Investing in dividend stocks and adopting a buy-and-forget approach may seem like a simple strategy, but it requires careful consideration and research. Market volatility, income potential, and overall performance are factors that can impact the success of this strategy. However, there are certain dividend stocks that are considered “core holdings” by investors due to their long-standing track record of dividend payments and increases. These stocks, known as Dividend Kings, have consistently increased their dividends for over 50 years, making them reliable options for long-term investment.
Using Barchart’s free screener tool, I filtered through various criteria to identify the top three highest-yielding Dividend Kings that are suitable for a buy-and-hold strategy. These stocks have been selected based on specific parameters such as current analyst rating, number of analysts covering the company, market capitalization, 60-month beta, 5-year percent change, and forward dividend yield.
One such Dividend King is AbbVie, a pharmaceutical company that focuses on developing traditional medicines and advanced therapies for complex health conditions. With a stock price of around $227 and a 112% gain over the past 5 years, AbbVie offers a forward dividend yield of 2.9%. Despite a decline in net income, the company’s revenue has shown growth, making it a stable choice for long-term investors.
Another prominent Dividend King is the Coca-Cola Company, a beverage giant known for its wide array of products beyond the iconic Coca-Cola. With a stock price of $72 and a >35% gain over the past 5 years, Coca-Cola offers a forward dividend yield of 2.86%. The company’s consistent revenue growth and high analyst rating make it a favorable option for buy-and-hold investors.
Lastly, Johnson & Johnson, a healthcare giant operating in pharmaceuticals, medical devices, and consumer health products, is another top Dividend King. With a stock price of about $207 and a 38% gain over the past 5 years, Johnson & Johnson offers a forward dividend yield of 2.6%. Despite a decline in net income due to one-time gains, the company’s revenue has shown steady growth, making it a reliable choice for long-term investors.
Overall, investing in mega-cap Dividend Kings provides a safe and stable option for a buy-and-forget strategy. While there are risks associated with market fluctuations, staying informed and reinvesting dividends can lead to significant compound growth over time. It is important to conduct thorough research and consider individual financial goals before investing in any stock.
