The attraction of these dividend stocks isn’t limited to their dividends.
Some decisions are tough to make. Others are so easy that they don’t require much thought and are practically no-brainers.
Three Motley Fool contributors believe they’ve identified dividend stocks to buy in September that fall into the latter category. Here’s why they picked Abbott Laboratories (ABT 0.81%), AbbVie (ABBV -0.85%), and Eli Lilly (LLY -0.20%).
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A tremendous track record of stability and dividend growth
David Jagielski (Abbott Laboratories): A top blue chip dividend stock to hold for the long term is that of Abbott Laboratories. It may not be the flashiest stock or have the highest dividend yield, but the long-term stability and consistency it offers investors makes it a no-brainer option for not only years but potentially decades.
Currently, the stock pays 1.8%, which is a bit higher than the S&P 500 average of 1.2%. It’s not a huge yield by any means, but the big payoff for investors is from simply hanging on to the stock. That’s because Abbott Laboratories is a Dividend King — it has been raising its dividend for decades. Last December, it announced a 7.3% increase to its payout, and with the significant bump up, Abbott extended its streak to 53 consecutive years of increases. And the healthcare company has been generous with its increases; the stock’s dividend has risen by over 60% since 2020.
The company’s fundamentals also look solid, which is key when selecting a quality dividend stock. This year, excluding COVID-19 testing sales, its revenue will grow at an organic rate between 7.5% and 8%. Its broad business encompasses pharmaceuticals, nutrition, diagnostics, and medical devices. As a leading company in the healthcare industry with many ways to grow in the long run, Abbott makes for a great income-generating investment to buy and hold.
Checking all the boxes — income, growth, and value
Keith Speights (AbbVie): AbbVie was spun off from Abbott Laboratories in 2013, and inherited its impressive track record of dividend increases. Its current forward dividend yield of roughly 3% is well above its parent company’s, though, making AbbVie a great choice for income investors.
Growth investors have something to like about this stock, too. AbbVie quickly shook off any effects from the patent cliff it faced in 2023 with its former top-selling drug, Humira. Its shares have outperformed the S&P 500 so far in 2025, and over the last five years.
Even better, AbbVie expects to deliver solid earnings growth through the rest of the decade. Soaring sales for Skyrizi and Rinvoq, its two successors to Humira, should help the company meet its goals. The company also has other big winners, including cancer drug Elahere and migraine therapies Qulipta and Ubrelvy. Vyalev, which was approved by the U.S. Food and Drug Administration in October 2024 for treating Parkinson’s disease, has built strong sales momentum as well in its first year on the market.
Is AbbVie an attractive stock for value investors, too? Yep. The big drugmaker’s shares trade at only 15 times forward earnings. Its price-to-earnings-to-growth (PEG) ratio, which reflects analysts’ five-year projections for earnings growth, is a super-low 0.4.
Few stocks offer something for income, growth, and value investors. But AbbVie checks all the boxes.
Much more than just a weight loss stock
Prosper Junior Bakiny (Eli Lilly): Over the past few years, Eli Lilly has dominated the headlines in the pharmaceutical industry, and with good reason: The drugmaker has established itself as the leader in the rapidly expanding weight loss market. Both Lilly’s lineup, with brands like Mounjaro and Zepbound, and its pipeline in this field look incredibly exciting.
The company has generated strong revenue and earnings growth in recent quarters, and is likely to continue doing so. However, it would be a mistake to think that Eli Lilly is just a weight loss stock. The company has a lot more to offer. Its lineup features blockbusters outside of its area of expertise, including cancer treatment Verzenio. Recent approvals, such as Ebglyss for eczema, could also achieve over $1 billion in annual sales at their peak.
Then there’s the pipeline, which boasts promising programs beyond diabetes and obesity. Lilly’s investigational drug lepodisiran completed phase 2 studies in reducing lipoprotein(a), a substance in the body that, in high concentrations, is strongly linked to various cardiovascular problems. So along with excellent financial results, investors can expect robust clinical and regulatory progress in the foreseeable future.
Lastly, the stock is an excellent pick for income seekers. It’s true that Lilly’s forward yield is a modest 0.8% — but the company has increased its dividend by an impressive 200% in the past decade. Eli Lilly’s excellent business and remarkable dividend track record make it a no-brainer stock to buy.