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Want Passive Income for Life? Here Are 2 Dividend Stocks to Buy and Never Sell

2026-10-12 22:10 •Adria Cimino •The Motley Fool Positive Axe Cap view: Selective •Rates•Equities•Earnings•Capital Returns•Healthcare •ABT•JNJ

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Two US Dividend Kings Worth Watching from South Africa

Abbott and Johnson & Johnson deliver consistent dividends, but South African investors should tread carefully.

Abbott Laboratories and Johnson & Johnson boast over 50 years of dividend growth, which is impressive by any standard. Abbott offers a 2.5% yield, slightly better than the S&P 500 average, fueled by robust free cash flow and growing sales from innovative products like the Libre Duo glucose monitor. Johnson & Johnson’s 2% yield comes with a sprawling portfolio, including a rapidly expanding oncology pipeline aiming for $100 billion in revenue. For South African investors, these are quality names to consider for steady income. But keep in mind the major hurdle: currency risk. The rand’s recent volatility against the dollar can erode dividend gains when converted back to ZAR. Also, the low local interest rates reduce the hedge appeal of these US stocks, so patience is key. If the rand strengthens unexpectedly or US dividend payouts falter, your returns could disappoint. this is just our opinion and not financial advice

How I would invest

Consider a small, measured exposure to ABT and JNJ through US-listed funds if you want passive income, but hedge currency risk or accept sharp fluctuations in rand terms.

What I would watch
  • ABT
  • JNJ
  • USD/ZAR
What could go wrong
  • Rand-dollar volatility
  • US economic slowdown hitting dividends
How strongly I feel

5/10

The article recommends two Dividend King healthcare stocks for passive income: Abbott Laboratories and Johnson & Johnson. Both companies have demonstrated 50+ years of consecutive dividend increases, strong free cash flow, diversified business portfolios, and solid growth prospects. Abbott offers a 2.5% dividend yield with innovative products like the Libre Duo glucose monitor, while J&J pays a 2% yield and is positioned to reach $100 billion in annual revenue with a strong oncology pipeline.

Our take is based on reporting first published by The Motley Fool.

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