In Your 30s? Here Are 3 Dividend Stocks To Buy Now That Balance Yield And Growth

I started buying stocks at 27 years old. By living below my means and systematically investing my savings into high-quality dividend growth stocks, I was able to become financially independent and retire at only 33 years old.

The dividend growth investing strategy can work miracles. But you have to consider your age when selecting the most appropriate stocks for your goals. If you're 20, you'll be more interested in growth than yield. But if you're 60, yield is very important because you're probably living off of your investment income.

What if you're in your 30s, like me? Well, I think it's important to find that balance between yield and growth. And you still want to make sure you're sticking to high-quality stocks. That means great fundamentals, including growth, financial position, and profitability.

Quality is often borne out in lengthy track records of growing dividends. After all, how better to prove you run a highly profitable business than to send shareholders growing cash dividends year after year? It's with this in mind that I want to share with you three high-quality dividend growth stocks that I think are great ideas for investors in their 30s.

Each stock offers a market-beating dividend, great fundamentals, many years of dividend growth, and a valuation that isn't overly demanding. These are household names that should continue to compound your wealth and passive dividend income for decades to come. And they all provide solid dividends that you could even live off of today if you wanted to.

The first stock I want to tell you about is Johnson & Johnson (JNJ). It's one of only two companies in the world with an AAA-rated balance sheet. The financial position doesn't get any stronger than that. Want more evidence of quality? This Dividend Aristocrat has one of the longest dividend growth streaks in the world, with a 10-year dividend growth rate of 6.6%. They can afford to hand out these increases because they're growing the underlying business.

Johnson & Johnson is actually one of my top five stocks for 2021.

The second stock that I think is a great buy idea for investors in their 30s is PepsiCo, Inc. - stock ticker PEP. Another Dividend Aristocrat, Pepsi's been able to increase its dividend for decades on end because it's been able to grow its revenue and profit for decades on end. Now, it won't knock you dead with the growth, with a 10-year dividend growth rate of 7.8%.

And its market-beating yield, which is 2.9%, is potentially enough to live off of, if you had a goal, like me, to retire in your early 30s. This stock gives you a nice balance between yield and growth, which is perfect for your 30s.

Last but not least, let's talk about Lockheed Martin Corporation - stock ticker LMT.

This world-class defense contractor offers investors a market-beating yield of 2.7%. That's attractive in and of itself. But it gets better. The dividend, which has increased for 18 consecutive years, is growing briskly. Human conflict has been around since, well, humans. Except now, we're fighting with very expensive machinery, which is where Lockheed Martin steps in and profits. With Lockheed Martin scooping up multibillion-dollar contracts left and right, the company's dividend is set to continue flowing and growing.

I think all three of these stocks should make for excellent long-term investments, regardless of your age. They should all produce outstanding returns, including a market-beating level of aggregate dividend income.

Video Length: 00:08:47

Disclaimer: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose ...

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