Dividend stocks can be great sources of income for investors, but that doesn’t mean they’re risk free. Dividend payments are never guaranteed, and if a company runs into trouble, it could end up reducing or stopping its payouts completely.
That’s why investors should always take a hard look at dividend stocks to make sure they have stable, long-term futures. The three stocks listed below are good bets to continue paying dividends for the long term and could be ideal for buy-and-hold investors who don’t want to worry about checking on their portfolios every day.
Walmart (NYSE:WMT) is arguably one of the safest long-term investments available. The company dominates retail, and even rising competition from online retailer Amazon hasn’t been enough to worry investors.
In its most recent earnings report, Walmart continued to show why it’s still a great stock. The company beat expectations soundly, posting earnings per share of $1.16 versus the $1.09 analysts were looking for. Same-store sales of 3.2% also continue to be strong and were better than expectations of 3.1%. And despite concerns about a slowing economy, CEO Doug McMillon stated that the company is “prepared for a good holiday season.” If he’s right and the company has a strong Q4, the stock could be headed for some big gains in 2020.
Year to date, Walmart’s shares have risen more than 28%. The stock also pays a dividend of 1.8%. This Dividend Aristocrat has increased its payouts for more than four decades, and there’s little reason to expect that pattern will change anytime soon. While the increases have been modest, with the most recent hike being a 1.9% increase from $0.52 to $0.53, it will at least help in offsetting the impact of inflation over the years if that rate of increase continues.