AbbVie (ABBV) and Bristol Myers Squibb (BMY) are emerging as standout dividend-paying stocks in the high-capital-expenditure pharmaceutical sector, which typically deters income investors. AbbVie, a Dividend King, has consistently raised its dividend for over 50 years and has successfully navigated the loss of patent exclusivity for Humira by introducing next-generation treatments like Skyrizi and Rinvoq, which generated nearly $7.4 billion in revenue last quarter. This robust performance supports a quarterly dividend of $1.73 per share, yielding 3.4%.

Bristol Myers Squibb faces similar patent challenges but is focusing on innovation within its oncology portfolio, which saw a 16% revenue increase last quarter, offsetting declines from legacy products. The company projects annual revenue between $46 billion and $47.5 billion for 2023, with a solid free cash flow of $12.8 billion, ensuring its 4.4% dividend remains secure despite potential pressures.

For investors seeking reliable income, both AbbVie and Bristol Myers Squibb offer compelling opportunities, particularly for those with a long-term investment horizon.

Source: fool.com