10 Top Dividend Stocks for Long-Term Investors

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Good Stocks For A Diversified Passive Income Dividend Growth Portfolio

When I pick dividend stocks for long-term investments, I look for:

  1. Current dividend income
  2. Future dividend growth
  3. Long-term stock price appreciation

Today, I will share 10 stocks from my dividend portfolio that check these three boxes. And provide additional tips for investors seeking dividends. Let’s get moving.

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Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.

1. Automatic Data Processing (ADP)

ADP provides businesses worldwide with payroll processing services, employee benefits administration, and other human capital management solutions.

The company started paying a recurring cash dividend in 1974. In 1975 ADP increased its dividend for the first time and has done so every year since.

Dividend investing tip: Learn as much as possible about investing in dividend stocks. Knowledge is power and translates directly to solid investment returns.

Ready to learn more? Then check out the Financial Freedom Dividend Investing Course offered by Simply Investing.

2. AbbVie (ABBV)

Founded in 2013, AbbVie was formed through a spin-off of Abbott’s Pharmaceutical Products Division.

Today, the company discovers and produces drugs to treat many difficult-to-cure diseases.

Better yet, AbbVie management has rapidly increased the company’s dividend per share since its founding over a decade ago.

Dividend investing tip: Buy and hold enough dividend stocks for adequate diversification. Never let one dividend-paying stock become too large a part of your portfolio.

3. Clorox (CLX)

The Clorox Company is a leading manufacturer and marketer of consumer products. The company competes in the household goods, food, and beverage categories.

Management started paying dividends in 1970. Annual dividend increases began in 1978 and have continued every year after that.

Dividend investing tip: Companies are not required to pay dividends, so your future dividend payments are not guaranteed. As a result, it pays to do your research before investing. Look for stocks with a long history of paying dividends.

4. Hormel Foods (HRL)

Hormel Foods is a Fortune 500 company that manufactures and markets high-quality food and meat products. They have more than 50 different brand-name products, many of which hold the number one or two market share positions in their respective categories.

Since becoming public in 1928, the company has paid a quarterly dividend. Furthermore, the annual dividend rate has increased since 1966, making Hormel a Dividend King.

Dividend investing tip: I like investing in Dividend Kings because of their strong track record of dividend growth. Fifty-plus years of annual dividend growth is a remarkable accomplishment.

5. International Business Machines (IBM)

IBM is a global leader in the technology sector. Management transformed legacy IBM by spinning off the slow-growing IT infrastructure services segment, now doing business as Kyndryl.

As a result, IBM pursues faster-growing business areas. These areas include newer technologies like artificial intelligence, cloud computing, and blockchain, an internet-based ledger technology.

The company has paid consecutive quarterly dividends since 1916. Also, management has increased dividends annually since 1996. This accomplishment makes IBM a Dividend Aristocrat.

Dividend investing tip: Stick with your investment strategy long enough to achieve your dividend investing tipping point. The tipping point is when your dividend income portfolio can pay all your recurring living expenses. That’s the definition of financial freedom for dividend investors.

Okay. Five stocks down and five to go. Before you continue, pin this image so others can find and enjoy this article.

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6. McDonald’s (MCD)

Next, we have the iconic hamburger chain McDonald’s.

The company is best known for its burgers and fries, however, did you know thousands of small—to mid-sized business owners operate most of the company’s restaurants?

These entrepreneurs are known as franchisees. Furthermore, McDonald’s makes most of its money by charging these franchisees rent and royalties.

The company uses its profits partly to pay and increase dividends each year. Management has done so since declaring its first dividend in 1976.

Dividend investing tip: Many successful investors have built million-dollar dividend portfolios. To do so, they start young, live below their means, think long-term, and invest as much of their monthly savings as possible in dividend stocks.

7. Microsoft (MSFT)

Microsoft, founded in 1975, develops, licenses, and supports various software products, services, and devices. The company is best known for its iconic Windows PC operating system.

More recently, management has successfully pushed into cloud computing in a big way. Their cloud segment comprises public, private, and hybrid server products and services that power businesses.

In 2003, Microsoft started paying regular cash dividends to shareholders and then increased its annual dividend per share each subsequent year.

Dividend investing tip: Microsoft is an excellent example of a stock where investors can benefit from dividends and capital gains.

8. Realty Income (O)

Realty Income is a real estate investment trust (REIT) that owns thousands of commercial properties. These properties generate rental revenue from long-term net lease agreements with tenants.

Some well-known tenants include Walgreens, 7-Eleven, Dollar General, and FedEx.

Unlike the other stocks I’m highlighting today, the company pays monthly dividends and has done so since 1994. Also, Realty Income is a dividend Aristocrat because of its long history of yearly dividend increases.

Dividend investing tip: I don’t chase monthly dividend stocks. Instead, I place a higher value on other dividend metrics. Thus, stocks that pay quarterly dividends are fine with me.

9. Verizon (VZ)

Verizon’s portfolio of assets and services makes it one of the world’s leading communications, information, and entertainment providers. The company’s two primary services include wireless and wireline.

Verizon was formed in 2000 after Bell Atlantic and GTE Corp merged. Since then, the company has paid quarterly dividends and increased them yearly starting in 2007.

The stock is a steady dividend payer for those seeking higher dividend yield while willing to sacrifice faster future dividend growth.

Dividend investing tip: Every dividend investor should understand the pros and cons of dividend stock investing.

10. Walmart (WMT)

Walmart is an American multinational retail corporation. They operate thousands of retail chain stores and clubs in dozens of countries. Also, the company has a robust online presence.

When it comes to dividend history, Walmart is no slouch. The company declared its first annual dividend in 1974 and has increased its cash dividend annually since then.

Dividend investing tip: Dividends from stocks are an excellent means to augment your income in retirement. Don’t delay planning for a secure retirement knowing dividends can be a big part of your financial plans.

Next, I have a brief wrap up and some additional resources. Before you continue, please pin this image:

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Top-Notch Dividend Stocks For Long-Term Investors: Wrap-Up

Start investing, think long-term, and grow your wealth. Do it right, and you can get rich off dividends.

Ready to learn more? Then check out the Financial Freedom Dividend Investing Course offered by Simply Investing.

I learned a ton and made a lot of money by following the dividend investing tips that Simply Investing teaches in its easy-to-understand online course.

More Reading about Dividend Investing

Most importantly, good luck with your investments.

Author Bio: Tom Scott founded the consulting and coaching firm Dividends Diversify, LLC. He leverages his expertise and decades of experience in goal setting, relocation assistance, and investing for long-term wealth to help clients reach their full potential.

Dividend Stocks For Long-Term Investors