3 Dividend Stocks to Buy for a Lifetime of Passive Income
These companies' recent headwinds shouldn't lead to decreased payouts.
Overview
Dividend investing is a proven way to earn superior returns over long periods. That's because companies that can consistently pay -- and raise -- dividends tend to have strong underlying businesses, and reinvesting dividends unleashes the power of compounding, significantly boosting long-term returns. Of course, not just any corporation that happens to pay dividends is worth investing in. Let's consider three that are: Novartis (NYSE: NVS), Abbott Laboratories (NYSE: ABT), and Visa (NYSE: V). All three of these stocks have what it takes to sustain consistent payout growth over the long term. Let me explain.
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At first glance, it looks like Novartis' business is struggling. In the second quarter, the company's net sales increased by just 3% year over year to $14.4 billion, while its adjusted earnings per share remained essentially flat at $2.40. However, a little bit of context helps. Novartis recently lost patent exclusivity for several products, including Entresto, a heart failure medicine. According to management, the company is going through the biggest patent expiry in its history. Novartis' financial results look rather strong considering, and the company owes that to several newer products that are helping push sales in the right direction. The list includes Kesimpta, a multiple sclerosis drug, and Fabhalta, a medicine for a rare blood disease called paroxysmal nocturnal hemoglobinuria, among others.
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Originally published at www.fool.com.