The Dividend Defenders: 3 Stocks That Will Protect and Grow Your Wealth Dividend Stocks


  • Dividend defenders provide stability and cash flow in an uncertain market.
  • Coca-Cola (KO): A Warren Buffett favorite, Coca-Cola is a true Dividend King.
  • Exxon Mobil (XOM): Oil giants aren’t going away any time soon and neither is Exxon’s dividend!
  • Abbvie (ABBV): This pharmaceutical defender provides growth and cash flow. Are you looking for some defenders for your portfolio? Here are three dividend stocks to protect and grow your wealth.
Dividend Stocks - The Dividend Defenders: 3 Stocks That Will Protect and Grow Your Wealth Dividend Stocks


With the markets trading at all-time highs, it’s natural to want to protect your gains by turning to a more defensive strategy. As we’ve seen throughout history, when the markets go up, they tend to pull back to retest key averages and demand levels. Are we ready for a correction? Nobody knows for sure, but it doesn’t hurt to start defending your portfolio after a strong bull run.

One way to do this is to buy defensive dividend stocks. These can add stability, reduce volatility and provide cash flow for future investments. The dividend distributions can also act as a compounding mechanism over time, especially if you re-invest them. Are you looking for some defenders for your portfolio? Here are three dividend stocks to protect and grow your wealth.

Coca-Cola (KO)

a line of Coca-Cola (KO) cans

When listing off the quintessential blue chip dividend stocks, Coca-Cola (NYSE:KO) is usually top of mind for most investors. It seems to be in the good books with Wall Street analysts as well. Coke’s stock has an average analyst target of $67.43 and a street-high target of $74.00. This high-end target has the potential for a nearly 20% upside for the stock over the next year. 

There isn’t much needed to say about Coca-Cola to explain why it belongs on this list. It is one of a handful of certified S&P Dividend Kings. This means that Coca-Cola has raised its dividend for more than 50 consecutive years. Counting its recent raise, 2024 marks the 62nd consecutive year that Coca-Cola has increased its payout. As for growth, shares of KO are up by nearly 7.0% in 2024 and 25% over the past five years.

Shares of Coca-Cola are currently trading at about 6.0x sales and 22.6x forward earnings. Despite already selling products in every country in the world except North Korea and Cuba, Coca-Cola continues to grow its net income at a CAGR of 10% over the past five years. When it comes to dividend defenders, it doesn’t get any more steady than Coca-Cola. 

Exxon Mobil (XOM)

Exxon Retail Gas Location
Source: Jonathan Weiss /

Exxon Mobil (NYSE:XOM) is the second-largest energy company and the seventeenth-largest in the world by market cap. This oil giant has a remarkably bullish outlook from analysts with a one-year average price target of $132.88 and a high-end target of $152.00. In the most bullish scenario, XOM could be 40% higher over the next year. 

The XOM story has been a roller coaster in recent years for shareholders. In 2020, the stock was replaced by Salesforce (NYSE:CRM) in the Dow Jones Industrial Average. Since then, XOM has handily outperformed the software company by nearly 165%. We must keep in mind that XOM is cyclical and will trade alongside the price of crude oil futures and the overall strength of the global economy. 

Exxon has gained more than 10% so far in 2024 and yet the price multiple of the stock remains low. Shares trade at 12x forward earnings and just 1.3x sales. Gross margins remain high at more than 30%, although it is lagging behind the industry average of 35%. As for dividends, XOM is well on its way to joining Coca-Cola as a Dividend King. The company has raised its dividend for 42 consecutive years and pays a current yield of 3.37%. 

Abbvie (ABBV)

Closeup of AbbVie (ABBV) building corporate office, an American biopharmaceutical company with its headquarters in Lake Bluff, Illinois, USA
Source: Valeriya Zankovych /

Abbvie (NYSE:ABBV) is the fifth-largest pharmaceutical company in the world with a market cap of nearly $300 billion. The current price of Abbvie is below the lowest analyst price target which is typically a bullish indicator. The average price target sits at $183.88 and the highest target is $207.00 or about 20% higher.  

This company creates some of the most widely used drugs in the world. Its flagship product is Humira, an autoimmune treatment that brought in $14 billion in revenue in 2023. Abbvie also produces Botox and Skyrizi, which brought in a combined $13 billion in 2023. This company is a rare combination of a dividend defender with high-growth potential.

Abbvie trades at very reasonable multiples despite its price rising by more than 22% over the past year. Shares trade at 5.5x sales and 15x forward earnings while revenue has grown at a CAGR of 11% over the past ten years. Abbvie has improved its distribution each year since 1972, making it a certified Dividend King alongside Coca-Cola. 

On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chandler Capital is the work of Ian Hartana and Vayun Chugh. Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.

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