We use cookies to improve your experience and optimize user-friendliness. Read our cookie policy for more information on the cookies we use and how to delete or block them. To continue browsing our site, please click accept.

Top 5 Dividend Paying Stocks You Can Hold Forever

Partners' Network Blog

If you believe that headline which regularly appears on many cover stories and asset manager research reports, then you can believe almost anything. How about a chance to own the Brooklyn Bridge?

With investing, nothing is guaranteed. Actually, there is one guarantee – You cannot lose money on short term U.S. Treasuries or insured bank certificates of deposits. That’s it. Everything else carries a risk. Of course with short term Treasuries you face a strong possibility to lose over a long period to inflation, so there is a rick to that too, but it is a stealth risk separate from the investment itself.

I wonder how the stocks did that were on previous lists during the last 10 years. Barron’s provides annual updates of their recommendations, that I’ve written about, but very few publications do, and even fewer investment managers. The truth of the matter is that most investment managers turn over their portfolios many times a year so “forever” is in most cases, only a few months, at best. If an investment manager actually believed this and followed this plan, they would not make much money for either of two reasons. If they maintained a static portfolio, their trading fees would be pretty low. If they charged a fee based on the assets under management and their customers saw very little activity for a couple or three years, they would wonder why they are continuing to pay the management fee and likely bail out. One way or another, fees are generated by activity.

This brings me back to alternatives to the “five stocks you should keep forever.” It is a myth. If you are investing in equities for income or growth or a combination of the two, I believe your best bet would be investing in broad based mutual funds including index or exchange traded funds.

Also, forever is a pretty long time but when it comes to stocks, it might not really be that long.

Do not hesitate to contact me with any business or financial questions at emendlowitz@withum.com or fill out the form below.

Read More of the Partners’ Network Blog

How Can We Help?

Previous Post
Next Post
Article Sidebar Logo Stay Informed with Partners' Network Subscribe


Article Image
Sep 28, 2020 Transfer Pricing Study Importance

We recently received a new client to perform a transfer pricing study; and the reasons that the client engaged us for provided a comprehensive explanation for such studies, so ...

Article Image
Sep 9, 2020 Free Booklets - Mea Culpa

What seemed like a good idea has become a problem for me; a good problem and I will get it done.

Get news updates and event information from Withum