3 dividend-paying stocks that could make you rich in the long run

There is no doubt that owning and holding quality stocks is the surest route to long-term financial security. Strong dividend payers can help improve those results, by increasing the value of a portfolio at regular intervals like clockwork. Adding an investment timeline spanning years, if not decades, allows the power of time and composition to work for you. This creates a virtual wealth building trio.

On this clip of Motley Fool Live, registered on 12 February, ‘The Wrap’ host Jason Hall and Fool.com contributors Danny Vena and Jamal Carnette recommend three dividend-paying stocks that could make long-term fortunes for investors.

Jason Hall: I have one that I’m going to catch really quickly here, that we can all work on. This is Richard Oz, “Building a dividend growth portfolio for young adults should lead to compound wealth creation later in life.” Preach it, preach it. “Can you comment on portfolio creation for young adults?”

This is what I want to do. We will answer your question here each of us. Give us your best dividend growth companies in your respective wheelhouse.

I will be using the stock I just mentioned as my potential 10 baggers in the next 10 to 15 years, CareTrust REIT (NASDAQ: CTRE), it’s a $ 2 billion real estate investment trust, paying a 4% dividend yield at recent prices. They have increased the dividend every year since going public. They have doubled the dividend in five years. It’s a $ 2 billion company with incredible leadership in an industry that is likely to double in size or more over the next decade, and will continue to grow from there. Who wants to go here next, Jamal?

Jamal Carnette: I’m going to jump in here and in the long run I look at long term drivers whenever I try to buy stocks, especially if you are looking to buy stocks for kids or kids. I think a stock that has a long track. It is obviously one of the biggest stocks currently, Microsoft (NASDAQ: MSFT).

But for now, you’re enjoying decades-long returns from the Internet of Things and increased use of the cloud. I remember, I guess it was decades ago when they started to institute their dividend and it’s been growing like a weed ever since. When you’re looking to buy stocks for young kids and looking for those dividend producers with a decades-long history of growth, and I think Microsoft with the dividend it’s paying right now, it’s low, but it will continue to grow quite significantly.

Room: I like this. You don’t have to find a high return, right?

Carnette: Law.

Room: Lower but huge double-digit annual return [laughs] growth can really, really pay off over time because it also means a business increasing its cash flow, which is really important. Danny, bring us back here on your favorite dividend growth stock.

Danny Vena: When you talk about cash flow, it’s hard to talk about cash flow without talking about my favorite dividend stock which is Apple (NASDAQ: AAPL). If you look at Apple since it reinstated its dividend, the dividend it pays out, even though the yield is very low, the reason the yield is low is because the company has grown so much, the price of the The share has gone up so much, the market cap has gone up so much, but the dividend has more than doubled.

I would say if you look at the things that are going on with Apple right now, they have almost a billion iPhones out there. It is estimated that around 350 million of these iPhones are in the window for replacement. The more iPhones you get, the more this market grows, the more people who will be interested in purchasing wearable devices, the more people will be interested in connecting to Apple’s ecosystem of services, which keeps getting bigger every year. . I think for the next decade, at least, you’d be really hard pressed to find a better and safer dividend stock than Apple.

Room: I love it guys. Good, you have it now. We have CareTrust REIT, Microsoft and Apple. I think it’s three [laughs] really strong choices here.