In the world of investing, long-term investors often seek out companies that not only have strong growth potential but also provide a steady stream of income through dividends. These companies are considered must-haves for buy-and-hold dividend investors, as they lead their respective markets and have a track record of consistent performance over the years.
One key aspect of being a long-term investor is the ability to focus on owning exceptional businesses that continuously grow, maintain a competitive edge, and generate more profits than they need. These high-quality stocks are known for increasing their dividends every year, providing investors with a reliable source of passive income for decades to come.
When it comes to finding such companies, the healthcare industry is a great place to start. Healthcare is a sector that is always in demand, as people worldwide require care and medicine regardless of economic conditions. Two standout examples in this industry are Eli Lilly and Zoetis.
Eli Lilly is a global pharmaceutical company that is a leader in the field, with a diverse drug portfolio covering a range of conditions such as obesity, diabetes, neuroscience, immunology, and oncology. The company is particularly known for its GLP-1 agonists, which treat diabetes and obesity by slowing digestion and suppressing appetite. With a strong growth market and a robust product pipeline, Eli Lilly is poised for continued success in the years to come.
Zoetis, on the other hand, is a global leader in vaccines, medicines, diagnostics, and other technologies for companion animals and livestock. The company benefits from the growing demand for animal protein and increased spending on companion animals, especially among younger generations. Since its IPO in 2013, Zoetis has shown consistent revenue growth and has a track record of increasing its dividend yearly, making it an attractive option for long-term investors.
For investors looking for a higher dividend yield, Kenvue is a solid choice. This company, which was spun off from Johnson & Johnson’s consumer products business, offers a diverse range of over-the-counter health products that are household names. With a strong dividend yield and a well-padded earnings-based payout ratio, Kenvue provides investors with a reliable source of income and steady annual dividend increases.
In conclusion, these companies lead their respective markets and are must-haves for buy-and-hold dividend investors. By focusing on owning exceptional businesses that consistently grow and provide a steady stream of income through dividends, investors can build a strong portfolio that will generate passive income for years to come.
