2 dividend-paying stocks you can keep safe for decades

Looking back on the year, it was quite remarkable. The coronavirus has wreaked havoc on people’s health and has prompted governments to issue widespread shutdown orders.

Certainly, some companies have been more affected than others. Fortunately, there has been some positive news lately about vaccines, although the timing and distribution remain uncertain. With cases on the rise and authorities reimposing restrictions, now is a good time to look for stocks that pay reliable dividends and which can provide you with a regular income During a very long time.

Here are two companies worthy of a buy and hold strategy, giving you peace of mind.

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Colgate-Palmolive (NYSE: CL) sells products such as toothbrushes, toothpaste, soaps, dishwashing liquids and deodorants. Its popular brands like Ajax and Speed ​​Stick hold strong positions in the market. There is also a division of pet nutrition products for cats and dogs.

The company has built a range of products including demand does not fluctuate with the economic cycle. This has enabled it to pay a dividend since 1895, increasing it for 57 consecutive years.

It may not generate much enthusiasm, but the business is generating a lot of money. For the first nine months of the year, Colgate’s operating cash flow was $ 2.8 billion. Its capital expenditure stood at $ 249 million, leaving a good cushion to pay out $ 1.2 billion in dividends.

Kimberly clark

Kimberly clark (NYSE: KMB) is known for its layers; feminine care products; and paper articles, such as tissues, toilet paper and paper towels. When you walk down the aisle of a supermarket, you’ll recognize its brands, including Huggies, Depends, and Kleenex.

The company organizes these products into its personal care and consumer fabrics divisions, and they account for over 80% of sales. This is good if you are looking to hold the stock for a long time, as these products have stable demand.

It also produces good cash flow. For the first nine months of 2020, free cash flow was close to $ 2 billion, handily covering the $ 1.1 billion in dividends.

Kimberly-Clark has paid a dividend for 86 remarkable consecutive years. The board of directors showed their confidence by increasing the company’s October dividend from $ 1.03 to $ 1.07. That made it 48 years in a row with increased payouts.

When it comes to securing the inventory you can store, these two do the trick. Their products are popular with consumers and they are necessities. Both companies have also increased their dividends every year for decades. Stocks might not grow fast, but the consistent approach of proven winners will allow you to build wealth over time as the dividends pile up.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

About Nereida Nystrom

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