Connect with us

CryptoCurrency

3 Magnificent Dividend Stocks That I’m “Never” Selling

Published

on

3 Magnificent Dividend Stocks That I'm "Never" Selling


As a long-term dividend-focused investor, I face the very real risk that I end up falling in love with a stock. That could lead me to miss important cues if (or perhaps when) a company’s business falters. However, I’ve sold great companies before (one is on this list) and regretted it, which is why I’m planning to never sell Realty Income (NYSE: O), Procter & Gamble (NYSE: PG), and Hormel Foods (NYSE: HRL).

Here’s a quick look at why.

1. I sold Realty Income once, I won’t do it again

I bought Realty Income a very long time ago when it was yielding more than 10%, largely because real estate investment trusts (REITs) were still a niche sector on Wall Street. When the yield fell to around 4%, I sold it, collecting a sizable capital gain. But I ended up missing out on years of dividend growth and, honestly, I regretted the short-term decision I made. As luck would have it, another REIT I owned was bought by Realty Income, and I’m a happy shareholder again. I won’t be selling it a second time.

Advertisement
A person hugging a piggy bank.

Image source: Getty Images.

There are a couple of reasons for this dedication. First off, Realty Income has proven itself to be a conservative and reliable dividend payer. It has an investment grade-rated balance sheet and has increased its dividend annually for 29 consecutive years. That’s not something you achieve by accident. Then there’s the fact that it is the heavyweight champion of the net-lease niche. Net leases require tenants to pay most property-level operating costs. It is a fairly low-risk model if the property portfolio is large enough. Realty Income owns over 15,400 properties spread across North America and Europe. The company’s size and financial strength, meanwhile, allow it advantaged access to capital markets to fund its growth.

I don’t expect Realty Income to grow quickly, but slow and steady is just fine for me when you combine it with the REIT’s 5% dividend yield.

2. Procter & Gamble has the skills needed to lead

Procter & Gamble (P&G) is another industry giant, this time in the consumer-staples space. You probably know its brands, which include Bounty, Tide, Pampers, and Gillette, among many others. It is a Dividend King, with 68 consecutive annual dividend increases under its belt. That’s a record that few companies can match, but the real attraction here is centered around P&G’s skill set.

The company is large and financially strong, but that’s just table stakes in the consumer staples sector. What distinguishes P&G is its research and development, marketing, and distribution might. Few companies can match it. In fact, the company doesn’t actually focus on gaining market share in the product segments it serves but on expanding the segment with new and innovative products. As an example, the company created the Swiffer business, adding an entirely new category to the cleaning-products niche. That required research and development (R&D) skills to create Swiffer, marketing skills to get consumers interested, and the ability to push the new product out to stores so it was widely available for purchase. All of that sounds easy, but it isn’t, and P&G stands “Head & Shoulders” (pun intended, since that’s one of the company’s brands) above the competition.

Advertisement

Procter & Gamble currently yields around 2.4%. I bought it when the yield was closer to 4%, so I’m sitting on some nice capital gains. But I have no intention of selling; I’ll just let this consumer-staples giant keep growing its business over time and rewarding me with more dividend increases. If you don’t own it, it is probably one for the wishlist just in case a bear market comes along. If this baby goes out with the bathwater, you should jump at the opportunity to add it to your portfolio.

3. Hormel is struggling, and I’m doing OK with it

Like P&G, Hormel is a Dividend King. It has increased its dividend annually for 58 consecutive years. That said, it is deeply out of favor right now, offering investors a historically high 3.6% dividend yield. The stock is on the discount rack in a big way.

Once a meat producer, Hormel is now a food maker with a focus on branded-protein products including meats and nuts. It has been growing its portfolio via innovation and acquisition. It has also been expanding its reach globally. Basically, Hormel is looking to become one of the big names in the food sector. Lately, the effort hasn’t been going well thanks to rising operating costs (which the company hasn’t been able to pass along to consumers as well as peers), avian flu, a slow pandemic recovery in China, and the decision to buy Planters just as the nut segment of the snack sector started to slow down. None of these problems are insurmountable, but when they come all at once, they are pretty daunting. It isn’t unreasonable for investors to be worried.

But there’s a unique twist here. The Hormel Foundation owns nearly 47% of Hormel’s stock, and the not-for-profit relies on the dividends it collects to support its operations. They have a vested interest in ensuring that Hormel does what it takes to keep the business growing and the dividend strong, which basically means there’s an insider who has my back here. I’m not selling this one despite the troubles it faces right now. And you might want to hold your nose and jump aboard while the stock is still unloved. If the Hormel Foundation has anything to say about it, and it does, Hormel will figure out how to right the ship while continuing to support and grow its dividend.

