Major stocks that should still pay my son a hefty dividend when he retires – it’ll probably be another 67 years until then. At least as it stands, though, there are defensive values that should make this overall package possible.
Let’s take a look at the top stocks I’ve chosen. A little hint: Stability and a solid business model are what I particularly value in this stock pick.
Coca-Cola’s Best Stocks: It Should Be Doable
A first superior action that I count among this group is that of Coke (WKN: 850663). First, on the history: With six decades of strong, reliable and even growing dividends, and a century of consistent payouts, I take the bottom line for granted. For me, the business model based on strong brands in the beverage industry always has a future. Even after my son retires, these stocks should still pay dividends.
The magic is what happens in the meantime: Ideally, Coca-Cola should continue to increase its own dividend steadily for the next 67 years, and if in doubt, even moderately. That would be a base that can generate a strong passive income from this investment. Warren Buffett, for example, has built a dividend yield of more than 50% with the help of the beverage company in the past. Will it happen again? In any case, 67 years is a long time.
In any case, pricing power and strong brands lead to a foundation that can make this possible. That’s why Coca-Cola is a timeless investment for me. Or a top stock that can pay my son a hefty dividend in his retirement.
Real Estate Rental: Much possible until then!
on Real Estate Income (WKN: 899744) is also very possible. The Real Estate Investment Trust already has a history of more than 51 years with stable distributions. Whether the next 67 years will shine with such a growing story depends on the investments of management.
In any case, one thing is certain for me: This top stock, which pays my son a dividend until he retires, should look significantly different. The current approximately 11,000 properties are likely to become many more. Ideally, more futures markets are added to the timeless defensive portfolio. Certainly there are also some changes in the economy and even in the real estate world.
However, for me, Realty Income is already in such a strong position that the change reveals new opportunities. Crucially, the management of this top action recognizes and builds on this change. Then a dividend is possible, maybe even an ever-growing dividend that will make my son’s pension even sweeter.
Fresenius: Also a superior stock that pays my son’s pension…?
finally owns Fresenius (NASDAQ:AAPL) the opportunity to be a stock so important that it pays part of my son’s pension. His 27-year track record of consistent dividend increases is solid. Qualitative growth in the mid-single-digit percentage range is also correct. A payout rate of just 28% offers plenty of room to grow. Or just stability.
Enterprise-oriented, with hospitals, medical products and medical foods, there is a stable foundation. Even dialysis should remain a business area that will be relevant in the future. Undoubtedly, the health group will also experience some changes. But hospitals and commodities can still be a defensive base.
Fresenius can do much more in the long run. Currently, the valuation is comparatively cheap with a dividend yield of over 3%. There could even be a stock lurking here that will rack up a lot of passive income for the next 67 years.
The article Top 3 Stocks That Should Pay My Son Big Dividends Until Retirement was first published in The Motley Fool Germany.
Vincent owns shares in Coca-Cola, Fresenius and Realty Income. The Motley Fool recommends Fresenius.
Motley Fool Germany 2022