Innovative stocks rarely make money. That’s something Warren Buffett says constantly, and it’s true. If you’re looking for a safe, easy way to grow your money (and potentially beat the market), then this post’s for you. Because today we’re looking at three boring dividend stocks with massive returns.
These aren’t the most exciting companies, but they excel at making money. Your bank account will thank you.
1. Hormel Food (HRL)
Hormel is a great example of why boring dividend stocks are wonderful investments. This is a massive food company which processes meats and proteins. Hormel also owns a number of smaller brands such as Dinty Moore, Muscle Milk, and SPAM.
Food companies are often a great investment because they have a recurring business model (we all have to eat regularly), and because established players can easily dominate their sector. This is certainly the case with Hormel Foods, and the stock has traditionally outperformed the S&P 500.
A great holding if you’re looking for long-term stability and growth potential all in the same stock.
2. Coca-Cola (KO)
The king of big, boring dividend stocks. Coca-Cola is so large and ubiquitous that you probably never even think about it.
Every day you walk past millions of Coca-Cola products. They’re on store shelves, in vending machines, and offered at restaurants, and sold at countless other locations too. The company’s products are so popular that you’ll find them all over the world, even in remote villages and developing countries.
Coca-Cola has a huge variety of different products (including Sprite, Fanta, Dasani, and Minute Maid), and is the largest beverage distributor in the world.
On too of this, the company pays a meaty 3% annual dividend and is one of Warren Buffett’s favorite stocks. Coca-Cola is a long-term buy and hold company. And one which will pay you dividends forever.
3. Stepan (SCL)
Speaking of Coca-Cola, Stepan is a company that’s essential for the soft drink conglomerate’s success. In fact, this business is incredibly unique and has a bona fide government backed monopoly on an entire business sector.
What does Stepan do so uniquely?
They process cocaine.
More specifically, they are the only legal cocaine processor (and distributor) in the entire United States.
This is a huge margin of safety, since processed cocaine is used in medical labs, certain pharmaceuticals, and (of course) Coca-Cola. Stepan has seen huge growth in its value over the past five years, and that’s something which will certainly continue into the future.
If you’re looking for a boring dividend stock most people haven’t heard of, this one’s for you.
Final Thoughts On The Best Boring Dividend Stocks
Buying and holding stable, quality businesses is a great way to build long-term wealth. And investing in a few great, but boring, dividend stocks can do wonders for your portfolio.
Give these stocks a look if you’re looking to play it safe while still winning big.
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