Home Depot, McDonald's, and JNJ Make the Cut as Top Dividend Stocks

The Motley Fool recommends three dividend stocks that investors may want to consider holding for the next five years. Home Depot, McDonald's, and Johnson & Johnson are the companies in question.

Home Depot has seen its stock price stagnate over the past five years, despite a surge during the COVID-19 pandemic. However, the company is poised to benefit from a potential recovery in the residential construction market, which has been hindered by high mortgage rates and home prices. The U.S. needs an additional 4-5 million homes to meet demand, and homebuilding starts may be near a cyclical bottom.

McDonald's, on the other hand, has seen its stock price decline by over 20% from its peak in February. However, management is acting with urgency to improve guest traffic and put the U.S. business in a stronger position.

Johnson & Johnson is looking to become an oncology titan, with a goal of growing its cancer drug business to at least $50 billion by 2030. The company has already seen success with treatments like Darzalex, and has partnerships and acquisitions in place to drive growth.