9 Dividend Stocks to Invest in and Keep for the Rest of Your Life
Long-term investors can benefit from exercising patience.
In 2022, the stock market is fraught with uncertainty because of commodity price inflation, rising interest rates, and the prospect of a broader economic downturn. However, long-term investors can limit their portfolio's volatility by focusing on high-quality stocks with a proven track record of stability, despite the fact that there is no such thing as a sure thing on Wall Street.
However, despite their short-term volatility, the nine stocks listed below all pay out a dividend yielding 3% and are owned by companies with bright long-term prospects. Unless otherwise noted, dividends are calculated using a trailing 12-month, or TTM, average.
Alexandria Real Estate Equities Inc. (ticker: ARE)
Dedicated life science and technology research sites in Alexandria, Virginia, are among the oldest in the United States. It is structured as a REIT based on what it terms "innovation clusters" in close proximity to top-tier academic institutions and metropolitan talent centers. It has a total of about 50 million square feet of space in major cities like San Francisco, Boston, New York City, and Seattle. As a result, ARE stock has been able to outlast other real estate investments that are more cyclical and rely on consumer spending. Remote work for white-collar employees has also impacted commercial real estate trends. With a 130% increase in the last decade, the company's dividends have proven their long-term dividend growth ability, rising from 51 cents quarterly in 2021 to $1.18 today.
Campbell Soup Co. (CPB)
In addition to its well-known soups, Campbell produces a wide range of other consumer items under the V8, Pepperidge Farm, Snyder's, and Pop Secret brands. Since its inception in 1869, the company has stood the test of time and weathered a variety of economic downturns. The fact that we all have to eat doesn't change no matter what happens to the stock market or consumer spending. From July 2022 through July 25, CPB stock has gained a small amount of money thanks to a large number of investors fleeing "risky" equities like this one.
Amcor PLC (AMCR)
What? You've never heard of the Amcor Corporation? It's possible that now is the right time to discover more about this dividend investment with a long-term time horizon and low risk. As a packaging manufacturer, Amcor creates a wide range of different types of containers and pouches. In spite of the lack of glamour, the company's goods are used by a wide range of customers in the beverage, medical, personal care, and other industries. As a result, it can serve a wide range of clients and maintain constant performance over time. AMCR, a "dividend aristocrat," has raised its payouts at least once a year for the past 25 years. This shows how committed the company is to its shareholders in the long run.
Cardinal Health Inc. (CAH)
In addition to nursing homes, medical offices, and surgery centers, Cardinal Health supplies products and services to these facilities. For example, the distribution of lab supplies, safety gear, bandages, and other requirements with low profit margins but high demand is included here. Consequently, this $15 billion health care company has enjoyed 35 consecutive dividend increases. If CAH's business model isn't going to be disrupted by new therapies or technology, it's a stock worth owning and holding on to for a long time.
Consolidated Edison Inc. (ED)
When it comes to long-term viability, ConEd is a better utility stock than many of its peers. It serves 3.5 million customers in New York City and 1.1 million consumers in the surrounding area with electricity and natural gas. While the energy demand in some parts of the country may be volatile, this client base is set in stone. For the past 48 years, ConEd has maintained a record of at least one dividend increase per year for its stockholders. ConEd is a stock that you may want to buy and own for the long term, even if there are better yields or larger market capitalizations in the industry.
Merck & Co. Inc. (MRK)
Even if the rest of Wall Street has suffered, Merck has been a standout performer in 2022, up more than 15% as of July 25. Although the short-term outlook for this big pharma stock is positive, it also offers substantial long-term potential. Keytruda, a cancer immunotherapy drug, and Januvia, a diabetes medicine, are two of Merck's multibillion-dollar bestsellers. Further bolstering its position, the Seattle-based cancer biotech Seagen Inc. (SGEN) is in the process of a $40 billion acquisition. Long-term investors that hold onto this company can also look forward to dividend increases. With a dividend that has increased from 40 cents per share in 2012 to 69 cents per share,
Unum Group (UNUM)
Its headquarters are in Tennessee, although Unum offers services throughout the United States, as well as the UK and Poland. Workers' compensation, group health and life insurance, and disability insurance are the company's primary focus. Unum has been doing this since its inception in 1848, and it's a business they've been quite excellent at. Almost three times as much money was paid out in dividends this year as in 2012, when the company paid out just 13 cents per share. You want to see dividend increases like this in a long-term investment.
Altria Group Inc. (MO)
Altria produces Marlboro cigarettes, Black & Mild pipes and cigars, and smokeless tobacco brands like Copenhagen and Skoal. While these items aren't great for your health, tobacco-related research has been around for decades, so it's not like customers are ignorant of the dangers of smoking. In addition, MO has a long history of dependable low-risk returns for investors, including a record of more than 50 consecutive years of dividend increases over the previous 50 years. Due to setbacks in its holding in Juul, a producer of e-cigarettes, the stock's recent decline may be a perfect opportunity for long-term investors to get in on the action.
Williams Cos. Inc. (WMB)
It's hard to have much faith in pure-play fossil fuel businesses when oil prices are down around 25% from their 2022 highs and the long-term concern of climate change is present. Williams, on the other hand, benefits from two critical features that contribute to its greater long-term stability. In addition to being a cleaner energy alternative to crude oil, natural gas is experiencing huge worldwide supply shortages as a result of the Ukraine war, which might endure for many years. To begin with, it is a natural gas bet. WMB is a "midstream" energy corporation; its primary business is the operation of pipelines and processing plants. Because it does not face the same level of commodity price risk as explorers, this sector has higher than average demand. As a result, investors can count on regular dividend payments even if the stock market experiences ups and downs.
9 dividend stocks to buy and hold forever:
- Alexandria Real Estate Equities Inc. (ARE)
- Campbell Soup Co. (CPB)
- Amcor PLC (AMCR)
- Cardinal Health Inc. (CAH)
- Consolidated Edison Inc. (ED)
- Merck & Co. Inc. (MRK)
- Unum Group (UNUM)
- Altria Group Inc. (MO)
- Williams Cos. Inc. (WMB)