2 Dividend Stocks to Hold for the Next 2 Years

Core Viewpoint - The stock market has been volatile since the pandemic, prompting investors to consider dividend stocks for reliable passive income, especially in light of economic uncertainties and competition in various sectors [1][2]. Company Analysis: Nike - Nike's stock has declined approximately 39% over the last five years due to increased competition, brand struggles, and a focus on digital promotions [3][6]. - The company has initiated a turnaround plan under new leadership, focusing on brand strength, product innovation, and key markets including the U.S., U.K., and China [5][8]. - Nike increased its quarterly dividend by 8% in November, marking the 23rd consecutive year of dividend hikes, positioning it to potentially join the Dividend Aristocrats® [7][8]. - The current dividend yield is about 2.6%, which is lower than most Treasury yields, but the company has a trailing 12-month free cash flow yield of 5.66%, indicating strong cash flow capabilities [6][7]. Company Analysis: Wells Fargo - Wells Fargo has faced significant challenges over the past decade, including a scandal involving unauthorized account openings, resulting in fines and regulatory restrictions [9][10]. - Under new CEO Charlie Scharf, the bank has restructured its regulatory framework, cut expenses, and focused on higher-return businesses [10][11]. - Recent regulatory changes have lifted the asset cap, allowing Wells Fargo to grow its balance sheet and expand its market presence [11][14]. - Analysts expect Wells Fargo's diluted earnings per share to grow by about 8% this year and nearly 14% next year, with dividends consuming only 31% of earnings over the past 12 months, suggesting potential for future dividend growth [14].