Best 3 Dividend Stocks to Buy and Hold Forever for Dependable Income

Investing in dividend stocks can provide a dependable income stream for the long haul. With the right stocks, you can earn regular payouts and potentially grow your wealth over time.

One of the key benefits of dividend stocks is their relatively low volatility compared to growth stocks. This makes them a great option for conservative investors who want predictable returns.

Investing in dividend stocks requires a long-term perspective, as the payouts may not be as high as those from growth stocks. However, the steady income stream can provide a sense of financial security.

By diversifying your portfolio with dividend stocks, you can spread out your risk and potentially increase your overall returns.

The S&P 500 Dividend Aristocrats are an index of 67 companies that have raised their payouts annually for at least 25 consecutive years.

These companies are scattered across every sector of the market, but they all share a commitment to reliable and long-term dividend growth.

Walgreens Boots Alliance was recently removed from the index after slashing its dividend by almost half in late 2023, ending its almost 50-year streak of annual dividend hikes.

Fastenal was added to the Dividend Aristocrats in recognition of its quarter-century streak of annual dividend hikes.

The Dividend Aristocrats have been among the best dividend stocks to buy for reliable income growth over the past several decades.

Investors can gain exposure to every stock in the S&P 500 Dividend Aristocrats index via the ProShares S&P 500 Dividend Aristocrats ETF, which has $11.6 billion in assets under management and an expense ratio of 0.35%.

The Dividend Kings list includes 54 stocks with over 50 consecutive years of dividend increases.

These dividend growth stocks have been rewarding shareholders with rising income for decades.

Walmart Inc. and Coca-Cola are two examples of mega-cap stocks that have enormous businesses and have been included in the Dividend Kings list.

The list includes 10 Dividend Kings with Dividend Risk Scores of A or B in the Sure Analysis Research Database, that also have payout ratios below 70% to ensure a sustainable dividend payout.

To find the best dividend stocks to buy and hold forever, you'll want to look for companies with a long history of reliable dividend growth.

The S&P 500 Dividend Aristocrats index is a great place to start, featuring 67 companies that have raised their payouts annually for at least 25 consecutive years.

A commitment to reliable and long-term dividend growth is the common thread among these companies, making them a good starting point for dependable dividend growers.

Walgreens Boots Alliance was removed from the index in January 2024 after slashing its dividend by almost half, ending a nearly 50-year streak of annual dividend hikes.

Fastenal, on the other hand, was added to the index in recognition of its quarter-century streak of annual dividend hikes.

Investors can gain exposure to every stock in the S&P 500 Dividend Aristocrats index via the ProShares S&P 500 Dividend Aristocrats ETF, which has an expense ratio of 0.35% and $11.6 billion in assets under management.

The Dividend Aristocrats have been among the best dividend stocks to buy for reliable income growth over the past several decades, making them a good place to start if you're looking to add dividend battleships to your long-term portfolio.

Forever Stocks are a great way to build wealth over time. They're companies that have a proven track record of steady dividend growth, often with over 50 consecutive years of increases.

These stocks are often referred to as Dividend Kings, and they include companies like Johnson & Johnson, which has generated annual sales above $99 billion. Archer-Daniels-Midland, on the other hand, is the largest publicly traded farmland product company in the United States, with consolidated cash flows year-to-date reaching $2.34 billion.

Dividend Kings like these are a great option for investors looking for reliable income growth over the long-term. They tend to have strong businesses and a commitment to paying dividends, making them a great choice for a buy and hold forever strategy.

The S&P 500 Dividend Aristocrats index is a great place to start if you're looking to add dependable dividend growers to your portfolio.

These 67 companies have raised their payouts annually for at least 25 consecutive years, making them a reliable choice for long-term income growth.

The index is maintained by S&P Dow Jones Indices and includes companies from every sector of the market.

Walgreens Boots Alliance was removed from the index after slashing its dividend by almost half in late 2023.

Fastenal was added to the index in recognition of its quarter-century streak of annual dividend hikes.

3M's time as a Dividend Aristocrat is set to come to an end due to a dividend cut following the spin-off of its Solventum healthcare business.

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) offers investors exposure to every stock in the S&P 500 Dividend Aristocrats index with an expense ratio of 0.35%.

The index is updated annually in January, with the most recent changes including the removal of VF Corp. and the addition of Kenvue.

S&P Global is a great example of a forever stock, having paid a dividend each year since 1937 and increased its disbursement annually for more than half a century.

Its free cash flow of $3.5 billion for the 12 months ended September 30, 2023, demonstrates the company's financial stability.

Fastenal, with 25 consecutive annual dividend increases, is another strong contender for long-term growth. It generated more than $1 billion in levered free cash flow in fiscal 2023.

J.M. Smucker, with 27 years of annual dividend increases, is also a great option. Its wide range of popular brands, including Folgers and Dunkin' coffee, adds to its appeal.

Here are 10 forever stocks that are worth considering for long-term growth:

These companies have a proven track record of increasing their dividends and generating strong free cash flow, making them well-suited for long-term growth.

In conclusion, investing in dividend stocks can be a smart way to build long-term wealth.

Dividend stocks like Johnson & Johnson, Procter & Gamble, and Coca-Cola have consistently paid out dividends for over 50 years.

These companies have a proven track record of stability and growth, making them attractive options for investors looking to hold onto their stocks forever.

Their dividend yields range from 2.4% to 3.1%, providing a relatively stable source of income for investors.

By investing in these dividend stocks and holding onto them for the long haul, you can potentially earn a steady stream of income and grow your wealth over time.