The Best Dividend Stocks to Buy and Hold Forever

Investing in the stock market is not always about scoring the biggest capital gains. Investors can have many different objectives. Generating income is a priority for a lot of people.

Here are two of the best dividend stocks to buy and hold forever. The first one is a Dividend King, with a more than 50-year streak of payout increases. The second company stands out for a different reason.

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Procter & Gamble

Procter & Gamble (PG 0.45%) is a top dividend stock for investors to consider. The dividend yield of 2.8% is more than double what the average stock in the S&P 500 index offers. The company’s track record of consistent dividend growth is mind-boggling. Procter & Gamble has raised its dividend for 69 consecutive years. And it has paid a dividend of some kind for 135 straight years. Each share pays out $4.23 in annual income.

The business dominates the consumer packaged goods industry. It owns leading brands in categories like beauty, grooming, and healthcare. These are time-tested products that are essential items for households, allowing the company to avoid fluctuating demand due to economic trends. Procter & Gamble has been around for almost two centuries, which is an unbelievable feat.

When it comes to safe stocks, there might be none that tops this one. With sizable profits and free cash flow, Procter & Gamble’s dividend is something shareholders can count on.

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NYSE: PG

Procter & Gamble

Today’s Change

(-0.45%) $-0.69

Current Price

$151.43

Key Data Points

Market Cap

$354B

Day’s Range

$151.20 - $153.46

52wk Range

$137.62 - $174.80

Volume

322K

Avg Vol

11M

Gross Margin

51.11%

Dividend Yield

2.78%

Visa

The second-best dividend stock to buy and hold forever might be an unconventional choice. The company is Visa (V 0.50%), which holds a commanding position in the global payments industry. There are billions of Visa cards in circulation around the world. And it handles trillions of dollars in payment volume each and every quarter.

Visa’s dividend yield of 0.9% isn’t going to attract much attention. But in the past decade, the business increased the payout by 379%. That’s light years ahead of Procter & Gamble’s 58% dividend gain over the same decade.

Investors will also appreciate the company’s growth potential. Visa benefits from rising economic and spending activity around the world, as well as further penetration of cashless transactions. Its net income is up 200% over the last 10 years. There’s a good chance the annual double-digit profit growth will continue for the long term.

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NYSE: V

Visa

Today’s Change

(-0.50%) $-1.55

Current Price

$308.56

Key Data Points

Market Cap

$591B

Day’s Range

$307.39 - $312.70

52wk Range

$299.00 - $375.51

Volume

423K

Avg Vol

7.7M

Gross Margin

78.02%

Dividend Yield

0.81%

These companies highlight durability over gains

Both Procter & Gamble and Visa are fantastic businesses. They have strong positions in their respective industries, generate robust profits, and face almost no threat of disruption. These positive traits will support ongoing dividend strength.

However, investors should set the right expectations. Owning these stocks probably isn’t going to produce sizable returns that outperform the market every year. But they will serve as great income stocks over the long-term.