6 Great Dividend-Paying Stocks to Buy and Hold


With the Federal Open Market Committee holding interest rates steady, the fixed income market is suffering from vanishing income. Where is the next best place to generate yield?

The answer is high-dividend paying companies with strong brand recognition, solid fundamentals, and those that are currently undervalued from recent earnings lost due to the COVID Pandemic. 

Owning a basket of dividend-paying stocks also offers investors the potential for competitive upside performance in strong market environments and the potential for lower downside risk in weak environments.

Here are six great candidates for your portfolio.

Procter & Gamble (PG)

Procter & Gamble (PG) serves consumers around the world with its portfolios of trusted, quality, leadership brands in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa.

The company operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care, and Baby, Feminine & Family Care.

P&G trades at 26 times earnings and yields 2.41%. Analysts are maintaining a buy rating and have recently raised P&G’s target price from $130 to $143.

On the recent earnings call, management reported that due to COVID-19 pandemic people are washing their clothes more often, eating more meals at home, and washing more dishes. Hence more of their products are being purchased off store shelves, helping increase revenue.

Pepsico (PEP)

Pepsico (PEP) is a global food and beverage company operating through six segments: Frito-Lay North America, Quaker Foods North America, North America Beverages, Latin America, Europe Sub-Saharan Africa, and Asia, Middle East and North Africa.

PEP at 28 times earnings and yields 2.97%. Analysts recently raised PEP’s target price to $164.

PEP generates solid growth despite fewer orders from restaurants, theaters, and stadiums. With its updated target price along with its dividend yield, suggests a potential return of 22%.

Pfizer (PFE)

Pfizer (PFE) is engaged in the discovery, development, and manufacture of healthcare products. Its global portfolio includes medicines and vaccines. The Company manages its commercial operations through two business segments: Pfizer Innovative Health (IH) and Pfizer Essential Health

PFE trades at 15 times earnings and yields 3.95%. Analysts upgraded PFE to a BUY with a target price of $55.00.

Pfizer and BioNTech recently began a 30,000-patient trial to evaluate the efficacy and safety of its BNT162b2 coronavirus vaccine candidate. If the trial is successful, Pfizer will seek regulatory approval for the vaccine by October 2020.

Johnson & Johnson (JNJ)

JNJ is a holding company, which is engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical, and Medical Devices.

JNJ trades at 25 times earnings and yields 2.77%. Analysts are reiterating a BUY on JNJ with a target price of $165.00.

J&J was recently selected as a finalist in its development and testing a COVID-19 vaccine. Plus J&J will see stronger growth for the Medical Device segment as procedural activities recover in the second half of 2020 and into 2021.

Kimberly-Clark (KMB)

Kimberly-Clark Corporation (KMB) together with its subsidiaries, manufactures and markets personal care and consumer tissue products worldwide. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional.

KMB trades at 20 times earnings and yields 2.82%. Analysts are maintaining KMB a BUY with a target price of $170.00.

Second-quarter was much better than expected because makers of household disinfectants and cleansers were the biggest winners from the coronavirus crisis.

KMB reinstated its recommitted to repurchasing shares, signaling the company thinks the strength will continue even after the threat of Covid-19 fades.

Coca-Cola (KO)

The Coca-Cola Company (KO) is a worldwide beverage company. The Company’s segments include Europe, Middle East, and Africa; Latin America; North America; Asia Pacific; Bottling Investments, and Corporate.

KO trades at 22 times earnings and yields 3.47%. Analysts upgraded KO to a BUY with a target price of $54.00.

KO made headlines with a 28% decline in second-quarter revenue but signaled the worst was over, as sales improved during May and June.

Recommended Articles

‘Healthy’ Foods That Might Be Harming Your Gut and What to Choose Instead

As our world produces and demands more processed foods for convenience, marketers are also getting clever. Foods are being labeled to cater to those with dietary requirements or those looking

5 Surprising Countries Where You Can Retire with Less Than $100,000

When retirement is inching closer, you might wonder about the kind of lifestyle you can lead and the level of financial security you will have if you just have about

fire method for early retirement

The Real Truth About the FIRE Method for Early Retirement

The FIRE method for early retirement has taken off in popularity in recent years. But are the risks well understood by its adopters? Retiring as early as possible then living

Feeling Bloated? 25 Natural Ways to Fix Constipation

We’ve all been there. Things are rumbling in your tummy, you feel big and uncomfortable, but you just can’t seem to poop. Constipation happens to the best of us, and

5 Ways to Ensure You Get the Lowest Possible Mortgage Rate

A 30-year fixed rate mortgage is the most widely chosen home loan option because of the high financial predictability it offers. Follow these tips if you want to obtain the

Robots Will Take 52 Million Americans Jobs. Here’s What Will Happen

A new research report compiled by the Brooking Institution reveals that innovative automation technologies are set to replace millions of American jobs. In fact, more than 52 million American jobs in

Online Loan Companies Are No Easy Fix for Desperate Borrowers

If there is one thing that most Americans need right now, its more money. Online loan companies know this — and it's dangerous for many of us. Since the financial

investing in a volatile market

Investing in a Volatile Market for Long-Term Gains

Investing in a volatile market gives everyone the jitters. Novices, in particular, tend to sell in a panic and then wait for the right time to re-enter the market. Selling

Legumes: Nutrient Dense and Delicious, but Watch for These Preventable Side Effects

Legumes: Good or bad for you? The answer is, a little of both. And at the end of the day, what really matters is how your unique body feels when

4 Keys to Successful Retirement Planning

Retirement planning gives you the freedom to live life to the fullest. You can afford to have all the necessary comforts and amenities of life, go on a vacation occasionally,

Do Seniors Need Life Insurance Coverage?

Do seniors need life insurance coverage? Your golden years should be about enjoying the memories of one’s lifetime. Yet the reality of life is that we struggle to pay our bills

Better Investment Than a Casino? Probably a Fitness Club

We all aspire to be healthier. Who doesn’t aspire to lose weight and exercise more as an annual New Year’s resolution? Yet well-intentioned aspirations and actions are not the same