2 Proven Dividend Stocks You Can Buy Now and Hold Forever

The trajectory of the stock market has been closely following the latest economic data over the past few weeks. that much S&P 500 The index rose in response to the Federal Reserve’s announcement that it would cut interest rates in 2024, but fell last week after the Fed said it may not be able to do so as quickly as investors had hoped.

The mood on Wall Street is uncertain, which makes it a good time to bolster your portfolio with some safe dividend stocks that are less sensitive to changes in market sentiment. Nike (no 0.83%) and home depot (HD 1.26%) These are two amazing dividend stocks you can buy now and hold for the long term.

Nike: The most popular clothes and shoes

One thing respected investors like Warren Buffett often point out is that companies that own brands that customers love are generally good investments. A company is only as good as the products it produces, and a company that can produce a popular product every year is likely to be around for a long time and generate solid returns for shareholders.

Nike is the largest apparel and footwear company in the entire United States and the largest athletic apparel company in the world. According to Statista, it has the highest brand value of literally all clothing and footwear brands in the world.

Image source: Statista.

This is a blue chip winner whose lead is so large that it is virtually unchallenged, at least in the short term. It’s also reliably profitable. It continues to resonate with global fans and is firmly maintaining its No. 1 spot in the world. piper sandler We’re once again conducting our Take Stock With Teens survey on the most popular clothing brands and the most popular shoe brands. Nike is popular among all age groups, but younger customers are expected to drive continued growth.

Nike felt inflationary pressure and sales growth slowed. Margins were also impacted due to rising costs and lower prices. But Nike is well-positioned to bounce back. Nike continues to dominate the sports landscape and has relationships with numerous celebrity athlete endorsers that amplify the Nike brand.

Nike Direct sales increased 6% year-over-year in the second quarter of fiscal 2024 (ending November 30), demonstrating the power of its loyalty-building efforts. Several capsule collections increased sales by double-digit percentages in the quarter, and a strong innovation pipeline will be key to future growth.

Nike pays a 1.47% dividend at the current stock price, which is close to the current stock price. S&P 500is the average rate of return. These are the best stocks to anchor your portfolio and provide security and passive income.

Home Depot: A Leader in Home Improvement

Home Depot is the world’s largest home improvement chain, at least in the U.S., for home improvement as Nike is for activewear, with more than 2,300 stores, most of them in the U.S. but some in Canada and Mexico. It opened seven new stores in the third quarter of fiscal 2023 (ending Oct. 29), and despite its size, management still sees opportunities for expansion.

However, the home improvement industry and most housing-related industries are greatly affected by the interest rate environment, and Home Depot is also suffering. Both revenue and comparable sales decreased 3% year-over-year, and earnings per share decreased to $3.81 from $4.24 a year earlier.

Home Depot has always strived to provide customers with an upgraded, interconnected experience, which has led to long-term loyalty and sales. Two things management pointed out in its third quarter report were that nearly half of digital orders were fulfilled in stores, allowing for faster, cheaper shipping, and that digital orders were up 5% year-over-year despite an overall decline in sales. . Home Depot completely overhauled its omnichannel system before the pandemic, but its profits took a hit at the time.

Investors were disappointed with the stock, but Home Depot was well-positioned to profit when the pandemic hit, and those investments helped it gain market share and generate surging sales. I’m in a similar situation right now. The pressure is on. But forward-looking investors should focus on its leading position and strong shopping options, which will help boost sales as the economic outlook improves.

Home Depot’s dividend yield is 2.35% at the current stock price, making it a fantastic perpetual stock to keep in a diversified portfolio.