Got $200? 2 Dividend Stocks to Buy and Hold Forever
Key Takeaways
What caught my attention is The science that backs healthcare breakthroughs is mind-bogglingly complex. If you don't specialize in the medical space, you should bably avoid small, re-driven healthcare stocks,...
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4 min read
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investment
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July 19, 2025
05:40 AM
The Motley Fool
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What caught my attention is The science that backs healthcare breakthroughs is mind-bogglingly complex
If you don't specialize in the medical space, you should bably avoid small, re-driven healthcare stocks, in light of current trends
But that doesn't mean you shouldn't buy healthcare industry giants Medtronic (MDT 0. 66%) and Merck (MRK 0
Even if you only have a small amount of funds available to invest (say $200), these affordable dividend payers should be on your radar today as buy-and-hold stocks
Why go with giants Medtronic and Merck, considering recent developments
Additionally, Tiny healthcare start-ups, bio companies, often have incredibly exciting nology backing their es
And if that nology pans out as hoped, the stocks can turn into huge winners
But there's always the risk that the expected medical breakthrough doesn't actually work out as expected
Furthermore, Moreover, When that happens, healthcare companies can go out of, leaving stockholders with nothing
Image source: Getty Images, in today's financial world
Additionally, This's why experts in healthcare and science are bably the only traders who should be looking at tiny healthcare companies that often have only one make-or-break duct
But industry giants Medtronic, in medical devices, and Merck, in pharmaceuticals, are a different breed, amid market uncertainty
On the other hand, They already have large portfolios of successful ducts
Furthermore, And they have large and well-funded re and development teams to develop new ducts
However, However, the really important differentiator is the acquisition of smaller es
Medtronic and Merck are both big enough to buy smaller companies with exciting new nologies
Additionally, These nologies often complement existing ducts that each company already owns
Or it allows them to break into a new market, in light of current trends
Nevertheless, The key is that Medtronic and Merck have strong es, and they supplement that strength by acting as industry consolidators
Additionally, You don't have to be up to date on all of the science because Medtronic and Merck are doing that for you
However, What's to these buy-and-hold healthcare giants
Moreover, The first thing that a dividend investor will Medtronic and Merck is their yields, at 3. 2% and 4%, respectively
On the other hand, Nevertheless, The average healthcare stock has a dividend yield of around 1. 8%, while the S&P 500 index's (SNPINDEX: ^GSPC) yield is a skinny little 1
So these are attractive income generators in a sector and market that isn't generating a lot of income for investors
Second is the dividend record
Additionally, At the same time, Medtronic has increased its dividend for a huge 48 consecutive years
That's just two years shy of Dividend King
Merck's streak is up to 15 years, but it has a long history of offering a gressive dividend, even though it doesn't increase the dividend every single year, given the current landscape
That's not as impressive a story, but it is a demonstration that the board sees the dividend as highly important
Moreover, The third big reason to buy and hold Medtronic and Merck forever is more fundamental
Healthcare isn't optional
You have to seek out medical care when you are ill
At the same time, And as you age, you'll ly need more medical care
These two facts make these reliable dividend stocks into necessity es
Both have diversified duct portfolios and a long history of adjusting along with healthcare nology advances
They're no-brainer buys for dividend investors today
Nevertheless, What will $200 get you here (an important development), considering recent developments
Medtronic and Merck are well-known companies, and their stock prices are a bit lofty
A $200 investment will get you two s of Medtronic or two s of Merck (or one of each), in today's financial world
However, That may not seem a huge deal, but it gets you in on the ground floor of healthcare es that have ven themselves to be reliable income stocks and long-term success stories in a very competitive and complex industry.
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