With the stock market trading sideways since the start of summer, concerns are running high about a possible near-term downturn.
Rather than exiting the market, consider leaning into defensive names
Blue chip dividend stocks are a prime example. These durable, high-quality businesses provide steady cash payouts each quarter, all while leaving the door open for long-term price appreciation. Among dividend stocks in this category, a few stand out as strong opportunities right now: AbbVie (NYSE: ABBV), Chevron (NYSE: CVX), and PepsiCo (NASDAQ: PEP).
AbbVie’s comeback points to further dividend growth Pharmaceutical company AbbVie has raised its dividend annually since being spun off from Abbott Laboratories in 2013. A few years ago, the company entered a rough patch due to the then-pending expiration of patent exclusivity for its Humira anti-inflammatory treatment. However, thanks to the success of immunology therapies like Skyrizi and Rinvoq, AbbVie has experienced a rebound.