Advertisement

I could change my mind, but I doubt it

There is always a chance that Realty Income, Procter & Gamble, or Hormel materially change the way they operate. If that were to happen, I’d have to reconsider my commitment to each of these reliable dividend stocks. But until that happens, I’m sticking with them, hopefully until I pass them on to my heirs. I learned my lesson when I sold Realty Income … great businesses are worth holding on to.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,266!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,047!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $389,794!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Advertisement

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 7, 2024

Reuben Gregg Brewer has positions in Hormel Foods, Procter & Gamble, and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.

3 Magnificent Dividend Stocks That I’m “Never” Selling was originally published by The Motley Fool

Advertisement



Source link

Continue Reading
Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

CryptoCurrency

Bitcoin hits $73.6K as fundamentals suggest new all-time highs are programmed

Published

on

Bitcoin hits $73.6K as fundamentals suggest new all-time highs are programmed


Bitcoin price rallies within $200 of a new all-time high as several fundamentals point to the crypto bull marking picking up pace. 



Source link

Advertisement
Continue Reading

CryptoCurrency

President Biden thanks Nigerian President for Binance exec’s release

Published

on

President Biden thanks Nigerian President for Binance exec’s release


A former IRS special agent and Binance’s head of financial crime compliance, Tigran Gambaryan had been in Nigerian custody with reports of deteriorating health since February.



Source link

Advertisement
Continue Reading

CryptoCurrency

Travelex undertakes major UAE expansion

Published

on

Travelex undertakes major UAE expansion


UK based foreign exchange brand Travelex has announced that the company has undertaken a major expansion in the UAE, with the launch of 13 new stores across Abu Dhabi and Dubai airports.

At Zayed International Airport, Travelex is doubling its store footprint from seven to 14 stores, including six new on-the-move kiosk (OTM) locations at arrivals baggage, airside departures and pre-immigration, and one new traditional landside store. The new landside store will offer both a cash management service that will enable the airport’s businesses to process cash, as well as traditional consumer cash services, including access to 62 currencies.

Travelex initially entered Zayed International Airport in late 2023 with seven stores and eight ATMs. The new stores reflect the growing passenger demand and customer requirements of the UAE’s newest airport. As a dominant force in the capital’s aviation sector, Zayed International Airport rapidly affirmed itself as a key hub for air travel, solidifying its position as a vital player in the global travel landscape.

Advertisement

At Dubai International (DXB), Travelex is in the process of launching six new stores across all three terminals, including new traditional stores and stores upgraded from OTMS. Two ATMS dispensing AED were also installed at Terminal 3 Arrivals earlier this year. DXB has also seen a considerable post-pandemic growth in pax numbers, reinforcing its status as a leading hub for international travel.

The 13 new stores across Abu Dhabi and Dubai means Travelex will be operating 60 locations across the country. The latest IATA figures show that Middle Eastern airlines saw a 9.6% year-on-year increase in demand for June 2024, while capacity increased 9.4% year-on-year.

Batu Dölay, Managing Director, Travelex Middle East and Türkiye said:

“We’re delighted to be expanding our presence at two of the most exciting and dynamic airports in the world. This investment reflects the growing global reach and passenger numbers of our UAE airport partners, and our commitment to providing even greater access to international travel money than ever before.”

About Travelex

Founded in 1976 Travelex has grown to become one of the market leading specialist providers of foreign exchange products, solutions, and services, operating across the entire value chain of the foreign exchange industry in more than 20 countries. We have developed a growing network of ATMs and stores in some of the world’s top international airports, major transport hubs, premium shopping malls and city centres.

Travelex has built a growing online and mobile foreign exchange platform, and we also process and deliver foreign currency orders for major banks, travel agencies, supermarkets and hotels worldwide. In addition, we source and distribute sizeable quantities of foreign currency banknotes for customers on a wholesale basis – including central banks and international financial institutions. We also offer a range of remittance and international money transfer products around the world.

Advertisement



Source link

Continue Reading

CryptoCurrency

Solana price hits 3-month high as data hints at SOL rally above $200

Published

on

Solana price hits 3-month high as data hints at SOL rally above $200


Solana price hits $180 as Bitcoin storms toward a new all-time high. Data suggests SOL can go higher.



Source link

Advertisement
Continue Reading

CryptoCurrency

Bitcoin miners cut costs, embrace AI post-halving: CoinShares

Published

on

Bitcoin miners cut costs, embrace AI post-halving: CoinShares


Miners including Cormint and TeraWulf are among the lowest-cost producers of Bitcoin, an important advantage amid tightening margins, CoinShares said.



Source link

Advertisement
Continue Reading

CryptoCurrency

Ripple co-founder: Harris will have ‘completely different approach’ to crypto

Published

on

Ripple co-founder: Harris will have ‘completely different approach’ to crypto


Having contributed roughly $12 million to PACs supporting Kamala Harris, Chris Larsen said he hoped to see “bipartisan support and weight” for crypto in government starting in 2025.



Source link

Advertisement
Continue Reading

Trending

Copyright © 2024 WordupNews.com