Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

3 Dividend Stocks That Could Keep Paying Out For The Rest Of Your Life

By (Haris Anwar/ MarketsMay 10, 2021 08:00
3 Dividend Stocks That Could Keep Paying Out For The Rest Of Your Life
By (Haris Anwar/   |  May 10, 2021 08:00
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing for retirement requires a different approach from merely betting on growth or value stocks. The strategy for fixed-income is to buy quality stocks, hold them over the long run and focus on their income-generating capabilities—now and into the future. 

That investing style may seem boring to some, especially in an environment where markets are in a long-term bull cycle and there appears to be no end in sight to this relentless rally. But if your investment goal is to build a solid cash stream for retirement, one that you can count on for the rest of your live, then holding some quality dividend stocks in your portfolio is a great idea.

With these factors in mind, below we've short-listed three stocks that income investors could consider buying now. Each offers solid income potential for long-term investors due to their ample cash reserves, healthy balance sheets and reasonable payout ratios.

1. Procter & Gamble

Consumer staples are a great avenue for retirees to earn steadily growing income without taking too much risk. The logic is simple: in any economic shock, consumers are highly unlikely to stop buying things they absolutely need for day-to-day living, such as, toothpaste, toilet paper and dish-washing liquids.

PG Weekly TTM
PG Weekly TTM

Procter & Gamble (NYSE:PG), the multinational consumer staple manufacturer, is a stock that fits nicely into this category. The Cincinnati-based company is among that small group of firms considered Dividend Aristocrats—businesses that have, for 25 years or more, consistently and consecutively raised and paid out their dividends. 

In Procter & Gamble's case, that stat is even more impressive: the company has paid a dividend for 131 years, increasing that payout for 64 consecutive years. With its 2.57% annual yield, it now pays $0.87 a share quarterly dividend after a 10% hike last month. And its payout ratio is a solid 56.35%, which means there's more runway to raise the payout going forward.

Shares of P&G have weakened about 3% this year, closing on Friday at $135.15. Still, the manufacturer of Dawn dishwashing soap, Charmin toilet paper, and Pampers has delivered impressive returns over the past five years, gaining 135%, including dividends.

2. Medtronic

Healthcare stocks are considered relatively safe, regarded as solid income producers. Just like retailers, utilities and garbage collectors, healthcare providers offer services that remain necessary even during a recession. Plus, economic swings don’t typically curb the roll-out of new drugs and devices.

MDT Weekly TTM
MDT Weekly TTM

Medtronic (NYSE:MDT) is a lesser known healthcare stock that we like due to the company’s strong market position and its hefty payouts. The world’s biggest medical device maker controls 50% of the global pacemaker market. It’s also a leader in products that assist with spinal surgeries and diabetes care.

No matter which way the economy goes, stocks like Medtronic will continue to churn out cash. The company has a long-term strategy to pay out 50% of its free cash flow to shareholders as dividends. With a 1.83% annual yield, the company pays $0.58 a share quarterly dividend. That payout, on average, has increased over 11% per year during the past five years. As well, the company has a healthy price-to-free cash flow rate of 54.62, lower than the industry average of 86.01.

The Dublin, Ireland-based medical device company is seeing the “best near term set up in years,” according to a recent note from Bank of America. Those positive catalysts include a robust rebound in surgical procedures as the coronavirus pandemic subsides. BoA expects Medtronic to become only the second company behind Intuitive Surgical (NASDAQ:ISRG) to apply for approval of a surgery-assisted robot.

The stock, after gaining 8% this year, closed on Friday at $126.70.

3. Home Depot

Home Depot (NYSE:HD) is one of those retailers that are ideally positioned to continue sending dividend checks to retirees. The home-improvement retailer in recent years invested heavily to prepare itself for the e-commerce onslaught and changing consumer behavior. 

HD Weekly TTM
HD Weekly TTM

Just before the deadly pandemic hit, the Atlanta-based, home improvement chain had completed an $11-billion restructuring plan to modernize the company’s stores, upgrade digital options, and enhance offerings for its key trade customers. 

Armed with these upgrades, Home Depot will continue to remain in a growth cycle, especially when factors such as a hot real estate market and the changing ways that people use their homes, are fueling sales of home-furnishing and improvement products.  

The company is also a reliable dividend payer. Over the past five years, its quarterly dividend, on average, has expanded 22% per year. With an annual dividend yield of 2%, the company pays a $1.65 a share quarterly payout. And, with a solid payout ratio of 50%, it has much more room to grow.

The stock, which closed on Friday at $339.25, has gained 20% during the past three months.

3 Dividend Stocks That Could Keep Paying Out For The Rest Of Your Life

Related Articles

3 Dividend Stocks That Could Keep Paying Out For The Rest Of Your Life

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email