When investors are looking for long-term buy-and-hold investments, there are different angles to consider. Resilience during recessions, strong management, sound fundamentals, such as high margins and returns on capital, and healthy balance sheets are positives. Another important factor to consider is the concept of economic moats. This concept was popularized by legendary investor Warren Buffett and can be explained as a form of durable competitive advantage. This makes it very hard for competitors to gain market share versus these companies. In turn, this allows for above-average growth rates, as well as industry-leading profit margins. These factors make wide-moat dividend stocks like the three listed here attractive for investors.
Dividend stocks are made even more attractive when they have a wide economic moat. These three stocks have compelling dividend yields and wide economic moats to boot. Microsoft (MSFT): There is no pricing pressure on this top-tier tech company. Intercontinental Exchange (ICE): A strong brand allows this company to operate extremely profitably. Comcast (CMCSA): Currently undervalued and sporting an attractive yield, this wide-moat dividend stock is a winner.
Source: InvestorPlace
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