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3 Stock dividends that will pay you the rest of your life



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "There is a balance in the yield range between high returns Finally, it is generally more important to find stocks that can continue to pay – and hopefully increase – dividends than to reach for high returns that are volatile because they are supported by dividends that are likely to add a few good dividend names in your portfolio, these three Motley Fool contributors believe you will look at biotechnology Gilead Sciences (NASDAQ: GILD) telecom giant Verizon (NYSE: VZ) and Consumer Product Specialist Procter & Gamble (NYSE: PG) . "data-reactid =" 1
1 "> There is a balance in the dividend range between high returns and yield sustainability. Finally, finding stocks that can continue to pay – and hopefully increase – dividends is generally more important than reaching for high returns that are volatile because they are backed by dividends that are likely to be cut. To add a few good dividend names to your portfolio, these three Motley Fool contributors believe you will look at biotechnology Gilead Sciences (NASDAQ: GILD) telecom giant Verizon (NYSE: VZ) and specialist in consumer products Procter & Gamble (NYSE: PG) .

A fantastic revenue opportunity

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[19659009] George Budwell & nbsp; (Gilead Sciences): Gilead Sciences may no longer be the high growth game it was earlier this decade, but biotechnology has transformed into a top income and value stock in recent years. Today, a return of 3.9% and trading at a rock bottom 9.2 times next year's projected earnings is a pretty attractive package for all blue chip biotechnology. & nbsp; "data-reactid =" 13 "> George Budwell (Gilead Sciences): Gilead Sciences may no longer be the high growth game it was earlier this decade, but biotechnology has transformed into a top income and value stock in recent years. Shares today offer a return of 3.9% and are trading at a bottom 9.2 times next year's expected earnings. It is a pretty attractive package for any blue chip biotechnology.

a piggy bank with the word yield over it

Image source: Getty Images

<p class = "canvas -atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" The best part, however, is that Gilead should be able to continue to grow at a healthy pace in For the foreseeable future, apart from reporting an outrageous $ 30.2 billion in cash, cash equivalents and marketable debt securities at the end of the last quarter, its mega-blockbuster HIV drug was Biktarvy and the experimental The anti-inflammatory drug filgotinib is both expected to be big winners for the company over the next decade. & nbsp; "data-reactid =" 35 "> However, the best thing is that Gilead will be able to continue to grow its profits at a healthy pace for the foreseeable future. Aside from the fact that it reported an outrageous $ 30.2 billion in cash, cash equivalents and negotiable debt at the end of the last quarter, both its mega-blockbuster HIV drug Biktarvy and the experimental anti-inflammatory drug filgotinib are expected to be big winners for the company over the next decade.

For example, Biktarvy is estimated to hit $ 7 billion in sales as soon as 2024, according to a report from EvaluatePharma. Filgotinib has shot $ 6.5 billion in sales early next decade, depending on how the anti-inflammatory drug market is finally shaking. Overall, these two high-value drugs should be able to provide the kind of free cash flows needed to maintain and grow Gilead's dividend in the years to come.

<h2 class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Major barriers to entry protect this the yield & nbsp; "data-reactid =" 37 "> Large entry barriers protect this yield

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – -sm Mt (0.8 cm) – sm "type =" text "content =" Brian Stoffel (Verizon): & nbsp; I own exactly zero shares due to dividends. meaning, since the income investment doesn't fit my approach, with over three decades until I hit my golden years. That said, I would definitely put part of my portfolio in Verizon if I were to retire tomorrow. data-reactid = " 38 "> Brian Stoffel (Verizon): I own exactly zero shares because of dividends. This makes sense, since income investing doesn't fit my approach, with over three decades before I hit mine golden years. That said, if I were to retire tomorrow, I would definitely put part of my portfolio in Verizon.

There are some major reasons for this. First and foremost, dividends have been a steady source of income for a long time. The company has not missed dividends since the first on March 20, 1984 – back when it became known as Bell Atlantic. In addition, it has raised its dividend for 14 consecutive years.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Equally important, even if the company does not pay dividends , it already yields 4.3%. It's a hefty repayment for an investment world that sees negative interest rates spread across Europe. "data-reactid =" 40 "> Just as important, even if the company doesn't raise its dividends , it already gives 4.3%. It is a hefty repayment for an investment world that sees negative interest rates spread across Europe.

