The 2 Best Dividend Stocks To Buy Now And Hold Forever

Coca-Cola has raised its payouts every year for more than six decades. Home Depot places a high priority on dividend payments. Many investors appreciate receiving dividends. After all, paying out a portion of the profit is one of the most direct ways that companies can reward their shareholders. However, if you're an income-focused investor, it's important to buy shares of companies that can afford to both sustainably pay dividends and invest in their businesses to ensure continued growth. It's not enough for a business to pay a high dividend if it can't remain competitive in the long run.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » At 24/7 Wall St., we have closely followed dividend-paying stocks for over 15 years. With a growing audience of savvy Baby Boomers and retirees seeking safe income ideas that deliver more than the 3.97% bi-annual dividend of the 10-year Treasury bond on a total return basis, we have... We are looking for recurring, dependable dividend payouts and a degree of safety that allows for a good night’s sleep.

Choosing just five quality dividend stocks for life requires balancing stability, growth potential, diversification, and dividend reliability. The good news for income investors looking for safe and reliable dividend-paying stocks is that we found five you can buy now and hold forever. The five top companies are the bedrock and pinnacle for dividend investors. All are the kind of stocks that growth and income investors can buy now, tomorrow, next week, or next year and hold for forever. All are rated Buy at top Wall Street firms that we cover here at 24/7 Wall St. Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%.

Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%). AbbVie is ranked sixth among the largest biomedical companies by revenue. This stock is one of the top pharmaceutical stock picks on Wall Street and is an excellent choice for long-term, forever ownership with a reliable 2.84% dividend. AbbVie Inc.

(NYSE: ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. In addition, the company offers Ozurdex for eye diseases, as well as Lumigan/Ganfort and Alphagan/Combigan for reducing elevated intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company also offers Restasis to increase tear production, along with other eye care products. <span style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" data-mce-type="bookmark" class="mce_SELRES_start"> </span> It isn’t surprising that we favor stocks that pay dividends, as studies have shown that owning income producing securities is an excellent way to build wealth while also protecting to the downside. In bull markets, dividends can add to the gains from the stock while also purchasing additional shares.

When prices decline, dividends can reduce the losses while being used to acquire more shares at a now lower price. With this in mind, we created a full list of the Dividend Kings, a group of stocks with over 50 consecutive years of dividend increases. You can see the full downloadable spreadsheet of all 55 Dividend Kings (along with important financial metrics such as dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the link below: Written by Thomas Niel for The Motley Fool-> Lowe's, NextEra Energy, and Realty Income each have long dividend-growth track records. Philip Morris International has raised its dividend each year since going public.

United Parcel Service may be the exception among high-yield dividend stocks. You may think of dividend stocks as simply a vehicle for producing cash income from a diversified portfolio, but these types of stocks can actually provide a serious boost if long-term capital appreciation is... According to a study from investment management company The Hartford, from 1960 to 2023, 85% of the cumulative total return of the S&P 500 index was from reinvested dividends.

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