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8 Dividend Stocks To Buy And Hold For The Next 10 Years

Today, I’m going to recommend 10 of the best stocks you can safely buy and hold for the next 10 years.

I'm not talking about technology stocks. Remeber the AOL-Time-Warner Desaster in 2000? Sure, technology offers value but from the time perspective of now, it's hard to discover who owns the must have technology of the next decade.

To make this list of best stocks, the company should meet the following criteria: 

- They must be supported by strong underlying macro trends — economic forces that are powerful and highly predictable.

- They should pay a good current dividend, or we should reasonably expect them to pay one on the very near future. 

- They must be reasonably priced with an appropriate margin of safety.

- Paying a dividend of more than 3 percent of its market cap.

These are my results:

Telefonica -- Yield: 6.05%

Telefonica (NYSE:TEF) employs 123,700 people, generates revenue of $54,084.49 million and has a net income of $3,491.33 million. The current market capitalization stands at $71.26 billion.

Telefonica’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,319.72 million. The EBITDA margin is 30.17% (the operating margin is 13.83% and the net profit margin 6.46%).

Financials: The total debt represents 46.24% of Telefonica assets and the total debt in relation to the equity amounts to 267.82%. Due to the financial situation, a return on equity of 13.30% was realized by Telefonica.

Twelve trailing months earnings per share reached a value of $0.68. Last fiscal year, Telefonica paid $0.49 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.24, the P/S ratio is 1.34 and the P/B ratio is finally 2.89. The dividend yield amounts to 6.05%.

Stock Charts:

Long-Term Stock Price Chart of Telefonica (TEF)
Long-Term Stock Price Chart of Telefonica (TEF)
Long-Term Dividend Payment History of Telefonica (TEF)
Long-Term Dividend Payment History of Telefonica (TEF)
Long-Term Dividend Yield History of Telefonica (TEF)
Long-Term Dividend Yield History of Telefonica (TEF)



Realty Income -- Yield: 4.63%

Realty Income (NYSE:O) employs 125 people, generates revenue of $933.50 million and has a net income of $269.14 million. The current market capitalization stands at $11.41 billion.

Realty Income’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $827.48 million. The EBITDA margin is 88.64% (the operating margin is 25.00% and the net profit margin 28.83%).

Financials: The total debt represents 44.82% of Realty Income assets and the total debt in relation to the equity amounts to 87.92%. Due to the financial situation, a return on equity of 4.50% was realized by Realty Income.

Twelve trailing months earnings per share reached a value of $1.01. Last fiscal year, Realty Income paid $2.19 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 48.41, the P/S ratio is 12.23 and the P/B ratio is finally 2.12. The dividend yield amounts to 4.63%.

Stock Charts:

Long-Term Stock Price Chart of Realty Income (O)
Long-Term Stock Price Chart of Realty Income (O)
Long-Term Dividend Payment History of Realty Income (O)
Long-Term Dividend Payment History of Realty Income (O)
Long-Term Dividend Yield History of Realty Income (O)
Long-Term Dividend Yield History of Realty Income (O)

LTC Properties -- Yield: 4.59%

LTC Properties (NYSE:LTC) employs 19 people, generates revenue of $118.96 million and has a net income of $73.40 million. The current market capitalization stands at $1.58 billion.

LTC Properties’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $107.10 million. The EBITDA margin is 90.03% (the operating margin is 57.53% and the net profit margin 61.70%).

Financials: The total debt represents 29.16% of LTC Properties assets and the total debt in relation to the equity amounts to 42.66%. Due to the financial situation, a return on equity of 11.46% was realized by LTC Properties.

Twelve trailing months earnings per share reached a value of $1.92. Last fiscal year, LTC Properties paid $2.04 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.19, the P/S ratio is 13.29 and the P/B ratio is finally 2.54. The dividend yield amounts to 4.59%.

