2 Dividend Stocks You Can Hold Onto Indefinitely
With enough time and persistence, anyone can build a stock portfolio that pays thousands of dollars in dividend income every year. Dividend investing may not be the most efficient way to build wealth in the stock market, but there's no other style of investing that can compete with the warm feeling of having cash automatically deposited into your account every year from some of the strongest companies in the world.
These are two classic consumer brands that might provide you with income for the remainder of your life.
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1. Nike
Nike (NYSE: NKE) Has been issuing an increasing dividend since 2004. Given that the stock has fallen by 62% from its former high point, this could be an opportune moment to acquire shares of this leading consumer brand, enjoying one of its most substantial dividend yields over the past 16 years.
The stock price has dropped due to poor sales performance. In the first half of fiscal 2025 ending in May, revenue decreased by 9% compared to the previous year. According to Yahoo! Finance, analysts predict that earnings will drop by 43% for the entire year. However, Nike’s dividend appears secure, having paid out 37% of its trailing-12-monthearnings. earnings For shareholders, offering some flexibility during a year when profits might decline.
The dividend has grown at an annual rate of 11% over the past decade. Currently, the quarterly payout stands at $0.40. forward yield to an attractive 2.41%.
The firm boasts a resilient and powerful brand capable of continuing to achieve further dividend hikes in the coming years. Last quarter’s financials underscored this strength, particularly with significant sales growth for products like the Vomero 5, where revenues were twice what they were in the previous period.
The achievement of Vomero 5 along with other recent launches showcases the company’s strategy aimed at achieving growth again. They are refining their focus on lifestyle items such as the Air Force 1, which has been linked to sluggish sales patterns, while also putting resources into developing new high-performance lines.
Investors should not purchase the stock anticipating an immediate recovery. The price has reached record low levels after the firm released its fiscal third-quarter earnings. However, those focused on dividends ought to consider starting to accumulate shares at this juncture, as they will receive payouts while awaiting potential improvements in the company’s performance.
Nike It gains advantages due to significant brand awareness. Additionally, it possesses the means and promotional skills necessary to reclaim its former pinnacle position.
2. Coca-Cola
Coca-Cola (NYSE: KO) It’s a straightforward yet immensely lucrative enterprise. Annually, over 2.2 billion servings of their drink offerings are enjoyed, resulting in nearly $11 billion in profits from $47 billion in sales last year. The company benefits greatly from formidable branding, enabling them to set prices for substantial margins. This strategy has resulted in an impressive streak of 63 continuous years of increased dividends.
Coca-Cola is an enduring brand. The corporation has numerous drink offerings spanning tea, coffee, energy beverages, and water. This enables them to maintain relevance, achieve steady annual sales, and adapt quickly to changing customer tastes.
Over the past several years, the power of its brand has been very evident. Even though rising inflation reduced consumers' willingness to spend, Coca-Cola managed to increase its prices. This allowed them to counteract escalating expenses and boost their earnings as well as dividend payouts. While unit case volume only rose by 1%, the company’s organic revenues climbed by 12%. This growth was significantly due to the price hikes implemented for their products.
Management recognizes chances to boost growth by customizing products for various global markets, alongside launching new drinks. They can spur demand quickly via initiatives such as the special edition Coke Zero Sugar Oreo in partnership with Mondelez International , while simultaneously launching innovative drinks that could significantly influence expansion, like the recently successful introduction of Minute Maid Zero Sugar.
The stock presently boasts a substantial forward dividend yield of 2.96%. Due to the relatively low cost involved in producing beverages, Coca-Cola can allocate approximately three-quarters of its profits as dividends to shareholders. This makes it an attractive option for those aiming to increase their passive income. Coca-Cola's brand strength And profitability should ensure a satisfying investment that you could keep for a lifetime.
Don't let this second chance for a possibly profitable opportunity slip away.
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*Stock Advisor performance returns as of March 24, 2025
John Ballard does not hold any shares in the companies listed above. However, The Motley Fool does have holdings in and endorses Nike. Additionally, The Motley Fool holds a position in disclosure policy .
