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While many, if not most investors, appear bullish about the marketโs prospects this year, itโs never a bad time to consider long-term dividend stocks. By that, weโre talking about profitable, relevant enterprises that you can trust. These arenโt necessarily sexy securities but they should help you ride out any turbulence or even outright storms.
Indeed, one of the main benefits of so-called unshakeable long-term dividend stocks centers on the psychological factor. So long as youโre targeting reliable entities with an established track record, youโre likely to get something. Even if your portfolio takes a hit, you can generally bank on passive income. Like in a game of football, itโs good to know you have a speedy free safety covering the zone behind you.
On a related note, long-term dividend stocks offer lower volatility compared to, say, the latest fad in technology. Usually, weโre dealing with leaders of industry. Theyโre in the maturity phase of their business cycle, meaning they command significant influence. They wonโt provide the best growth potential but theyโll keep the ship afloat.
With that, below are long-term dividend stocks to consider.
Spun off from pharmaceutical and medical technologies giant Johnson & Johnson (NYSE:JNJ), Kenvue (NYSE:KVUE) operates the consumer healthcare unit as a standalone business. It must be said that the performance following KVUEโs public market debut hasnโt been particularly encouraging. While shares may be down 19% in the past 52 weeks, theyโve been gradually marching higher since late October.
I expect this trend to continue. According to Precedence Research, the global consumer healthcare market size reached $284.16 billion in 2022. By 2032, the segment could hit $608.39 billion, representing a compound annual growth rate (CAGR) of 7.91%. Here, the advantage that Kenvue leverages is its brands like Band-Aid, Listerine, and Tylenol. In other words, weโre talking about brands that people know, people trust.
Itโs also a very attractive idea for long-term dividend stocks, carrying a forward yield of 3.66%. Further, the payout ratio โ while somewhat elevated โ is acceptable at 59.27%. Unless you envision a future where no one gets the sniffles or boo-boos, you can trust KVUE.
Oh no! People are leaving California. Peruse the Internet and youโll find plenty of stories about folks migrating away from the Golden State. Some of the most common reasons center on cost-of-living issues. Of course, partisan websites will pin the blame on Democrats and their liberal policies. And that would seem to put a bad light on San Diego-based Sempra (NYSE:SRE).
From an almost lifelong Californian, I have a different perspective. It seems that more people are moving in than moving out. Anybody that has driven through the 5 (or heaven forbid the 405) freeway during rush-hour traffic knows what Iโm talking about. And it turns out that Iโm not just suffering from observational biases.
The latest estimate calls for San Diego Countyโs population to peak at 3.4 million in about 20 years. Thatโs quite a while, which makes SRE one of the long-term dividend stocks to consider.
Right now, Sempra offers a forward yield of 3.12%. Further, the company enjoys 20 years of consecutive dividend increases. Thatโs pretty reliable if you ask me.
Hereโs the thing about legacy tech juggernaut IBM (NYSE:IBM). If youโre looking for the โinโ play in the innovation ecosystem, youโd probably look at Nvidia (NASDAQ:NVDA). However, Nvidia last time I checked barely pays a dividend. Plus, having gained so much in 2023, some questions exist if lightning can strike twice. So, if your priority is passive income that you can trust for years to come, IBM is worth a look.
Fundamentally, thatโs because itโs relevant. Again, Nvidia and its ilk have taken the spotlight with their relevance toward generative artificial intelligence and whatnot. However, Big Blue has long conducted research and development in AI protocols. Also, itโs a stalwart in the machine learning segment. Notably, this space may reach a valuation of $204.3 billion by yearโs end. And the sector could expand at a CAGR of 17.15% to 2030, resulting in market volume of $528.1 billion.
You want passive income? Youโre going to get passive income with a forward yield of 4.15%. Thatโs well above the tech sectorโs average yield of 1.37%. Plus, IBM has been on the move since late October. Therefore, itโs one of the top long-term dividend stocks to buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.ย The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comย Publishing Guidelines.
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