30 Dividend Stocks to Buy Now for 20 Years of Income Growth

dividend stocks to buy - 30 Dividend Stocks to Buy Now for 20 Years of Income Growth

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Unlike every other crisis that America has faced in modern history, the novel coronavirus pandemic affects each of us directly. No one can say that they haven’t felt the impact of this terrible outbreak. Therefore, the upcoming 2020 election could very well be a one-issue race. But don’t adopt the same singular attitude for your dividend stocks to buy.

Of course, it’s tempting to focus just on the coronavirus. From the moment we wake up to the time we close our eyes, we are reminded about the repercussions of the new normal. It’s hard to imagine that the Covid-19 pandemic will fade away. But in all likelihood, it will. Despite the temptation to wallow in immediacy bias, you can’t let this crisis overrun your strategy for selecting dividend stocks to buy with a long-term horizon.

Just how long are we talking about? In this write-up, we’re going to tackle 30 dividend-yielding companies with the potential to provide 20-plus years of income growth. Though a seemingly daunting task, in some ways, it’s much easier when you’re working with greater time margins.

For one thing, blue-chip dividend stocks trade on the fundamentals. Sure, we’ve seen incredible performances from publicly traded companies that frankly have no business receiving such premiums. Nevertheless, over a period of several years, it’s highly unlikely that these speculative ventures will still be viable.

Second, some things never change. Cynically, humans will never get along. Therefore, the defense industry provides several compelling long-haul opportunities. And while individual vaccine plays are a guessing game, big-name healthcare firms will probably be relevant as ever. If you want to get a head start with your passive income strategy, consider these dividend stocks to buy:

  • Duke Energy (NYSE:DUK)
  • Dominion Energy (NYSE:D)
  • NextEra Energy (NYSE:NEE)
  • Microsoft (NASDAQ:MSFT)
  • Sony (NYSE:SNE)
  • Intel (NASDAQ:INTC)
  • Walmart (NYSE:WMT)
  • Home Depot (NYSE:HD)
  • Kroger (NYSE:KR)
  • Johnson & Johnson (NYSE:JNJ)
  • Gilead Sciences (NASDAQ:GILD)
  • AbbVie (NYSE:ABBV)
  • Intuit (NASDAQ:INTU)
  • Accenture (NYSE:ACN)
  • H&R Block (NYSE:HRB)
  • Disney (NYSE:DIS)
  • Comcast (NASDAQ:CMCSA)
  • Raytheon Technologies (NYSE:RTX)
  • Lockheed Martin (NYSE:LMT)
  • Huntington Ingalls Industries (NYSE:HII)
  • Leidos (NYSE:LDOS)
  • Toyota (NYSE:TM)
  • Ford (NYSE:F)
  • General Motors (NYSE:GM)
  • Franco-Nevada (NYSE:FNV)
  • Corteva (NYSE:CTVA)
  • Albemarle (NYSE:ALB)
  • AT&T (NYSE:T)
  • Altria Group (NYSE:MO)
  • AMC Entertainment (NYSE:AMC)

Dividend Stocks to Buy: Duke Energy (DUK)

the duke energy logo
Source: jadimages / Shutterstock.com

Dividend Yield: 4.8%

No matter how much technology influences our world, one thing is clear: When people flip the switch, they expect the lights to turn on. When it doesn’t, there are problems. Recently, this vulnerability came to light when a sweltering heat wave in California caused increased energy usage, resulting in rolling blackouts impacting millions.

Under normal conditions, utility firms like Duke Energy represent a solid source of steady capital gains and robust passive income. With the crazy year that we’re having, the case for DUK stock becomes stronger in my opinion. Sure, the company has suffered a negative impact from the pandemic — what organization hasn’t? But its relevance has never been more prominent.

Of course, there are far sexier investments than DUK stock. But with relative insulation from bearish events and its 4.77% yield, Duke Energy is one of the best dividend stocks to buy for the long term.

Dominion Energy (D)

A side view of a Dominion Energy (D) pick-up truck.
Source: ying / Shutterstock.com

Dividend Yield: 4.8%

Almost always, utility firms are boring. However, Dominion Energy has generated some headlines lately. Unfortunately, they were for the wrong reasons. In its quarter ended June 30, 2020, Dominion rang up $3.59 billion in revenue. Unfortunately, this tally was nearly 10% below that of the year-ago quarter.

