Passive income is a dream for many investors, offering a steady stream of earnings without the need for constant active management. However, achieving passive income requires investing in solid companies within a stable industry. Here, we will explore three top names that not only provide reliable dividend income but also offer potential for capital appreciation.
Agree Realty (ADC)
Agree Realty is a real estate investment trust (REIT) that stands out for its focus on brick-and-mortar retail properties. While the retail industry has faced challenges due to the rise of e-commerce, Agree Realty has managed to thrive by leasing its properties to high-quality tenants such as Walmart, Tractor Supply, Dollar General, and TJX. As of September, an impressive 99.6% of Agree Realty’s properties were leased, showcasing the strength of its tenant base.
The REIT has a track record of consistent dividend growth, with an average annualized growth rate of 5.7% over the past decade. This, combined with price appreciation, has resulted in an average annual net return of 12.3% since its IPO in 2024. Additionally, Agree Realty offers a monthly dividend with a forward-looking yield of 4.1%, making it an attractive option for income-focused investors.
Bristol Myers Squibb (BMY)
Bristol Myers Squibb is a pharmaceutical company known for its ability to identify, acquire, and develop new prescription medications. The company’s success in bringing drugs like Eliquis and Revlimid to market has led to consistent revenue growth and shareholder value creation. Bristol Myers Squibb has a track record of dividend increases for 16 consecutive years, with a current yield of 4.4%.
Despite facing challenges in the competitive pharmaceutical industry, Bristol Myers Squibb has demonstrated its ability to navigate these obstacles and deliver value to shareholders. The company’s focus on innovation and strategic acquisitions has positioned it as a leader in the healthcare sector, making it a solid choice for long-term investors seeking passive income.
JPMorgan Chase (JPM)
JPMorgan Chase is a leading financial institution with a diverse range of revenue streams, including banking, market-related services, wealth management, and investment banking. While the company’s forward-looking dividend yield of 2.1% may seem modest, its consistent dividend growth since 2010 reflects its commitment to returning value to shareholders.
Despite facing economic headwinds and interest rate volatility, JPMorgan Chase’s strong financial position and diversified business model have enabled it to weather challenges and capitalize on opportunities. As the nation’s largest bank with nearly $3.6 trillion in assets, JPMorgan Chase is well-positioned to drive recurring, rising dividend payments over the long term.
In conclusion, passive income requires investing in solid companies with a proven track record of dividend growth and value creation. Agree Realty, Bristol Myers Squibb, and JPMorgan Chase are three top names that offer reliable income potential and long-term growth prospects, making them attractive options for investors seeking to build a passive income stream.
