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Buy these great dividend stocks and hold them forever

As regular readers already know… I am a big fan of dividend stocks . I love the income that dividend stocks provide, and believe that the positive long-term impact of dividend reinvestment can take an average portfolio and turn it into a powerhouse for generating solid returns.

The search for yield is never ending. Everyone wants to enjoy the feeling of nice quarterly payments being made into their portfolio, but as investors, we also need to be aware of the fact that not all dividends are as safe as others. You can easily screen for stocks with 5% or greater dividends, but you have to be careful you are not focusing too much on current yields and forget to make sure the dividends are sustainable.

In addition to dividend investing, I am also a big advocate of long-term investing. I prefer, although I know not everyone will agree with me, that the best way to build wealth is to find great companies to invest in for the long haul. Finding good solid companies with solid dividend histories is a great way to ensure that your money is relatively protected, and your portfolio's income is safe.

This week I am going to look for stocks with big dividends, that you can safely assume the companies will not only continue to pay, but most likely increase each year. My idea of big dividends is not 5% or greater, but I will be looking for stocks with dividends around 2.5% or more. I want stocks with dividends at or above this range, with long histories of annual dividend increases, but I also want to make sure the stock itself has upside potential. After all… dividends are nice, but if the stock loses more in value than the dividends you are pulling out of the company, then you are better off looking elsewhere.

The five stocks in this article are all solid dividend plays on companies with excellent long-term potential.

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This article was originally published on MarketIntelligeneCenter.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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