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Americans expect they’ll need to save up around $1 million for a comfortable retirement, but those in their 60’s are still only a fraction of the way there.
One of the ways to save for retirement is by investing now in the best long term dividend stocks.
These are stocks that are low-risk and have had small but steady growth for a long period of time. They’ll continue to grow until you’re ready to cash them out for a comfortable retirement.
Keep reading to find out more about which long term dividend stocks you should be investing in.
The Best Long Term Dividend Stocks
While this is by no means an exhaustive list, these are our picks for the best long term dividend stocks to slowly but securely grow your wealth.
1. AT&T
With a 35-year increase streak and a 6.9% dividend yield, this is one of the best investments you can make. AT&T continues to keep up with current technology and is here to stay.
Telecomm companies, in general, tend to be great investments because they have guaranteed monthly income from existing companies, and AT&T is no exception.
2. AbbVie
You may not have heard of this company, but you’ve likely heard of one of their products: Humira. This pharmaceutical company offers dividend yields of 5.4% and has increased its annual dividend for the past 46 years.
This is another industry that makes for good investing because people are always in need of medications. AbbVie, in particular, has a total of 35 products at various stages of clinical trials.
3. People’s United Financial
This banking institution has been around since 1842 and has over 400 branches in the New England area. It’s had 25 years straight of dividend increases and an average of 4.2%.
Industry experts believe the next five years will be great for People’s United Financial, and investors could see 13.7% during that time. That makes this particularly great if you’re older and have less time to wait for payouts.
4. Chevron
Despite the crisis faced by all oil companies a few years ago, this oil giant maintained its dividend yield of 4% for investors. This, plus the fact that it’s had 32 consecutive increases earns it a place on our list of dividend stocks for long term investing.
5. Leggett & Platt
This company produces steel wires for both the auto and home furnishing industry. It’s had 55 increases in 56 years and offers a 3.5% return on your investment.
6. Target
Second only to Walmart in terms of annual revenue, this discount retailer has an annual dividend rate of 3.5% and a long history of increases, which makes it a great investment option.
Target has been offering dividends for 47 years and has increased every single year.
7. PepsiCo
Although the demand for soda has slowly decreased as people become more health-conscious, PepsiCo has a unique advantage over its main competitor, Coca-Cola. It also owns Frito-Lay and the demand for snacks is high as ever.
These dividend stocks have increased for the previous 46 years and will provide you with a 3.3% dividend yield.
Learn More Investment Strategies
Now you know seven of the best long term dividend stocks. This will help you choose how to invest your money to save for retirement.
If you want to learn more about stock market investment strategies, be sure to check out our post on the Graham Formula. It will help you diversify your portfolio beyond what’s in this post.