Not surprisingly, the novel coronavirus took its toll on the power and energy company. As well, D stock has been on a downward trek since climbing in early June on positive economic data.

Amid this crisis, you can probably expect some additional turbulence in D stock. While front-page economic metrics, such as the 10.2% unemployment rate in July, are encouraging, we’re still not out of the woods. For instance, weekly jobless claims remain stubbornly high, reflecting our prolonged crisis.

Still, we’re talking about a 20-year time horizon. Unless you imagine a future where electricity is irrelevant, you can trust Dominion Energy for your list of dividend stocks to buy.

Dividend Stocks to Buy: NextEra Energy (NEE)

The NextEra Energy (NEE) logo is displayed on a smartphone screen.
Source: IgorGolovniov/Shutterstock.com

Dividend Yield: 2%

I haven’t been the greatest proponent of the clean and renewable energy industry. In fact, I’ve been downright skeptical. But I know that I am not alone. However, the latest heat wave that has scorched major parts of this country has demonstrated that we need alternative energy solutions.

Now, I’m not suggesting that companies like NextEra Energy will replace traditional sources of energy production. Rather, NextEra and its portfolio of clean energy production sites helps mitigate our dependence on singular power sources. With the advent of electric vehicles and other technologies, we’re putting strain on already deeply pressured utility infrastructures. Thus, NEE stock may enjoy a very long upside pathway.

In the meantime, you can sit back and enjoy its 1.98% yield. While not the most generous outlay of passive income, NEE stock has significant capital gains potential due to its next-generation propositions. Therefore, don’t dismiss it when researching which dividend stocks to buy.

Microsoft (MSFT)

Image of corporate building with Microsoft (MSFT) logo above the entrance.
Source: NYCStock / Shutterstock.com

Dividend Yield: 1%

Let me just say this right off the bat: Unless you have an ungodly amount of shares, you’re not going to retire early with Microsoft’s 0.96% yield. What MSFT stock does provide is an upside trajectory that should easily last for two decades thanks to its incredibly dominant business software applications.

First, when it comes to desktop operating systems, Microsoft Windows owns the vast majority of market share at nearly 78%. And this stems from both convenience and necessity. In my opinion, Microsoft products are intuitive. More importantly, the business community agrees. Therefore, I expect the company’s Office 365, offered as a software-as-a-solution platform, to continue dominating.

Second, MSFT stock isn’t just levered to software applications. Over the years, it has transformed into a powerhouse across multiple industries, such as cloud computing and video games. While it’s not the most generous among dividend stocks to buy, it’s easily a credible one.

Dividend Stocks to Buy: Sony (SNE)

A Sony (SNE) sign hangs at the Sony Interactive Entertainment offices in Silicon Valley.
Source: Sundry Photography / Shutterstock.com

Dividend Yield: 0.6%

Having been a business analyst at Sony, I’m biased toward the company’s competency in crafting world-class consumer electronics products. However, even I was a bit surprised at how well SNE stock has held up during this coronavirus mess. Then, I looked at popular trading app Robinhood’s top 100 stocks and sure enough, SNE is right up there.

Why? Well, the easy answer is that Robinhood caters to a younger crowd. And what appeals nowadays to the younger crowed? Yup, you guessed it — video games.

I’ve been through some ups and downs with Sony. But the one business that has always kept the lights on was PlayStation. With the upcoming release of the PS5, Sony has a real winner on its hands; hence, the rise of SNE stock.

Admittedly, as a candidate for most generous dividend stocks to buy, SNE wouldn’t even dream of making the cut. However, keep in mind that the explosive video game industry will likely enjoy a generational effect as gamer parents pass on their addictions to their kids. Therefore, keep close tabs on Sony.

Intel (INTC)

The Intel (INTC) logo in blue on a black screen.
Source: Kate Krav-Rude / Shutterstock.com

Dividend Yield: 2.7%

If you want to dial up the risk factor in your dividend stocks to buy, you should take a look at Intel. Yes, I know, INTC stock really stunk up the markets after the semiconductor firm revealed that it will delay its 7-nanometer chips to at least 2022.

It used to be that people pejoratively called Advanced Micro Devices (NASDAQ:AMD) the poor man’s Intel. Now, the poor man’s Intel is Intel.

