2 Stocks to Hold for the Next 20 Years

There aren't all that many companies that investors should feel comfortable owning for decades. But when great companies go on sale, it pays to step up and buy. Right now it looks like investors are getting a decent deal on iconic food makers Hormel Foods (NYSE: HRL) and Kellogg (NYSE: K). Here's why you might want to buy and hold these two companies.

Hormel's dividend yield is roughly 2.3% today. That doesn't sound huge, but it is toward the high side of the company's historical yield range. Since this food maker is a Dividend King with 56 years of annual dividend increases under its belt, dividend investors should really take note. All the more so given that the annual dividend increase over the past decade was a hefty 14%.

So why does Hormel look historically cheap? The answer is twofold. First, the world is dealing with a major inflation spike. Thus, the company's costs are rising and investors are concerned that profit margins will get squeezed. Hormel is doing what it always does in this situation: It is increasing prices and looking for ways to cut costs. It usually takes time to do all of that work, so in the near term investors' worries are justified, but over the long term this will likely be a minor blip.

Source Fool.com