Exploring Essential Investments: 3 Steady Dividend Stocks for Long-Term Growth Exploring Essential Investments: 3 Steady Dividend Stocks for Long-Term Growth

Actionable Trade Ideas

always free

InvestorPlace – Stock Market News, Stock Advice & Trading Tips

Building a robust portfolio demands stocks that stand the test of time, offering stability and the promise of sustained returns. Enter dividend growth stocks, the sturdy pillars that not only stabilize your investment but also contribute to annual increases in cash flow.

For investors in pursuit of enduring wealth, the addition of dividend growth stocks can be a game-changer. These equities may have lower yields than their counterparts but boast a tendency to boost dividends at a pace that outstrips most companies. Furthermore, they often surpass high-yield stocks in both appreciation and market outperformance. Let’s delve into some foundational stocks that could set the stage for lasting wealth.

Mastercard (MA)

Close up of a pile of mastercard credit load debit bank cards.

Source: David Cardinez / Shutterstock.com

Mastercard (NYSE:MA) stands tall in the credit and debit card arena. With its stock price more than doubling over the past five years and showing a 33% increase in the last year alone, Mastercard offers a modest 0.60% dividend yield. Its exceptional dividend growth rate further cements its appeal.

Noteworthy is Mastercard’s recent hike in quarterly dividends from $0.57 to $0.66 per share, marking a 15.8% increase year over year (YOY). The company’s robust financial growth and impressive profit margins signal potential future appreciation and dividend boosts.

In Q4 2023, MA reported 13% YOY revenue growth and 11% YOY net income growth, boasting a solid 43.1% net profit margin. Fueled by healthy consumer spending, the fintech giant remains well-positioned to reward long-term investors, given the ubiquitous nature of credit and debit card usage.

Microsoft (MSFT)

The Microsoft (MSFT) logo on a corporate office building during the day time.

Source: The Art of Pics / Shutterstock.com

Microsoft (NASDAQ:MSFT) emerges as a beacon of reliability for long-term investors, with a remarkable 62% spike in stock price over the past year and a stellar 266% surge in the last five years. The tech giant has taken the lead in artificial intelligence (AI), actively implementing the technology at scale.

Driving its growth trajectory are multiple revenue streams, with a notable 18% YOY revenue surge in Q2 FY24. Notably, Microsoft Cloud revenue surged by 24% YOY, while its Productivity and Business Processes segment saw a 13% YOY uptick.

In the same quarter, Microsoft returned $8.4 billion to shareholders through share repurchases and dividends, underpinning its commitment to rewarding investors. The company lifted its quarterly dividend from $0.68 to $0.75 per share near the end of 2023, reflecting a 10.3% YOY increase.

With these dividend increments, investors can anticipate growing yields on Microsoft stock over time. Moreover, the tech titan offers exposure to burgeoning AI ventures and diversified growth avenues.

Meta Platforms (META)

In this photo illustration the Meta logo seen displayed on a smartphone with the Facebook logo in the background.

Source: rafapress / Shutterstock.com

Meta Platforms (NASDAQ:META) has swiftly emerged as an anchor for dividend growth investors, capitalizing on a robust ad market resurrection and renewed emphasis on profitability. META’s exponential surge over the past year, bolstered by a recent dividend announcement, has cemented its position.

Awaiting its inaugural dividend at the end of March, Meta Platforms currently offers a quarterly dividend of $0.50 per share, with prospects for rapid escalation. Forecasts suggest an annual dividend increase of at least 10% for several years to come. With revenue growth tripling YOY in Q4 2023 and a 25% YOY revenue surge, the company is poised for sustained net income growth, supported by a robust 35.0% net profit margin.

Moreover, with daily and monthly active users seeing modest 8% and 6% YOY rises respectively, Meta Platforms, with its vast social network reach, is well-positioned to drive revenue growth beyond mere user increments. This indicates room for expanding average revenue per user, boding well for future growth.

As of publication, Marc Guberti holds a long position in MSFT. The opinions expressed in this article belong to the author and adhere to the InvestorPlace.com Publishing Guidelines.

More From InvestorPlace

The post Portfolio Pillars: 3 Dividend Growers for Enduring Wealth appeared first on InvestorPlace.

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

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.