Three dividend-focused ideas for December: AbbVie (ABBV) offers defensive income and growth with a ~3% yield, 53 consecutive years of dividend hikes, a modest forward P/E of 16.8 versus the healthcare sector’s 18.7, and strong top-line momentum from autoimmune drugs Rinvoq and Skyrizi (combined sales +40% YoY) that help offset Humira’s loss of exclusivity. Ares Capital (ARCC), a business development company, yields north of 9.1%, has a 16+-year record of stable or rising payouts, has outperformed the S&P on total returns since its 2004 IPO, and sees expanding opportunity in a roughly $5.4 trillion direct-lending market alongside accelerating deal flow. Enbridge (ENB) combines a ~5.8% yield with 30 years of consecutive increases, double-digit YTD share gains, low commodity-price exposure (≈80% of EBITDA inflation-protected), and about $50 billion of growth opportunities to 2030—roughly half in gas transmission—supporting durable cash flow and dividend coverage.
AbbVie presents a defensive healthcare income opportunity with a dividend yield slightly above 3% and a 53-year streak of increases; its shares have risen this year, which reduced the yield, yet the stock still trades at a modest forward P/E of 16.8 versus the healthcare sector average of 18.7. Revenue momentum is concentrated in two autoimmune drugs, Rinvoq and Skyrizi, whose combined sales rose more than 40% year over year in the latest quarter, partially offsetting the 2023 U.S. loss of exclusivity for Humira and validating prior R&D and acquisition investments. Ares Capital offers an ultra-high forward dividend yield exceeding 9.1% and a track record of 16+ years of maintained or rising payouts, and its total returns since the 2004 IPO have outpaced the S&P 500 by over 40%. The BDC underperformed in 2025 to date, but management reports accelerating deal volumes — September was the busiest month this year — and a large direct-lending addressable market estimated at $5.4 trillion, supporting medium-term growth prospects while leaving near-term credit and market-risk exposure as key considerations. Enbridge combines a roughly 5.8% dividend yield with 30 consecutive years of increases and double-digit year-to-date share appreciation, supported by a business model with minimal commodity-price sensitivity and about 80% of EBITDA protected from inflation. The company’s scale as North America’s largest natural gas utility and pipeline operator underpins a stated $50 billion growth pipeline to 2030, roughly half from gas transmission, aligning its cash flow profile with secular demand drivers such as data-center buildout and coal-to-gas conversions.
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mildly positive
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0.32
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