3 High-Yield Dividend Stocks to Buy and Hold Forever

Core Viewpoint - Dividends are highlighted as a reliable long-term investment strategy, with three specific companies recommended for their strong dividend yields and potential for stability despite current market volatility [1]. Group 1: Ford Motor Company - Ford is currently facing challenges in China, quality issues leading to recalls, and significant losses in its electric vehicle division, yet it offers a price-to-earnings ratio of 10 and a dividend yield exceeding 6.1% [2]. - The company maintains a strong balance sheet with $27 billion in cash and approximately $45 billion in liquidity, allowing for investment in growth and shareholder returns [2]. - Ford plans to return 40% to 50% of its free cash flow to investors primarily through dividends, reflecting the Ford family's preference for dividend payments [3]. Group 2: Altria Group - Altria is transitioning from traditional cigarettes to smoke-free alternatives, which includes e-vapor and heated tobacco products, while still maintaining a strong dividend payout [4]. - The company paid out $6.8 billion in dividends last year and generated about $9 billion in free cash flow, indicating its ability to sustain dividends despite the decline in cigarette sales [5]. - Altria's dividend yield is currently at 7.9%, and its business model tends to perform well during economic downturns, making it a reliable dividend stock [5]. Group 3: Johnson & Johnson - Johnson & Johnson has a robust business model with 25 products generating over $1 billion in annual sales, and it has spun off its consumer health business to focus on medical devices and innovative medicines [6]. - The company has a history of over 60 consecutive years of dividend increases and has returned over 60% of its free cash flow to shareholders through dividends and share buybacks, with a forward dividend yield exceeding 3% [6][7]. - Ongoing lawsuits related to talc-based products present a risk, but the company's consistent dividend growth is expected to remain a focal point for investors in the long term [7]. Group 4: Conclusion - Despite facing various challenges, Ford, Altria Group, and Johnson & Johnson are positioned to provide stable dividend income, making them attractive options for investors seeking passive income during economic fluctuations [8].