Long-term investors shouldn’t overlook this top pharma stock and top medical device maker.
AbbVie is seeing impressive growth from both its immunology portfolio and neuroscience products.
Medtronic is known for its innovative medical devices, and has been a faithful dividend payer.
Healthcare is generally a very defensive sector, which means that its performance is less tied to economic cycles compared to other industries. This is because demand for healthcare services, medications, and medical devices tends to be relatively steady regardless of the economic climate.
This inherent stability can provide a certain degree of resilience during periods of market volatility or economic slowdowns. Healthcare stocks can also be a great addition overall to a well-diversified stock portfolio. If you have cash to put to work in healthcare stocks that you intend to buy and hold for at least 10 years, here are two names to consider right now.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
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AbbVie (NYSE: ABBV) has effectively navigated the loss of exclusivity for its key drug Humira by shifting its focus to newer products.
The pharma company’s newer immunology drugs, Skyrizi and Rinvoq, have delivered robust sales growth that’s proving to be the tide that lifts all boats. Newer neuroscience products like Vraylar and migraine treatments Ubrelvy and Qulipta are also contributing to AbbVie’s continued growth.
Importantly, the company has also secured a patent settlement with generic drugmakers for Rinvoq, which extends the drug’s patent exclusivity in the U.S. until 2037. The drug is also being investigated for new indications for conditions such as alopecia areata and systemic lupus erythematosus,
So there’s a durable growth runway for AbbVie’s top and bottom lines still ahead. Management thinks that Rinvoq will hit $11 billion in annual revenue by 2027, and Skyrizi will hit the $20 billion mark.
AbbVie just completed the $1.2 billion acquisition of bretisilocin from Gilgamesh Pharmaceuticals. The acquisition allows AbbVie to advance bretisilocin, a drug candidate for major depressive disorder that has a shorter half-life than traditional psychedelics, into later-stage clinical development. The drug is intended for patients with depression who have found other treatments ineffective, which remains a significant area of need in this field of medicine.
In second-quarter 2025, AbbVie reported worldwide net revenue of $15.4 billion, a 6.6% increase year over year. Immunology net revenue rose 9.5% year over year, largely due to strong sales of Skyrizi and Rinvoq. Its neuroscience portfolio also saw significant growth, with a 24.2% year-over-year spike in revenue. Currently, the company has approximately 90 research and development programs.
As icing on the cake, AbbVie is a long-term dividend payer. If you include its history as part of its former parent company, Abbott Laboratories, AbbVie is considered a Dividend King that has increased its dividend for over 50 consecutive years. It currently yields about 2.8%. If you’re looking for a healthcare stock to buy and hold for at least 10 years, AbbVie is certainly worthy of immediate consideration.
Ireland-based Medtronic (NYSE: MDT) boasts a diversified portfolio of medical devices across four primary business segments: Cardiovascular, medical surgical, neuroscience, and diabetes.
The company sells its high-margin products to hospitals and healthcare providers in more than 150 countries. The cardiovascular business was Medtronic’s largest segment in fiscal year 2025, and generated about $12.5 billion in revenue. This segment includes devices for managing heart rhythm and failure, such as pacemakers and defibrillators, and products for structural heart, aortic, and vascular diseases.
Medtronic’s neuroscience segment produces therapies including neurostimulation devices for chronic pain and movement disorders, spinal implants, and neurovascular products. In fiscal 2025, this portfolio generated over $9.8 billion. The cardiovascular and neuroscience segments alone accounted for almost 70% of Medtronic’s overall 2025 revenue, which rose 4.9% on an organic basis. Those growth rates are fairly normal for a business of Medtronic’s scale and maturity, but it’s looking ahead toward new growth tailwinds.
In February, the U.S. Food and Drug Administration (FDA) approved Medtronic’s BrainSense adaptive deep brain stimulation system for people with Parkinson’s disease. This approval made it the first such system to be able to continuously monitor brain activity and adjust the electrical stimulation in real time to better manage symptoms like stiffness and involuntary movements.
Medtronic makes money from its diabetes management products, but in May it announced its intent to separate this business into a new stand-alone public company. The diabetes business has lower profit margins than Medtronic’s other divisions, so separating it allows the company to intensify its focus on these high-margin growth drivers and simplify its portfolio.
In August, activist investment firm Elliott Investment Management revealed that it had taken a significant stake in Medtronic. Now that Elliott is involved with Medtronic, investors can likely expect upcoming announcements related to growth initiatives, acquisitions, and cost-cutting measures. Following what it called “constructive engagement” with Elliott, Medtronic appointed two new board members and created dedicated committees to improve growth and operational efficiency.
Investors will have to wait and see what those changes look like in practice. That said, this is a storied medical device business with an expansive portfolio of products. Its pipeline and the upcoming spinoff of its slow-growing diabetes business are green flags for the business.
Medtronic also pays a dividend, which has a yield that has been pushed up to about 3% given recent lackluster share price performance. Medtronic has a nearly 50-year track record of boosting its dividend. Long-term investors with a decade buy-and-hold horizon should take a second look at this stock.
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Rachel Warren has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.
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