However, INTC stock has something that its rival doesn’t — a dividend that yields nearly 2.7%. So, in some ways, AMD is a lesser investment. Of course, I’m only joking. This isn’t the only setback that Intel has had. Last year, it ignominiously apologized for disappointing its customers and partners with multiple, frustrating delays.

But if you’re going to give me a 20-year time horizon, I’d be comfortable directing some capital toward INTC stock. Remember, this isn’t a fly-by-night operation. Historically, Intel has suffered severe setbacks before and it has the right stuff to recover.

Dividend Stocks to Buy: Walmart (WMT)

Image of Walmart (WMT) logo on Walmart store with clear blue sky in the background
Source: Jonathan Weiss / Shutterstock.com

Dividend Yield: 1.7%

Following the Great Recession, Americans became familiar with the term “too big to fail.” For Walmart, this is an apt description, at least when it comes to the retail segment. As much as you might complain that Walmart is killing mom-and-pop businesses, the sad reality is that the company understands the American psyche better than most.

Even with the advent of e-commerce, there’s no greater convenience than driving up to a store and buying what you want on the spot. In addition, Walmart democratizes the big-box experience, utilizing its massive footprint to deliver everyday low pricing. Sure, the actual Walmart experience is depressing, but owning WMT stock is a different story.

With insulation from Amazon (NASDAQ:AMZN), along with protection against recessions, WMT stock is very appealing for the long haul. Even if U.S.-China relations deteriorate unfavorably for Walmart, people will still buy stuff. As a 20-year play, WMT is one of the best retail dividend stocks to buy.

Home Depot (HD)

The Home Depot (HD) logo on a Home Depot store
Source: Ken Wolter / Shutterstock.com

Dividend Yield: 2.1%

If there’s one company in the broader retail category that I believe is permanently insulated from Amazon, it’s Home Depot. I don’t care if Amazon creates a drone network where power tools are airdropped. Nothing beats the convenience and hands-on shopping experience necessary to make good home repair and maintenance purchases.

If anything, the coronavirus has emphasized why HD stock is one of the best dividend stocks to buy. Other than edible products, Home Depot provides a wide range of critical goods during a crisis.

Home Depot doesn’t turn its back on its customers during hurricanes and other natural disasters. I’m glad it applied the same ethos toward this pandemic.

Further, HD stock has in my opinion a coronavirus catalyst. With fears of infection came the increased demand for contactless services. Personally, I’ve been very impressed with the company’s ship-from-store delivery alternative, which is super quick and convenient. As people take advantage of such services, this will bolster Home Depot’s online channels.

Dividend Stocks to Buy: Kroger (KR)

kroger logo on a building
Source: Jonathan Weiss / Shutterstock.com

Dividend Yield: 2%

If Walmart is too big to fail, Kroger is certainly too important to fail. When the coronavirus first started infecting people in the U.S., I knew it was too late. That’s why I went to my local Ralphs — Kroger’s biggest subsidiary — before this event happened. I’m glad I did.

In March, you couldn’t find a single roll of toilet paper. And Ralphs stores are huge.

Of course, the pandemic isn’t the only reason why KR stock is one of the top dividend stocks to buy over the next few decades. As you know, humans don’t do so well without nourishment. But one thing the coronavirus did change is the appetite for certain restaurant businesses.

For instance, it’s very possible that the buffet business model is permanently busted. In that case, we could see more families decide to eat in. Though cynical, this would be a benefit to KR stock.

Johnson & Johnson (JNJ)

A red Johnson & Johnson (JNJ) sign hangs inside in Moscow, Russia.
Source: Alexander Tolstykh / Shutterstock.com

Dividend Yield: 2.7%

Arguably, healthcare giant Johnson & Johnson is one of the beneficiaries of the coronavirus pandemic, but not for the reason you might think. As you know, Johnson & Johnson was one of the most trusted brands in the industry. Unfortunately, the talcum powder scandal put a dent in the company’s image and stymied JNJ stock.

However, the Covid-19 crisis made most people forget about Johnson & Johnson’s shocking missteps. As well, management attempted to drive home some goodwill by working on a single-dose Covid-19 vaccine. Certainly, the organization is one of the few with the scale to mass produce a vaccine.

Once we’re out of this pandemic, I believe most Americans will feel relief. Because of this possible dynamic, JNJ stock may end up receiving a reprieve. Along with the underlying company’s myriad healthcare-related solutions, I see this as a fresh start among dividend stocks to buy.

