Why I Just Bought More of These 2 High-Yield Dividend Stocks in My Retirement Account and Expect to Continue Loading Up on Their Shares in 2025

As a retiree, I'm always on the lookout for high-yield dividend stocks to add to my retirement portfolio. Recently, I've been loading up on two specific stocks that I believe will continue to be strong performers in 2025. In this article, I'll share why I'm bullish on these two dividend stocks and why I expect to keep adding to my positions in the coming year.

1. AbbVie (NYSE:ABBV) - Yield: 3.8%

AbbVie is a pharmaceutical company that has consistently increased its dividend over the years. The company has a strong track record of dividend growth, with a 5-year annualized dividend growth rate of 17.2%. AbbVie's dividend growth is driven by its robust cash flow generation, which is supported by its successful drug portfolio, including Humira, Rinvoq, and Skyrizi. The company's dividend payout ratio is around 50%, indicating that it has ample room to continue increasing its dividend in the long term.

One of the reasons I'm bullish on AbbVie is its strong financial performance. The company has consistently generated high earnings and cash flow, which has allowed it to maintain and grow its dividend. Additionally, AbbVie has a strong balance sheet, with a low debt-to-equity ratio, which provides a solid foundation for its dividend payments.

Another reason I'm optimistic about AbbVie is its pipeline of new drugs. The company has several promising drugs in development, which could drive future growth and dividend increases. For example, AbbVie's Rinvoq and Skyrizi have shown strong sales growth and have the potential to become blockbuster drugs.

Finally, AbbVie's dividend yield is attractive, with a current yield of 3.8%. This is higher than the S&P 500's average dividend yield of 1.5% and the 10-year U.S. Treasury note yield of 4.1% in early 2024. This makes AbbVie an attractive option for income-oriented investors.



2. AvalonBay Communities (NYSE:AVB) - Yield: 3.7%

AvalonBay Communities is a real estate investment trust (REIT) that specializes in apartment ownership. The company benefits from collecting steady rental income, which supports its high-yielding payout. AvalonBay has a strong financial profile, with a low debt-to-equity ratio and a solid balance sheet. The company has also demonstrated consistent dividend growth, with a 5-year annualized dividend growth rate of 3.8%.

One of the reasons I'm bullish on AvalonBay is its exposure to the multifamily housing sector. As more people choose to rent rather than buy homes, the demand for apartments is expected to remain strong. This should drive rental income growth for AvalonBay, which will support its dividend payments.

Another reason I'm optimistic about AvalonBay is its focus on high-quality apartment communities. The company specializes in "18-hour" cities, which are smaller metropolitan areas with strong job growth and a high demand for housing. This focus on high-quality properties should help AvalonBay maintain strong occupancy rates and rental income growth.

Finally, AvalonBay's dividend yield is attractive, with a current yield of 3.7%. This is higher than the S&P 500's average dividend yield and the 10-year U.S. Treasury note yield. Additionally, AvalonBay's dividend payout ratio is around 60%, which is slightly higher than the S&P 500's average payout ratio. However, the company's strong financial performance and dividend growth prospects suggest that its payout is sustainable.



In conclusion, I believe that AbbVie and AvalonBay Communities are two high-yield dividend stocks that are well-positioned to continue their strong performance in 2025. Both companies have strong financial performance, attractive dividend yields, and solid growth prospects. I expect to continue loading up on these stocks in my retirement portfolio in the coming year, as I believe they will provide attractive income and long-term growth potential. As always, it's important to conduct thorough research and consider the specific risks and opportunities associated with each stock before making an investment decision.