2 FTSE 100 dividend stocks I’d aim to never sell

I wouldn’t try to hold all my investments forever, but these two FTSE 100 dividend stocks both have many qualities that mean I’d like to keep them long term.

| 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.

I wouldn’t try to hold every single one of my investments forever. But there are at least a few FTSE 100 dividend stocks I’d aim to never sell.

Growth driven by the R&D pipeline

For example, pharmaceutical company AstraZeneca (LSE: AZN) strikes me as being a top-quality business operating in an attractive sector. And at the end of July, the company said in its interim results report that it’s “accelerating top-line growth with continued pipeline progress”.

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!

Indeed, the Research & Development (R&D) pipeline has offered plenty of potential for a number of years. But lately, the firm’s Regulatory News Service (RNS) feed has been vibrant with positive announcements.

AstraZeneca reckons the way the pipeline has been spitting out new cash-earning treatments and medicines “underpins the transition to long-term sustainable growth”. And there was a high-profile example of the capabilities of the business recently when it produced its Covid-19 vaccine and gave it to the world at cost price.

Meanwhile, with the share price near 8,635p, the forward-looking dividend yield for 2022 is around 2.4%. That’s not the highest FTSE 100 yield available. But I think the business is capable of driving increases in the years ahead. But, of course, as with all companies and stocks, there’s potential for setbacks as well as successes in the future. Nevertheless, I’d be inclined to focus on the quality of the enterprise and aim to hold some of the shares through thick and thin, way into the future.

A great sector for enduring FTSE 100 dividend stocks

And alongside AstraZeneca, I’d target Unilever (LSE: ULVR), the fast-moving consumer goods giant.

I think the branded consumable goods sector is a decent place to hunt for enduring investments. In theory, companies operating in the sector tend to generate stable cash inflow whatever the economy is doing. And I think that happens because people like to keep buying their favourite food, cleaning and other staples no matter how tough things become for them financially.

And Unilever is a London-listed behemoth in the sector. It has a long record of trading and financial success, driven by its well-loved brands such as Cif, Domestos, Hellman’s, Marmite and many others.

In July’s interim results report, chief executive Alan Jope said the company is making “good progress” developing the product portfolio into “high growth spaces”. Of course, nothing is certain, but I’m expecting Unilever to increase its shareholder dividends and its earnings by a modest, single-digit percentage each year. And if it doesn’t, and even if the share price declines and I lose money on paper, I’ll likely keep holding on to my stock.

Now, with the share price near 3,809p, the forward-looking dividend yield is around 3.3% for 2022. Again, that’s not the highest yield in the FTSE 100. But I like the way the firm’s consistent cash inflow backs up the shareholder payment.

I’m not guaranteed a positive investment outcome just because I like these two stocks now. Things can go wrong in both underlying businesses — all shares carry risks. But these are two FTSE 100 dividend stocks I’d aim to never sell.

I'm also hunting here:

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies still trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. 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

Female florist with Down's syndrome working in small business
Investing Articles

2 promising penny stocks to buy on the dip

As stock markets continue to correct, I am hunting for oversold penny stocks that I think could help turbocharge my…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

I wouldn’t buy Bitcoin today. FTSE value stocks look much better value to me

Now looks like a promising time to buy UK value stocks, while Bitcoin still looks far too risky for me.

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 is below 85p. Here’s what I’m doing!

The Rolls-Royce share price has suffered this year. Trading for below 85p, this Fool decides whether this is an opportunity…

Read more »

A young woman sitting on a couch looking at a book in a quiet library space.
Investing Articles

4 dividend stocks to buy as inflation soars!

I'm hunting for the best dividend stock to invest in as global inflation soars. Here are several high-dividend-yield shares that…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

UK shares to buy now: 3 big fallers I’d snap up

Our writer thinks this trio of strong business performers could be attractive UK shares to buy now for his portfolio.

Read more »

Lady researching stocks
Investing Articles

Could a falling stock market help me get rich?

When the stock market falls, what does it mean for our writer's portfolio? Here's why it could be an opportunity.

Read more »

Hand holding pound notes
Investing Articles

Should I buy these two 12%-yielding dividend shares for my Stocks and Shares ISA?

Do these double-digit dividend yielders offer our author the right balance of risk and reward for his Stocks and Shares…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 reasons to buy Lloyds shares at 43p

Our writer outlines three factors that make him bullish on Lloyds shares, as well as one noteworthy risk facing the…

Read more »