Some people like the excitement of buying and selling again and again. They are always on the lookout for the next hot growth stock in the latest sector that generates the most buzz. But this is not the tea of every investor.
There are many investors who simply want to find stocks that pay excellent dividends quarterly and quarterly. They want to invest in the kind of stocks that you can leave alone for years – decades – while they constantly make money. If you’re an investor of this type, here are three rock-solid dividend stocks you can buy and hold on to practically forever.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) Pretty much all of this is done. To begin with, the healthcare giant is Dividend Aristocrat with a dividend increase of 48 consecutive years. Abbott has paid dividends every quarter since 1924. Its dividend yield is currently 1.4%. This is not a great level, but you can feel great about the possibilities of dividend payouts increasing over time.
A big plus for Abbott is its diversification. The company is a market leader in branded generic drugs, cardiovascular care, diabetes care, diagnostics, neuromodulation care and nutritional products. This wide range of product offerings generated nearly $ 32 billion in revenue and profits of close to $ 3.7 billion last year.
Don’t think for a second that Abbott is a boring, low-growth type of dividend stock, though. Wall Street analysts say the company will provide an average annual income of about 15% over the next five years. Abbott’s wildly successful Freestyle Libre continuous glucose monitoring system and its new COVID-19 diagnostics test are just two of the company’s major growth drivers.
2. Brookfield Renewable
Brookfield renewable (NYSE: BEP) (NYSE: BEPC) “We are one of the few future proof stocks today,” he told his investors in 2019. At the time this statement was and still is defensive. The company owns more than 5,300 renewable energy assets, which should enjoy sustained and growing demand.
You can own two parts of Brookfield Renewable – Brookfield Renewable Partners (a limited partnership) and Brookfield Renewable Corporation (a traditional corporate structure). Their underlying business is the same, and both entities pay the same dividend amount (referred to as distribution due to the company’s roots as a limited partnership). However, due to the share price difference, Brookfield Renewable Partners has a distribution yield of 3.9% while Brookfield Renewable Corporation has a distribution yield of about 3.5%.
The good news is that dividends should continue to increase for both Brookfield renewables. The company aims for long-term distribution growth of between 5% and 9% per year. Its average distribution growth since 2000 is 6%.
3. Duke Energy
Duke energy (NYSE: DUK) There is another utility stock that is a great pick to buy and hold. It also offers an attractive dividend yield of around 4.8%. Duke has an excellent track record of dividend programs, with the company paying dividends for 94 consecutive years.
Granted, Duke Energy will not distribute the same amount of growth as some stocks. But CEO Lynn Good reiterated in the company’s Q2 conference call that Duke should achieve its goal of generating long-term earnings per share growth of between 4% and 6%. This is also not bad for a large utility company.
More importantly, Duke Energy should provide the kind of stability that income-seeking investors love. It is an advantage to invest in a company that acquires a monopoly in its target markets and 95% of its earnings from those regulated markets.