Forget Timing the Market: Just Buy These Dividend Stocks and Hold Forever
Written by Micah Zimmerman for The Motley Fool -> McCormick combines a century-long dividend record with transformative merger-driven growth potential. Clorox's temporary operational challenges have created an attractive high-yield entry point. Both consumer staples leaders of
McCormick combines a century-long dividend record with transformative merger-driven growth potential.
Clorox's temporary operational challenges have created an attractive high-yield entry point.
Both consumer staples leaders offer a rare mix of income, stability, and discounted valuations.
There are certain kinds of investors who drive themselves bonkers trying to figure out exactly the right moment to buy. I know: I'm that way. You can watch the charts, wait for a dip, panic when it dips too far, and end up holding cash through years of compounding that you will never get back.
The honest answer to the question of "When should I buy?" is usually simpler than anyone wants it to be: When you find a great business at a reasonable price, you buy it, and then you hold it long enough for the dividend to do the work.
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The following two companies are not flashy. One makes spices; the other makes cleaning products. But behind those ordinary descriptions are businesses with dividend growth streaks of more than four decades. Their brands sit in virtually every American kitchen and pantry, and their stock prices have been knocked down to levels not seen in years.
McCormick (NYSE: MKC) has been paying dividends without interruption since 1925 -- which means it kept paying through the Great Depression, World War II, the dot-com crash, the 2008 financial crisis, and a pandemic. That kind of track record does not happen by accident; it's because the underlying business is genuinely hard to disrupt.


