What should investors do when stocks decline sharply in the short term? The optimal response is often to adopt a long-term perspective.

Three Motley Fool contributors believe they have identified excellent dividend stocks for long-term ownership that provide income while awaiting improved market conditions. Here is why they selected AbbVie, Amgen, and Eli Lilly.

A Dividend King Poised for Continued Success

Keith Speights (AbbVie): AbbVie's stock price has risen by double digits in 2025, unlike many others. Investors recognize that the pharmaceutical giant's offerings will remain essential, irrespective of economic or market fluctuations.

I appreciate AbbVie's resilience. The firm is recovering from the patent expiration of its former top seller, Humira. Yet AbbVie prepared thoroughly for this loss of exclusivity. Its two Humira successors, Rinvoq and Skyrizi, are positioned to produce combined sales exceeding Humira's peak levels.

AbbVie has also finalized several key acquisitions recently. These transactions introduced significant growth assets, such as the cancer treatment Elahere, the cosmetic therapy Botox, and the antipsychotic Vraylar.

Moreover, AbbVie's development pipeline looks strong. The company maintains over 90 programs in clinical stages, featuring late-stage candidates like the autoimmune drug lutikizumab and the multiple myeloma therapy etentamig.

Perhaps the strongest aspect of AbbVie remains its dividend. The forward yield stands at 3.25 percent. AbbVie qualifies as a Dividend King, having raised payouts for 53 straight years.

A Strong Dividend Growth Stock

Prosper Junior Bakiny (Amgen): Biotech leader Amgen has encountered challenges recently. It has occasionally struggled to expand organic revenue at a pace investors desire, and late last year the company experienced a clinical setback with its experimental weight management therapy, MariTide, which underperformed expectations in phase 2 trials. Still, these factors do not alter Amgen's long-term outlook.

The product portfolio has strengthened, aided by acquisitions. Growth contributors include Tepezza for thyroid eye disease, the asthma medication Tezspire, and additional therapies. Amgen's sales expansion appears secure and should accelerate as newer products gain approval and existing ones receive label expansions. Furthermore, Amgen's pipeline extends well beyond MariTide, even though that program may yet impact the expanding weight loss sector.

In addition, Amgen holds more than 30 candidates in phase 3 trials. The biotech should readily refresh its portfolio and sustain consistent revenue and earnings growth, consistent with its historical performance.

Amgen has also steadily increased dividends. Payouts have expanded by 201 percent over the past decade. The forward yield of 3.1 percent surpasses the S&P 500 average of 1.3 percent.

Amgen has so far resisted the market downturn seen this year. Regardless of whether it maintains that stance, the stock offers a solid choice for income-focused investors.

Eli Lilly Represents an Underrated Dividend Growth Opportunity

David Jagielski (Eli Lilly): Investors seeking a leading dividend stock might overlook Eli Lilly because of its yield below 1 percent. That choice could prove unwise. Although the current yield appears modest, the dividend has expanded substantially over time.

The company currently distributes a quarterly dividend of $1.50, more than double the amount from five years ago when the payout stood at $0.74. The firm has raised its dividend by 15 percent annually for seven consecutive years.

The stock would deliver a higher yield today if not for its elevated valuation. Over five years the share price has climbed 480 percent, and with dividends included total investor returns reach approximately 533 percent. By comparison, the S&P 500 delivered total returns of 135 percent over the same period.

Eli Lilly functions not only as a powerful growth company with major assets in Zepbound and Mounjaro, GLP-1 therapies producing billions in revenue, but also as an outstanding dividend growth holding suitable for a decade or longer. Although the valuation near 70 times trailing earnings may seem high, the rapidly expanding business combined with a strong dividend makes this holding appropriate for many portfolios.

Do Not Miss This Additional Chance at a Potentially Rewarding Opportunity

Ever sense that you missed the chance to purchase the most successful stocks? Then consider this.

On infrequent occasions our expert analysts issue a Double Down stock recommendation for firms they anticipate will advance sharply. If you worry you already missed the window to invest, the present moment offers the best opportunity to buy before it passes. The results illustrate the point:

Nvidia: an investment of $1,000 at the 2009 Double Down would now equal $244,570!*
Apple: an investment of $1,000 at the 2008 Double Down would now equal $35,715!*
Netflix: an investment of $1,000 at the 2004 Double Down would now equal $461,558!*

We are currently issuing Double Down alerts for three outstanding companies, and another opportunity may not arise soon.

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*Stock Advisor returns as of April 5, 2025

David Jagielski holds no positions in the stocks mentioned. Keith Speights holds a position in AbbVie. Prosper Junior Bakiny holds a position in Eli Lilly. The Motley Fool holds positions in and recommends AbbVie and Amgen. The Motley Fool maintains a disclosure policy.

The views and opinions expressed here belong to the author and do not necessarily represent those of Nasdaq, Inc.