Owning dividend stocks should be a crucial part of your long-term investing strategy. But not all dividend stocks are created equal. As a result, you need the best long term dividend stocks. If you want to include long-term dividend stocks in your portfolio, you need to think carefully about which companies you invest in.
When selecting the best long term dividend stocks, it’s important to own companies with strong cash flow and balance sheets to support that dividend payout over the long term.
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What Are the Best Long Term Dividend Stocks?
- $HD
- $QCOM
- $MSFT
- $UNH
- $CSCO
Investing is a great way to set aside money for the long term growth of wealth. However, that means you’re subject to market swings. When the market is bullish, typically your portfolio is doing great and gaining wealth every day. But when the market is correcting or goes bearish, then your portfolio takes a hit.
That can be pretty awful to watch. However, that’s why they say diversifying is key. Diversifying your portfolio doesn’t put all your eggs in one basket. As a result, you’re more protected from market swings. When one sector is down, usually another one is running. That helps offset loss.
Investing means finding the stocks with the potential for long term growth. That’s why investing and trading are different. With trading, you’re making a quick move. You don’t need to stock to be fundamentally sound. However, with investing you do. In fact, people can get into bad investments thinking a sector is up and coming. For example, pot and bitcoin. That’s not saying in the future they won;t be great sectors to invest in. But they haven’t panned out so far. In fact, take our online trading courses in order to learn how to use the best long term dividend stocks to your advantage.
What Is a Dividend Stock?
In short, a dividend stock is from a company that pays a dividend. Typically this dividend is in the form of cash payment. But other times the dividend is paid in the way of stock shares. Typically the payout of dividends is on a regular schedule ; usually quarterly, but sometimes monthly or even semi-annually or annually. We often see dividend stocks on older, more mature companies with high cash flows. Furthermore, there are specific industries – energy, utility and telecommunications, with relatively predictable cash flows lend themselves to paying dividends. These are great sectors to pay attention to for the bets long term dividend stocks. Not only you invest in these stock sectors, you can trade them. Make sure to check out our next level stock training for more advanced strategies.
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Why Dividend Stocks?
Dividend stocks pay off in many ways for investors. Think of how much easier it is to ride out the ups and downs of the stock market when you’re getting a steady check from a company you’ve invested in. Better yet, what if you can live off your dividend payout or reinvest it to grow your wealth? The best long term dividend stocks allow this to happen. Over time, buying stocks that pay dividends can and will reward you as long as you take care to follow a few guidelines to make intelligent buying choices.
Furthermore, there’s much more to picking dividend stocks than just finding some familiar household names and buying the ones with the highest yields. Understanding this can help you make the best dividend stock choices for your portfolio. I’m not here today to tell you what long-term dividend stocks to invest in; that’s on you to do your due diligence.
However, two familiar names have stood the test of time. Here are two top dividend stocks that look perfect for 2020 and beyond.
What Are the Best High Paying Dividend Stocks?
- $JNJ
- $WHG
- $IRM
- $GLPI
- $OHI
- SPG
- KTB
- ALX
- NHI
- XOM
A Look at the Best Long Term Dividend Stocks
Coca-Cola (NYSE:KO)
When it comes to choosing the best long term dividend stocks, the Coca-Cola Company is one of the most stable choices you can find. As one of the most widely recognized global companies, it remains one of the most sought-after dividend stocks.
Not only does Coca-Cola boast its powerful namesake brand, but its portfolio is impressive, including well-known names like Minute Maid, Powerade, Smartwater, and Vitaminwater, to name a few. There are a few reasons why people should consider Coca-Cola for a long-term dividend stock. For starters, the Coca-Cola Company has a rock-solid foundation that’s stood the test of time.
And with a presence in over 200 countries in 5 regions, they are here to stay; at least for now. The chances of the Coca-Cola Company suffering something severe enough to threaten its economic well-being are not very high. Because of this, investors can have continuing confidence in their ability to prosper and thrive. The single best argument for the Coca-Cola Company as one of the best long term dividend stocks is its track record of success. In fact, Coca-Cola has managed to continuously raise its dividends period after period for more than 57 years; quite the track record.
Of course, past performance isn’t a perfect predictor of future performance. Theoretically, Coca-Cola could run into some scandal that could rock its foundation. However, I think that’s highly unlikely.
Best Long Term Dividend Stocks Part 2
Johnson & Johnson (NYSE: JNJ)
Founded in 1886, Johnson & Johnson is one of the leaders in the pharmaceutical, medical devices, and consumer packaged goods industry. Apart from this, they are the largest independent biotech company in the world by market cap. Headquartered in New Jersey, Jonson & Johnson includes over 250 subsidiaries. They have operations in 60 countries with their products sold in 175 countries across the globe.
You probably recognize some of their best-known products, which include Band-Aid, Neutrogena, Tylenol, Johnson’s baby products, Acuvue contact lenses, Clean & Clear, to name a few. I can think of many reasons why Johnson and Johnson is a good long-term investment. For starters, the company is well-established with a brand consumer’s trust.
Furthermore, the global reach and diversity of their products speak to the stability of the company. More often than not, companies who make a wide array of products are generally more stable than those who only focus on a few. Brand identity and global reach aside, let’s talk numbers. Many say that the current yield of 2.9 percent is one of the leading reasons to consider buying Johnson and Johnson stock.
However, you need to take into account the company’s payout history. In fact, it is part of an elite group of companies called dividend kings. The Dividend Kings are stocks with 50 or more consecutive years of dividend increases. Dividend Kings are the best-of-the-best in dividend longevity.
Likewise, Johnson and Johnson have consistently increased their dividend payouts for 57 consecutive years. Similar to Coca Cola, a good payout history is a sound indicator of the company’s financial future. In particular, it’s a sign that the payouts are likely to continue.
Looking Ahead
As always, when it comes to any financial matter, you need to be thorough and do your homework on the best long term dividend stocks. To succeed in the long term investing arena, you have to become adept at picking stocks that are guaranteed to gain value over time. Moreover, you have to be willing to commit your cash to your investments for a significant period of time. The good news is that even novice investors can succeed in this arena by simply gaining the right help.
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