Best Long Term Dividend Stocks to Buy Right Now & Hold Forever in 2024
Best Long Term Dividend Stocks to Buy Right Now & Hold Forever in 2024

Best Long Term Dividend Stocks to Buy Right Now & Hold Forever in 2024

In the ever-evolving landscape of investments, most investors seek stability and growth.

Due to this, it’s a great idea to explore the best long term dividend stocks to you can buy and keep right now.

From established giants to emerging powerhouses, these stocks offer a strategic blend of reliability and potential, making them ideal choices for those looking to build wealth.

If you're interested in buying dividend stocks, you have a few different options. One of the best to go for is long-term stocks. They might represent a greater investment, but they can also help you secure your future.

Here we’re going to learn how dividend stocks work, the benefits of investing in long-term dividends, and the best long term dividend stocks in 2024.

By the end, you’ll know all about the best dividend paying stocks for the long term.

Let’s get started!

What Are Dividend Stocks?

When you're investing in stocks and shares, you become a partial owner of the corporation. That said, in most cases, you'll be holding just the tiniest percentage of the business.

When investing in stock, you can choose between two different types: those that pay dividends and those that don't.

If you buy top long term dividend stocks, you'll be getting regular payments, subject to a schedule determined by the business whose stock you bought. Moreover, the payments are based on how many shares of the company you own.

It's also crucial to note that not all companies listed on the stock exchange make dividends.

For example, Amazon, while offering stocks to buy and invest in and generating generous revenue, does not pay dividends.

How Do Stock Dividends Work?

The amount and frequency of the company’s dividend payments are decided by the company's management.

The same applies to determining how much of the organization’s capital can be distributed to the shareholders and how much is reinvested into business operations.

Most companies pay dividends annually, quarterly, or six-monthly, but the amount paid varies in size.

In most cases, the payment size is an excellent indicator of the company’s current performance and future prospects. Yet, some companies just don’t pay dividends no matter how well they do financially.

Once you purchase good long term dividend stocks that pay dividends, as an investor, you don't have to worry about managing your account.

The company's manager or the investment broker they work with will take care of adding the dividends and making the payouts.

You can, however, decide whether you want to receive the payment by cash out or reinvest it into additional stock.

Why Is It Beneficial to Have Good Long-Term Dividend Stocks?

Because dividend stocks tend not to see any increase in the stock price, there is little profit in buying and selling them.

For this reason, most dividend stocks are more suitable for long-term investment. When investing in the long run, the dividend yield you earn can make a highly lucrative return on the initial investment.

In general, the longer the investment term lasts, the higher your returns will be.

What Are the Best Long Term Dividend Stocks to Send?

Here is a list of the best dividend paying stocks for the long term, along with information about the company and the stocks' past and present performance.

JPMorgan Chase & Co. (JPM)

With $3.9 trillion in assets, JPMorgan Chase is not only one of the world's largest financial institutions, but its stock, JPM, is one of the best long term dividend growth stocks from the finance sector.

Despite the series of bank failures that marked the beginning of this year, JPMorgan remained steady and even acquired other institutions, like the First Republic Bank.

As one of the best-positioned US banks, JPMorgan offers a dividend yield of 2.9%, and according to recent financial analyses, it's excellently equipped to navigate elevated interest rates. You can buy JPM at all major stock exchanges.

Lockheed Martin Corporation (LMT)

Lockheed Martin Corporation, an American defense and aerospace company, is another highly recommended option for long term high dividend stocks.

The reason behind this lies in the company's ability to raise its dividends for 20 consecutive years, with current yields coming in at a reputable 2.65%.

At the end of the first quarter of this year, the company reported a collective value of its 58 hedge fund stakes to be over $1.44 billion.

An even more impressive and promising data that makes buying LMT stock at major exchanges a good investment is Lockheed Martin Corporation's 5-year average payout ratio of 50.02%.

Procter & Gamble Co. (PG)

Producing a wide range of house products, Procter & Gamble has been a steady presence in the consumer staples sector for a long time.

With stabilizing business operation costs, the company shows considerable earnings leverage potential as one of the best dividend stocks to own long term.

Procter & Gamble sales volumes have remained resilient, ensuring that the organization can offer a steady dividend yield of 2.5%.