Dividend Stocks to Buy: Gilead Sciences (GILD)

gilead (gild stock) website
Source: Casimiro PT / Shutterstock.com

Dividend Yield: 4.1%

Earlier this year, Gilead Sciences was at the forefront of novel coronavirus research. In its analysis, Gilead discovered that remdesivir — basically a repurposed drug — may help treat Covid-19. That’s an important distinction from a vaccine, which doesn’t really help if you’re already suffering from the disease.

Even better, remdesivir received support from both White House health advisor Dr. Anthony Fauci and President Donald Trump. As it turned out, this was a rare showing of public consensus.

However, with Operation Warp Speed, investor sentiment shifted quickly toward the vaccine race. Because the government was backstopping biotechnology firms in this specialty, GILD stock fell out of favor. Admittedly, shares don’t look so inviting right now.

What is inviting, though, is Gilead’s 4.1% yield. And who knows? If remdesivir isn’t the magic bullet for Covid-19, maybe it could be repurposed for the next big pandemic. Therefore, GILD may have a long life as one of healthcare’s dividend stocks to buy.

AbbVie (ABBV)

abbvie (ABBV) website and logo on mobile phone
Source: Piotr Swat / Shutterstock.com

Dividend Yield: 5%

When the coronavirus first devastated the investment markets, AbbVie was one of the victims. The drug maker’s biggest product is Humira, which is used to treat several types of autoimmune diseases. However, that was also the problem for ABBV stock. Patients who use Humira necessarily have underlying health conditions that make them especially vulnerable to Covid-19.

Thus, while ABBV stock bounced back from its March doldrums, its overall performance has been muted, especially compared to companies that are connected to developing a coronavirus solution.

However, what makes ABBV one of the most compelling dividend stocks to buy is AbbVie’s acquisition of Allergan, the maker of Botox. As you know, millennials are a narcissistic generation obsessed with their youth. But when they realize that youth is not an asset but an ephemeral condition, they’ll quickly jump to anti-aging products.

Sure, it’s a terrible investment from one angle. But from another, it’s quite hilarious!

Dividend Stocks to Buy: Intuit (INTU)

turbotax books (intu stock)
Source: dennizn / Shutterstock.com

Dividend Yield: 0.7%

I imagine not too many people care that intently about tax software developers like Intuit. And you would be right. While INTU stock presents a steady source of capital growth, as one of the best dividend stocks to buy, it’s not that appealing, particularly with a lowly yield of 0.66%.

So, why mention it at all? As a pre-pandemic play, INTU stock probably had a limited audience. But in the new normal, many corporations have reconsidered the idea of work. Naturally, with millions of people forced to operate from home, this abrupt shift forced the discussion.

As the New York Times noted, individual employees are also rethinking their work-life balance. Frankly, many of them don’t want to lose the freedom that they suddenly enjoy. And this may inspire a move toward the gig economy, also known as the economy of independent contractors.

However, that implies more complex tax structures, which is where Intuit products will come in very handy. So yes, it’s boring, but don’t overlook INTU in your search for dividend stocks to buy.

Accenture (ACN)

The outside view of an Accenture (ACN) office in Prague.
Source: josefkubes / Shutterstock.com

Dividend Yield: 1.3%

While some reports have suggested that the work-from-home transition has been a success, other data suggests something different. According to Laszlo Bock, CEO of human resources startup Humu, early productivity gains came from “people being terrified of losing their jobs, and that fear-driven productivity is not sustainable.”

This is where Accenture comes into play. A business services and consultation specialist, Accenture knows how to maximize efficiencies in their corporate clients’ workflows. However, the unprecedented Covid-19 disaster initially threw the company for a loop. Still, the consultant firm rose to the occasion, making ACN stock one of the quiet winners of this year.

Thanks to a successful migration to Microsoft Teams, Accenture is a step ahead in terms of applying best practices in the new normal. Even if the pandemic doesn’t have a long shelf life, Accenture proved through the coronavirus disaster that it can enhance productivity under duress.

It’s an excellent marketing showpiece, one that makes ACN one of the most credible long-term dividend stocks to buy.

