What should investors look for when deciding on the best long-term dividend stocks?
Investing in dividend stocks can be a rewarding strategy for building long-term wealth. These stocks offer not only the potential for capital appreciation but also regular income in the form of dividends. However, not all dividend stocks are created equal, and selecting the right ones to hold indefinitely requires careful consideration.
In this article, we will explore some of the best long-term dividend stocks to buy and hold forever, considering their track record of dividend payments, financial stability, and growth potential.
8 Best Long-term Dividend Stocks to Buy
According to Argus analysts, there are 8 attractively valued dividend equities that investors may count on for the long term:
Dividend Stocks
- Johnson & Johnson (JNJ)
- JPMorgan Chase & Co. (ticker: JPM)
- Coca-Cola Co. (KO)
- Chevron Corp. (CVX)
- Merck & Co. Inc. (MRK)
- Procter & Gamble Co. (PG)
- Home Depot Inc. (HD)
- Altria Group (MO)
- Medtronic (MDT)
- Duke Energy (DUK)
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in the pharmaceutical, medical device, and consumer healthcare product sectors. According to analyst David Toung, Johnson & Johnson has an exceptional track record of acquiring and integrating companies, and its combination of a strong commercial medicine portfolio and a potential development pipeline makes it an appealing investment.
Following the separation of Johnson & Johnson’s consumer health business, Toung said the company will focus on expanding its pharmaceutical and medical technology segments. The corporation intends to sell $57 billion in revolutionary medicines by 2025.
| Sector: | Healthcare Field |
| Current Dividend yield: | 3.32% |
JPMorgan Chase & Co. (ticker: JPM)
JPMorgan Chase is one of the world’s largest banks and financial services organizations, with around $3.8 trillion in assets. JPMorgan took advantage of the 2023 U.S. regional banking crisis, acquiring insolvent First Republic Bank after it was taken by the Federal Deposit Insurance Corporation, or FDIC.
According to analyst Stephen Biggar, First Republic offers a good collection of loans and deposits to complement JPMorgan’s high-net-worth client group, and JPMorgan has a higher growth potential than competitors.
| Sector: | Financial Services Company |
| Current Dividend Yield: | 2.41% |
Coca-Cola Co. (KO)
Coca-Cola is a major non-alcoholic beverage corporation. According to Conrad, Coca-Cola management has begun to prioritize a shift away from sugary sodas and is already making great headway in diversifying the business.
In recent years, the corporation has undertaken numerous major strategic adjustments, including the elimination of unproductive goods, the modification of pack sizes and serving sizes, and the completion of strategic acquisitions, such as the buyout of Costa Coffee. According to Conrad, Coca-Cola’s outlook will be challenging, but the company has demonstrated the value of its key brands and is implementing measures to increase profitability.
| Sector: | Beverage |
| Current Dividend Yield: | 3.12% |
Chevron Corp. (CVX)
Chevron is a multinational oil company that conducts exploration and production, refining and marketing, and petrochemical operations. According to analyst Bill Selesky, Chevron’s acquisition of Hess Corp. (HES) is expected to be completed by mid-2024, and he believes the transaction will provide significant value for Chevron.
Selesky claims Hess assets will provide Chevron with high-quality, high-growth properties in offshore Guyana, Bakken shale, and the Gulf of Mexico. He is particularly optimistic about the deal’s ability to expand Chevron’s shale oil output by 40% and believes Chevron’s dividend is safe.
| Sector: | Fuel company |
| Current Dividend Yield: | 4.07% |
Merck & Co. Inc. (MRK)
Merck is one of the world’s major pharmaceutical corporations, with key products including cancer medication Keytruda and HPV vaccination Gardasil. According to analyst Jasper Hellweg, Merck continues to receive regulatory approvals, including expanded indications for Keytruda and approval of Welireg for the treatment of select adult patients with advanced renal cell carcinoma (RCC).
Merck has also received priority review status from the Food and Drug Administration for vaccine candidate V116 for pneumococcal illness and pneumonia, as well as patritumab deruxtecan (HER3-DXd) for the treatment of adult patients with certain types of non-small-cell lung cancer.
| Sector: | Electronics, Healthcare and Life Science |
| Current Dividend Yield: | 2.42% |
Procter & Gamble Co. (PG)
Procter & Gamble manufactures domestic consumer items and owns several well-known brands, including Pampers, Tide, and Gillette. According to analyst Taylor Conrad, product innovation, improved advertising, and increased productivity would help Procter and Gamble maintain long-term earnings growth.
Conrad claims that Procter & Gamble’s innovative products, such as Dawn Powerwash, have allowed the company to overcome increased expenses through price increases. He believes Procter’s history of dividend growth reflects confidence in the company’s financial strength and future. Procter reported positive growth across all segments in the fiscal second quarter.
| Sector: | Consumer staples |
| Current Dividend Yield: | 2.45% |
Home Depot Inc. (HD)
Home Depot is one of North America’s major home improvement retailers. According to analyst Christopher Graja, underinvestment in the United States housing supply has created an issue for millennial purchasers entering the market.
In reality, around 70% of homes for sale in the United States are more than 25 years old and require repairs and modifications. The new home shortage should continue to benefit home improvement retailers. Home Depot has stated that it will take at least five years to address the housing deficit.
| Sector: | Consumer Discretionary |
| Current Dividend Yield: | 2.63% |
Altria Group (MO)
Altria Group, Inc. is an American firm that is one of the world’s leading manufacturers and marketers of tobacco, cigarettes, and associated products. It operates worldwide and is based in Henrico County, Virginia, just outside of Richmond.
| Sector: | Consumer Staples |
| Current Dividend Yield: | 8.99% |
FAQs
Are dividend stocks good for the long term?
Dividend stocks offer long-term investors unique benefits, such as steady, reliable income
What should I look for in a long-term dividend stock?
If you plan to invest in dividend stocks, look for companies with long-term profit growth of 5% to 15%, strong cash flows, low debt-to-equity ratios, and future competitive strength.
When to invest in dividend stocks?
Dividend-paying stocks can be an excellent method to supplement your income while also increasing the growth potential of your portfolio, regardless of your age.
