Some people like the excitement of buying and selling frequently. You’re always on the hunt for the next hot growth stock in the latest arena that is causing the most buzz. But that’s not for everyone.
There are many investors out there who just want to find stocks that pay off quarterly. You want to invest in stocks that you can leave alone for years – even decades – while steadily making money. If you’re that type of investor, here are three solid dividend stocks that you can buy and hold for practically forever.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) has pretty much everything. For starters, the health giant is a dividend aristocrat with 48 straight years of dividend increases. Abbott has paid a quarterly dividend since 1924. The dividend yield is currently 1.4%. That’s not a spectacular level, but you can feel pretty good about the prospect of dividend payments growing over time.
A big plus for Abbott is diversification. The company is a leader in branded generics, cardiovascular care, diabetes care, diagnostics, neuromodulation care, and nutritional products. This wide range of product offerings generated nearly $ 32 billion in sales and nearly $ 3.7 billion in profits last year.
Don’t think for a second that Abbott is a boring, low-growth, dividend stock. Wall Street analysts predict the company will have average annual earnings growth of nearly 15% over the next five years. Abbott’s hugely successful Freestyle Libre continuous glucose monitoring system and its new COVID-19 diagnostic tests are just two of the company’s top growth drivers.
2. Brookfield Renewable
Brookfield renewable (NYSE: BEP) (NYSE: BEPC) told its investors in 2019: “We are one of the few future-proof stocks today.” This statement was justifiable then and still is today. The company owns over 5,300 renewable energy systems that should have continued and growing demand.
You can own part of Brookfield Renewable in two ways: Brookfield Renewable Partners (a limited partnership) and Brookfield Renewable Corporation (a traditional corporate structure). Their underlying business is the same and both companies pay the same amount of dividend (known as a distribution due to the company’s roots as a limited partnership). However, due to stock price differences, the Brookfield Renewable Partners dividend pays a return of 3.9% while the Brookfield Renewable Corporation dividend pays a return of nearly 3.5%.
The good news is that dividends for both Brookfield Renewable stocks should keep rising. The company aims for long-term sales growth of between 5% and 9% per year. The average increase in distribution since 2000 is 6%.
3. Duke Energy
Duke Energy (NYSE: DUK) is another utility stock that is great to buy and hold. It also offers an attractive dividend yield of nearly 4.8%. Duke’s dividend program has a fantastic track record, with the company paying a dividend for 94 consecutive years.
Granted, Duke Energy isn’t going to deliver the growth some stocks will. However, CEO Lynn Good reiterated on the company’s second quarter conference call that Duke should achieve its goal of achieving long-term earnings per share growth of between 4% and 6%. For a large utility company, that’s not too shabby.
More importantly, Duke Energy offers the stability that income-seeking investors love. This is the benefit of investing in a company that has monopolies in its target markets and that derives 95% of its profits from those regulated markets.