5 Worry-Free Dividend Stocks Investors Can Buy Now and Hold Forever

There are over 12,000 publicly traded stocks in the United States; not even the most intelligent investors with the best tools can immediately find them. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. At 24/7 Wall St., we keep a list of stocks that we consider to be the kind of companies that can outperform regardless of the current market conditions. These companies have iconic brand names, offer products or services that never go out of style, and pay big dividends.

One critical advantage of dividend stocks is their ability to generate passive income. This type of income, which continues to flow without ongoing active effort, is an attractive financial strategy for those looking to diversify their income streams or achieve financial independence.

We screened our 24/7 Wall St. quality dividend research database, looking for companies investors can buy now, add to their regular or retirement accounts, and hold for the long term. All are dominant players in the respective sectors, have an extensive moat to keep the competition at bay, and are rated Buy at top Wall Street firms.

Why do we cover dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Coca-Cola

This American multinational corporation was founded in 1892, remains a top long-time holding of Warren Buffett (who owns a massive 400 million shares), and pays a dependable dividend. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

• Diet Coke
• Coca-Cola Light
• Coca-Cola Zero Sugar
• Caffeine-free Diet Coke
• Cherry Coke
• Fanta Orange
• Fanta Zero Orange
• Fanta Zero Sugar
• Fanta Apple
• Sprite
• Sprite Zero Sugar
• Simply Orange
• Simply Apple
• Simply Grapefruit
• Fresca
• Schweppes
• Dasani
• Fuze Tea
• Glacéau Smartwater
• Glacéau Vitaminwater
• Gold Peak
• Ice Dew
• Powerade
• Topo Chico
• Minute Maid

Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks.

Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It is also important to remember that the company owns 16.7% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver big numbers.

Comcast

Comcast Corp. (NASDAQ: CMCSA) is an American multinational telecommunications and media conglomerate. This top media and entertainment company remains a Wall Street favorite.

It operates through four segments:

• Residential Connectivity & Platforms
• Business Services Connectivity
• Media, Studios
• Theme Parks segments

The Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, sky-branded entertainment television networks, and advertising.

The Business Services Connectivity segment offers connectivity services for small business locations, including broadband, wireline voice, and wireless services. It also offers solutions for medium-sized customers, larger enterprises, and small business connectivity services in the United Kingdom.

The Media segment operates NBCUniversal’s television and streaming business, including:

• National and regional cable networks
• The NBC and Telemundo broadcast networks
• Owned local broadcast television stations
• Peacock, a direct-to-consumer streaming service

It also operates international television networks comprising the Sky Sports networks and other digital properties.

The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations.

The Theme Parks segment operates Universal theme parks in:

• Orlando, Florida
• Hollywood, California
• Osaka, Japan
• Beijing, China

DTE Energy

With a dependable dividend and trading right in the middle of its 52-week range, DTE Energy Co. (NYSE: DTE) is a top utility stock for nervous investors. This diversified energy company develops and manages energy-related businesses and services nationwide.

The company’s segments include:

• Electric
• Gas
• DTE Vantage
• Energy Trading
• Corporate

The electric segment consists principally of DTE Electric, which generates, purchases, distributes, and sells electricity to residential, commercial, and industrial customers in southeastern Michigan.

The gas segment consists principally of DTE Gas, which purchases, stores, transports, distributes, and sells natural gas to residential, commercial, and industrial customers throughout Michigan.

DTE Vantage segment is comprised primarily of renewable energy projects that sell electricity and pipeline gas, and projects that deliver custom energy solutions to industrial, commercial, and institutional customers.

The Energy Trading segment consists of energy marketing and trading operations.

Exxon Mobil

Exxon Mobil Corp. (NYSE: XOM) manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuels, lubricants, and chemical companies. The decline in oil prices presents investors with an excellent entry point, and they will likely seize a strong dividend yield. Exxon is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in North and South America, Europe, Africa, Asia, and elsewhere.

Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products; and transports and sells crude oil, natural gas, and petroleum products.

Top Wall Street analysts expect the company to remain a key beneficiary in a higher oil price environment, and most remain very optimistic about the company’s sharp positive inflection in capital allocation strategy.

Upstream portfolio and leverage to a further demand recovery. Exxon offers greater downstream and chemicals exposure than its peers.

Exxon has completed its purchase of oil shale giant Pioneer Natural Resources in a $59.5 billion all-stock purchase. The deal created the largest U.S. oilfield producer and guarantees a decade of low-cost production.

Merck

Merck & Co. Inc. (NYSE: MRK) develops and produces medicines, vaccines, biological therapies, and animal health products. It is not just a healthcare company but a global force in the industry. This stock giant is a no-brainer, down over 30% over the past year while paying a solid dividend.

The company operates through two segments. The Pharmaceutical segment offers human health pharmaceutical products in:

• Oncology
• Hospital acute care
• Immunology
• Neuroscience
• Virology
• Cardiovascular
• Diabetes
• Vaccine products, such as preventive pediatric, adolescent, and adult vaccines

The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, and digitally connected identification, traceability, and monitoring products.

Merck serves:

• Drug wholesalers
• Retailers
• Hospitals
• Government agencies
• Managed healthcare providers, such as health maintenance organizations
• Pharmacy benefit managers and other institutions
• Physicians
• Physician distributors
• Veterinarians
• Animal producers

Merck’s growth is a result of its efforts and strategic collaborations. The company works with AstraZeneca, Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences to jointly develop and commercialize long-acting treatments for HIV, demonstrating a commitment to innovation and growth.

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