2 Dividend Stocks to Buy for a Lifetime of Passive Income

Healthcare Industry Overview - Defensive industries like healthcare are attractive to income investors due to their resilience during economic downturns, as medical needs are non-optional [2] - The healthcare sector is home to many excellent dividend stocks, including Merck and Medtronic [2] Merck (MRK) - Merck's shares are down by 4% this year, partly due to investor concerns about potential competition for its key cancer drug, Keytruda [3] - Keytruda, Merck's largest growth driver, faces competition from Summit Therapeutics' ivonescimab in non-small cell lung cancer (NSCLC) [3] - Keytruda will lose patent exclusivity in the U.S. in 2028, but its revenue is expected to grow until then due to FDA approvals across multiple indications [4] - Merck is developing a subcutaneous version of Keytruda, which will retain exclusivity post-2028 [4] - The company has a robust pipeline with several dozen programs and has expanded through acquisitions, such as Acceleron Pharma, leading to the approval of Winrevair for pulmonary arterial hypertension [5] - Merck collaborates with smaller companies, including Moderna, on a personalized cancer vaccine [6] - Merck's dividend payouts have increased by 71% over the past decade, with a forward yield of 2.96%, higher than the S&P 500 average of 1.32% [6] - Merck remains a reliable income stock with a strong dividend record [7] Medtronic (MDT) - Medtronic has increased its dividend payouts for 47 consecutive years, showcasing its strong business model [8] - The company operates in over 100 countries and offers a wide range of medical devices across several categories [8] - Medtronic's diabetes care segment, particularly its MiniMed 780G insulin pump with meal-detection technology, is a significant growth driver [9] - The company is developing the Hugo robotic-assisted surgery system, which could benefit from the growing demand for minimally invasive surgeries due to the aging population [9][10] - Medtronic has faced challenges in revenue growth recently but is expected to recover and continue increasing its dividend payouts in the long term [11]