Stock Charts:

Long-Term Stock Price Chart of LTC Properties (LTC)
Long-Term Stock Price Chart of LTC Properties (LTC)
Long-Term Dividend Payment History of LTC Properties (LTC)
Long-Term Dividend Payment History of LTC Properties (LTC)
Long-Term Dividend Yield History of LTC Properties (LTC)
Long-Term Dividend Yield History of LTC Properties (LTC)

Kinder Morgan -- Yield: 4.39%

Kinder Morgan (NYSE:KMI) employs 11,535 people, generates revenue of $16,226.00 million and has a net income of $2,443.00 million. The current market capitalization stands at $94.31 billion.

Kinder Morgan’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,764.00 million. The EBITDA margin is 41.69% (the operating margin is 27.41% and the net profit margin 15.06%).

Financials: The total debt represents 51.64% of Kinder Morgan assets and the total debt in relation to the equity amounts to 126.08%. Due to the financial situation, a return on equity of 4.35% was realized by Kinder Morgan.

Twelve trailing months earnings per share reached a value of $0.90. Last fiscal year, Kinder Morgan paid $1.74 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 48.51, the P/S ratio is 5.80 and the P/B ratio is finally 2.73. The dividend yield amounts to 4.39%.

Stock Charts:

Long-Term Stock Price Chart of Kinder Morgan (KMI)
Long-Term Stock Price Chart of Kinder Morgan (KMI)
Long-Term Dividend Payment History of Kinder Morgan (KMI)
Long-Term Dividend Payment History of Kinder Morgan (KMI)
Long-Term Dividend Yield History of Kinder Morgan (KMI)
Long-Term Dividend Yield History of Kinder Morgan (KMI)

McDonald's Company -- Yield: 3.54%

McDonald's Company (NYSE:MCD) employs 420,000 people, generates revenue of $27,441.30 million and has a net income of $4,757.80 million. The current market capitalization stands at $91.31 billion.

McDonald's Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,483.60 million. The EBITDA margin is 34.56% (the operating margin is 28.97% and the net profit margin 17.34%).

Financials: The total debt represents 43.73% of McDonald's Company assets and the total debt in relation to the equity amounts to 116.62%. Due to the financial situation, a return on equity of 32.97% was realized by McDonald's Company.

Twelve trailing months earnings per share reached a value of $4.82. Last fiscal year, McDonald's Company paid $3.28 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.95, the P/S ratio is 3.36 and the P/B ratio is finally 7.21. The dividend yield amounts to 3.54%.

Stock Charts:

Long-Term Stock Price Chart of McDonald's Company (MCD)
Long-Term Stock Price Chart of McDonald's Company (MCD)
Long-Term Dividend Payment History of McDonald's Company (MCD)
Long-Term Dividend Payment History of McDonald's Company (MCD)
Long-Term Dividend Yield History of McDonald's Company (MCD)
Long-Term Dividend Yield History of McDonald's Company (MCD)

Ventas -- Yield: 3.17%

Ventas (NYSE:VTR) employs 479 people, generates revenue of $3,075.75 million and has a net income of $457.11 million. The current market capitalization stands at $24.09 billion.

Ventas’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,793.01 million. The EBITDA margin is 58.30% (the operating margin is 28.10% and the net profit margin 14.86%).

Financials: The total debt represents 51.30% of Ventas assets and the total debt in relation to the equity amounts to 123.00%. Due to the financial situation, a return on equity of 5.11% was realized by Ventas.

Twelve trailing months earnings per share reached a value of $1.54. Last fiscal year, Ventas paid $2.96 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 47.62, the P/S ratio is 7.87 and the P/B ratio is finally 2.47. The dividend yield amounts to 3.17%.

Stock Charts:

Long-Term Stock Price Chart of Ventas (VTR)
Long-Term Stock Price Chart of Ventas (VTR)
Long-Term Dividend Payment History of Ventas (VTR)
Long-Term Dividend Payment History of Ventas (VTR)
Long-Term Dividend Yield History of Ventas (VTR)
Long-Term Dividend Yield History of Ventas (VTR)

Exxon Mobil -- Yield: 3.16%

Exxon Mobil (NYSE:XOM) employs 75,300 people, generates revenue of $394,105.00 million and has a net income of $33,615.00 million. The current market capitalization stands at $362.78 billion.