It can afford that payout because it collected $ 17 billion in free cash flow over the past year. Of this, about 59% was used to pay the dividend. That's a very healthy relationship: It means that Verizon still has room to grow its dividend sustainably if business goes well, and should be able to continue the current payout if business stagnates.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Perhaps most important, however, is Verizon's competitive position. high barriers to telecom entry, taking billions of dollars to build the infrastructure to connect the masses, and it's a highly regulated industry, with the largest market share of mobile subscribers and the status of & nbsp; the first to market with 5G technology I think Verizon is a great game for dividend investors. "Data-reactid =" 42 "> However, the most important thing is Verizon's competitive position. There are high barriers to entry in telecom. It takes billions of dollars to build the infrastructure to connect the masses, and it is a highly regulated industry. With the largest market share for mobile subscribers and the status of being the first to market with 5G technology, I think Verizon is a great game for dividend investors.

A time-tested brand manager

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Reuben Gregg Brewer (Procter & Gamble): You know the names that consumer products giant Procter & Gamble sell, including iconic brands Bounty, Tide and Crest (among many others). of the products are daily necessities, so they are bought in good times and bad, giving P&G a solid revenue base to pay dividends from, and with long-term debt at a reasonable 30% of the capital structure, there's no need to worry for the company's balance sheet & nbsp; ". data-reactid = "48"> Reuben Gregg Brewer (Procter & Gamble): You know the names that consumer product giant Procter & Gamble sells, including iconic brands Bounty, Tide and Crest (among many others). Most of the products are daily necessities, so they are bought in good times and bad. This gives P&G a solid income base to pay dividends. And with long-term debt at a reasonable 30% of the capital structure, there's no need to worry about the company's balance sheet.

This is the basis on which P&G has built an over six-decade streak with annual dividend increases. There is no reason to doubt that it can continue to pay investors year in and out. But what this big picture lacks is probably the most important piece of the puzzle: P&G is a brand manager. This means that it buys and sells brands over time to ensure that it has the best possible portfolio of assets that works for investors.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " PG data at YCharts. " data-reactid = "63"> PG data by YCharts.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The mixture is not always correct, but over time has done pretty well, the latest shift being a great example, in 2016, & nbsp; sold more than 40 beauty brands to Coty (NYSE: COTY) . let P&G focus on the best beauty brands, which have achieved solid success. Meanwhile, Coty has struggled to make the purchase pay off . "data-reactid =" 64 "> It doesn't always the mixture right, but over time it has done quite well. The last shift is a good example. In 2016, it sold more than 40 beauty brands to Coty (NYSE: COTY) . This allowed P&G to focus on the best beauty brands, which have achieved solid success. In the meantime, Coty has struggled to make the purchase pay off.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " P&G manages is doing quite well today overall, and the shares have risen sharply this year, it is not cheap, but 2.5% return is higher than what you would get from the S&P 500 The Index. & nbsp; And you should be able to count on dividends being paid and increased in the years to come. For conservative income investors looking to add a little diversification to their portfolios, it's still worth a deep dive . & nbsp; "data-reactid =" 65 "> P&G is performing quite well today overall, and shares have risen sharply this year. It is not cheap, but 2.5% return is higher than what you would get from the S&P 500 index. And you should be able to count on dividends being paid, and increased, in the years to come. For conservative income investors who want to add a little diversification to their portfolios, it is still worth a deep dive.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Brian Stoffel holds no position in any of the listed shares. George Budwell holds no position in any of the listed shares. Reuben Gregg Brewer owns shares in Procter & Gamble. The Motley Fool has no Motley Fool has a disclosure policy . "data-reactid =" 66 "> Brian Stoffel has no position in any of the listed shares. George Budwell has no position in any of the shares listed. Reuben Gregg Brewer owns shares in Procter & Gamble. Motley Fool has no position in any of the shares listed. Motley Fool has a disclosure policy.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This article was originally published on Fool.com "data-reactid =" 67 "> This article was originally published on Fool.com


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