3 Dividend Stocks To Keep For Generations

Whether it’s the accumulation or distribution phase, investors use many strategies to achieve their financial goals. Some investors focus on day trading to take advantage of short-term price movements. And others prefer to hold onto stocks for the long term.

No question buying and holding stocks for the long term is a tried and tested and usually profitable investment strategy. However, not all stocks are created equal, and it is essential to choose wisely when selecting which ones to buy.

This article will explore three companies that investors in any phase can own. These stocks have proven themselves over time and offer stability and growth potential for investors.

So if you're looking for some companies to add to your portfolio,  look no further than these three:

American States Water (AWR)

The American States Water Company is the parent of Golden State Water Company and American States Utility Services, Inc. The company provides water service to customers in Northern, Coastal, and Southern California through its utility subsidiary, Golden State Water Company.

Through its regulated water utility and electricity utility operations, American States water serves over 262,000 customers in California. It also has a non-regulated business in which it provides services for water distribution and wastewater collection on eleven military bases throughout the United States.

While the water supply business accounts for most of AWR's income, the non-regulated sector that provides services to military bases' water and wastewater systems is significant. The military segment offers a dependable and recurring stream of revenue thanks to the company's 50-year contracts.

On February 23, 2022, American states water announced its fourth-quarter financial results.  On revenues of $116.6 million, operating EPS came in at $2.55 in 2021, up 9.4% from $2.33 in 2020. 

The company's dividend policy is to grow it by 7% annually. From 2011 through 2021, the company increased its dividend by 10% (annually). That’s in line with the company’s 5-year growth rate.

Procter & Gamble (PG)

Procter & Gamble is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio. The company was founded in 1837 by William Procter and James Gamble and initially focused on making candles and soap. Later, it diversified its product line to include other items such as laundry detergent and toothpaste.

Today, the company has reported annual sales of >$76 billion in more than 180 countries.

Gillette, Tide, Charmin, Crest, Pampers, Febreze, Head & Shoulders, Bounty, Oral-B, and many other well-known names are its most famous products. However, like all good investors, the company knows when to divest.  

In 2015, for example, P&G sold 43 of its beauty brands, including Miss Clairol, Covergirl, and Max Factor, in a transaction worth $15 billion.  Indeed, the company's pared-down portfolio has made the firm more efficient, resulting in lower expenses and more significant margins.

P&G has also benefited from billions of dollars in asset sales, with a big chunk buying back shares. And shareholders have been rewarded. Over the past 52 weeks, the company traded between $130.29 and $165.35. However, today P&G trades at the high end of the spectrum and has easily outperformed the S&P500.

Clorox (CLX)

Clorox was founded in 1913 when it began selling liquid bleach. Today, it's a firm that produces consumer and professional products covering a wide range of purposes and clients. Clorox generates more than $7 billion in annual revenue from sales in over 110 countries.

The company has a diverse range of enterprises with numerous brands and goods, allowing it to span the globe. For example, the Cleaning and Home Care segments are the company's two most important. Clorox’s biggest segment is home care, which is part of its core cleaning category.

However, Clorox is much more than simply a cleaning firm since it also produces food products, pet goods, charcoal, and numerous other brands.

On February 3rd, 2022, Clorox released its fiscal second-quarter results. Clorox reported weaker than expected sales of $1.7 billion for the quarter, which was blamed on inflationary pressures on its premium products. 

However, given its 3.08% dividend yield, patient investors will likely be quite pleased down the line.

Final Thoughts

When picking stocks to buy for the long haul, consider that American States Water has a solid history of dividend growth and is well-positioned to benefit from the continued expansion of the U.S. water infrastructure.

Procter & Gamble has diversified consumer goods brands that have proven resilient in economic downturns.

And Clorox has strong market positions in several high-growth categories, including natural cleaning products and water filtration systems.

While there are no guarantees, these three companies are about as close as a “sure thing” for long-term investors.