The Dividend Investors’ Dream Team: 3 Stocks to Buy and Never Sell

Stocks to buy

Dividend investors look for buy-and-hold stocks with solid financials and plenty of years of future growth. These investors want to generate steady cash flow from their investments and potentially live off their assets in the future.

Achieving long-term portfolio goals starts with picking the right stocks. Investors shouldn’t only consider what an asset looks like right now but also consider how a stock can change within a few years. These top dividend stocks look promising for patient investors. 

Cintas (CTAS)

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Cintas (NASDAQ:CTAS) offers safety supplies and other resources for more than one million businesses. The company still has a large addressable market since it only serves roughly one million of the 16 million businesses in North America.

The stock has been outperforming the stock market. It’s up by 15% year-to-date and has gained 208% over the past five years. Cintas trades at a 47 P/E ratio and offers a 0.79% yield. Wall Street analysts believe it has more upside. The stock is rated as a “Moderate Buy” with a projected 6% upside from current levels.

Recent financials suggest that Cintas can continue to reward investors. Revenue increased by 9.9% year-over-year in Q3 FY24. Net income was up by 22.0% year-over-year. These growth rates help to support the company’s solid dividend growth rate. Cintas has maintained an annualized growth rate of 21.05% for its dividend over the past decade. 

Visa (V)

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Credit and debit cards aren’t going anywhere. Consumers will continue to use these cards for numerous purchases. It’s easier to make a $1,000 purchase with a credit card than it is to have that much cash in your wallet. These cards also have enticing rewards programs, and on-time payments can help you qualify for more competitive rates and terms for future loans.

Visa (NYSE:V) is one of the leaders in the industry and has a market cap north of $500 billion. The stock trades at a 34 P/E ratio with a 0.76% yield. Visa has maintained an impressive annualized dividend growth rate of 18.05% over the past decade. The company has raised its dividend for 15 consecutive years.

The stock is up by 6% year-to-date and has rallied 70% over the past five years. Wall Street analysts have projected an additional 15% gain for the stock. It is currently rated as a “Strong Buy.”

Meta Platforms (META)

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Meta Platforms (NASDAQ:META) recently initiated a quarterly dividend at $0.50 per share. The company’s vast balance sheet and growing profit margins suggest it will maintain a high dividend growth rate for many years. 

The social media giant isn’t the best pick for dividend income investors since it only has a 0.42% yield. However, the tech firm checks many boxes for dividend growth investors who want to maximize their returns. The stock has gained 38% year-to-date and is up 169% over the past five years.

Meta Platforms’ recent financial report suggests that it can maintain the stock gains. Revenue increased by 27% year-over-year in Q1 2024, while net income more than doubled year-over-year. The company has been trimming its headcount while delivering exceptional results for investors. These developments have won a lot of positive praise from Wall Street analysts. Based on the average price target, the “Strong Buy” stock is projected to gain an additional 9%. 

On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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