In this article we discuss the 5 Best Long-Term Dividend Stocks to Buy and Hold. If you want to read our detailed analysis of the dividend investing strategy and our criteria for choosing these stocks, go directly to 10 Best Long-Term Dividend Stocks to Buy and Hold.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the best long-term dividend stocks:
5. Altria Group (NYSE: MO)
Number of Hedge Funds: 37
Value of Hedge Fund Holdings: $1.08 billion
One of the biggest tobacco companies of the world Altria ranks 5th on the list of 10 best long-term dividend stocks to buy and hold. The company has increased its dividend for over 50 consecutive years. The company recently announced that it is “moving beyond” smoking by offering non-combustible tobacco and nicotine products. The stock is up 8% year to date.
Renaissance Technologies headed by Jim Simons owns a $377.8 million stake in the company as of the end of the fourth quarter.
4. 3M Company (NYSE: MMM)
Number of Hedge Funds: 44
Value of Hedge Fund Holdings: $1.3 billion
3M Company is an industrial giant that makes equipment and products related to personal safety, industrial adhesives, abrasives, closure and masking, car parts, display materials and aerospace solutions. The company has increased its dividend for over 60 consecutive years. 3M shares are up about 12% over the last 12 months. 3M recently expanded its deal with Peter Thiel’s data mining company Palantir’s (NYSE:PLTR) to use the latter’s Foundry platform to support its digital transformation.
The company’s CEO recently said that Q4 was “extraordinary” for the company. See 3M’s results here.
3. PepsiCo Inc (NASDAQ: PEP)
Number of Hedge Funds: 56
Value of Hedge Fund Holdings: $4.2 billion
Pepsi is one of the 10 best long-term dividend stocks to buy and hold. The beverage company earlier in 2021 increased its quarterly dividend by 7%. Pepsi has paid consecutive quarterly cash dividends since 1965. Last year, it announced 48th straight annual dividend increase. One of the leading hedge funds having stakes in the company is Donald Yacktman’s Yacktman Asset Management. The fund has a $481 million stake in the company, as of the end of December 2020.
JPMorgan in January downgraded PEP stock.
2. Johnson & Johnson (NYSE: JNJ)
Number of Hedge Funds: 81
Value of Hedge Fund Holdings: $5.8 billion
Johnson & Johnson is one of the 10 best long-term dividend stocks to buy and hold, as the company has consistently increased its dividend for the last 57 years. The company is famous for its baby care, oral care, skin care, over-the-counter pharmaceutical and women’s health products. JNJ shares are up about 7% over the last 12 months. The company recently informed a House subcommittee that it plans to deliver COVID-19 vaccination for over 20 million Americans by the end of March.
Advisers at the U.S. FDA will meet later this week to discuss whether to recommend Johnson & Johnson’s Covid-19 vaccine for emergency use authorization.
1. Abbvie Inc (NYSE: ABBV)
Number of Hedge Funds: 83
Value of Hedge Fund Holdings: $6.9 billion
Pharmaceutical company AbbVie tops the list of 10 best long-term dividend stocks to buy and hold. The company makes treatments for various diseases, including arthritis, blood cancers, HCV, Parkinson’s disease and multiple sclerosis. The company on Feb. 22 said upadacitinib, its treatment for moderately to severely active rheumatoid arthritis, met the primary endpoint of clinical remission and all ranked secondary endpoints in the Phase 3 induction study.
AbbVie has annually increased its dividend for at least 25 consecutive years.
You can also take a peek at Billionaire Mario Gabelli’s Top 10 Stock Picks and 15 Best Stocks To Buy Now For Beginner Investors.