Dividend Stocks to Buy: H&R Block (HRB)

Image of a yellow building featuring the H&R Block (HRB) logo
Source: Ken Wolter / Shutterstock.com

Dividend Yield: 7.1%

Within the publicly traded professional services industry, H&R Block represents one of the riskiest dividend stocks to buy. Due to its headline yield of 7.1%, you may rightfully wonder if that is sustainable. In addition, HRB stock is a coronavirus loser, failing to excite even the boldest of investors.

So, if you want to take a pass on HRB stock, I understand. It’s not for everyone. However, if you want an asset that features both tremendous capital gains potential and generous yields, H&R Block may be your ticket.

As I mentioned with Intuit, the shift to the gig economy will likely drive demand for tax-related services. After all, doing taxes as a W2 employee, even without Schedule A deductions, is straightforward. As a 1099 contractor, it’s a little bit of a different story.

As employees make the transition to independent contracting, many will seek in-person guidance before venturing on their own tax journeys. Thus, I see a multi-year narrative for the patient investor.

Disney (DIS)

Statue of Disney's (DIS) Mickey Mouse in Bangkok, Thailand.
Source: spiderman777 / Shutterstock.com

Dividend Yield: 1.3%

When the Covid-19 crisis first struck the United States, Disney was among the worst hit among blue-chip dividend stocks to buy. The company even had to forego its July payout. Honestly, you can’t blame investors for being jittery. While the Magic Kingdom has an enviable content library, nobody wanted to sit for two hours in a crowded cineplex with possibly hundreds of strangers.

In addition, Disney’s resort business, which in any normal period is a net positive for DIS stock, suddenly became a liability. Again, the same apprehensions applied: Who wants to be crammed in with the walking sick?

But in the long run, I believe investors will look back on the present price of DIS stock as a discounted opportunity. First, there was a key positive takeaway from Disney’s third-quarter earnings report. Walt Disney World posted a meager profit, which is brilliant news considering increased cancellation rates. Over time, the coronavirus will become a thing of the past.

Second, Disney still owns the Star Wars franchise. Once the acute pandemic nightmares fade from our memory, we will return to the box office. And that makes Disney a worthwhile candidate among dividend stocks to buy.

Dividend Stocks to Buy: Comcast (CMCSA)

Comcast (CMCSA) sign on the Comcast regional headquarters in St. Paul, Minnesota.
Source: Ken Wolter / Shutterstock.com

Dividend Yield: 2.1%

Another major entertainment player, Comcast, likewise suffered badly from the initial coronavirus outbreak. Although CMCSA stock doesn’t have the benefit of the Star Wars franchise, the underlying company levers an enviable content portfolio. Thus, the temporary shuttering of movie theaters, particularly during the summer blockbuster season, was a terrible blow to Comcast.

Nevertheless, as a longer-term investment, you should keep this name on your list of dividend stocks to buy. As I mentioned with several of the companies above, the coronavirus will become a thing of the past. Yes, some memories of it will linger. But as social creatures, we’re going to do what comes naturally to us. Therefore, I doubt that the movie theater business model will be permanently destroyed.

In addition, Comcast’s theme parks should gain relevancy over the next two decades. With so much of our entertainment coming from home-based channels, it will be a real treat to go outside for a change. Therefore, don’t be afraid to take a shot on CMCSA stock if you have a very long time window.

Raytheon Technologies (RTX)

Raytheon (RTX) defense company logo hanging from glass building
Source: JHVEPhoto / Shutterstock.com

Dividend Yield: 3.1%

Remember when I said at the beginning that at no point in time will humans all get along? Yeah. I meant that. That suggests that over the next 20 years, some of the best dividend stocks to buy will be defense plays like Raytheon Technologies.

RTX just hit the public markets in April 2020, after Raytheon merged with United Technologies. Together, they formed a truly giant aerospace and defense company.

The stock market has not been kind to RTX, as shares are down to the tune of 36.8% in 2020. Over the long term, however, Raytheon Technologies offers the sort of income potential you want to keep in your portfolio.

To start, the merger brought together defense brands like Pratt & Whitney, Raytheon Missiles & Defense and Collins Aerospace. These businesses give you exposure to everything from crewed space missions to best-in-class weapons systems and commercial aircraft engines. At a time when geopolitical instability continues to climb, it makes a lot of sense to shore up your portfolio with RTX stock.

