Investment Options: Long-Term Dividend Shares to Maintain for the Coming Five Years
In the world of investing, finding stable and growing sources of income is paramount. This article highlights some high-quality dividend stocks that stand out for their attractive and growing dividends, making them ideal long-term holdings.
Brookfield Renewable
Brookfield Renewable, a leading global renewable energy producer, is one such company. Its portfolio of renewable energy assets generates stable and growing cash flows, supported by inflation-linked rate increases. The company plans to increase its dividend by 5% to 9% annually, offering investors a promising return. Additionally, as legacy Power Purchase Agreements (PPAs) expire, Brookfield expects to capture higher prices, further boosting its earnings.
PepsiCo
PepsiCo, a Dividend King with a 53-year dividend growth streak, is another standout. Offering a dividend yield of around 4%, PepsiCo aims to complement its organic growth investments with strategic acquisitions. The company has a 4%-6% annual long-term organic growth target and a high single-digit earnings growth target, promising continued growth for investors.
Chevron
Chevron, with its strong balance sheet and resilient portfolio, positions itself well to continue increasing its 4.5%-yielding dividend in the future. The company's free-cash-flow total is expected to grow significantly next year, with $12.5 billion added to its free-cash-flow total, setting the stage for a potential dividend increase.
Johnson & Johnson
Johnson & Johnson, a household name, produced $20 billion in free cash flow last year, more than enough to cover its 3%-yielding dividend. Despite heavy investments in research and development, the company has extended its growth streak to 63 years in a row, keeping its place in the elite group of Dividend Kings.
Realty Income
Realty Income, one of the world's largest real estate investment trusts (REITs), owns a diversified portfolio of high-quality properties leased to many of the world's leading companies. Its net leases provide it with very durable cash flow because tenants cover all property operating costs. Over the past year, Realty Income has used its strong free cash flow and balance sheet to make strategic acquisitions. Since coming public in 1994, Realty Income has increased its dividend 131 times.
Growing Demand and Stability
Growing power demand should benefit Brookfield Renewable over the next five years, while Realty Income's business model, based on net leases, ensures a steady cash flow. Both companies, along with PepsiCo, Chevron, and Johnson & Johnson, offer attractive dividend yields and growth prospects, making them ideal long-term holdings for investors seeking stability and growth.
However, it's worth noting that there are no specific details available about Brookfield Renewable's plans to increase its dividend payments in 2023. Nonetheless, the company's track record and growth prospects make it a compelling choice for investors.
The Hess deal enhanced and extended Chevron's production and free-cash-flow growth outlook into the 2030s, positioning it well for the future. Johnson & Johnson has been using its strong free cash flow and balance sheet to make strategic acquisitions, further solidifying its position in the market. PepsiCo offers a dividend yield of around 4% and aims to continue its organic growth and strategic acquisitions, promising continued growth for investors.
In conclusion, these high-quality dividend stocks offer attractive and growing dividends, making them ideal long-term holdings. Whether it's the renewable energy sector with Brookfield Renewable, the consumer goods sector with PepsiCo, the energy sector with Chevron, or the healthcare sector with Johnson & Johnson and Realty Income, these companies provide a solid foundation for investors seeking stable and growing income.
