Buy and Hold Stocks for the next decade

Gwenstacy

Newbie
7 0
Buy and hold stocks are definitely underrated. Some investors spend copious amounts of time tracking their investments and hoping their value increase.

Then there are dividend investors. Sure, they like watching the value of their stocks rise, but they also like getting free money every three months—money they can either cash or reinvest.

Dividend investing might not be as exciting as trying to find the latest tech stock that is about to soar, but that’s because dividend investing is a long-term sport for patient investors. Dividends are typically paid out by larger, well-established companies and have become increasingly popular in the current near-record-low interest rate environment.

Wal-Mart Stores, Inc. (NYSE:WMT) sells hundreds of thousands of products. And thrives when times are tough. Each week, nearly 260 million customers visit Wal-Mart’s more than 11,500 stores in 28 countries and e-commerce sites in 11 countries.
In fiscal 2016, Walmart returned $10.4 billion to shareholders through dividends and share repurchases. The company pays an annual dividend of 2.88%, or $2.00 per share. Moreover, Wal-Mart is an excellent dividend growth stock, which makes it one of the best stocks for long-term growth.

Cummins Inc. (NYSE:CMI) is a global powerhouse that designs, manufactures, sells, and services diesel and alternate fuel engines. The company is a high-quality dividend stock for long-term investors because it maintains a dominant market share position and has a massive dealer network with more than 7,200 locations in more than 190 countries and territories.
In 2015, the company earned $1.4 billion on revenue of $19.1 billion. Cummins currently pays an annual dividend of 3.14%, or $4.10 per share, and has raised its annual dividend yield for the last 11 consecutive years. This definitely makes Cummins a buy-and-hold stock name.

Source: Stocks to Buy and hold Forever
 

Atilla

Legendary member
19,737 3,042
Yes for sure high yielding shares with well covered dividends with positive earnings growth is the way to go.

However, PE ratios are well above their long term averages, indeces at record highs and dividends decreasing. With rate rises there is likely to be some swapping from shares to bonds.

One should add company gearing numbers into stock screeners and see what comes out in the wash. I reckon quite a few on that list are defensive stocks along with Wal Mart which is a good sign. Utilities are also very good and cash generative.

Anything else looks awfully risky to me. I'm expecting 2017 to be challenging for dividend or PE growth as I'm not certain CBs can keep the show going without some major infrastructure spending.
 

laurentiu_sv

Newbie
1 0
That's my type of investment strategy. Can someone recommend a broker for that kind of deal?
I'm interested in safety due to long term investment, good in dealing with dividends, maybe reinvest dividends, doesn't or has a small annual charge, no/low fees for inactivity. Maybe you could suggest other things that I've missed. Thank you!
 
 
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