3 Dividend Kings to Buy and Hold Forever
Stocks can be unpredictable, so it's nice when an investment in your portfolio generates a cash payout every quarter and helps satisfy the need for some consistent income. That's part of what makes dividend stocks a great way for long-term investors to get reliable returns, even in uncertain times.
And what better way to get a consistent payout than investing in a stock which has been labeled a Dividend King? Dividend Kings are a very select group of 27 S&P 500 companies that have increased their yearly dividend payout for at least 50 straight years. That consistency in rewarding shareholders suggests these companies have a business model that holds up well in the good times as well as the bad.
Let's take a closer look at three of these Dividend Kings and learn a bit more about how they earned this distinction. The first pick, Johnson & Johnson (NYSE: JNJ), is a recession-resistant investment in the global healthcare sector. The other two, Hormel Foods (NYSE: HRL) and Target (NYSE: TGT), are defensive consumer goods companies that can thrive in any economic environment. All three are Dividend Kings worth buying and holding forever.
Source Fool.com
