9 dividend-paying stocks to buy and hold forever
These stocks have a return of at least 2%, a value of $ 100 billion, and a lot of stability. When it comes to …
These stocks have a return of at least 2%, a value of $ 100 billion, and a lot of stability.
When it comes to investing, some frantic traders think that holding a stock for a year or two is considered “long term.” But for many small investors, a year or two is just the start of the journey. After all, countless research has been done on the dangers of over-negotiating and accumulating significant underperformance or simply increasing your costs in fees and taxes. It may be far better to follow the lead of investment icon Warren Buffett, who jokingly said at a Berkshire Hathaway shareholders’ meeting that “our favorite holding period is forever.” If you are interested in the very long term, consider the following dividend stocks to buy and hold forever. The following nine companies are all valued at over $ 100 billion and offer substantial current returns of over 2% in addition to long-term stability.
JPMorganChase & Co. (ticker: JPM)
The biggest of the big banks, the financial might JPM is not going anywhere anytime soon. It is a full-service leader, providing banking services to consumers and small businesses as well as wealth management and premium services for businesses and institutions. In other words: as long as there is money, JPMorgan will be there to help people transact – and take a small share for the price of doing business. And lest you fear the fallout from a global financial crisis in the decades to come, it’s important to remember that JPM handled the 2008 downturn better than many of its peers and remains one of the top financial stocks. best managed in the world, thanks to the wise leadership of CEO Jamie Dimon.
Current yield: 2.5%
Market capitalization: $ 482 billion
Johnson & Johnson (JNJ)
Founded over 130 years ago, JNJ has a rich history and a dominant name in the healthcare industry. Whether you’re looking for consumer-focused products like Band-Aid or Tylenol, its lucrative cancer drugs, or its best digital medical devices for operating rooms, this health powerhouse has plenty going on. Perhaps the most compelling fact of all, however, is that Johnson & Johnson have the track record to back up their branding power. Consider that alongside Microsoft Corp. (MSFT), JNJ is one of two AAA US stocks when it comes to debt ratings. Or that the company has increased its already generous dividend once a year for six consecutive decades. If you want a long term bet, it’s hard to beat JNJ.
Current yield: 2.7%
Market capitalization: $ 422 billion
Procter & Gamble Co. (PG)
Procter & Gamble is the company behind some of the biggest consumer names on the planet, from Gillette shaving products to Pampers diapers and Crest toothpaste. Chances are you’ve got a medicine cabinet or dresser drawer that has P&G products in it, and there’s a good chance that the next time you go to the store, you’ll keep buying the same proven brands. Procter & Gamble has increased its dividends at least once a year for about 65 years and has been in business for just under two centuries. It is not a glamorous or high growth company to sell consumer staples, but it is certainly reliable for investors who are looking at their portfolios for the very long term.
Current yield: 2.5%
Market capitalization: $ 343 billion
Coca-Cola Co. (KO)
KO stocks have long been a favorite of investment icon Warren Buffett, and for good reason. While sugary sodas may not be as popular as they once were in the age of more health conscious consumers, cola doesn’t really hurt right now with its market value of over $ 230 billion and its revenues of around $ 40 billion per year worldwide. Additionally, KO looked beyond its flagship Coca-Cola soft drinks with juices, teas, and ‘hydration’ products, including PowerAde and Smartwater, to ensure it remains relevant for many years to come. future. He also claims about 60 years of back-to-back dividend increases to his name, a sure sign for income-oriented investors that they will continue to be rewarded if they hold onto this title for the long term.
Current yield: 3.1%
Market capitalization: $ 234 billion
Verizon Communications Inc. (VZ)
Verizon might be as close to a sure thing as you can find it on Wall Street these days. The company claims massive scale with over $ 130 billion in annual revenue from millions of wireless, broadband, fiber optic and cable TV connections. He has a near-duopoly in the United States with his fellow telecommunications giant AT&T Inc. (T) and a high barrier to entry from any future competition, thanks to the very expensive and regulated nature of building a network. telecommunications. And to top it off, VZ only pays out about half of its operating profits as dividends – so even without future growth, there’s plenty of room for future increases. The only reason to doubt that Verizon will be here forever is if you expect the entire global communications system to collapse. And if that happens, you have bigger issues than your retirement account balance!
Current yield: 5%
Market capitalization: 211 billion dollars
Cisco Systems Inc. (CSCO)
The $ 232 billion leader in enterprise computing, Cisco is a Silicon Valley icon that has established itself as one of the dominant forces in the tech industry. Although it has seen many false starts over the years, including bizarre forays into mainstream technology with products like its Flip camcorder, the company has stood the test of time as its business has grown. is developed – and its dividend with it. Specifically, payments started in 2011 at 6 cents per quarter per share, and have increased significantly over the past decade to reach 37 cents per share in 2021. The company is also on the rise, setting a new record of 52 weeks in September and looks to the short term even though it prides itself on a company clearly designed to last.
Current yield: 2.7%
Market capitalization: $ 232 billion
McDonald’s Corp. (MCD)
Icon of the restaurant industry, MCD is also a case study in a company that knows how to generate long-term shareholder value. Its dividend has grown impressively over time with over 40 consecutive years of at least one dividend increase per year. The magnitude of those increases is also significant, with a payment of 61 cents in 2011 more than doubling, to $ 1.29 per quarter now. While the focus is certainly on healthier eating, McDonald’s budget-friendly and always-convenient menu continues to connect with consumers. And with the recent expansion of delivery and loyalty programs, you can expect this stock to continue its track record of success for the foreseeable future.
Current yield: 2.3%
Market capitalization: $ 180 billion
Pfizer Inc. (PFE)
More recently, making a name for itself in part through its leading COVID-19 vaccine, PFE is a healthcare powerhouse that has what it takes to stay relevant in any market environment. The pandemic is a prime example of this drugmaker’s potential for innovation, and existing blockbusters – including its pneumonia vaccine Prevnar, breast cancer drug Ibrance, and anticoagulant Eliquis – continue to produce excellent long term results. One thing that is certain in life is that we all age and get sick, so a company like Pfizer with a strong balance sheet and impressive global scale is a great long term bet for dividend investors who want to define it. and forget about it.
Current yield: 3.8%
Market capitalization: 235 billion dollars
Intel Corp. (INTC)
Multinational tech giant Intel makes the processors you find in most personal computers, but don’t think this company is unsuited for the 21st century market. It also specializes in cloud data infrastructure products and chips used in the Internet of Things through smart devices in the household. The company is certainly undergoing a transformation after the announcement that it would restructure its operations and create two new business lines separately focusing on high performance software and hardware. There are also rumors that Intel is pulling out of the complex, low-margin business of manufacturing chips, instead focusing on designs to outsource production. But ultimately, Intel is an icon of the tech industry with some of the most popular chips in history and a drive to develop the next generation of processors.
Current yield: 2.7%
Market capitalization: $ 212 billion
Dividend shares to be kept indefinitely:
– JPMorganChase & Co. (JPM)
– Johnson & Johnson (JNJ)
– Procter & Gamble Co. (PG)
– Coca-Cola Co. (KO)
– Verizon Communications Inc. (VZ)
– Cisco Systems Inc. (CSCO)
– McDonald’s Corp. (MCD)
– Pfizer Inc. (PFE)
– Intel Corp. (INTC)
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9 dividend-paying stocks to buy and hold forever originally appeared on usnews.com
Update 10/13/21: This story was posted on an earlier date and has been updated with new information.