3 dividend-paying stocks to buy and keep forever

What’s the easiest way to increase the return on your investments? Extend the length of time you hold your shares. This is especially the case with dividend paying stocks. Reinvesting dividends over a long period of time can dramatically increase your total returns.

If you’re planning on holding for a long time, that means you’ll want to be more selective about which stocks you buy in the first place. Here are three dividend-paying stocks that you can buy and hold indefinitely.

Abbott Laboratories

Abbott Laboratories (NYSE: ABT) is a dividend aristocrat with 49 consecutive years of dividend increases. The company is ranked among Fortune’s 50 Most Admired Companies. It has been number one in its industry for eight years.

These are certainly impressive distinctions. However, it is even more important that Abbott occupies the market leadership position in all of its activities. Cardiovascular care, diabetes care, diagnostics, nutrition – you name it, and Abbott sits at the top.

Granted, Abbott’s 1.4% dividend yield probably won’t make your mouth water. But the dividend will almost certainly increase over time. Better yet, Abbott is expected to generate strong revenue and earnings growth, the precursor to a strong appreciation in stock prices.

The company’s FreeStyle Libre continuous glucose monitoring device and the MitraClip mitral valve continue to serve as key growth engines. Its sales of COVID-19 tests could decline but are expected to remain a significant source of income even after the pandemic has ended. Abbott’s commitment to innovation will likely translate into new products and new markets over the next decade and beyond.

Brookfield Renewable Power

Brookfield Renewable Power (NYSE: BEP) (NYSE: BEPC) cannot claim the history of dividend increases that Abbott can. However, the company has increased its dividend payout by a compound annual growth rate of 6% over the past two decades. And most investors will probably appreciate its close to 3% return.

However, Brookfield Renewable has one thing in common with Abbott. Its growth prospects are even more attractive than its dividend.

Nearly 130 governments have set net zero carbon emissions targets. Nearly 3,100 companies have pledged to reduce their carbon emissions by 50% by 2030. This represents a huge opportunity for Brookfield Renewable, which stands out as one of the world’s leading providers of renewable energy.

Brookfield Renewable expects to generate total returns of between 12% and 15% over the long term. With the growing demand for renewable energy and its huge development pipeline poised to deliver significantly higher capacity, the company should be in a strong position to achieve this goal.

Johnson & johnson

Few companies can boast of such an impressive pedigree as Johnson & johnson (NYSE: JNJ). He’s a dividend king with 59 consecutive years of dividend increases. J&J ranks # 1 among pharmaceutical companies on Fortune’s Most Admired Companies list. It is the largest healthcare company in the world.

Johnson & Johnson is about as stable as it gets. About 70% of its sales come from No.1 or No.2 products in their respective markets. The company has 28 products or platforms that generate annual sales of over $ 1 billion.

He is also a surprisingly agile giant. The company has generated an annualized total return of 13.1% over the past 10 years. About a quarter of its total revenue comes from products launched in the past five years.

J&J should be able to generate solid earnings growth over the long term. Add to that the attractive dividend from the company, which is currently earning nearly 2.8%. This blue-chip dividend-paying stock is a stock you will probably never regret buying.