7 Dividend Stocks to Buy and Hold Forever

AbbVie Inc. (NYSE: ABBV) is a biopharmaceutical company that is best known for its flagship psoriatic arthritis drug, Humira. As shareholders know, Humira is no longer protected from biosimilar competition in the United States and Europe. And the logical question is how much of a hit, if any, would it be to the company’s earnings and revenue. 

So far, the answer is not much. The company continues to grow both its topline and bottom line year over year with drugs like Rinvoq and Skyrizi picking up some of the revenue losses from Humira. And the company has a deep pipeline of 90 candidates with 50 of those in mid- to late-stage clinical trials.  

ABBV stock has delivered an impressive 762.79% total return over the last 20 years. That's an average of 38% per year. The company is also a dividend king that has increased its dividend payout for 53 consecutive years. Of the 24 analysts tracked by MarketBeat, 19 analysts give the stock a Buy rating, two of those being Strong Buy ratings.  

The biotechnology giant Gilead Sciences Inc. (NASDAQ: GILD) makes this list for several reasons, not the least of which is the stock’s 1,384% total return over the last 20 years. That's an astonishing 69% average annual return for shareholders. 

But the company, which focuses on developing innovative medicines to address unmet medical needs, continues to launch new drugs, including lenacapavir, a biannual injection for HIV, and livdelzi, a second-line therapy for patients with decompensated cirrhosis. One significance benefit of these launches for long-term investors is that the company faces no patent expirations in the next several years. That also means the company’s dividend which currently has a yield of 3.33% is in no danger of being cut.  

GILD stock is up 12.8% in 2024 as of December 18. That includes a 7% pullback from its 52-week high of $98.90 reached in early November. Of the 27 analysts tracked by MarketBeat, 15 give the stock a Buy rating with three of those being a Strong Buy rating.

Amgen Inc. (NASDAQ: AMGN) is a good reminder that even “forever stocks” can have a bad year. AMGN stock is one of the worst-performing Dow 30 stocks in 2024. It’s down about 7.3% for the year as of December 18.  

However, the company is on the forefront of cancer treatment. The evidence of that came from two announcements in December 2024. The first was positive clinical trial data regarding the improvement in disease-free survival when the company’s BLINCYTO drug was added to chemotherapy for newly diagnosed pediatric leukemia patients. The company also announced a $1 billion expansion to its manufacturing facility in North Carolina. 

That should give investors good reason to zoom out and look at the stock’s 20-year total return of 500.76%. That includes a dividend that has a 3.64% yield and an impressive annual payout of $9.52 per share.  

MarketBeat shows 26 analysts covering Amgen. 12 give the stock a Buy rating, with two of those being Strong Buy ratings.  

Chevron Corp. (NYSE: CVX). Chevron is an integrated oil company with worldwide operations. In August 2024, the oil giant started oil and natural gas production from its Anchor project in the deepwater U.S. Gulf of Mexico, the first such project of its kind. And the company is also taking steps to ensure it will be relevant in a world that is increasingly looking for low-carbon solutions. 

Oil stocks can by cyclical stocks that growth investors avoid. However, Chevron provides a best of both worlds option. That is, investors can count on this dividend king to provide a safe and reliable dividend even in years when economic conditions don’t allow for strong stock price growth. And Chevron’s fortress balance sheet ensures ample cash reserves that can be applied to stock buybacks. 

The stock’s Goldilocks status shows up in a 20-year annual average return of 24.9%. Analysts covered by MarketBeat show 14 out of 18 analysts giving CVX stock a Buy rating.  

Technology stocks may not immediately come to mind on a list of dividend stocks to hold for the long haul. But Texas Instruments Inc. (NASDAQ: TXN) has been waving off its doubters for years. The company has been a leader in the semiconductor industry for years, but many investors still view the company as being old school compared to current chip stock darlings like NVIDIA Corp. (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD).  

However, Texas Instruments has been a significant beneficiary of the CHIPS Act. The money it has received will allow the company to expand its fabrication facilities in Texas and Utah. That puts it in the sweet spot for an administration looking to onshore chip manufacturing. 

TXN stock has delivered a total return of 1,151% in the last 20 years and is on the verge of becoming dividend royalty with 21 consecutive years of dividend increases to the company’s credit.  

Verizon Communications Inc. (NYSE: VZ) may be the quintessential dividend stock. It’s a defensive stock in that while Verizon doesn’t sell smartphones and other mobile devices, it charges a monthly fee that allows consumers to use its network. Consumers may hold off on upgrading their devices, but cutting their wireless service will be low on their priority list. That contributes to consistent revenue and earnings.  

That defensive positioning allows you to look at Verizon with a long-term view. For example, the company does face some near-term challenges as it absorbs Frontier Communications. That’s a key reason that VZ stock is only up about 6% in 2024.  

But when you zoom out, you see the company’s total return of 222.7% in the last 20 years. That's a testament to the company’s high-yield dividend which currently sits at 6.73%. And the company’s reliable business model means there likely won’t be any impact on the company’s ability to pay and raise its dividend. 

The Procter & Gamble Co. (NYSE: PG) is the only consumer staples stock on this list and with good reason. Some of the well-known names in this sector have strongly underperformed the S&P 500 for several years. And although those companies pay solid dividends, this list is about stocks that have a long-term history of delivering market-beating growth. 

Over the last 20 years, PG stock has delivered an average total return of over 21%. The company, which features some of the world’s most well-known brands, has the products consumers need and the pricing power to drive earnings growth in times of rising inflation. Even with the prospect of inflation being stickier than usual, analysts still forecast 6.8% earnings growth for Procter & Gamble in 2025. 

And when it comes to dividends, few do it better than P&G. The company is a dividend king that has delivered 69 consecutive years of increases. And in the last three years, the company has delivered an average annualized return of around 6.2%, that’s more than twice the rate of inflation.  

Many growth-oriented investors may view dividend stocks as being too conservative. However, over the last 90 years, dividends have accounted for approximately 40% of all stock market returns. That seems like money that many investors wouldn't want to leave on the table.  

When it comes to dividend stocks, you'll frequently hear about dividend yield. This is the amount of money a company pays shareholders for owning one share of its stock divided by its current stock price. Ideally, the higher, the better, but because dividend yield is tied to a stock's price, it's a dynamic number.  

A better option is to find a high-yield dividend stock that also pays a regular dividend. And preferably one that increases every year.  

One way to look for dividend stocks like these is by looking at the list of Dividend Aristocrats and Dividend Kings. These are companies that have increased their dividends for at least 25 or 50 consecutive years, respectively. MarketBeat has links that display the list of Dividend Aristocrats and Dividend Kings that is updated every year to reflect additions and deletions.