2 Reliable Dividend Stocks You Can Buy and Hold Forever

Core Insights - The article discusses the benefits of investing in dividend stocks, highlighting Visa and Amgen as strong candidates for long-term investment due to their business models and growth potential. Visa - Visa operates a leading payment processing network that connects merchants and banks, allowing for smooth transaction flows without credit risk as it does not issue cards or extend loans [2]. - The company earns fees from millions of daily transactions, benefiting from high gross and net margins due to low incremental operating costs for additional transactions [2][3]. - Visa enjoys a competitive advantage through network effects and a strong brand, making it difficult for competitors to gain market share [3][4]. - The company has significant growth potential as it captures a larger share of the global payments market, especially in developing countries where cash and check payments are still prevalent [4]. - Visa's dividends have increased by 333% over the past decade, with a forward yield of 0.7% and a cash payout ratio of just under 22%, indicating room for further dividend increases [5]. Amgen - Amgen is a leading drugmaker with a strong track record of innovation and a portfolio of over two dozen medicines, several generating more than $1 billion in annual sales [6]. - The company has expanded its product lineup through acquisitions, including the $28 billion purchase of Horizon Therapeutics, enhancing its portfolio with Tepezza, a therapy for thyroid eye disease [6][7]. - Amgen is actively developing new compounds, including a promising weight loss medicine called MariTide, supported by its financial resources and industry experience [7]. - The company reported a revenue increase of 40.51% and a net income increase of 30.22%, with a dividend growth of 268.9% [8]. - Amgen's forward yield is nearly 2.9%, with a cash payout ratio of 86%, reflecting its commitment to rewarding shareholders despite recent acquisitions [8].