Dividend stocks play a vital role for investors aiming to enhance their overall portfolio returns through a combination of share price appreciation and regular income payouts. Companies that demonstrate stable profitability alongside strong cash flow generation often possess the financial stability necessary to sustain and grow their dividends over time.
For those looking to increase their holdings in dividend-paying equities, two companies stand out based on their historical performance and financial fundamentals: Costco Wholesale and AbbVie. Both have exhibited a pattern of consecutive dividend increases and maintain operations that underpin their ability to deliver shareholder returns.
Costco Wholesale: A Blend of Modest Regular Dividends and Exceptional Special Payouts
Costco Wholesale has exhibited a track record of raising its regular quarterly dividend every year for over 20 years, featuring a current annual regular dividend of $5.20 per share. The latest quarterly regular dividend payment, issued in November 2025, amounted to $1.30 per share. Besides this recurring payout, Costco is recognized for distributing significant special dividends in certain years, including $15 per share in December 2023 and $10 per share in December 2020, reflecting its approach to sharing excess cash with shareholders selectively.
While the company’s dividend yield remains relatively low at under 1 percent, this stems largely from a substantial appreciation in Costco’s stock price over time, driven by its robust business results outpacing dividend increases. Instead of elevating regular dividend levels aggressively, Costco tends to reinvest a significant portion of its profits and opt for large, sporadic special dividends to reward shareholders.
The foundation of Costco’s dividend strategy lies in its membership-based business model, which generates high-margin, dependable cash flows. In the first quarter of fiscal 2026, membership fees exceeded $1.3 billion. This consistent revenue stream allows Costco to maintain operational efficiencies with thin warehouse margins and pass the savings along to members, fostering strong customer loyalty as witnessed by renewal rates around 92 percent in key markets like the U.S. and Canada.
In the fiscal year ending August 31, 2025, Costco achieved revenues of $275.2 billion, representing an 8.2 percent year-over-year increase. The most recent quarter mirrored similar growth, with revenues of $67.31 billion, up 8.3 percent year over year. Net income for fiscal 2025 reached $8.1 billion, a 10 percent improvement over the prior year, with first-quarter net income for fiscal 2026 at $2 billion, marking an 11 percent increase from the corresponding quarter a year earlier.
Costco’s curated product selection strategy, with roughly 4,000 SKUs compared to many more at typical retailers, grants it significant leverage over suppliers and enhances operational effectiveness. Complementing this are services such as gas stations, optical centers, and expanding e-commerce offerings, which introduce additional revenue avenues and decrease dependence on any single product category.
AbbVie: Consistent Dividend Growth Supported by Diverse Pharmaceutical Portfolio
AbbVie boasts a dividend increase streak surpassing five decades, with 54 consecutive years of annual dividend growth placing it among the elite Dividend Kings. Its forward annual dividend of $6.92 per share delivers a yield near 3 percent, markedly exceeding the S&P 500’s average dividend yield of 1.1 percent.
Managing the erosion of patent protection for its former blockbuster drug Humira, AbbVie has effectively expanded sales in newer immunology medications, notably Skyrizi and Rinvoq. Forecasts anticipate these two drugs achieving combined sales surpassing $31 billion by 2027. They are approved for various inflammatory and autoimmune conditions, including psoriasis, Crohn's disease, and ulcerative colitis. Notably, a recent patent litigation settlement for Rinvoq extends its exclusivity in the U.S. through 2037.
AbbVie’s business spans multiple therapeutic areas including immunology, neuroscience, oncology, and aesthetics. Its acquisition of ImmunoGen in 2024 added a prominent antibody-drug conjugate platform, enhancing AbbVie’s cancer treatment portfolio. This acquisition included Elahere, an ovarian cancer drug, and strengthened AbbVie's pipeline for next-generation therapies targeting solid tumors and blood cancers. The integration of ImmunoGen's assets is anticipated to improve AbbVie's earnings from 2027 onward.
The company reported a 20 percent increase in revenue from its neuroscience segment in the third quarter of 2025, driven by treatments such as Vraylar for bipolar I disorder and major depressive disorder, and migraine medications Ubrelvy and Qulipta.
Among its pipeline prospects, AbbVie is advancing tavapadon, a novel dopamine receptor agonist developed through its acquisition of Cerevel Therapeutics, intended for Parkinson’s disease. Having filed for FDA approval, tavapadon represents a potential once-daily oral treatment covering both early and advanced stages of the disease. It has demonstrated efficacy in reducing motor symptoms and may address gaps in treatment efficacy during off periods experienced with current therapies.
In the third quarter of 2025, AbbVie generated worldwide net revenues of $15.8 billion, reflecting a 9.1 percent year-over-year increase. Over the trailing twelve months ending September 30, 2025, revenues totaled $59.6 billion. Although net income figures can fluctuate because of one-time charges related to acquisitions, AbbVie's consistent operational cash flow remains strong, approximating $19 billion annually as of 2024.
Conclusion
Both Costco Wholesale and AbbVie offer compelling cases for investors seeking to amplify their dividend income through shares of companies with proven records of dividend growth underpinned by strong financial results. Costco’s unique combination of modest regular dividends supplemented by special payouts, supported by stable membership fees and efficient operations, contrasts with AbbVie’s medicinal innovation-driven growth and higher dividend yield marked by steady increases. Each company demonstrates resilience and strategic positioning that contribute to shareholder value over time.