The message is again emphatically that investing for a period of 12 months is actually completely unpredictable. I have no idea what the stock market will do in the coming year, if we go down my tips will normally also drop.
What I do know is that the shares below are all great long-term investments with a strong balance sheet, solid cash flow and preferably a nice and growing dividend that will normally be increased again in 2025. The biggest laggards this year are (once again) in the consumer stocks, chemical stocks, medical technology and also some semiconductor stocks. From this I select six, some of which were also included in my dividend outlook for 2025.
Ribbons
Maybe strange, but for 2025 I will also take Cintas with me this time. The corporate uniform giant is the standout among the Dividend Aristocrats with a profit every year for at least ten years in a row; no share can match that.
After the latest figures, the price lost 10% and Cintas is now well below the all-time high of $228 from the end of November. I rely on statistics and then Cintas must be added in 2025.
Mondelez
This Dividend Portfolio share has slipped considerably in recent weeks and is around the lowest annual price at $59.39. With 3.2% and 10% dividend growth per year, this is a godsend. As far as I am concerned, this also applies to many sector peers and producers of spirits and beer, such as Heineken and Diageo, which are all trading at around the lowest annual prices.
Manpower
A new name is Manpowergroup, which, like Randstad, is at its lowest price in years. Will the price finally rise in 2025? I really have no idea. I see a stock with a low valuation that buys back its own shares en masse every year and has now increased the dividend for 14 years in a row. They will do that again in 2025. With a current 5.4% dividend yield, Manpower has good prospects.
Danaher
I also previously recommended the quality share Danaher as a dividend share for 2025. The still relatively expensive medical technology company has fallen sharply in recent months and thus lost its entire annual profit. Around the lowest annual price, this offers opportunities for this quality company, which is known for strong dividend growth, high profit margins and strong cash flows that guarantee additional dividend growth in the coming years. The amount of cash flow generated annually is impressive and would normally leave Danaher debt-free in a few years. In my opinion, sector peers such as Tecan, Merck KGaA (both in the Dividend Portfolio) and many other life sciences shares have also fallen too hard for investors with an eye for the long term.
Arkema
A share that is not obvious is Arkema, precisely because I recently threw it out of the Dividend Portfolio. This was partly due to the dividend, which, unlike its replacement Hexpol, remains quite unpredictable. Arkema is also at a multi-year low and is dirt cheap at around €70. The fundamentals are fine and I am betting on a recovery year.
Lam Research
I also previously recommended Lam for 2025. This Dividend Portfolio newcomer increases the dividend by 15% every year and, with a current 1.3% dividend yield, is just above the lowest annual price. Despite uncertainty in the short term, this is also a good entry point for investors with patience.
* Purchased on April 1