With a predicted growth in sales at the beginning of 2024, Procter & Gamble is a serious contender for those wanting to diversify their portfolio and ensure a steady income. You can acquire your long-term investment in PG at any stock exchange and major financial institution.

NIKE, Inc. (NKE)

This major footwear, apparel, and sports accessories company has maintained a steady dividend growth for over 20 years.

NIKE currently offers a dividend yield of 1.20%, and its payouts to the shareholders in the first quarter of this year were $528 million.

Due to well-timed marketing efforts and a diversified portfolio, the company represents an excellent investment as one of the best long term dividend stocks to buy now in the consumer goods sector.

NIKE's stakes have a total value of $2.35 billion, and you can invest in them by purchasing them at major stock exchanges and other financial institutions.

Home Depot Inc. (HD)

Capitalizing on continued demand for housing and home improvement, Home Depot is one of the most renowned retailers in the consumer discretionary sector.

Recent analysis shows that due to global financial crises, even more people are expected to invest in either repairing their existing homes or buying ones that require considerable repair rather than buying ready-made houses.

Thus, Home Depot has every chance of not only maintaining but also improving its bottom line, ensuring it can deliver on (and possibly increase) the 2.9% dividend yield it currently offers. You can buy HD stock at all reputable exchanges.

Union Pacific Corporation (UNP)

This Nebraska-based transport business runs one of the largest railroad networks in the country.

In the first quarter of the year, the company reported a revenue of $6.06 billion (which represents a 3.4% growth from last year) and an operating cash flow of $1.8 billion for the same period.

This allowed Union Pacific Corporation to pay $795 million in dividends to shareholders and offer a yield of 2.56%.

This is also the highest rate the company ever offered and based on the 16-year growth record, it's expected to improve even more in the coming years. If you don't want to miss this investment opportunity, buy UNP at your preferred stock exchange.

Merck & Co. Inc. (MRK)

With its reported 3% year-over-year revenue growth in the second quarter of this year, this pharmaceutical giant shows remarkable performance and potential for investors.

From vaccines to cancer drugs, Merck has a diversified offering and a business development strategy that enables the company to maintain a strong core operation and grow further.

Known for offering an exclusive deal but masterfully moving onto an even better deal before the exclusivity expires, there is little question Merck can deliver on the promised dividend yield of 2.8%.

If you're interested in investing in one of the most reliable stocks in the held care sector, you can buy MRK at all exchanges.

Visa Inc. (V)

Due to the ever-growing global personal consumer expenditures, Visa Inc. is rightfully on the list of best long-term stocks. One of the financial services companies dominating the sectors, the American giant, has been raising its dividends since 2008.

It currently offers a dividend yield of 0.79%, so it's definitely suitable for those looking into long-term investment opportunities.

With Visas expected growth of 4–6% based on the following years' personal expenditures and another 4–6% based on the visible shift from cash to credit use, investor earnings are practically guaranteed.

Best Long Term Dividend Stocks to Buy Right Now & Hold Forever
Best Long Term Dividend Stocks to Buy Right Now & Hold Forever

Coca-Cola Co. (KO)

Coca-Cola is another contender in the consumer staples sector. Thanks to its recognizable and well-loved products, the company has maintained an impressive underlying business momentum for a long time.

With a predicted sales growth of 9.5% by the end of the year, strategic investment markers, and a powerful balance of stable profit-growth markets, Coca-Cola is one of the best investment opportunities in the non-alcoholic beverage class.

Buying KO at the major financial institutions or sock exchanges can early you a solid dividend yield of 3.3%.

International Business Machines Corp. (IBM)

Providing enterprise software, related services, and infrastructure, IBM is a well-known global technology company.

The company presents a robust balance sheet, stable financial margins due to recurring sales, an excellent opportunity for market share gains, and exposure to growth opportunities as the use of AI technology becomes more and more relevant in the technological sector.

The company's revenue expansion and free cash flow rebound are expected to continue, which means it won't have a problem meeting and increasing the impressive dividend yield of 4.8% it currently offers.

Like all stock on this list, you can buy IBM on all reputable stock exchanges in a few easy steps by registering and making the required minimum deposit.

Honeywell International Inc. (HON)

We were originally going to look at the 10 best long term dividend stocks but felt Honeywell also deserved a mention as our 11th pick.

Specializing in building and industrial process automation, aviation, and industrial materials and safety, Honeywell is a massive conglomerate dominating the industrial sector and our final choice for the best long term monthly dividend stocks.

The company set out to combat the effect of the global crisis by investing in internal automation and taking a proactive approach to research and development spending.

While the company's stock currently trades at a discount compared to peers and pays a dividend yield of 2.4%, the future plans of investing in improving business operations promise positive changes for investors. You can purchase HON from major exchange websites and apps.

What to Consider When Buying Stock Dividends to Invest In

Numerous factors should be considered when choosing top long term dividend stocks. These include:

Your Capital

Needless to say, the amount to invest in is the first factor to consider. Depending on the stock you opt for, your minimum deposit for your investment can vary.

And don't forget, buying stock always carries its perils, so only invest capital you can afford to risk losing.

Dividend Frequency

The frequency of a company paying dividends can be an indicator of its performance.

High-performing businesses often pay regularly, while infrequent payouts can hint at unstable finances. However, this is a rule as some companies will never pay dividends on their stock, regardless of how well they are doing financially.

Dividend Value

The value of the company's dividends is another factor worth considering, especially with long-term returns.

Once again, companies that do well financially will pay higher percentages in dividends. At the same time, an overly high percentage might raise suspicion as to whether the payout rate is sustainable.

Risk Factors Involving the Company

Much of how a company's stock does on the market (and how much you can expect from your return) depends on the risk factors of the company.

Some entities have higher risk factors, including known errors (bad investments or deals, unsuccessful advertisement efforts, etc.) the company made in the past, financial instability, and others.

The Company's Financial Performance

The financial performance of the company determines whether it will be able to pay the dividends according to the predetermined schedule.

You can look up the business financial reports online (most reputable brands publish them on their website) and their customer ratings to see how well they're doing and whether they can deliver what they promise on dividend payouts.

The Company's Prospective Future

The prospective future of the company can be determined by its past and present performance. This goes hand in hand with the risks, as higher risk factors can make investors question the business' future prospects.

Ideally, for long-term investments, you want the company to perform better in the future as it does now, as this is a sure way to rise above the competition and ensure a high dividend yield.

Best Dividend Paying Stocks for the Long Term – FAQs

Determining the most reliable dividend stock depends on various factors, including financial goals, risk tolerance, and market conditions. Established companies with a history of consistent dividend payments, such as blue-chip stocks, are often considered reliable.

To generate $500 a month in dividends, consider investing in dividend-paying stocks or exchange-traded funds (ETFs) with competitive yields. The amount you need to invest will depend on the dividend yield of your chosen investments.

Specific recommendations for the best dividend long term stocks can vary on several factors. However, any of the 11 stocks we’ve looked at here are solid long-term investments. The safe choice is to go to the likes of Coca-Cola, Procter & Gamble, Lockheed Martin, and other established dividend-paying companies.

To achieve $1,000 a month in dividends, focus on building a diversified portfolio of high-yield dividend stocks or funds. The amount to invest will depend on the average yield of your chosen investments.

The amount needed to generate $4,000 a month in dividends depends on the average dividend yield of your chosen investments. Divide the desired annual income ($48,000) by the average yield to estimate the required investment.

Living off dividends is possible for some individuals, especially those with a well-constructed and diversified portfolio generating sufficient income. It's essential to consider financial goals, lifestyle, and potential market fluctuations.

Yes, dividend income is generally taxable. The tax treatment may vary based on factors such as the investor's country of residence and local tax laws. In many cases, dividends are subject to income tax, but specific details should be checked with a tax professional.

Final Thoughts

Investing in the best long term high dividend stocks can be one of the best ways for you to have regular income and maintain financial security for years to come.

As you've seen here, you have many options to choose from, so it's up to you to decide which long-term dividend stock fits your needs.

Before investing in stock, consider your capital, the dividend value and frequency, and the company's past, present, and prospective future performance to make an informed decision.

Once you do, you can buy your long term dividend stocks with confidence.

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