2 Outstanding Dividend Stocks to Buy and Hold for 10 Years
Income seekers can't go wrong with these companies.
Investing in dividend stocks is a time-tested strategy for building wealth over the long haul. By reinvesting those dividend payments, investors can benefit from the power of compounding, which can lead to substantial returns over time. Empirical evidence suggests that dividend-paying stocks have often outperformed non-dividend payers over the past few decades.
However, not all income stocks are created equal. In this analysis, we will examine two companies that appear to be excellent long-term dividend plays: Johnson & Johnson and Merck & Co.
Johnson & Johnson (NYSE: JNJ) has had a strong year, with its stock price increasing by 28% compared to the S&P 500's 10% gain. One of the key factors driving the company's performance is its robust financial results. Despite facing challenges such as patent expirations and government drug price negotiations, Johnson & Johnson has managed to grow its revenue and earnings at a solid pace.
In the second quarter of the year, sales reached $25.3 billion, which represented a 6.6% increase year-over-year. Moreover, adjusted earnings per share climbed 4.7% year-over-year to $2.90.
These impressive financial results indicate that Johnson & Johnson is well-positioned to overcome the challenges it faces. The company's ability to generate steady growth in revenue and earnings is a testament to its strong business fundamentals. As investors look for long-term dividend stocks to buy and hold for a decade or more, Johnson & Johnson emerges as a compelling option in this category.
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