TOP 5 Dividend Stocks to buy and hold forever

What a crazy time we live in. Both S&P 500 and Nasdaq are now down at least 25% from record highs. Is it time to buy? Or should we rather sell and avoid losing everything? As a long-term investor, I look foward to adding more shares to my name, at a discount price.

How the stock market bounces back

During the Global financial Crisis of 2008, the US Stock Market had a one day fall of 9% on the 15/10/2008. Investors were apprhensive but an investment of 10 000$ on that day would have grown to 20 900$ within five years.

The Stock Market has always bounced back from every fall, coming stronger than before with new record highs.

Here I’ll share with you the 5 Dividend Stocks I’m Looking to buy as of March 2020

Coca-Cola (KO)


  • Share Value: 43.56$
    With a 1y Target Est of 57.34$, in my opinion Coca-Cola still has room to grow.

  • Dividend Yield: 3.87%
    Coca-cola has raised it’s dividends for over 50 consecutive years, making it a Dividend Aristocrat. On top of that it is increasing it’s dividend by an average of 3.48% each year. With a payout ratio of 64.12% (Based on Cash Flow) they still leave plenty to reinvest in their business.

  • Earnings:
    The Coca-Cola last issued its earnings data on January 30th, 2020. The reported $0.44 earnings per share for the quarter, meeting the consensus estimate of $0.44. The company earned $9.10 billion during the quarter, compared to the consensus estimate of $8.88 billion. Its revenue was up 28.2% compared to the same quarter last year.

AT&T (T)


  • Share Value: 29.84$
    With a consensus price target of 38.92$, the stock seems to be undervalued, making it a good buy opportunity.

  • Dividend Yield: 6.80%
    The company has grown its dividend for the last 35 consecutive years and is increasing its dividend by an average of 2.00% each year. AT&T pays out 58.26% of its earnings out as a dividend.

  • Earnings:
    The technology company reported $0.89 EPS for the quarter, topping the consensus estimate of $0.88 by $0.01. The business had revenue of $46.82 billion for the quarter, compared to analysts’ expectations of $47.06 billion. Its revenue was down 2.4% compared to the same quarter last year. AT&T has generated $3.57 earnings per share over the last year and currently has a price-to-earnings ratio of 15.7.

Altria Group (MO)


  • Share Value: 36.64$
    Altria Group has a consensus price target of 55.39$, making it, in my opinion, a strong buy opportunity.

  • Dividend Yield: 9.17%
    Altria Group is a bona fide dividend aristocrat having increased its dividend every year for the past 50 years. On top of that it is increasing its dividend by an average of 9.77% each year. Altria Group pays 79.62% of its earnings out as a dividend.

  • Earnings:
    The company reported $1.02 EPS for the quarter, hitting the consensus estimate of $1.02. They earned $4.80 billion during the quarter, compared to analysts’ expectations of $4.89 billion. Its quarterly revenue was up 0.3% compared to the same quarter last year. Altria Group has generated $4.22 earnings per share over the last year.

Realty Income (O)


  • Share Value: 56.90$
    Once again, a Company in my opinion undervalued. Realty Income has a consensus stock price of 78.25$, making it a strong buy aswell.

  • Dividend Yield: 4.90%
    Realty Income, The Monthly Dividend Company, has grown its dividend for the last 24 consecutive years and is increasing its dividend by an average of 3.29% each year. Realty Income pays out 84.04% of its earnings out as a dividend.

  • Earnings:
    The business earned $397.50 million during the quarter, compared to analysts’ expectations of $375.16 million. Its revenue for the quarter was up 16.0% compared to the same quarter last year. Realty Income has generated $3.32 earnings per share over the last year and currently has a price-to-earnings ratio of 40.9.

PepsiCO (PEP)


  • Share Value: 120.46$
    With a price target upside of 16%, we see PepsiCo as another amazing buy opportunity.

  • Dividend Yield: 3.17%
    The company has grown its dividend for the last 47 consecutive years and is increasing its dividend by an average of 6.44% each year. PepsiCo pays out 69.08% of its earnings out as a dividend.

  • Earnings:
    PepsiCo reported $1.45 earnings per share for the quarter, beating the consensus estimate of $1.44 by $0.01. The business had revenue of $20.64 billion for the quarter, compared to analysts’ expectations of $20.24 billion. Its revenue was up 5.7% on a year-over-year basis.

3 comments

    • Jay on April 4, 2020 at 10:33 PM

    What’s the best if I were to start off buying just 1 of those.

  1. I’d go with Coca-cola

  2. Usually I don’t learn post on blogs, however I wish to say that this write-up very forced me to take a look at and do it! Your writing taste has been amazed me. Thank you, quite great article.

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