Investing can often feel like a daunting task, especially in a fast-paced market where many individuals are drawn to the allure of picking stocks and making trades. This inclination to actively manage investments is understandable, as the desire to make significant gains can be strong. However, the reality is that adopting a simple yet effective investment strategy, such as 'buy and hold,' could be one of the best decisions an investor can make. While the approach may seem straightforward, maintaining discipline to stick with it over time can prove challenging.

To illustrate the potential of long-term investing, consider the example of three well-established stocks. A hypothetical investment of $1,000 in each of these stocks two decades ago would now have grown to more than $100,000. While not every long-term investment guarantees such remarkable returns, allocating a modest amount of capital into promising growth stocks and allowing those investments to mature can often yield substantial financial rewards.

For retirees seeking reliable income streams, particularly through dividends, the current market offers a plethora of attractive buying opportunities. Among the stocks that stand out are AbbVie (NYSE: ABBV), ExxonMobil (NYSE: XOM), and Kimberly-Clark (NYSE: KMB). These companies have demonstrated consistent performance this year, drawing investors toward them as safe-haven stocks amidst market fluctuations. Below, we delve into why these stocks merit consideration for a long-term investment strategy.

AbbVie: A Leader in Healthcare

AbbVie, a prominent name in the pharmaceutical sector, offers investors an appealing dividend yield of 3.2%, which significantly surpasses the average yield of 1.3% found in the S&P 500. The company has a commendable history of increasing its dividend payouts, achieving a streak that extends over 50 years if one considers its origins as part of Abbott Laboratories. Since its spinoff in 2013, AbbVie has raised its dividend by an astonishing 310%, a testament to its robust business model and commitment to returning value to shareholders.

AbbVie's portfolio is diverse, encompassing several therapeutic areas such as oncology, immunology, aesthetics, and neuroscience. In 2024, the only segment that did not witness year-over-year growth was aesthetics, which saw a decline of 2%. Nonetheless, with the rising demand for weight loss drugs, there is potential for a resurgence in interest for aesthetic products like Botox, likely transforming this area into a significant growth driver in the future.

For investors looking to add a solid healthcare stock to their portfolio, AbbVie presents a compelling case. Trading at a relatively attractive price-to-earnings ratio of 17 times its projected future earnings, it is considered a bargain among its peers.

ExxonMobil: A Reliable Player in Energy

Another noteworthy stock for dividend-seeking investors is ExxonMobil, a leading oil and gas producer. The company boasts a slightly higher dividend yield of 3.4% and has made a name for itself with an impressive record of increasing its payouts for 42 consecutive years. The most recent hike in dividends was a healthy 4%, reflecting ExxonMobil's commitment to rewarding its shareholders even in a volatile market.

The resilience of companies like AbbVie and ExxonMobil underscores the importance of adopting a long-term perspective in investment strategies. Although there will always be temptations to chase quick gains through frequent trading, the buy-and-hold approach remains a tried-and-true method for building wealth over time.