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Ideas for Income Investors. High Dividend Stocks, Mutual Funds etc.
5 Dividend Stocks to Buy and Hold, Not Buy and Forget
Posted by: Dividends4Life (IP Logged)
Date: November 14, 2012 10:44AM
Over the years, I have observed that there are many ways to earn a good return in the market. In addition to buy and hold, some have successfully used various forms of market timing including sector rotation, momentum investing, technical analysis, et al. Given a person's unique makeup, not all strategies will work for everyone. At the same time, I believe all strategies will fail if the investor is not committed to their selected strategy over the long term.
In August 2009, Kiplinger published an article looking at a successful market timer and contrasting it with a buy-and-hold strategy. Below are some key bullets from the article:
Buy And Hold Dividend StocksI prefer an investing strategy that requires less daily attention. As a long-term, value-based, dividend income investor, daily market gyrations are just irrelevant noise in the system. Below are five dividend stocks you can buy, hold and sleep at night:
Chevron Corporation (CVX) is a global integrated oil company (formerly ChevronTexaco) with interests in exploration, production, refining and marketing, and petrochemicals. The company has paid a cash dividend to shareholders every year since 1912 and has increased its dividend payments for 25 consecutive years. I have held the stock since December 2008. Yield: 3.3%
Genuine Parts Co. (GPC) is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products. The company has paid a cash dividend to shareholders every year since 1948 and has increased its dividend payments for 56 consecutive years. I have held the stock since May 2009. Yield: 3.2%
McDonald's Corporation (MCD) is the largest fast-food restaurant company in the world, with about 33,700 restaurants in 119 countries. The company has paid a cash dividend to shareholders every year since 1976 and has increased its dividend payments for 36 consecutive years. I have held the stock since December 2007. Yield: 3.5%
PepsiCo Inc. (PEP) is a major international producer of branded beverage and snack food products. The company has paid a cash dividend to shareholders every year since 1952 and has increased its dividend payments for 40 consecutive years. I have held the stock since June 2008. Yield: 3.1%
The Procter & Gamble Company (PG) is a leading consumer products company that markets household and personal care products in more than 180 countries. The company has paid a cash dividend to shareholders every year since 1891 and has increased its dividend payments for 55 consecutive years. I have held the stock since July 2008. Yield: 3.2%
Ultimately, each investor must define what works best for him and have the conviction to stick with it during the good times and the bad. Often the good times are preceded with some very dark days, and if you quit too soon you might just miss the good time.
Full Disclosure: Long GPC, CVX, MCD, PEP, PG in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.
- My Five Top And Bottom Performing Dividend Stocks
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- 7 Dividend Stocks Delivering The Secret To Successful Investing
- There's Gold In Them Thar Dividend Stocks
Stocks Discussed: GPC, CVX, MCD, PEP, PG,