Top Five Dividend Stocks For The Long Run
Tuesday, April 05, 2022 11:00 AM

Dividend stocks are a great way to boost your long-term results. Investing in dividend-paying stocks also provides your portfolio with a nice safety net when the stock market gets volatile. As an investor, you must realize that not all dividend-yielding stocks are created equal. Your goal should be to look for companies who are consistently raising their dividend because of strong cash flows. Dividends which are high solely because the stock price has plummeted are a much more risky investment.

Investing in dividend-paying stocks should typically be a long-term commitment for investors. Trading in and out of this type of company is often not rewarding financially, and it will simply cause you to pay significant expenses in commissions and taxes. Find some solid dividend-yielding stocks and stick with them for the long-term. Here is a look at five of the top dividend-yielding stocks for the long run.

Top Five Dividend Stocks for the Long Run

1. Procter & Gamble (NYSE:PG) Procter & Gamble currently yields 3.1%. P&G has as solid of a reputation as any company on the market when it comes to paying a healthy dividend. The company has been paying a dividend to shareholders for 120 years. Most impressive is their ability to increase the dividend payout for 54 consecutive years. The company has a strong balance sheet and I don’t expect them to halt their dividend increases anytime soon.

2. McDonald’s (NYSE:MCD) McDonald’s went public in 1965, so it is a much newer stock than most of the names on this list. The company started paying a dividend to shareholders in 1976, and they have raised the dividend every year since. The shares are currently yielding 3.2%. This is a company that has done a great job reinventing the way they do business. This company has a great brand name that should help it continue to be successful over time.

3. Phillip Morris International (NYSE:PM) This company was spun off of Altria Group in early 2008. The stock currently yields 3.95%. This is a unique opportunity to get a fairly nice growth stock inside a sector that has been largely stagnant for the last few years. The international markets have been growing in the tobacco industry, and Phillip Morris continues to take more market share. The company is currently growing revenues at about six to eight percent, which is far better than the industry average.

4. Coca Cola Company (NYSE:KO) There isn’t a company in the world with a better brand name than Coca-Cola. It isn’t an accident that this stock is Warren Buffett’s single largest holding. Buffett likes to invest in a company that constantly grows dividends and has a strong brand name. Coca-Cola has paid a dividend since 1893. Coke is a cash cow and they should be able to continue to raise their dividend for many years to come.

5. 3M Company (NYSE:MMM) 3M is your ideal dividend-paying stock that simply has a pristine balance sheet and a great business model. 3M has increased their dividend for 53 consecutive years. The stock currently yields 2.4%. This company is involved in so many different sectors that it provides some instant diversification for investors.

All five of these stocks are yielding far more than a yearly deposit account at your local bank is in today’s economy. Consider investing in dividend paying stocks over the long-term to help complete your investment portfolio.