When you invest in dividend paying stocks, you invest like an old lady. It’s considered one of the most conservative ways that you could invest in individual stocks and in order to be effective, it has to be done over the very long-term. 10 years would be the absolute minimum I’d recommend and “forever” is even better. The hope is that I’ll eventually just be able to live well off the dividends I receive and not have to ever sell any of the stocks and use that capital. Because of my extremely long-term outlook, I try to pick stocks that are poised to do well over the next 5 or 10 years, but that I’d still be happy to have in my portfolio in 50. Here are some of my favorites:
Exxon Mobil and Chevron. Sure, oil is a limited resource but does anyone actually think that these companies won’t transition into alternative energy before it becomes an issue?
Pfizer (a pharmaceutical company) and Medtronic (a medical-device company). People in developed countries are getting old and more people than ever before in the USA have health insurance, which sets up these companies for continued growth for years to come.
Apple and Intel. Tech is traditionally not something conservative investors invest in, but I like both of these companies a lot. Apple dominates the personal computing/device space and who doesn’t need top-quality microchips? I think both of these companies will be doing well for at least the next 10 years.
McDonalds and Coca-Cola. People like their junk food and I don’t see that changing in the future. Additionally, both these companies seem willing to adapt to the changing environment by offering healthier options.
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