5 Best Long-Term Dividend Stocks To Buy Now

In this article, we discuss 5 best long-term dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and their performance over the years, go directly to read  12 Best Long-Term Dividend Stocks To Buy Now.

5. Ecolab Inc. (NYSE:ECL)

Number of Hedge Fund Holders: 53
Consecutive Years of Dividend Growth: 31
5-Year Average Payout Ratio: 43.7%

Ecolab Inc. (NYSE:ECL) is an American food safety company that specializes in the treatment, cleaning, and hygiene of water in a wide variety of applications. In the first quarter of 2023, the company posted revenue of $3.6 billion, which showed a 10% growth from the same period last year. It had roughly $420 million in cash and cash equivalents at the end of March 31, compared with $100 million in the prior-year period.

On May 4, Ecolab Inc. (NYSE:ECL) declared a dividend of $0.53 per share, which was consistent with its previous dividend. In 2022, the company stretched its dividend growth streak to 31 years, which makes it one of the best long-term stocks. The stock has a dividend yield of 1.17%, as of June 27.

Ecolab Inc. (NYSE:ECL) was a popular stock among hedge funds in Q1 2023, as 53 funds tracked by Insider Monkey owned stakes in the company, up from 47 a quarter earlier. These stakes have a consolidated value of over $2.1 billion. Bill & Melinda Gates Foundation Trust was the company’s leading stakeholder in Q1.

4. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 58
Consecutive Years of Dividend Growth: 20
5-Year Average Payout Ratio: 50.02%

An American defense and aerospace company, Lockheed Martin Corporation (NYSE:LMT) is next on our list of the best long-term stocks. The company has raised its dividends for 20 years in a row and currently pays a quarterly dividend of $3.00 per share. The stock’s dividend yield on June 27 came in at 2.65%.

At the end of Q1 2023, 58 hedge funds in Insider Monkey’s database reported having stakes in Lockheed Martin Corporation (NYSE:LMT), up from 53 a quarter earlier. The collective value of these stakes is over $1.44 billion.

3. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 81
Consecutive Years of Dividend Growth: 21
5-Year Average Payout Ratio: 41.99%

NIKE, Inc. (NYSE:NKE) is an American footwear company that also manufactures apparel and a wide range of accessories. The company has been growing its dividends for 21 years running. It is one of the best long-term stocks on our list with a 5-year average payout ratio of 41.99%. It currently pays a quarterly dividend of $0.34 per share and has a dividend yield of 1.20%, as of June 27.

NIKE, Inc. (NYSE:NKE) paid $528 million to shareholders in dividends during the first quarter of 2023.

As of the close of Q1 2023, 81 hedge funds in Insider Monkey’s database held stakes in NIKE, Inc. (NYSE:NKE), up significantly from 71 in the previous quarter. These stakes have a total value of $2.35 billion.

2. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 85
Consecutive Years of Dividend Growth: 16
5-Year Average Payout Ratio: 41.4%

Union Pacific Corporation (NYSE:UNP) is a Nebraska-based transport company that operates one of the largest railroad networks in the country. In the first quarter of 2023, the company posted revenue of $6.06 billion, which saw a 3.4% growth from the same period last year. The company’s operating cash flow for the quarter came in at over $1.8 billion. It paid $795 million in dividends to shareholders.

Union Pacific Corporation (NYSE:UNP), one of the best long-term stocks, currently pays a quarterly dividend of $1.30 per share. The company has raised its dividends for 16 years in a row. As of June 27, the stock has a dividend yield of 2.56%.

According to Insider Monkey’s database of Q1 2023, 85 hedge funds owned stakes in Union Pacific Corporation (NYSE:UNP), up from 83 a quarter earlier. These stakes have a consolidated value of over $4 billion.

Matrix Asset Advisors mentioned Union Pacific Corporation (NYSE:UNP) in its Q1 2023 investor letter. Here is what the firm has to say:

“During the quarter we added a new position in Union Pacific Corporation (NYSE:UNP). Union Pacific (UNP) is the 2nd largest railroad network in the United States just behind Burlington Northern Santa Fe. The firm operates in the Western, Midwestern, and Southern portions of the United States. 90% of UNP sales come from the US and 10% from Mexico. Over the past decade, railroads gained market share from the trucking industry because it costs 10-40% less to ship via rails than trucks. The company has a long history of consistent operating growth and profitability. The shares fell from a high of $278 in May of 2022 after the firm experienced operating challenges due to a slower macro environment and higher expenses.”

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 173
Consecutive Years of Dividend Growth: 15
5-Year Average Payout Ratio: 21.33%

Visa Inc. (NYSE:V) top our list of the best long-term stocks. The American financial services company has raised its dividends every year since 2008. It currently pays a quarterly dividend of $0.45 per share and has a dividend yield of 0.79%, as of June 27.

At the end of March 31,

173 hedge funds tracked by Insider Monkey held stakes in Visa Inc. (NYSE:V), compared with 177 in the previous quarter. Collectively, these stakes are worth over $26 billion.

Polen Capital made the following comment about Visa Inc. (NYSE:V) in its Q1 2023 investor letter:

“We trimmed Mastercard and Visa Inc. (NYSE:V) to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double[1]digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of e[1]commerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.

We have trimmed Visa and Mastercard because their combined weight grew to over 12% of the Global Growth Portfolio because of their recent performance and to fund our increase in Amazon’s position size. We added to both positions when their prices were depressed due to cross-border transactions deteriorating materially from the pandemic. Cross-border volumes came roaring back when travel corridors reopened, and although we are several quarters removed from the cross-border nadir, Visa still grew volumes >30% in 1Q23. Total cross-border volumes are now 132% of 2019 levels. At 4.5% each, both companies remain high conviction positions for Global Growth.”

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