Choosing the right stocks is crucial for investors aiming for stability, growth, and consistent dividend income. Companies with solid financials and long-term market potential can form the foundation of a resilient portfolio. Three dividend stocks that stand out for their solid fundamentals and reliable payouts are UnitedHealth Group (UNH), Home Depot (HD), and Bank of Montreal (BMO). Each of these businesses operates in an industry with sustained demand, making them strong candidates for long-term investments.
UnitedHealth Group: A Pillar in the Healthcare Industry
The U.S. healthcare sector continues to be a dominant force in the economy, with total expenditures reaching $4.9 trillion in 2023, translating to approximately $14,570 per person. As the population ages and the demand for medical services increases, health insurance continues to be a vital part of the industry.
UnitedHealth Group, as a leading health insurance provider, has demonstrated resilience despite rising medical costs. In 2024, the company reported $400 billion in revenue, marking an 8% year-over-year increase, while earnings from operations remained steady at $32.3 billion. This financial stability reinforces its position as a dependable investment.
UnitedHealth offers a 1.6% dividend yield, surpassing the S&P 500 average of 1.3%. Over the past five years, it has nearly doubled its quarterly dividend, increasing payouts by 94%. With healthcare demand set to rise, UnitedHealth remains a compelling choice for dividend-focused investors.
Home Depot: A Foundation for Construction and Retail Stability
Home improvements and repairs remain essential regardless of economic conditions. Whether driven by natural wear and tear or unforeseen events, homeowners consistently need materials and services to maintain their properties. This solidifies Home Depot’s role as a key player in the home improvement retail sector.
Despite economic uncertainties impacting new home purchases, Home Depot has sustained growth. Over the first nine months of 2024, the company generated $119.8 billion in revenue, reflecting a 2% increase. While earnings dipped 4%, its 10% profit margin underscores operational efficiency.
The company has also demonstrated robust dividend growth. With a current yield of 2.2%, Home Depot has increased its dividend by 65% over the past five years. Its strong market presence and ability to weather economic fluctuations position it as a valuable long-term investment.
Bank of Montreal: A Historic Dividend Performer in the Financial Sector
Banking institutions play a fundamental role in economic growth, and few financial stocks offer the level of stability found in Bank of Montreal. Established in 1829, it has consistently paid dividends for nearly two centuries, making it one of the most reliable dividend stocks available.
With a significant presence in both Canada and the U.S., Bank of Montreal benefits from population growth and economic expansion in two major markets. The bank reported CA$32.8 billion in revenue in 2024, a 12% increase from the previous year. However, adjusted net income declined due to higher provisions for credit losses, reflecting cautious economic conditions.
Offering a 4.6% dividend yield, Bank of Montreal has grown its dividend payouts by 50% in five years. Its diversified market exposure and ability to generate revenue across multiple regions reinforce its status as a strong portfolio asset.
Three Stocks for Long-Term Dividend Growth
For investors looking to build a portfolio centered around stability, steady growth, and strong dividend performance, UnitedHealth Group, Home Depot, and Bank of Montreal present compelling options. These companies operate in essential industries, ensuring consistent demand and long-term revenue generation. With robust financials and proven dividend growth, they provide a foundation for investors seeking both security and income in an evolving market.
