2 lesser-known dividend stocks you can quite possibly hold forever

Dividend stocks are popular among investors. Especially when the economy is in wild times. And that's exactly what we're having right now. In such situations, it's even more important for a dividend stock to be stable. And that's exactly the two we're going to look at today.

Dividend stocks have a solid chance of outperforming other asset classes over time

Of course, I could write here about classics like $KO or $JNJ. But I find it more interesting to introduce companies that aren't as well known. Today I've chosen $DUK and $MKC

Duke Energy $DUK

Duke Energy analysis

Duke Energy is one of the largest publicly traded energy companies in the US.

Duke Energy was founded in 1904 by James Buchan Duke under the name Southern Power Company. Today, it is headquartered in Charlotte, North Carolina. The company has grown steadily to its present form, encompassing a wide range of energy activities, including the production, distribution, and sale of electricity and natural gas. Duke Energy is one of the largest energy companies in the United States with a market capitalization of more than $60 billion. The company operates in three major segments:

1. Electric Power: The company generates and distributes electricity to more than 7.9 million customers in six states - North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky.

2. Natural Gas: Duke Energy supplies natural gas to approximately 1.6 million customers in five states.

3. Energy Services: the company provides energy infrastructure solutions, renewable energy and other energy services.

Duke Energy is a company with solid financial performance and solid fundamentals. In 2020, the company achieved total revenues of $23.9 billion and net income of $1.5 billion. Over the long term, the company has shown increasing revenue and earnings, which is a testament to its ability to generate shareholder value.

Duke Energy is focused on the following strategic priorities:

1. Decarbonization: the company is committed to reducing its carbon emissions by 50% by 2030 and achieving carbon neutrality by 2050. It plans to invest in renewable energy, grid modernization and other low-carbon technologies.

2. Infrastructure Upgrades: Duke Energy is investing in upgrading and expanding its energy infrastructure to better serve its customers, improve grid reliability and adapt to changing market conditions.

3. Customer Focus: The company is focused on providing exceptional customer service to maintain its competitiveness and strengthen its position in the marketplace.

4. Innovation: Duke Energy strives to be a leader in innovation and technology trends in the energy industry, which includes investments in digital transformation, smart grid, energy role

The company generates the majority of its energy from natural gas, nuclear and coal, and only 1.5% from renewable sources. Unregulated renewable energy is highly competitive and its returns are often negligible. Duke seems to like to focus on regulated services, which makes it a boring, albeit stable, utility. Duke stock trades at a higher multiple of estimated 2023 earnings per share and has a dividend yield of 4.24%.

McCormick $MKC

McCormick & Company is an American company specializing in the manufacture and sale of spices, herbs, sauces, and other food products. The company was founded in 1889 and is headquartered in Hunt Valley. McCormick & Company is one of the largest spice manufacturers in the world and has offices in 160 countries.

McCormick & Company is a stable and profitable company with annual sales of over $5 billion. It has a strong focus on developing new products and expanding its business portfolio. The company also invests in innovative technology and digitalization to facilitate the sale and distribution of its products. In 2021, the company announced plans to acquire Cholula, which will strengthen its position in the spices and sauces market.

McCormick & Company has extensive manufacturing capabilities in the US, Canada, Europe, and Asia. The company owns and operates more than 50 manufacturing facilities and employs over 12,000 people worldwide. The company also has an extensive distribution network that enables fast and efficient distribution of products worldwide. McCormick & Company operates in a competitive environment where it competes with other manufacturers of spices and food products. McCormick's largest competitors include Unilever, Nestlé, ConAgra Foods and Kraft Heinz.

The food products market is becoming increasingly influenced by trends in healthy eating and a preference for natural and organic products. McCormick & Company strives to respond to these trends by developing new products and improving the quality of its products.

With more consumers cooking at home and a growing awareness of the health benefits of spices, Grand View Research is optimistic about the future of the global market. This is reflected in the firm's forecast that the global spices and seasonings market will grow at a compound annual growth rate of 5.6% from $37.3 billion in 2022 to $57.7 billion in 2030. Given this outlook, analysts forecast 5.1% annual earnings growth for McCormick over the next five years.

The company's dividend yield of 2% is slightly higher than the 1.7% yield of the S&P 500 index. And with a dividend payout ratio of just under 55% for the current fiscal year, the dividend should have no problem growing higher.

How about you? Do you own any of the companies? Or what dividend titles do you prefer?

Disclaimer: This is by no means an investment recommendation. This is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.