But most importantly, RTX is also a true dividend payer. With a quarterly dividend of 47.5 cents — annualized for a yield of 3.1% — you can rest easy. The stock will recover, Raytheon will keep driving innovation and your portfolio will flourish.

Dividend Stocks to Buy: Lockheed Martin (LMT)

A Lockheed Martin (LMT) Space Systems sign in Sunnyvale, California.
Source: Ken Wolter / Shutterstock.com

Dividend Yield: 2.4%

Have you caught up on the Republican National Convention? If I’m reading between the lines correctly, should Trump win reelection, the U.S. is going to come at China like you wouldn’t believe.

If you want a sign to buy Lockheed Martin and LMT stock, this is it.

Of course, the RNC is a nearer-term catalyst for Lockheed and the defense industry. But bear in mind that the last Cold War we had with the now-defunct Soviet Union lasted decades. If we have another one with China, it could conceivably last at least 10 years, if not more.

Specifically for LMT stock, one of the best tools of U.S. foreign policy is air superiority. Nothing stops bad ideas from our adversaries from materializing than a show of technologically advanced force. Thus, Lockheed is a strong candidate for dividend stocks to buy.

Huntington Ingalls Industries (HII)

The Huntington Ingalls logo is displayed on a smartphone screen.
Source: IgorGolovniov / Shutterstock.com

Dividend Yield: 2.6%

While Alexander Hamilton is now probably best known as the inspiration for a Broadway show bearing his name, the former secretary of the U.S. Department of Treasury was instrumental in forming the U.S. Revenue Cutter Service. As a recently birthed nation, the U.S. was bleeding cash due to piracy. To protect vital shipping lanes, the Revenue Cutter Service was formed, becoming a key reason why we are the greatest nation on earth.

Over time, the RCS evolved into the U.S. Coast Guard. While its role has changed, the Coast Guard continues to secure our nation from maritime threats. And Huntington Ingalls Industries proudly serves this military branch by manufacturing its Legend-class National Security Cutters.

That’s one reason to buy HII stock — national security will never go out of style. Another is that Huntington develops the various ships that comprise the U.S. Navy’s fleet. And with protection of commerce interests in the open seas of vital global importance, Huntington will enjoy decades — heck, centuries — of upside.

Therefore, you may want to pick up some HII stock now while the market is acting irrationally toward it.

Dividend Stocks to Buy: Leidos (LDOS)

Leidos (LDOS) logo on the side of an office building
Source: Jer123 / Shutterstock.com

Dividend Yield: 1.5%

Even without the threat of deep-seated, prolonged geopolitical threats, Leidos is one of the most relevant dividend stocks to buy. Primarily, this is due to the company’s multivariate business units. From defense systems to civil solutions to healthcare, buying LDOS stock gives you exposure to critical industries.

What I like about Leidos currently is that many of these industries require revamping and upgrading to address new threats. For instance, its security detection and automation solutions will be critical in the new normal. As I stated earlier, the coronavirus will fade. But another pandemic is never too far away.

Given the destruction that Covid-19 imposed, it’s vital that we prepare our infrastructure to respond to the next threat. Therefore, LDOS stock is a solid name to own, especially since our expectations for security have changed.

Toyota (TM)

Toyota (TM) logo on the building of a dealership during daylight
Source: josefkubes / Shutterstock.com

Dividend Yield: 3%

One of the reasons for the dominance of Toyota is that the Japanese automaker is a “generational” company. In other words, this organization prides itself in long-term thinking and even then, it is open to continuous improvement.

Better yet, the volatility resultant from the novel coronavirus has given TM stock a very generous 3% yield. I use that descriptor because this is one of the dividend stocks to buy that you can trust for decades. Again, the business model is based off moving “slowly, gradually, and steadily,” as the Harvard Business Review once noted.

Further, Toyota may end up sparking a paradigm shift in the electric vehicle space. The company has developed a solid-state battery, which among its myriad advantages include the ability to charge from zero to full in less than 15 minutes. If you drive an EV, you know that’s a gamechanger.

To be fair, full implementation of solid-state batteries is likely years away. Toyota still has kinks to address. However, management claims it will produce such batteries by 2025. If so, you’re going to want TM stock now.

