5 Dividend Stocks I'll Probably Hold Forever

There are hundreds of high quality assets to choose from in the stock market that will pay you dividends simply for being an investor.

Based on historic performance, and the overall health of the business, I’ve listed my 5 favourite dividend stocks.

(This is NOT financial advice.)

5 stocks which I might end up holding forever…

J.P Morgan ($JPM)

J.P Morgan is one of the most recognisable names in the banking and finance sector for decades.

J.P Morgan & Co. was founded in 1871 by… J.P Morgan, an American investment banker, and today, has over $2.5 TRILLION in assets under management.

That’s more than the annual GDP of most countries.

If you want exposure to investment banking, there are few better places to go than J.P Morgan, for growth and dividends.

It’s up over 50% in the past 12 months, whilst still issuing a tidy 2.17% dividend.

You’re getting the best of both with J.P Morgan, so it’s a must hold for me.

As of March 2024:

Market Cap — $558B

EPS — $16.06

Dividend Yield — 2.17%

1 Year Return — +56%

Waste Management ($WM)

Waste Management might be the most boring company in the world, but that doesn’t stop me from singing it’s praises as a long term investment.

Waste Management was founded in 1968 in New York, and soon became the largest waste hauler in America.

It’s performance in the stock market has also reflected this, growing by over 100% in the past 5 years.

It offers investors both a strong dividend, and long term growth potential, which is exactly what I want.

One thing you quickly learn that long term investors don’t care about how exciting a business is.

They care about how it performs, and Waste Management is the perfect example of practicality beating hype and excitement.

As of March 2024:

Market Cap — $85.2B

EPS — $6.12

Dividend Yield — 1.41%

1 Year Return — +38.3%

McDonalds ($MCD)

Need I say much here?

McDonalds has been around for decades, and despite me not being a huge advocate of fast food, it’s power in the stock market continues to reward investors like myself.

McDonalds was founded in 1940, and has gone from strength to strength ever since, opening up restaurants in 118 different countries across the globe.

I see this stock continuing to perform well, in both providing me with a solid dividend, and also its room for growth.

It has a strong EPS (earnings per share), and I believe it to continue to strengthen over the long term.

Ask yourself…

How many McDonalds stores are within a 30 minute drive of where you live?

As of March 2024:

Market Cap — $201B

EPS — $11.84

Dividend Yield — 2.4%

1 Year Return — +6.5%

IBM ($IBM)

The International Business Machines Corporation (IBM) has been a staple in investors dividend portfolios for years, and with good reason.

Founded in 1911, it specialises in hardware & software products for businesses, like server, computers and networking equipment.

You can’t talk about the best dividend stocks without talking about IBM, which continues to strengthen in the current bull market.

As of March 2024:

Market Cap — $175B

EPS — $7.65

Dividend Yield — 3.46%

1 Year Return — +56.8%

Altria ($MO)

Although this isn’t the be-all and end-all for dividend investing, Altria takes the crown for the highest dividend yield in this list, clocking in an impressive 8.78% annual yield for it’s investors.

Altria is a tobacco & cigarette producing company, founded in 1985.

Despite being slightly in the red in the past 12 months (-1%) I’m intrigued for the future of Altria, given it’s high yield and room for growth in a sector which I believe will continue to evolve.

Is this a somewhat speculative pick?

More than the other 4, yes. But, that’s one of my favourite parts of investing.

You don’t always have to follow the herd, despite it generally being a good thing.

Sometimes it’s good to go off-piste, and that’s how I feel with Altria.

As of March 2024:

Market Cap — $79B

EPS — $4.75

Dividend Yield — 8.78%

1 Year Return — -1%

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