My 2012 resolution includes finally getting my entire regular and retirement portfolios all set up for the long term. With my personal life in transition over the past few years, it’s been difficult to do more than write about stocks and positions I’m excited about and make a few trades here and there. I plan to set up a core set of holdings that are intended for the very long term — as in, I plan to buy them and hand them down to my kids someday. In that category of “forever holds” are stocks that also pay nice, regular dividends.
I know I’m on to something in this category if I mention a stock to my super-conservative father and he approves of my choice. He’s held Abbott Laboratories (NYSE:ABT) for as long as I can remember. The company has paid a dividend since it went public some 30 years ago and has increased it 7% to 10% every year without fail. The stock’s forward P/E is about 11.2, and it has a projected long-term growth rate of 9%. Frankly, the premium is deserved considering the $8 billion in free cash flow the company generates, its solid slate of drugs on the market, and the 3.3% yield factored in. It’s a classic stock that deserves a place in the core portfolio.
Source: InvestorPlace
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