If you are looking for the best dividend stocks for the long term, you have come in the right place as here we have discussed some of the best dividend stocks you can invest money to get some passive income. So, without any further delay, let’s talk about what is a dividend stock, key factors of it and some of the best long term dividend stocks you can buy for the long term.
What is a dividend stock?
A dividend stock is a dividend payment method made in the form of additional shares instead of a cash payout. Also known as “Scrip Dividend”, it is a distribution of shares to the existing shareholders. And this type of dividends comes when a company wants to reward its investors but either doesn’t have the capital to distribute or it wants to hold onto its existing liquidity for various other investments. Stock dividends also have a tax advantage they aren’t taxed until the shares are sold by an investor. This is a huge advantage to shareholders who do not need immediate capital.
Key Facts about High Paying And the Best Long Term Dividend Stocks
When you are searching for best returns on investment for the long term then you should first study and take the knowledge on the best high paying long time dividend stocks. So, in the following points, let’s talk about how best dividend-paying stocks could impact your long term growth.
Best Long Term Dividend Stocks to Buy
Here are some of the best Long Term Dividend Stocks;
Honeywell International (HON)
Honeywell Corporation is a well established global manufacturing company that supplies industrial products. Moreover, it also provides software and services to a diversified set of customers. Honeywell does business in four segments such as aerospace, performance technology and materials, Safety and productivity solutions. Not only it sells energy efficiency products but also offers services like aerospace, control, and security.
As you can see, Honeywell has established itself a trusted on energy, safety, security, productivity and urbanization for many companies across the globe. As a result, the company’s financial performance is quite strong. The company’s dividend has grown more than 13% for the last five years because of its healthy payout ratio.
Apple is one of the world’s most valuable and the first trillion-dollar company in the world. It is now the world’s third-largest company in terms of market share. The company was first started by the visionary Steve Jobs with making computers. But now, the company has expanded its product line-up. The key products of Apple are iPhone, iPad, Mac, Apple Watch and Apple TV, etc. Moreover, the company also offers its various software all around the world and they are macOS, tvOS, iOS, watchOS, etc.
Throughout these years Apple has established itself as one of the most trusted companies among its consumers and became one of the best long term dividend-paying stocks providers. Moreover, the growth per share during the last 1 year is staggering 13%.
Cisco Systems ( CSCO)
Cisco is a global technology leader and a relatively young dividend stock paying company as it first started its dividend-paying journey in 2011. But the price of its dividend stock is growing rapidly. The payout ratio of the company is 46% this year which will undoubtedly grow the price of its dividend stocks even more than before. Moreover, the five years return of Cisco is humongous 113% and the dividend growth is also not bad as it stands at a healthy 15%.
Jhonson and Jhonson (JNJ)
When it comes about long term Dividend Paying Stocks, the name Jhonson and Jhonson can not be ignored. As the company’s dividends stock’s price is growing for 57th consecutive years, it is undoubtedly one of the best long term dividend stock providers.
The excellent business model of the company and many quite popular products in their respective categories have led to the growth in the price of its dividend stocks. As of now, the dividend yield of the company is 2.7%.
Home Depot (HD)
Home Depot is the largest home improvement retailer in the United States. It is a leader of its specific segment with a market capitalization of almost $225 billion. As of now, the dividend growth of the company is at a healthy 32%. The dividend yield is 2.6% and the payout ratio is 56.8%. Most importantly, the five years return of its dividend stocks is more than 157% which is undoubtedly a big number. Hence, if you are looking for a long term, dividend-paying stocks, this is a great option.
Texas Instruments is an American Technological Company that designs and manufactures semiconductors and integrated circuits. It later sells them to various companies across the globe. The company is enjoying the growing dividends for more than 15 years in a row. As of now, its dividend yield is 2.5% and the five-year return is whopping 164% at a growth of 22%.
So, finally, you know some of the best long term dividend stocks. Moreover, with our detailed discussion about it will help you choose the best company to opt for the best dividend-paying stocks.