2 Outstanding Dividend Stocks to Buy and Hold for 10 Years
Income seekers can't go wrong with these companies.
Overview
Dividend investing will never go out of style. It's one of the best ways to take advantage of the magic of compounding (by reinvesting dividends), which can significantly boost long-term returns. And there is evidence that, over the past few decades, dividend-paying stocks have significantly outperformed non-dividend payers. But choosing a random income stock won't do -- they aren't all created equal. Let's consider two dividend-paying companies that look like excellent long-term picks: Johnson & Johnson (NYSE:JNJ) and Merck (NYSE:MRK).
Image source: The Motley Fool.
So far, it has been a good year for Johnson & Johnson, with the stock climbing 28%, compared to the S&P 500's 10% gain. One key reason for the company's performance is its strong financial results. Despite patent cliffs and government drug price negotiations, Johnson & Johnson is growing its revenue and earnings at a good clip. Second-quarter sales came in at $25.3 billion, up 6.6% year over year, while its adjusted earnings per share climbed 4.7% year over year to $2.90. Johnson & Johnson's recent financial results highlight its ability to overcome challenges.
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Originally published at www.fool.com.