Dividend Goldmine: 3 Stocks for Long-Term Income and Growth

Marc Guberti
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After a busy day, you log into your computer and see that another dividend payment landed in your portfolio. It’s a nice feeling that dividend investors can’t get enough of. They frequently reinvest dividends and contribute to their portfolios each month. Some dividend investors have detailed spreadsheets that show how many dividends they received each month. Any way you look at it, it’s a smart move for investors to pursue dividend stocks for long-term income and growth.

Dividend investing is a realistic strategy for people who want to retire. While the amount you contribute each month plays a critical role in your dividend income, picking the right stocks will also make a difference. Some investors want high yields and are comfortable with sacrificing growth.

However, others prefer to find stocks that offer a blend of promising growth potential and respectable yields. These investors can sacrifice high cash flow now if it means more gains in the future. These three dividend goldmines look promising for growth investors with lengthy time horizons.

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Visa (V)

Visa (NYSE:V) is worth over $530 billion and is likely to cross beyond the $1 trillion milestone by 2030. The stock gained roughly 20% over the past year and is up by 91% over the past five years.

People will buy goods and services in any economy, and most people use credit and debit cards to make those purchases. Visa receives a small cut each time someone uses one of their cards to make a purchase. So as long as consumer spending continues to go up, Visa stock will increase as well.

Visa continues to post good revenue and earnings growth while maintaining a net profit margin above 50%. The company’s revenue grew by 12% year-over-year (YOY) in the third quarter while GAAP net income experienced a 22% YOY jump.

Visa doesn’t have the highest dividend yield (the yield currently sits at 0.8%) but Visa does do a great job at increasing its dividend. Visa recently hiked its quarterly dividend from 45 cents per share to 52 cents per share. With a long history of maintaining strong operations and a willingness to offer dividends to its shareholders, Visa is a stable option for investors who want dividend stocks for long-term income and growth.

Qualcomm (QCOM)

Qualcomm (NASDAQ:QCOM) largely missed out on the artificial intelligence (AI) rally in 2023. Shares only increased by 19% over the past year. Qualcomm only ended the year positive due to a strong rally in the end of October that continued for the rest of the year. That rally wasn’t exclusive to Qualcomm and applied to most tech stocks.

The semiconductor company makes a large portion of its revenue from smartphones. While smartphones are a popular product, their sales numbers have been declining. That’s the main reason Qualcomm missed out on the rally.

Shares look a little more affordable and trade at a 21 price-to-earnings (P/E) ratio. While the past year wasn’t too impressive, Qualcomm shares have more than doubled over the past five years. The stock currently has a 2.3% dividend yield and the corporation does a good job at raising it.

The semiconductor giant recently elevated its quarterly dividend from 75 cents per share to 80 cents per share. That marks a 6.7% YOY increase. Given those numbers, it’s clear that Qualcomm is a great option for investors in search of dividend stocks for long-term income and growth.

Stag Industrial (STAG)

Stag Industrial (NYSE:STAG) is a commercial real estate investment trust (REIT) that operates 112 million square feet of warehouses in 41 states. The company has 568 buildings and steady cash flow from its customers.

Stag Industrial offers a dividend yield that hovers near 4% and pays a dividend every month. Stag Industrial also offers appreciation. Shares have gained 17% over the past year and are up by 47% over the past five years.

Stag Industrial is in a better position to resist recessions since most businesses will keep their warehouses. The company has a tenant retention rate close to 75%. The firm also grew its cash net operating income by 6.3% YOY. With stability and an attractive yield, Stag Industrial is another great option for investors pursuing dividend stocks for long-term income and growth.

The company has a robust business model that can reward long-term shareholders with appreciation and cash flow. But while the Boston-based REIT offers a high dividend yield, it is important to remember that distributions count as ordinary income instead of qualified income, so putting STAG stock in a Roth retirement account will save you money on taxes.

On this date of publication, Marc Guberti held a long position in QCOM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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