Top 10 Dividend Stocks To Buy and Hold For Life

If you are a long-term investor and are looking for the best stocks to dollar-cost average in, then you are looking at the right place.

Today, we will take a look at my favorite buy and hold stocks. Meaning, you can consider buying any of these and investing in them for the next twenty to thirty years.

These investments are perfect if you have a low risk tolerance for your portfolio. They will also provide you with steady growth that matches the market’s average return of 8–10% annually.

You start buying dividend stocks with apps like M1 Finance, Robinhood, and Charles Schwab.

10. Home Depot

Home Depot is a home improvement retailer in the sector of consumer services. They have had massive growth over the last 5 years and have continued to increase their dividends for 13 consecutive years. They provide steady, long-term growth for investors, with a yield of 2.44%. Even though they are not dividend aristocrats, I would consider adding them as they are forecasted to grow another 25% in the next year.

9. Waste Management

I regret not buying this stock earlier in my investing career. They've been on a massive upward trend, and it's a company that performs well in all economic types. They increased their dividend for 19 years, working their way to becoming part of the dividend aristocrats.

8. Johnson & Johnson

This is my favorite pharmaceutical company. They have been increasing their dividends for almost 60 consecutive years and have been around since 1886. JNJ is a dividend aristocrat, which makes it a great stock to own during a recession. They fit well in a long-term portfolio, providing steady growth and income with their dividend yield of 2.40%.

7. Visa

Visa is part of the financial sector, and I personally like to hold a stock or two in this sector because they perform well during recessions and economic declines. Visa is a world leader when it comes to digital payments and facilitating transactions between consumers and merchants. They have a weak yield of just 0.69%, but they provide long-term investors with strong, steady growth.

6. Apple

Apple is more of a growth-focused asset than a dividend investment. They are the biggest company in the world by market cap, sitting at around $2.85 trillion. They are focused on innovation and will be around for many years to come. Apple will give your portfolio the growth it needs to outpace the average returns of the market.

5. PepsiCo

Another dividend aristocrat on the list, Pepsi is a company that has had massive growth over the years. They own many of the soft drink brands on the market and continue to acquire smaller companies. They have increased their dividends for 50 years and have a yield of 2.62%. The chances are they are not going anywhere in the next 30 years.

4. Proctor & Gamble Co.

The perfect stock to provide stability to your portfolio. This is part of the consumer staples sector. Meaning, regardless of how the economy is performing, people will continue to consume their products and push the company forward. They also increased their dividends for 50 years and have a yield of 2.28%.

3. 3M Co.

Another dividend aristocrat, 3M is a conglomerate of smaller companies. They have increased their dividends for 60 consecutive years and currently have an attractive yield of 4.0%. They provide a good balance between great dividends and steady growth.

2. Microsoft

The second largest company by market cap, Microsoft is also focused on innovation and has had massive growth over the years. They are not going anywhere in the future, and even though they have a weak yield of 0.80%, they will help your portfolio beat the market’s average. They are focused on expansion, and they expect to grow by another 20–40% in the coming year.

1. Texas Instruments

Texas Instruments is a fantastic company to own. They will help diversify your portfolio into the semiconductor space. They have been on an upward trend and have continued to increase their dividends for 19 years. They also have a good yield of 2.52%. This is great for long-term investors looking for steady growth and a strong dividend.

Bottom Line

Having a dividend portfolio is a great way to hedge against hard times in the economy. Adding any of those stocks to your assets will prove beneficial in the long term.

I've been dollar cost averaging in many of these stocks and plan to continue doing so in the coming years.