 2.5% yield versus the S&P 500 average of about 1%.