Over 60% of millennials believe they will have a part-time job during their retirement years. But it does not have to end up this way. If you are able to save up through your working years and invest into safe stocks that produce cash, that might make for a very enjoyable retirement.
Two dividend stocks that could be a foundation for your stock portfolio in the long term and give greater cash are Fortis and Walgreens Boots Alliance. Both of these companies have strong records of boosting their dividends over the years, and they seem like very good investments to buy and hold.
1. Walgreens Boots Alliance
Healthcare company Walgreens raised its dividend payment back in July, marking the 46th year it did so. Investors who own this Dividend Titan will now bring in $1.91 a share each year, up from $1.87. With the raise, the stock is now producing an impressive 4.1% — well higher than the S&P 500 average of under 1.4%.
Investors have been uneasy about the company due to competition from companies like Amazon that are getting more into healthcare. There are even some rumors that Amazon might launch its own pharmacy. But Walgreens is not slacking, and it has been doing the right things to get more competitive.
The company gives same-day prescription delivery from almost all of its locations, every day. It is also seeking to open 600 facilities for primary care over a four-year time line in their partnership with VillageMD.
While its profit margins are slim (usually no higher than 4%), the firm has a positive net income in every year in the past five. And its payout of 74% seems very sustainable. It might not be a top growth stock to purchase, but the investment might be a great source of recurring income. And the stock is cheaper, trading at a forward p/e multiple of only 10; meanwhile investors are handing over 11 times future earnings for the company’s rival CVS Health.
Utility firm Fortis has been enlarging its dividend for 47 years. Its yield of 3.7% is higher than the average and can give you long-term stability. Over the previous four years, the firm’s profit margin was 12% or more. And their top line steadily increased during that time from 8.3 billion Canadian back in 2017 to over $8.9 billion last year — that’s an increase of 8%. While it’s not high growth, utility stocks are known mostly for their security instead of growth.
The company says it will increase its dividend by 6% every year at least until the year 2025. At this same time, it will push forward with its other growth opportunities, including focusing on clean energy — Fortis plans to remove carbon emissions by up to 75% by 2035.
Author: Steven Sinclaire