Let's talk about my 3 top stocks to buy and hold forever.
Starting off, QYLD. This is a covered call ETF where the stock price rarely fluctuates. Of course with the market being down currently the price has fallen a little bit, which is why I already picked up a bunch of shares. The price is about 16% off of its average meaning I will gain all of that back plus the dividend it pays out! What's that? I didn't mention a dividend? Well of course it has one! Why else would you buy a stock that rarely moves in price!? The dividend is a whopping 12% return which is insane! These covered call ETFs use options to make that wild return but that means that when the market is really hot these things don't run with the other stocks. All in all its a pretty safe bet that will return you 12% on your money a year. If you use dividend reinvestment strategies then you are set for life with this one! Although the risk factor is there, as these ETF types haven't been around for very long, but their strategy is sound and the record so far speaks for itself!
Alright number two, Realty Income (ticker: $O), This stock starts at a much lower dividend yield at 4%, which is still pretty good compared to a lot of stocks on the market! My reasoning for owning this stock though isn't simply the above average dividend, its the long term growth. If you look at this stock and see the max chart, you'll see what I am talking about. It has grown over 750% since its inception in 1994. Now that may not seem like a lot for that period of time, but if you add in the dividend on top of that price growth, plus the compounding interest with dividend reinvesting, you've made an extremely large profit. I love this one for multiple reasons as it also offers some diversity in my stock portfolio. Firstly it's a REIT which stands for Real Estate Investment Trust. This means that they, by law, have to give a certain percentage of their earnings to their stockholders. Also on top of all these compelling reasons, it also pays monthly dividends! This may not matter as much to you if you are reinvesting them, but say you need a little extra money every month you can keep some of that monthly income! Reits are basically large scale property owners. This means that they act like a landlord for properties. It helps getting people involved with rental properties without taking the risk! I enjoy this diversification as well as all of the hype behind this stock.
Last but not least, ticker ARCC which is Aeries Capital Corporation. This is a BDC which stands for a business development company. Meaning they invest their money into smaller businesses that they deem profitable. Some of the companies repay them plus some, and others repay less and are a small loss for the company. I love this stock because it again adds diversity to my portfolio. Not to mention their website shows how amazing of a track record they have with dividends, and their success over the years. While their max chart isn't as appealing as the other two stocks, their 8.5% dividend makes up for it. They also have an excellent management team that has proven itself throughout the years, in good times and bad. This stock is newer to me, but so far I have really enjoyed learning about it.
As always you should do your research on these stocks, as this is informational and not financial advice. These companies have a lot to them and its excellent to know what all the smaller details add to the outlook and value of the company. Hopefully this helped you, and later I will do a flog (finance blog) about the importance of reinvesting dividends, and compounding interest! Have a great Tuesday and let's make some money$$$!
Also I'm making a YouTube video about this tomorrow, go check it out! I'll go more in-depth on these stocks!