Looking for Long-Term Passive Income? Consider These 3 Stocks for Your Portfolio

Investing in companies with competitive advantages in evergreen industries is a strategy that many long-term investors swear by. These companies have proven their ability to withstand the test of time, consistently delivering strong returns and dividends to their shareholders. In this article, we will explore three healthcare stocks that have ingrained competitive advantages and decades of dividend growth, making them ideal candidates for a buy-and-hold forever strategy.

First up is AbbVie, a pharmaceutical company that has been a Dividend King for over five decades. Despite facing challenges in the highly regulated pharmaceutical industry, AbbVie has managed to maintain its relevance through a diverse product portfolio and pipeline. Analysts estimate that AbbVie will continue to grow earnings by an average of 8% annually, providing ample room for dividend increases. With a manageable dividend payout ratio and a track record of raising dividends by an average of 14% annually over the past decade, AbbVie is a reliable choice for long-term investors looking for stability in their portfolio.

Next, we have Stryker, a medical technologies company known for its innovative products that drive the healthcare industry forward. With nearly 13,000 global patents protecting its diverse product portfolio, Stryker has established itself as a leader in the medical equipment market. The company’s consistent sales growth, coupled with a dividend payout ratio of only 26% of its earnings estimates, makes it an attractive option for investors seeking passive income for the long term. Stryker has paid and raised its dividend for 31 consecutive years, highlighting its commitment to rewarding shareholders over time.

Lastly, we have Cardinal Health, a behind-the-scenes behemoth in the healthcare industry that plays a crucial role in the supply chain of medical, pharmaceutical, and laboratory products. Despite operating largely under the radar, Cardinal Health has been able to sustain its business for decades, providing essential services to hospitals and care facilities worldwide. With a dividend payout ratio of just over 25% of its estimated earnings and a global footprint spanning over 30 countries, Cardinal Health is well-positioned for long-term growth. The company’s consistent dividend payments and potential for expansion in emerging markets make it a solid choice for investors looking to build a resilient portfolio.

In conclusion, investing in companies with competitive advantages in evergreen industries is a proven strategy for long-term success. By focusing on healthcare stocks like AbbVie, Stryker, and Cardinal Health, investors can benefit from decades of dividend growth and stability. These companies have demonstrated their ability to adapt to changing market conditions and deliver value to shareholders, making them ideal candidates for a buy-and-hold forever approach. Consider adding these healthcare stocks to your portfolio for reliable passive income and long-term growth potential.