2 Dividend Stocks to Buy and Never Sell
There are excellent reasons to invest in dividend stocks, including the fact that they typically outperform their non-dividend-paying peers in delivering strong market returns over long periods.However, just because a company pays a dividend doesn't make it attractive in and of itself. Income seekers want stocks that can perform well and consistently raise their payouts over the long run. Although few have what it takes, two excellent candidates in this regard are Johnson & Johnson (NYSE: JNJ) and Merck (NYSE: MRK).Johnson & Johnson has faced several issues in recent years. First, revenue growth hasn't been as impressive as the market would have liked. Second, the company is still facing thousands of lawsuits related to its talc-based products, but multiple judges have shot down its attempts at a settlement. Third, recent regulatory changes in the U.S. have enabled Medicare to negotiate lower prices for some of the drugs it spends the most on, and the first round of negotiations will feature three of J&J's medicines.Continue reading
There are excellent reasons to invest in dividend stocks, including the fact that they typically outperform their non-dividend-paying peers in delivering strong market returns over long periods.
However, just because a company pays a dividend doesn't make it attractive in and of itself. Income seekers want stocks that can perform well and consistently raise their payouts over the long run. Although few have what it takes, two excellent candidates in this regard are Johnson & Johnson (NYSE: JNJ) and Merck (NYSE: MRK).
Johnson & Johnson has faced several issues in recent years. First, revenue growth hasn't been as impressive as the market would have liked. Second, the company is still facing thousands of lawsuits related to its talc-based products, but multiple judges have shot down its attempts at a settlement. Third, recent regulatory changes in the U.S. have enabled Medicare to negotiate lower prices for some of the drugs it spends the most on, and the first round of negotiations will feature three of J&J's medicines.
