The company’s seemingly never-ending growth has fueled 15 consecutive annual dividend increases, averaging 15% per increase over the past five years. Its dividend yield of 1.6% isn’t huge, but sustained double-digit growth creates significant income over time. Furthermore, the dividend consumes only 56% of the company’s cash flow. Because analysts estimate UnitedHealth will grow earnings by 15% annually over the long term, investors should reasonably expect dividend increases and price gains from the top stocks.

Shares of UnitedHealth declined after the CEO of the insurance segment was killed in early December, igniting the health insurance controversy in the United States. Lawmakers have since introduced potential legislation to take back the power that companies like UnitedHealth have in the industry, though it may not pass into law. The stock’s recent slide has pushed UnitedHealth’s valuation down to a forward P/E of 17, a bargain valuation that helps offset the company’s political risks.

Pharmaceutical company AbbVie (NYSE: ABBV) has remained a stalwart in healthcare for its ability to innovate and find new opportunities for growth. Although he was once part of it Abbott LabsAbbVie has thrived independently since its separation in 2013. Today, AbbVie’s portfolio of medicines includes treatments in immunology, oncology, cosmetics, neuroscience and eye care. The company has turned masterfully after losing patent protection for Humira, its former best-selling product, in 2023.

Few stocks offer high dividend yields and strong growth, but AbbVie does. The company is also a dividend king if you count its years with Abbott Labs, which is another impressive feat. AbbVie shares currently yield 3.4%, and the company has increased its dividend by an average of 8% annually over the past five years. Those increases have slowed in recent years, but that could change if growth picks up again. The stock’s dividend payout ratio is still manageable at 70% of cash flow.

AbbVie shares have fallen after its promising schizophrenia drug, the centerpiece of an $8.7 billion acquisition, failed to meet its primary endpoint in phase 2 trials. It was considered a future blockbuster for AbbVie. However, analysts still expect annualized earnings growth of around 9% over the long term. That’s enough growth to make AbbVie an easy buy at its current sub-15 P/E ratio.

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool recommends Medtronic and UnitedHealth Group and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has one disclosure policy.

3 Amazing Dividend Stocks to Buy in 2025 was originally published by The Motley Fool