Beat the Nasdaq With This Cash-Gushing Dividend Stock

Earning returns on par with the Nasdaq Composite is simple enough: Just invest in exchange-traded funds (ETFs) that track the index. But what if you want to do even better than the Nasdaq? Building a portfolio that can outpace it isn't easy. If I were to give it a shot, though, I'd seriously consider including (NYSE: ABBV). This drugmaker might have what it takes to beat the Nasdaq, partly thanks to its robust dividend program.

AbbVie is among an elite group of companies known as Dividend Kings, which have raised their payouts for more than 50 years. The pharmaceutical leader's streak is currently at 52 when including the time it spent under the wing of its former parent company, Abbott Laboratories. And since it split from Abbott in 2013, AbbVie has raised its payout by 288%. The ability to maintain a solid dividend program for years is an incredibly attractive quality to long-term investors.

First, it says a lot about the company's underlying business. There will always be unforeseen risks and setbacks, economic issues, geopolitical troubles, pandemics, and so on. Any corporation that can continue hiking its dividend despite all that, as AbbVie has done, likely has at least some of the qualities of a forever stock. Second, while it's hard for dividends to replace a person's entire salary -- you'd need millions invested for that -- reinvesting the dividend can work wonders on long-term returns.

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Source Fool.com