When it comes to investing in stocks for passive income, it’s essential to choose companies that have a track record of consistently paying dividends over the long term. While some stocks may offer high dividends initially, the income may dwindle over time. However, there are certain stocks that have proven to be reliable sources of passive income for decades. Here are three stocks that you can buy now and hold forever to enjoy years of consistent dividends.
1. Chevron:
Chevron (CVX) has a remarkable history of increasing its dividend for 37 consecutive years. This oil and gas producer has a forward dividend yield of 4.15%, making it an attractive option for income investors. With a market cap of over $280 billion and annual revenue approaching $200 billion, Chevron is one of the world’s largest oil and gas producers.
Despite concerns about the depletion of oil reserves, Chevron has consistently proven its ability to maintain and even increase its production levels. The company’s net reserve additions have exceeded its production and sales, thanks to technological advancements. One technology that could further support Chevron’s dividend growth is carbon capture and storage (CCS). By capturing carbon emissions, Chevron aims to reduce its environmental impact while maintaining its dividend payments.
2. Pfizer:
Pfizer (PFE) is another stock that offers a reliable source of passive income. The pharmaceutical giant has paid its 345th consecutive quarterly dividend and has increased its dividend every year since 2010. With a forward dividend yield of 6.51%, Pfizer is a favorite among income investors.
Founded in 1849, Pfizer is one of the world’s largest drugmakers, with a market cap of around $150 billion and annual revenue close to $60 billion. While the company faces challenges such as patent expirations and Medicare price negotiations, Pfizer has a strong pipeline of new drugs that are expected to drive future growth. With 108 candidates in clinical development, Pfizer is well-positioned to continue its dividend growth streak.
3. Verizon Communications:
Verizon Communications (VZ) is a telecommunications leader that has increased its dividend for 18 consecutive years. With a forward dividend yield of 6.98%, Verizon is a passive income machine for investors. Despite being founded in 2000, Verizon’s roots trace back to 1877 through Bell Atlantic, making it one of the oldest telecom companies in the world.
With a market cap of $163 billion and annual revenue of approximately $134 billion, Verizon is poised for growth, especially with the pending acquisition of Frontier Communications. Mergers and acquisitions are a key part of Verizon’s growth strategy, along with the anticipated rollout of 6G networks in the coming years.
In conclusion, investing in stocks like Chevron, Pfizer, and Verizon Communications can provide you with a steady stream of passive income for years to come. These companies have a proven track record of dividend growth and are well-positioned to continue delivering value to their shareholders. By holding onto these stocks for the long term, you can enjoy decades of reliable income while benefiting from the growth potential of these industry leaders.