Dividend Stocks to Buy: Ford (F)

A Ford (F) sign hangs on a glass wall in Kiev, Ukraine.
Source: Vitaliy Karimov / Shutterstock.com

Dividend Yield: 8.8%

If you’re like many proud Americans, you embrace the technological prowess of Tesla (NASDAQ:TSLA) and its founder, Elon Musk. However, Tesla is a growth play, not an investment for passive income. Really, who knows if the company will ever make that transition?

However, the benefit for rival Ford is that it’s an iconic automaker with a historically stable dividend. Unfortunately, at the start of the pandemic, Ford had to suspend its dividend. But with a typical annual payout of 60 cents, F stock would currently sport a yield of nearly 9%. And as experts wait for that dividend to return, many see it as a buy.

As I wrote recently, I changed my mind about Ford. With its sharp shift toward electric vehicles, the company is taking a clear shot at Tesla. And this strategy may pan out. In my opinion, the Ford Mustang Mach-E is gorgeous and priced right.

While some Mustang enthusiasts are alarmed at Ford’s decision to dilute the brand by slapping it on an SUV, here’s the reality: Traditional pony car enthusiasts are dying off. The new generation loves SUVs or practical performance platforms. Finally, Ford offers universal appeal and that makes me happy to own F stock for the long term.

General Motors (GM)

Image of General Motors (GM) logo on corporate building with clear sky in the background
Source: Katherine Welles / Shutterstock.com

Dividend Yield: 5%

As a kid, I’ve always wondered why automakers couldn’t put an attractive chassis on a less-expensive platform and save costs elsewhere. As an adult, I still don’t know why automakers refuse to adopt this seemingly simple concept.

Well, let’s give credit where it’s due. Although I’ve bashed American car brands like General Motors left and right, I must say that its eighth-generation Chevrolet Corvette is an absolute stunner. Chances are, you share the same opinion. Featuring a wild chassis that’s more fitting for a Ferrari (NYSE:RACE), the Corvette is something a new Ferrari will never be — affordable.

This car would be constantly flying out of dealership doors back ten years ago. So, it’s a true testament to GM that they’re so strongly in demand today. Right now, there’s just no room for two-door, two-seat sports cars when SUVs dominate. However, the Corvette is disrupting this paradigm, making GM stock a solid buy.

Will that sentiment hold up in the future? I think it will. With most manufacturers transitioning toward SUVs and crossovers, that leaves a viable niche for affordable performance cars. As millennials get older and bring in more discretionary income, this should boost Corvette sales. That’s a win today and decades down the road for GM stock.

Dividend Stocks to Buy: Franco-Nevada (FNV)

Gold nuggets on top of American paper money.
Source: Shutterstock

Dividend Yield: 0.7%

Typically, gold miners don’t make the best dividend stocks to buy because of their volatility in the equity markets. However, Franco-Nevada offers a different take. Rather than participating directly in the mining and exploration of precious metals, Franco operates a royalty and streaming business. This enables the company to benefit from gold demand while mitigating many of the unknowns associated with direct involvement.

Therefore, if you want a longer-term investment in the precious metals sector, FNV stock is a solid choice. It doesn’t offer the greatest yield, but it has plenty of capital growth potential to make up for it.

Given what has transpired in this crisis, I believe we’ll see unprecedented growth in gold and other precious metals. While our memories of the coronavirus will fade, we still have damages to pay, as well as lost opportunity costs. That’s going to cloud our fiscal picture for years, perhaps decades. Unfortunately, this gives FNV stock a longer-than-expected upside pathway.

Corteva (CTVA)

A Corteva (CTVA) sign in Indianapolis, Indiana.
Source: Jonathan Weiss / Shutterstock

Dividend Yield: 1.8%

Once part of DowDuPont — which later became DuPont de Nemours (NYSE:DD) — Corteva spun off to become an independent public company. As a result, it’s the biggest pure-play agricultural company in the world, providing farmers with the seeds and other necessary products for food development.

Naturally, CTVA stock is a permanently relevant investment. Moving forward, it’s going to be even more critical, which is why you should keep Corteva on your list of dividend stocks to buy.

For one thing, increased immigration into the U.S. will grow our population, putting an incredible strain on our food resources. Therefore, I anticipate agricultural science to take prominence over the next few decades. While CTVA stock may be choppy today, it will likely forge a decidedly bullish trend channel.

Second, the Covid-19 crisis has only further articulated the importance of robust food supply chains. With this space gaining much-needed attention, Corteva can enjoy fundamental tailwinds.