Exxon Mobil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51,379.00 million. The EBITDA margin is 13.04% (the operating margin is 8.65% and the net profit margin 8.53%).

Financials: The total debt represents 8.33% of Exxon Mobil assets and the total debt in relation to the equity amounts to 16.70%. Due to the financial situation, a return on equity of 18.67% was realized by Exxon Mobil.

Twelve trailing months earnings per share reached a value of $7.59. Last fiscal year, Exxon Mobil paid $2.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.50, the P/S ratio is 0.93 and the P/B ratio is finally 2.10. The dividend yield amounts to 3.16%.

Stock Charts:

Long-Term Stock Price Chart of Exxon Mobil (XOM)
Long-Term Stock Price Chart of Exxon Mobil (XOM)
Long-Term Dividend Payment History of Exxon Mobil (XOM)
Long-Term Dividend Payment History of Exxon Mobil (XOM)
Long-Term Dividend Yield History of Exxon Mobil (XOM)
Long-Term Dividend Yield History of Exxon Mobil (XOM)

Diageo -- Yield: 3.00%

Diageo (NYSE:DEO) employs 26,588 people, generates revenue of $15,287.40 million and has a net income of $3,374.02 million. The current market capitalization stands at $70.18 billion.

Diageo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,145.97 million. The EBITDA margin is 33.66% (the operating margin is 26.39% and the net profit margin 22.07%).

Financials: The total debt represents 40.12% of Diageo assets and the total debt in relation to the equity amounts to 135.04%. Due to the financial situation, a return on equity of 33.64% was realized by Diageo.

Twelve trailing months earnings per share reached a value of $4.64. Last fiscal year, Diageo paid $3.08 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.04, the P/S ratio is 4.60 and the P/B ratio is finally 6.89. The dividend yield amounts to 3.00%.

Stock Charts:

Long-Term Stock Price Chart of Diageo (DEO)
Long-Term Stock Price Chart of Diageo (DEO)
Long-Term Dividend Payment History of Diageo (DEO)
Long-Term Dividend Payment History of Diageo (DEO)
Long-Term Dividend Yield History of Diageo (DEO)
Long-Term Dividend Yield History of Diageo (DEO)

5 comments:

  1. XOM, O, KMI, MCD are all on my short list. In that order. I'd also like to tap into the health care market in some fashion.

    Thanks,
    WE

    ReplyDelete
  2. Howard4/21/2015

    Telefonica does not seem at all like a safe bet. Your chart only goes up to 2012. They dropped or suspended their dividend in 2013.

    Also, the dividend you reported as annual is, I think, supposed to be semi-annual. (If it were annual, the Yield would be 0.49/14.59 = 3.4%, not 6.05%)

    But if it IS a semi-annual dividend, then they are paying out more in dividends than they are earning.

    Therefore, this stock misses in two ways for me: (1) It is not making enough money to support its dividend, and (2) it has had dropped its dividend within the past 10 years.

    You know I usually like your articles, Tom, but this one isn't up to your usual level, IMO.

    Howard

    ReplyDelete
    Replies
    1. Thank you Howard,
      Yes, there are more yield stocks than growth engines on the list. I've tried to find high yielding stocks but there is a lack of quality. I do think that telecom has deeper values. They are huge packed with debt but offer a great stability for portfolios. I've bought some Telco's around the world. It's more a currency play with yields higher than bonds. Also interesting are russian stocks in my view.

      Delete
    2. Howard is right, TEF is not even in the five or ten top dividend positions we could find in the Spanish market.

      It suspended the dividend during 2012, it actually pays two dividends (0,4€+0,35€) one of them is a scrip dividend because the EPS does not reach that level and the debt is not being reduced as it should.

      It is not a safe bet for ten years

      Delete
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    Stocks to buy today

    ReplyDelete

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