These stocks have a return of at least 2%, a value of $100 billion and a lot of stability.
When it comes to investing, some frenetic traders think that holding a stock for a year or two is considered “long term.” But for many small investors, a year or two is just the beginning of the journey. After all, countless research has been done on the dangers of trading too much and either achieving significant underperformance or simply driving up your costs in fees and taxes. It might be much better to follow the example of investment icon Warren Buffett, who famously joked at a Berkshire Hathaway shareholder meeting that “our favorite period of ownership is forever.” If you’re interested in the really long term, consider the following dividend stocks to buy and hold forever. The following nine companies are all valued at over $100 billion and offer significant ongoing returns of over 2% in addition to long-term stability.
JPMorgan Chase & Co. (ticker: JPM)
The largest of the big banks, financial powerhouse JPM is not going anywhere for now. It is a full-service leader, providing consumer and small business banking as well as wealth management services and premium services for businesses and institutions. In other words, as long as there’s money, JPMorgan will be there to help people transact — and take a small fee for the price of doing business. And so as not to fear the fallout from a global financial crisis in the coming decades, it’s important to remember that JPM navigated the 2008 downturn much better than many of its competitors and one of the best-managed financial stocks in the world. world continues, thanks to the cunning leadership of CEO Jamie Dimon.
Current Revenue: 2.5%
Market capitalization: $482 billion
Johnson & Johnson (JNJ)
Founded more than 130 years ago, JNJ has a rich history and a dominant name in the healthcare sector. Whether you’re looking at consumer-oriented products like Band-Aid or Tylenol, the lucrative oncology drugs, or the best-in-class digital medical devices for operating rooms, this health powerhouse has a lot to offer. Perhaps the most compelling fact, however, is that Johnson & Johnson has the balance sheet to back its brand strength. Remember that in addition to Microsoft Corp. (MSFT), JNJ is one of only two US AAA stocks when it comes to debt ratings. Or that the company has increased its already generous dividend once a year for a staggering six decades in a row. If you want a long-term bet, it’s hard to find a better one than JNJ.
Current Revenue: 2.7%
Market capitalization: $422 billion
Procter & Gamble Co. (PG)
Procter & Gamble is the company behind some of the biggest consumer names in the world, from Gillette shaving products to Pampers diapers and Crest toothpaste. Chances are you have a medicine cabinet or chest of drawers full of P&G products, and chances are you’ll be buying the same tried-and-true brands the next time you go to the store. Procter & Gamble has increased its dividends at least once a year for about 65 years and has been in business for barely two centuries. It’s not a glamorous or fast-growing business to sell non-commodities consumables, but it’s certainly reliable for investors looking at their portfolios over the long term.
Current Revenue: 2.5%
Market capitalization: $343 billion
Coca Cola Co. (KO)
KO stocks have long been a favorite of investment icon Warren Buffett and for good reason. While sugary soft drinks may not be as popular as they once were in the era of more health-conscious consumers, Coke doesn’t exactly hurt right now with its market value of over $230 billion and sales of about $40 billion a year worldwide. In addition, KO has looked beyond its flagship Coca-Cola soft drinks with juices, teas and “hydration” products, including PowerAde and Smartwater, to ensure it remains relevant for many years to come. It also boasts about 60 years of consecutive dividend hikes as a sure sign to income-oriented investors that they will continue to be rewarded if they keep this stock as a long-term asset.
Current Revenue: 3.1%
Market capitalization: $234 billion
Verizon Communications Inc. (VZ)
Verizon may be as close to a thing as you can find on Wall Street these days. The company boasts massive scale with over $130 billion in annual revenue from millions of wireless, broadband, fiber and cable TV connections. It has an almost duopoly in the US with peers telecom giant AT&T Inc. (t) and a high barrier to entry from future competition, due to the very expensive and regulated nature of building a telecom network. And to top it off, VZ only pays about half of its operating profit as dividends — so even without future growth, there’s plenty of room for future gains. About the only reason to doubt Verizon will be there forever is if you expect the entire global communications system to collapse. And if that happens, you’ll have bigger problems than your retirement account balance!
Current Revenue: 5%
Market capitalization: $211 billion
Cisco Systems Inc. (CSCO)
A $232 billion enterprise computing leader, Cisco is a Silicon Valley icon that has established itself as one of the dominant forces in the technical sector. While it has had many false starts over the years, including some strange forays into consumer technology with products like the Flip camcorder, the company has stood the test of time as its business has grown — and its dividend with it. Payouts started in 2011 at 6 cents per quarter per share, and have risen dramatically over the past ten years to 37 cents per share in 2021. The company is also on a tailwind, setting a new record in 52 weeks in September and on looking up in the short term, even if it has a business that is clearly built to last.
Current Revenue: 2.7%
Market capitalization: $232 billion
McDonald’s Corp. (MCD)
An icon of the restaurant industry, MCD is also a case study in a company that knows how to drive long-term shareholder value. The dividend has grown impressively over time with more than 40 years in a row of at least one dividend increase per year. The magnitude of those increases is also significant, with a payout of 61 cents in 2011 now more than double that of $1.29 per quarter. While there’s certainly a focus on healthier eating, McDonald’s budget-conscious and always convenient menu continues to connect with consumers. And with the recent expansion into delivery and loyalty programs, you can expect this stock to continue its track record of success for the foreseeable future.
Current Revenue: 2.3%
Market capitalization: $180 billion
Pfizer Inc. (PFE)
PFE has recently made a name for itself, in part because of its leading-edge COVID-19 vaccine. It’s a healthcare powerhouse that has what it takes to stay relevant in any market environment. The pandemic is a great example of this drugmaker’s innovative potential, and existing blockbusters — including the Prevnar pneumonia vaccine, Ibrance breast cancer drug, and Eliquis blood thinner — continue to deliver great long-term results. One thing that’s certain in life is that we all get old and get sick, so a company like Pfizer with a strong track record and an impressive global scale is a great long-term bet for dividend investors who want to define it and forget it.
Current Revenue: 3.8%
Market capitalization: $235 billion
Intel Corp. (INTC)
Multinational tech giant Intel makes the processors you find in most PCs, but don’t think this is a company unsuited to a 21st-century market. It also specializes in cloud data infrastructure products and chips used in the Internet of Things through smart home appliances. The company is certainly on the move after announcing that it would restructure its operations and create two new business units that will focus separately on software and high-end hardware. There are also rumors that Intel is pulling out of the complex and lower margins of making chips, rather than focusing on design to outsource manufacturing. But ultimately, Intel is an icon of the tech sector with some of the most popular chips in history and a will to develop the next generation of processors.
Current Revenue: 2.7%
Market capitalization: $212 billion
Dividend Stocks to Hold Forever:
— JPMorgan Chase & Co. (JPM)
— Johnson & Johnson (JNJ)
— Procter & Gamble Co. (PG)
– Coca Cola Co. (KO)
— Verizon Communications Inc. (VZ)
— Cisco Systems Inc. (CSCO)
— McDonald’s Corp. (MCD)
— Pfizer Inc. (PFE)
– Intel Corp. (INTC)