3 High-Yield Dividend Stocks to Buy in 2025 and Hold for a Decade or Longer
Friday, Dec 13, 2024 4:35 am ET
4min read As investors look for stable, long-term income, high-yield dividend stocks remain an attractive option. With the potential for consistent returns and capital appreciation, these stocks can be a cornerstone of any portfolio. In this article, we will explore three high-yield dividend stocks that are well-positioned to provide steady income for a decade or longer.
1. Exxon Mobil (XOM)
Exxon Mobil is a global leader in the oil and gas industry, with a strong track record of dividend growth. The company's wide economic moat, as indicated by Morningstar, ensures consistent cash flows, enabling it to maintain and grow its dividend. With a 3.38% trailing dividend yield and a 15% undervaluation, XOM is an attractive long-term hold. Exxon's competitive advantage lies in its vast global oil and gas reserves, extensive refining and marketing network, and strong brand recognition. These factors protect its market share and profitability, ensuring consistent dividend payments.
2. Johnson & Johnson (JNJ)
Johnson & Johnson is a diversified healthcare company with a strong commitment to dividend growth. The company's wide economic moat, solid financials, and 3.29% trailing dividend yield make it a reliable choice for long-term dividend growth. JNJ's competitive advantage is its diversified portfolio of healthcare products, strong R&D pipeline, and global market presence. These factors enable the company to generate stable cash flows, even during economic downturns.
3. PepsiCo (PEP)
PepsiCo is a global leader in the food and beverage industry, with a strong track record of dividend growth. The company's wide economic moat, as reflected in its 3.38% trailing dividend yield and 12% undervaluation, ensures consistent dividend payments and growth. PEP's competitive advantage is its iconic brands, strong distribution network, and diverse product portfolio. These factors enable the company to generate stable cash flows, even during economic downturns.
In conclusion, Exxon Mobil, Johnson & Johnson, and PepsiCo are three high-yield dividend stocks that are well-positioned to provide steady income for a decade or longer. Their competitive advantages, economic moats, and strong dividend histories make them attractive long-term investments. As always, it is essential to conduct thorough research and consider your risk tolerance before making any investment decisions.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