Dividend Stocks to Buy: Albemarle (ALB)

albemarle logo on a mobile phone screen
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Dividend Yield: 1.7%

Thanks to the EV revolution, automakers making the electric transition should perform very well. But many of the plays in this space are purely focused on growth. With that being said, if you want to have some exposure to this space but also the stability of dividends, you should check out Albemarle.

One of the industry leaders in lithium and lithium derivatives, ALB stock will likely enjoy significant upside over the long run. While it may not offer the explosive capital returns of Tesla, Albemarle offers passive income while you ride the EV wave. Furthermore, Tesla has a market risk in that competitors can take share.

Let’s face it — even the cheapest Tesla model is still an expensive purchase for most households. So, if Ford or Toyota can come up with a less-expensive alternative, they could end up asserting dominance. But really, who knows?

That’s the selling point for ALB stock. You don’t have to play guessing games because Albemarle is selling the tickets. Therefore, keep this in your portfolio of dividend stocks to buy.

AT&T (T)

a photo of the AT&T office building
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Dividend Yield: 7%

For the last three dividend stocks to buy, I’m going to focus on speculative names. In this context, that means these companies offer very generous yields. At the same time, they may not be sustainable. Therefore, please invest at your own risk.

First up, I’m going with telecommunications giant AT&T. As you probably heard, AT&T has courted much criticism for ballooning its debt, particularly with acquisitions that haven’t panned out. Certainly, the company is bloated. Yet on the flip side, it’s one of the few organizations that can competently roll out the next-generation 5G network. Plus, that 7% dividend yield for T stock looks mighty tasty.

Another factor supporting AT&T is its vast content library. Because of its TimeWarner acquisition in 2018, HBO is now under the AT&T umbrella. As you know (because you probably watched it), the cable channel was a massive hit thanks to Game of Thrones. I’m betting that HBO will offer several hit series over the next two decades.

Yes, T stock is risky. But I think it’s on the credible side of the risk-reward spectrum.

Dividend Stocks to Buy: Altria Group (MO)

a sign with the Altria logo
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Dividend Yield: 7.9%

For my second idea of tempting, high-yield dividend stocks to buy, I’m going vice with Altria Group. Historically, MO stock has moved higher thanks to its underlying addictive product. But over the last several years, smoking rates have dropped significantly, according to the Centers for Disease Control and Prevention.

Obviously, that’s not great news for MO stock. But it’s possible that the coronavirus pandemic could result in higher-than-anticipated smoking rates for 2020. Like it or not, people smoke cigarettes mainly for stress release. Well, there has been a lot of stress during this crisis. Because the economic impact of Covid-19 will stay with us for at least several more years, Altria has a potentially large addressable market.

Plus, the broader smokeless tobacco products brought on by the vaping craze will likely see tremendous upside in the years ahead. Since Altria knows a thing or two about cigarettes, it has an opportunity to develop and market smoking cessation devices that feature authentic experiences.

While there’s no guarantee that the market will play out like this, it’s an intriguing concept.

AMC Entertainment (AMC)

Image of the entrance of an AMC Entertainment (AMC) branded theater
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Dividend Yield: 7.7%

Oh yes, here’s the granddaddy of risky dividend stocks to buy, AMC Entertainment. When the coronavirus hit us, the last thing people wanted to do was to be in cramped quarters with strangers.

The pandemic has been an ugly paradigm shift for AMC stock. Usually, movie theaters have a recession-proof reputation. At its core, films represent inexpensive escapism. Indeed, the Great Depression inspired the so-called golden age of Hollywood.

What’s changed dramatically about this recession is that we didn’t have that traditional comfort anymore. So, AMC stock sank to sorrowful depths.

But if we’re talking about a 20-year period, I think investors may want to reconsider AMC as a viable candidate for dividend stocks to buy. Because the bottom line is that as society is normalizing, the movie theater is already one of the first entertainment platforms to accept customers.

And if we do have a prolonged recession, the box office will still be one of the cheapest. Thus, AMC very well could represent an explosive recovery and a little bit of passive income along the way.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. On the date of publication, Josh Enomoto held a long position in SNE, F, T, MO, AMC and gold bullion.


Article printed from InvestorPlace Media, https://investorplace.com/2020/08/30-dividend-stocks-to-buy-for-20-years-of-income-growth/.

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