In this article, we discuss the 5 best long-term dividend stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 12 Best Long-Term Dividend Stocks To Buy Now.
5. Becton, Dickinson and Company (NYSE:BDX)
Number of Hedge Fund Holders: 52
Consecutive Years of Dividend Growth: 49
Forward Dividend Yield: 1.37%
Becton, Dickinson and Company (NYSE:BDX) is ranked fifth on our list of 12 best long-term dividend stocks to buy now. The firm operates in the healthcare equipment sector and is based in New Jersey.
Becton, Dickinson and Company (NYSE:BDX) reported earnings for the third fiscal quarter on August 5, posting earnings per share of $2.74, beating estimates by $0.30. The revenue over the period was $4.8 billion, up 26% year-on-year.
At the end of the second quarter of 2021, 52 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in Becton, Dickinson and Company (NYSE:BDX), down from 65 the preceding quarter worth $3.7 billion.
In its Q2 2021 investor letter, Madison Funds, an asset management firm, highlighted a few stocks and Becton, Dickinson and Company (NYSE:BDX) was one of them. Here is what the fund said:
“Becton, Dickinson and Company (“BD”) is one of the world’s largest medical supply, devices, laboratory equipment, and diagnostic products manufacturers. We like BD because it is a leader in the medical and life science industries with a durable mid-single digit growth profile and attractive returns on capital. They generate about 85% of revenue from consumables and 15% from equipment, and each year, they manufacture billions of needles, syringes, catheters, tubes, and medical devices which results in significant economies of scale that can be matched by few competitors. Their Life Sciences segment produces products that provide diversity in the steadily growing diagnostic testing and life sciences research fields.
Regarding the short-term issues, it’s been a challenging past 18 months for the company. In February 2020, they announced the FDA required an updated 510(k) clearance for their Alaris infusion pump. As a result, BD had to suspend selling new pumps until the updated regulatory filing received FDA clearance. In addition to the regulatory headwind, BD’s business was negatively impacted by the COVID-19 pandemic as individuals postponed doctor office visits and hospitals deferred non-emergency medical procedures. We believe these postponements are just now normalizing. Lastly, while BD’s Life Sciences business swiftly brought COVID-19 tests to market, there is uncertainty over the magnitude and duration of these revenues.
We believe these..”[read the entire letter here]
4. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 58
Consecutive Years of Dividend Growth: 57
Forward Dividend Yield: 2.42%
Colgate-Palmolive Company (NYSE:CL) is a New York-based firm that makes and sells consumer products. It is placed fourth on our list of 12 best long-term dividend stocks to buy now.
On October 5, investment advisory Bank of America reinstated coverage of Colgate-Palmolive Company (NYSE:CL) stock with a Neutral rating and a price target of $80, noting the innovations of the firm in the pet foods and oral care departments.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Colgate-Palmolive Company (NYSE:CL) with 11.8 million shares worth more than $963 million.
Here is what First Eagle Investment Management has to say about Colgate-Palmolive Company (NYSE:CL) in its Q1 2021 investor letter:
“The leading detractors in the quarter (included) Colgate-Palmolive Company. After a strong 2020 fueled in part by lockdown-driven demand, consumer staples stocks generally cooled during the first quarter as investors shifted attention to the more economically sensitive areas of the market likely to benefit from re-openings and improved discretionary spending. The effects of this rotation could be seen in the share price underperformance of names like Colgate-Palmolive.”
3. The Coca-Cola Company (NYSE:KO)
Number of hedge fund holders: 62
Consecutive Years of Dividend Growth: 59
Forward Dividend Yield: 3.17%
The Coca-Cola Company (NYSE:KO) is a Georgia-based beverage company. It is ranked third on our list of 12 best long-term dividend stocks to buy now.
On July 22, investment advisory Truist maintained a Buy rating on The Coca-Cola Company (NYSE:KO) stock and raised the price target to $65 from $60, underlining that the firm remained a part of the reopening trade and had long-term profitability.
Out of the hedge funds being tracked by Insider Monkey, Nebraska-based firm Berkshire Hathaway is a leading shareholder in The Coca-Cola Company (NYSE:KO) with 400 million shares worth more than $21 billion.
2. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 68
Consecutive Years of Dividend Growth: 64
Forward Dividend Yield: 2.50%
The Procter & Gamble Company (NYSE:PG) is placed second on our list of 12 best long-term dividend stocks to buy now. The firm makes and sells consumer packaged goods. It is headquartered in Ohio.
On October 5, investment advisory Bank of America reinstated coverage of The Procter & Gamble Company (NYSE:PG) stock with a Buy rating and a price target of $160, noting that bigger brands were adapting to a dynamic market.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Cedar Rock Capital is a leading shareholder in The Procter & Gamble Company (NYSE:PG) with 7.5 million shares worth more than $1 billion.
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Consecutive Years of Dividend Growth: 59
Forward Dividend Yield: 2.66%
Johnson & Johnson (NYSE:JNJ) is ranked first on our list of 12 best long-term dividend stocks to buy now. The firm markets healthcare products and is based in New Jersey.
In earnings results for the second quarter, posted on July 21, Johnson & Johnson (NYSE:JNJ) reported earnings per share of $2.48, beating market estimates by $0.19. The revenue over the period was $23 billion, up 27% year-on-year and beating predictions by $770 million.
At the end of the second quarter of 2021, 88 hedge funds in the database of Insider Monkey held stakes worth $7 billion in Johnson & Johnson (NYSE:JNJ), up from 81 in the previous quarter worth $6.9 billion.
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