3 Undervalued Dividend Stocks You Can Buy and Hold Forever
2026-07-18 03:35
•Parkev Tatevosian, Cfa •The Motley Fool
•• ••• Axe Capital view
Three Reliable Dividend Stocks Worth Holding Forever
A look at three undervalued dividend stocks offering steady income and growth, suitable for long-term investors.
Dividend stocks demand a patient mindset. Unlike chasing quick gains, you buy into steady cash flow and compounding returns. The Motley Fool highlights PepsiCo, McDonald's, and Procter & Gamble as three undervalued names worth holding indefinitely. While these are global giants, their appeal resonates with JSE investors hunting for reliable income amid rand volatility. Take PepsiCo and McDonald's: both have strong brands and resilient earnings, which helps steady returns even if the rand weakens against the dollar. Procter & Gamble’s diversified consumer staples business offers safety during local economic shocks. For South Africans, these foreign stocks complement a JSE portfolio featuring dividend stalwarts like British American Tobacco or Sanlam, which also provide currency diversification. The risk is that global inflation or interest rates rise faster than expected, potentially pressuring these stocks’ valuations. But their strong balance sheets and global reach provide a buffer. this is just my opinion and not financial advice
I’d buy these three dividend stocks slowly, blending them with local income payers to balance rand exposure. Trim positions if inflation spikes sharply.
- PEP
- MCD
- PG
- USD/ZAR
- Rising global inflation hurting valuations
- Rand weakening impacting local currency returns
6/10
The article discusses three undervalued dividend stocks suitable for long-term buy-and-hold investing strategies. It emphasizes that investing in dividend stocks is an excellent way to generate passive income and requires a different mindset compared to short-term trading.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Parkev Tatevosian, Cfa
Categories: Equities, Capital Returns
Tickers: PEP, MCD, PG
Sentiment: Positive - Mentioned as one of the three undervalued dividend stocks recommended for long-term holding, indicating it meets the criteria for a quality dividend investment. Mentioned as one of the three undervalued dividend stocks recommended for long-term holding, with call options noted, suggesting confidence in the stock's potential.
Keywords: dividend stocks, undervalued stocks, buy and hold, passive income, long-term investing
Insights:
- PEP: Positive: Mentioned as one of the three undervalued dividend stocks recommended for long-term holding, indicating it meets the criteria for a quality dividend investment.
- MCD: Positive: Mentioned as one of the three undervalued dividend stocks recommended for long-term holding, with call options noted, suggesting confidence in the stock's potential.
- PG: Positive: Mentioned as one of the three undervalued dividend stocks recommended for long-term holding, indicating it is viewed as a quality dividend investment opportunity.