3 FTSE 100 dividend stocks I’ll probably hold forever

Edward Sheldon looks at three FTSE 100 (INDEXFTSE: UKX) dividend stocks that have long-term ‘buy-and-hold’ potential.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Happy retired couple on a beach

Image source: Getty Images.

Today, I’m looking at three FTSE 100 dividend stocks that I hold within my own personal dividend portfolio and plan to hold for a very long time, possibly even forever. All three have excellent long-term track records of generating shareholder wealth.


Unilever (LSE: ULVR) which owns a portfolio of over 400 household brands such as Dove, Persil and Domestos is the perfect ‘core holding’ type of stock, in my view. With such a strong portfolio of popular products, the company is able to generate consistent revenues and earnings year after year, and its significant exposure to the world’s emerging markets also provides a compelling long-term growth story.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

Unilever has made news headlines recently, as the company was planning to move its headquarters to the Netherlands to simplify its corporate structure. This would have seen the stock drop out of the FTSE 100 Index. However, in good news for UK investors, the firm announced yesterday that it has cancelled the move and that it will be remaining here in the UK.

ULVR shares rarely come cheap as the stock is highly sought after by fund managers and private investors alike, which is no surprise when you consider that the company has compounded its dividends by 8% per year since 1952. It’s a stock to buy on the dips, in my opinion.


Diageo (LSE: DGE), which owns an outstanding portfolio of alcoholic beverage brands, such as Johnnie Walker, Smirnoff and Tanqueray is another classic core holding stock that I have no intention selling. Whether the global economy is booming or struggling, you can be sure people will be drinking Diageo’s products and therefore I believe it’s the kind of stock you can buy and forget about. Like Unilever, Diageo also has strong exposure to the world’s emerging markets, meaning that it’s set to benefit as the wealth of consumers in these regions increases over the coming decades.

One thing I love about Diageo is its dividend growth track record. The company may not have the highest yield in the FTSE 100, at 2.6% (estimated for FY2019), but when you consider that it has increased its dividend every year for 20 consecutive years now (by over 500% in total) it becomes apparent the group is a true dividend superstar. It’s another stock to buy on the dips. 

Royal Dutch Shell

Lastly, the largest stock in the FTSE 100 – Royal Dutch Shell (LSE: RDSB) – is another stock I have no intention of selling in the near future. While the world is slowly becoming more ‘green’ and adopting alternative energy sources, a recent trip to the US reminded me just how dependent the world is on oil for transportation. I can’t see that changing significantly any time soon, even if electric cars are becoming more popular.

Two things that stand out to me with Shell are its high dividend yield and its long-term dividend track record. With the company expected to pay a dividend of 188 cents per share this year, the prospective yield is a high 5.4%. That yield is highly appealing in today’s low-interest-rate environment. Furthermore, the company has not cut its dividend since World War II. It even managed to maintain it when oil prices plummeted in early 2016, which is the sign of a well-managed company. With that kind of track record, I’m happy to hold for the long term.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Edward Sheldon owns shares in Unilever, Diageo and Royal Dutch Shell. The Motley Fool UK owns shares of and has recommended Unilever. The Motley Fool UK has recommended Diageo. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

More on Investing Articles

Two hands holding champagne glasses toasting each other with Paris in the background
Investing Articles

Can the stock market make me rich even now?

Here are three ways I'm coping with the stock market's recent bout of weakness and aiming to build wealth in…

Read more »

Cogs turning against each other
Investing Articles

3 top investment trusts to buy right now

Investment trusts offer a wide range of options for investors. And in troubled times, they provide some safety through diversification…

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

Why hasn’t the FTSE 100 crashed in 2022?

The catastrophic events of 2022 have left investors around the globe fearing the worst for stock markets. And some have…

Read more »

Trader on video call from his home office
Investing Articles

2 inflation-resistant FTSE 100 stocks to buy today

Soaring inflation could dent my returns if I don't take care. Here are two top inflation-resistant FTSE 100 stocks I'd…

Read more »

Tabletop model of a bear sat on desk in front of monitors showing stock charts
Investing Articles

Why a bear market is an investor’s best friend

A bear market can certainly be scary. But any investor tempted to sell might benefit by looking at Warren Buffett's…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

The Rolls-Royce share price could be stuck below £1 for a while. Should I buy?

The Rolls-Royce share price has been trading at penny stock levels since April. Could the stock be a bargain at…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

I’m aiming to make £45,000 in passive income with UK shares and never work again!

Investing regularly in UK shares can generate a substantial passive income over the long run. Zaven Boyrazian demonstrates how.

Read more »

Portrait of construction engineers working on building site together
Investing Articles

Down 30%, are CRH shares a screaming buy?

The CRH share price has slumped this year. Roland Head asks if this overlooked FTSE 100 share could be a…

Read more »