We recently published a list of the 10 Best Long Term Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Ecolab Inc. (NYSE:ECL) stands against other best long term stocks.
Dividend-paying stocks have traditionally been seen as a solid foundation for investment portfolios, offering steady income and helping cushion the impact of market swings. However, despite these advantages, they occasionally trail the broader market—often overshadowed by more high-profile opportunities. Over the past couple of years, for example, dividend stocks underperformed as investors flocked to tech stocks. But following the recent market correction and the renewed pressure on tech shares due to tariffs introduced by Trump, dividend stocks have started to regain investor interest.
The Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has fallen by nearly 2% since the start of 2025, compared with a nearly 8% decline in the broader market. This trend suggests that dividends are regaining momentum, with a growing number of companies initiating dividend policies while existing payers are steadily boosting their payouts to attract investors. According to a report by S&P Global, 408 constituents of the broader market are projected to pay dividends in 2025. Of these, nearly 350 are expected to raise their dividends over the next four quarters, contributing to an estimated 6% year-over-year growth in total dividends. In the broader US market, aggregate dividend growth is forecasted at 4.6% for 2025. Given that S&P companies account for approximately 85% of all dividends paid in the US, the index serves as a strong indicator of overall dividend trends in the market.
The long-term value of dividend-paying stocks remains strong, particularly for investors seeking to reduce risk without giving up on growth potential. Ramona Persaud, portfolio manager of the Fidelity Equity-Income Fund and Fidelity Global Equity Income Fund, tends to favor high-quality companies that offer solid dividends and are reasonably priced. She pointed out that falling interest rates can create a favorable environment for dividend stocks, as their yields become more attractive compared to bonds. Persaud also noted that lower rates could help broaden market gains, unlike the recent trend where performance was largely driven by a few mega-cap growth names.
Her investment approach centers on companies with strong balance sheets, consistent cash flows, and high return potential. She also emphasized the importance of valuation—looking for stocks that are well-priced relative to their peers and historical levels—while seeking dividend yields that stand out in the current market. This combination of quality, value, and income has, according to her, helped the fund perform well in both rising and falling markets. She made the following comment about dividend stocks and their appeal:
