The "forever" part means investors have to think about the longevity of payout growth as well as reliable payments.
If volatility linked to the coronavirus contagion has become
exhausting to you, you're not alone. March's sell-off looked like it might
never end, and then suddenly, it reversed. The market has recovered most of
what was lost then, yet earnings and the economy seem to be in even worse
trouble than initially feared. Investors know everything will eventually be
fine, but the past three months have been a not-so-gentle reminder that trying
to beat the market is a tricky game.
There is a solution, at least for a big part of most
investors' portfolios. That solution is owning reliable dividend stocks. While
growth stocks tend to offer juicer stories, current income is a surprisingly
big component of investors' total long-term gains and even more so with
dividend-paying companies in the habit of generously increasing their payouts
year after year. The most reliable of these companies can earn the moniker of
Dividend Kings, or companies that have increased their dividend payout yearly
for at least 50 straight years.
To that end, here's a look at five Dividend Kings most
investors can simply buy and hold forever without constantly babysitting them.
In no particular order...
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