Got $200? 2 Dividend Stocks to Buy and Hold Forever

Julian WestWednesday, Jan 15, 2025 5:17 am ET
4min read


Investing in dividend stocks can be a great way to generate passive income and grow your wealth over time. But with thousands of dividend stocks to choose from, it can be challenging to know which ones are the best fit for your portfolio. In this article, we'll highlight two dividend stocks that are well-positioned to provide consistent income and capital appreciation for years to come. These stocks are ideal for investors with $200 to invest, as they offer attractive yields and strong growth prospects.



1. Coca-Cola (KO) - A timeless dividend stock
Coca-Cola is a beverage giant with a strong global presence and a history of consistent dividend growth. The company has increased its dividend for 59 consecutive years, making it a member of the elite group of "Dividend Aristocrats." Coca-Cola's stable earnings and strong cash flow make it an attractive choice for income investors.



Coca-Cola's dividend history shows a steady increase in its quarterly dividend, from $0.05 per share in 1963 to $0.46 per share in 2021. This consistent growth has helped the company maintain its status as a reliable dividend stock.

2. Johnson & Johnson (JNJ) - A healthcare giant with a strong dividend
Johnson & Johnson is a multinational healthcare company with a diverse portfolio of products and a strong global presence. The company has increased its dividend for 59 consecutive years, making it another member of the "Dividend Aristocrats" club. Johnson & Johnson's stable earnings and strong cash flow make it an attractive choice for income investors.



Johnson & Johnson's dividend history shows a steady increase in its quarterly dividend, from $0.05 per share in 1970 to $1.13 per share in 2021. This consistent growth has helped the company maintain its status as a reliable dividend stock.

Why these two dividend stocks are ideal for a "buy and hold" strategy
Both Coca-Cola and Johnson & Johnson have several characteristics that make them well-suited for a "buy and hold" strategy:

1. Strong dividend history: Both companies have a long history of paying and increasing their dividends, providing investors with a reliable income stream.
2. Stable earnings and cash flow: Both companies have stable earnings and cash flow, which helps support their dividends and provides a solid foundation for future growth.
3. Strong global presence: Both companies have a strong global presence, which helps insulate them from economic downturns in any single region.
4. Attractive yields: Both companies offer attractive yields, providing investors with a high level of income relative to their initial investment.
5. Strong balance sheets: Both companies have strong balance sheets, which helps them maintain their dividends during economic downturns and provides flexibility for future growth.

In conclusion, Coca-Cola and Johnson & Johnson are two dividend stocks that are well-positioned to provide consistent income and capital appreciation for years to come. With their strong dividend histories, stable earnings and cash flow, strong global presence, attractive yields, and strong balance sheets, these two stocks are ideal for investors with $200 to invest who are looking for a "buy and hold" strategy. By adding these two dividend stocks to your portfolio, you can build a strong foundation for generating passive income and growing your wealth over time.

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