Want Income for Life? Here Are 3 Stocks to Buy Now and Never Sell.
Finding a good dividend stock to buy and hold forever is a challenge. The Motley Fool identifies three stocks that have the potential to provide a lifetime of reliable income: Pfizer, Coca-Cola, and Brookfield Renewable.
Intelligence analysis by Llama
The article highlights three dividend stocks that have the potential to provide a lifetime of reliable income: Pfizer, Coca-Cola, and Brookfield Renewable. These stocks have a strong track record of paying and raising their dividends, making them attractive for long-term investors.
Imagine you have a special kind of savings account that pays you money every year, and the money keeps growing. That's what these three companies offer: a way to save and earn money over a long time. They're like a special kind of investment that helps you grow your money.
Analysis
A $60B Vote of Confidence
Pfizer, a pharmaceutical giant, has earned a spot on this list despite struggling since the easing of the COVID-19 pandemic. The company has a healthy forward-looking dividend yield of 6.9% and is developing multiple new profit centers. Pfizer has said it expects to bring at least eight new blockbuster drugs to the market by 2030, funded by a combination of acquisitions and in-house development. It's also moving deeper into the fast-growing obesity drug space, largely with the late-2025 acquisition of Metsera. Metsera's MET-097i is particularly promising, showing efficacy with only a monthly dose. This gives Pfizer an opportunity to enter a weight-loss drug market that Mordor Intelligence expects to be worth $133 billion per year by 2031 with a distinctly different, more convenient option.
Why Coca-Cola's Dividend is a Safe Bet
Coca-Cola, a beverage giant, is not an unexpected addition to a list of dividend stocks to buy and never sell. The company has paid a quarterly dividend like clockwork for decades and has raised its quarterly per-share payment every year for the past 64 years, with no end to the streak in sight. Its beverages are consumer staples that people purchase over and over, with demand never severely affected by nominal price increases. A nuance further protects Coca-Cola's dividend-supporting cash flow, and it's mostly unappreciated because it goes largely unnoticed. It's the company's business model. Contrary to a common assumption, Coca-Cola does very little of its own bottling these days. It punts most of this work -- and cost, and risk -- to third-party bottling partners so it can focus on what it does best. That's marketing. It just so happens that simply selling its concentrated flavor syrups remains a high-margin business, even when bottling and distributing ready-to-drink beverages doesn't.
Brookfield Renewable's Renewable Energy Portfolio
Finally, if you're looking for a lifetime of reliable income from holdings you'll probably never need to sell, consider a stake in Brookfield Renewable. This company oversees a collection of partially and wholly owned stakes in several renewable energy outfits that generate recurring income. Some of its existing holdings include power wholesaler Geronimo Power, wind and solar power company Scout Clean Energy, and the Goose Prairie solar farm in Moxee, Washington. Brookfield has also directly partnered with Microsoft and Alphabet's Google to provide both companies' data centers with electricity, with an agreement with Google to provide it with 3 gigawatts of hydropower. This is just a sampling of its portfolio, of course. The nature of this mix of holdings is no minor detail. Unlike most mutual funds and all investors, Brookfield Renewable can forge private partnerships, make outright acquisitions, and even steer such dealmaking. This ultimately allows the company to structure its assets in a way that supports reliable dividends and reliable dividend growth. To this end, the relatively young organization aims to produce annual per-share payout growth of between 5% and 9%, contributing to net annual returns of between 12% and 15%. There's no reason to think it can't do so, given the organization's flexible structure paired with the planet's growing preference for renewable energy.
Key points
- Pfizer has a healthy forward-looking dividend yield of 6.9% and is developing multiple new profit centers.
- Coca-Cola has paid a quarterly dividend like clockwork for decades and has raised its quarterly per-share payment every year for the past 64 years.
- Brookfield Renewable oversees a collection of partially and wholly owned stakes in several renewable energy outfits that generate recurring income.
If these companies continue to grow and develop new products, they may be able to increase their dividend payments even more, providing a higher return on investment for their shareholders.
However, if the companies face significant challenges or disruptions in their industries, they may struggle to maintain their dividend payments, potentially affecting their stock prices.
