2 Dividend Stocks to Buy and Never Sell

Every company faces challenges and setbacks, which can sometimes cause its stock price to plummet. This is not a good reason for long-term investors to jump ship, unless, of course, the company’s prospects fundamentally change.

Stocks that can perform reasonably well while maintaining a positive long-term outlook may well be worth holding on to for good. Companies in this category are common, but they do exist; two examples are Merck (NYSE: MRK) And Medtronic (NYSE: MDT)Here’s why these healthcare leaders are worth investing in.

1. Merck

Pharmaceutical companies have a significant advantage: the products they sell are always in demand. Patients don’t stop taking medications in times of crisis, and doctors don’t stop prescribing them. Plus, there’s always a need for new and more effective therapies.

Few companies are as adept at developing innovative drugs as Merck. It has been doing so successfully for decades and currently owns the world’s best-selling drug, Keytruda. The cancer treatment has racked up dozens of approvals and indications around the world. Even though it will lose its patent exclusivity in 2028, Merck is preparing for this big collapse. It recently won approval for Winrevair, a new treatment for pulmonary arterial hypertension.

Its pipeline includes other interesting candidates. One is a subcutaneous version of its flagship product, and according to research firm Evaluate Pharma, that version of Keytruda could generate $8 billion in sales by 2030. Meanwhile, Winrevair could generate more than $3 billion in peak sales, according to some analysts.

These two products won’t replace Keytruda, which generated $25 billion in revenue last year. However, the pharmaceutical giant has many other candidates. Its pipeline includes more than 80 programs in phase 2 trials and more than 30 in phase 3. This is how Merck has been able to generate consistent revenue and profit growth for a long time; it should be expected to continue on this path for many years to come.

What about Merck’s dividend? The company has increased its payout by 75% over the past decade and currently offers a forward yield of 2.7%, compared to S&P 500The average is 1.3%.

Merck’s robust underlying business is more than strong enough to support consistent dividend growth for years to come, making it a leader stock income to keep for a long time.

2. Medtronic

Medtronic has long been a leader in the medical device market and is one of the largest companies in the sector by market capitalization. Its portfolio includes dozens of products in the areas of diabetes, cardiovascular disease, “medical surgery,” and neuroscience. Medtronic’s diversity of operations, its extensive experience in one of the most regulated industries in the world, and the reputation it has built over the years give it considerable advantages.

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And while revenue growth hasn’t been strong for the medical device specialist in recent years, Medtronic has plenty of room for growth. The company is…