2 Magnificent Dividend Growth Stocks to Load Up On Right Now

Core Insights - Dividend stocks have historically contributed approximately two-thirds of total market returns since 1900, highlighting their importance in investment strategies [1] - Companies that consistently increase dividends tend to exhibit strong revenue growth and robust free cash flows, making them resilient across various market conditions [2] Group 1: AbbVie - AbbVie is recognized as a leading dividend grower in the pharmaceutical sector, with a 13.6% annual dividend growth rate over the past decade [5] - The company has raised its sales forecast for its newer drugs Rinvoq and Skyrizi to $31 billion by 2027, up from $27 billion [4] - AbbVie maintains a high payout ratio of 259%, which is typical for pharmaceutical companies due to the cyclical nature of drug development [6] - The company's revenue is projected to grow by 4.6% in 2024 and 5.7% in 2025, despite facing challenges with its oncology drug Imbruvica [7] Group 2: S&P Global - S&P Global is a significant player in the financial markets, known for its credit ratings and data analytics, benefiting from high switching costs and network effects [8] - The company has achieved an 11.7% annual dividend growth rate over the last ten years while maintaining a conservative payout ratio of 29% [9] - S&P Global's fourth-quarter revenue increased by 14% to $3.59 billion, driven by a 54% rise in ratings transaction revenue [10] - The company's market intelligence segment showed a 16% growth in enterprise solutions, indicating strong performance [10][11] Group 3: Investment Characteristics - Companies like AbbVie and S&P Global share essential traits such as durable competitive advantages and strong cash flows, making them attractive for long-term dividend growth [12]