Back to top

Image: Bigstock

Defensive Dividends: 3 Companies Investors Can Rely On

Key Takeaways

  • To be a Dividend King, a company must increase its dividend payout for at least 50 consecutive years.
  • KO, ABBV, and JNJ all clear the threshold, with each outperforming the S&P 500 in 2026.
  • The trio boasts a strong defensive nature given consumers' needs for their products no matter the backdrop.

When seeking reliable dividend payouts, look no further than the Dividend Kings. Several members of the elite club, including Johnson & Johnson (JNJ - Free Report) , Coca-Cola (KO - Free Report) , and AbbVie (ABBV - Free Report) , are known for their reliability, each boasting a long, consistent history of paying dividends.

The trio has also outperformed relative to the S&P 500 in 2026 so far, with quarterly results from each remaining solid.

Zacks Investment Research
Image Source: Zacks Investment Research

Coca-Cola Keeps Consumers Interested

Most are highly familiar with Coca-Cola’s products, which boast a market share of more than 40% in the non-alcoholic beverage industry. It has continued to post solid growth despite being highly mature, with 16% YoY volume growth in Coca-Cola Zero Sugar in its latest period showing its ability to keep consumers interested.    

Coca-Cola is a somewhat mature member of the Dividend King group, with nearly 55 years of consecutive dividend increases under its belt. Shares currently yield a solid 2.4% annually, crushing the current yield of the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

AbbVie Dividend Keeps Growing

AbbVie is a pharmaceutical powerhouse that separated from Abbott Laboratories, inheriting an impressive multi-decade streak of consecutive dividend increases. Its growth is anchored by industry-leading immunology drugs and a rapidly expanding oncology and aesthetics portfolio.

Shares currently yield the highest of the trio, paying out roughly 2.6% annually. Dividend growth has been rock-solid, as the company sports a 5.7% five-year annualized dividend growth rate.

Zacks Investment Research
Image Source: Zacks Investment Research

JNJ Surpasses The 60-Year Mark

Johnson & Johnson’s biggest strength is its diversified business model, with more than 275 subsidiaries that provide a strong shield against economic fluctuations. It can reliably generate sales regardless of the economic backdrop, making it a top-tier option for those seeking a layer of defense paired with predictable dividend payouts.

JNJ is well past the Dividend King threshold, with over 60 consecutive years of increased payouts reflecting its ability to consistently reward shareholders throughout its long history. Shares yield 2.0% annually, nearly double the S&P 500's current yield.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Johnson & Johnson (JNJ - Free Report) , Coca-Cola (KO - Free Report) , and AbbVie (ABBV - Free Report) are all extremely reliable dividend payers for those seeking income, and when combined, investors can have a portfolio that pays nearly monthly given their staggered payouts.

All three also offer strong defense across many economic environments given their ‘staply’ nature, another huge benefit for those looking to reduce overall volatility.

Published in