7 Rock-Solid Dividend Stocks to Buy and Hold Forever

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Dividend investing can provide steady, reliable income streams. Discover 7 dividend stocks to buy now and hold for decades ahead.

Many investors aim to build a portfolio of dividend stocks that provide growing passive income over time. Dividend payments from large, established companies offer a unique advantage — especially during volatile markets.

This article reveals 7 dividend stocks that are ideal for buy-and-hold investors seeking reliable long-term returns.

Table of Contents:

  • Introduction: The Power of Dividend Investing
  • Dividend Stock #1: Verizon Communications (VZ)
  • Dividend Stock #2: Honeywell International (HON)
  • Dividend Stock #3: Goldman Sachs (GS)
  • Dividend Stock #4: 3M Company (MMM)
  • Dividend Stock #5: The Travelers Companies (TRV)
  • Dividend Stock #6: Dow Inc. (DOW)
  • Dividend Stock #7: Walgreens Boots Alliance (WBA)
  • Key Takeaways for Dividend Investors
  • FAQ

Introduction: The Power of Dividend Investing

Dividend stocks can provide critical stability and income for long-term investors. According to Fidelity ↗, dividends alone have accounted for about 40% of total stock market returns from 1930 through mid-2022.

When markets get rocky, dividend stocks can provide reassurance from predictable quarterly payments. Companies that consistently pay dividends tend to be mature, financially sound, and leaders in their industries.

This makes dividend stocks ideal “buy and hold forever” investments. With dividends reinvested over time, investors can accumulate substantial passive income streams.

This article reveals 7 dividend stocks that are positioned for steady payouts for decades to come, according to Morningstar analysts. Let’s dive in!

Dividend Stock #1: Verizon Communications (VZ)

  • Sector: Communication Services
  • Dividend Yield: 7.9%

Verizon Communications is the largest U.S. wireless carrier. The company offers mobile phone services, home internet, streaming TV, and more to over 140 million customers.

Verizon has increased its dividend for 15 consecutive years. The stock currently boasts a high 7.9% dividend yield — the highest among any Dow Jones Industrial Average component.

Morningstar analyst Michael Hodel believes recent stock weakness ↗ has been an overreaction. He sees upside over the next 12 months as Verizon maintains its leading position in 5G network coverage.

For long-term investors, Verizon’s essential mobile communications services provide a dependable base of subscribers and revenues. The company generates plenty of cash to support its generous, safe dividend.

Dividend Stock #2: Honeywell International (HON)

  • Sector: Industrials
  • Dividend Yield: 2.2%

Honeywell International is a diversified technology and manufacturing company serving aerospace, building technologies, performance materials, and safety industries.

The company has paid dividends for over 25 years with 11 years of consecutive dividend growth.

Morningstar analyst Joshua Aguilar believes Honeywell’s recent earnings ↗ reflect short-term cyclical weakness rather than a deterioration of long-term prospects.

Key growth drivers include Honeywell’s warehouse automation technologies and continued global demand for air travel. The company is also poised to benefit from increased business investments if economic growth returns.

Honeywell’s wide economic moat and leading positions make it a reliable long-term dividend payer.

Dividend Stock #3: Goldman Sachs (GS)

  • Sector: Financials
  • Dividend Yield: 3.4%

Goldman Sachs is a leading global investment bank and financial services company. It offers investment banking, securities, asset management, prime brokerage, and retail banking services.

Goldman Sachs initiated a dividend in 2019 and has increased payouts annually since. Analyst Michael Wong sees near-term banking headwinds ↗ as immaterial to long-run prospects.

Goldman’s trading revenue remains strong compared to pre-pandemic levels. As economic uncertainty eventually fades, Goldman stands to benefit from more active capital markets and increased M&A activity.

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The company maintains an advantaged position among peers to capture financial sector growth over the long term.

Dividend Stock #4: 3M Company (MMM)

  • Sector: Industrials
  • Dividend Yield: 6%

3M Company produces over 60,000 products including adhesives, tapes, abrasives, laminates, passive fire protection, dental and orthodontic products, and more.

Notably, 3M has paid dividends without interruption for over 100 years and grown its payouts for 63 consecutive years.

Joshua Aguilar believes 3M’s improved balance sheet ↗ and liquidity help support the dividend despite near-term legal risks.

3M benefits from valuable proprietary technology and over 25% of sales from recurring consumables. Aguilar projects long-term organic revenue growth around 2.5% as 3M continues developing innovative new products.

Investors can count on 3M’s dividend tradition continuing for years ahead.

Dividend Stock #5: The Travelers Companies (TRV)

  • Sector: Financials
  • Dividend Yield: 2.5%

The Travelers Companies offers commercial and personal property-casualty insurance products and services.

Travelers has paid dividends for over 150 years dating back to its origins as St. Paul Fire and Marine Insurance Company in 1853.

The company has grown dividends at a 10% annual rate over the past decade. Morningstar analyst Brett Horn believes Travelers maintains an advantageous position ↗ among commercial insurer peers that will drive continued dividend growth.

Demand for commercial insurance should rise as the economy strengthens. Travelers stands to benefit from higher premiums and margins over the long run.

Dividend Stock #6: Dow Inc. (DOW)

  • Sector: Materials
  • Dividend Yield: 5.2%

Dow Inc. produces materials science solutions for consumer care, infrastructure, packaging and transportation industries. Its offerings include polyolefins, silicones, acrylics, polyurethanes, and more.

The company was spun off from DowDuPont in 2019 and initiated a dividend that year. Dow has increased its dividend in each of the past 3 years since becoming an independent company.

Morningstar analyst Olexa Katherine believes Dow’s long-term outlook is positive ↗ despite near-term headwinds from falling materials prices and soft demand.

Global economic expansion and growth in packaging and infrastructure investments will drive demand over the next decade. Dow’s cost-advantaged assets position it strongly to benefit.

Dividend Stock #7: Walgreens Boots Alliance (WBA)

  • Sector: Health Care
  • Dividend Yield: 7.3%

Walgreens Boots Alliance operates one of the largest global pharmacy chains including Walgreens, Duane Reade, and Boots locations.

Walgreens has paid dividends for over 90 years and grown its payout for 47 consecutive years. The current yield is an attractive 7.3%.

Morningstar analyst Keonhee Kim sees recent struggles ↗ as temporary issues that have created a buying opportunity. Falling COVID-19 sales, supply chain constraints, and weak cough/cold product demand have pressured results short-term.

Long-term, Walgreens maintains a strong competitive position and opportunities to expand healthcare services. The reliable dividend payout is likely safe.

Key Takeaways for Dividend Investors

Here are the key points on why dividend stocks can provide stable growing income over time:

  • Mature, profitable companies tend to pay steady dividends that increase over time.
  • Dividends provide passive income and cushion against volatility.
  • Reinvesting dividends can compound returns significantly over long periods.
  • Leading companies with economic moats are ideal “buy and hold” dividend stocks.
  • Morningstar analysts identified 7 dividend payers with attractive yields and upside potential.
  • Top picks included Verizon, Honeywell, Goldman Sachs, 3M, Travelers, Dow Inc., and Walgreens.

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