Passive income is a dream for many investors. The idea of earning money without actively working for it is appealing, especially when it can provide financial stability for years to come. Generating long-term passive income is not as difficult as it may seem, and one way to achieve this is by investing in dividend-paying stocks. Here are three stocks that you can buy now and hold forever to enjoy a lifetime of dividends.
Let’s start with AbbVie (NYSE: ABBV), a pharmaceutical company that is a Dividend King with an impressive track record of 52 consecutive years of dividend increases. Since its spinoff from Abbott Labs in 2013, AbbVie has increased its dividend payout by a whopping 310%. The company’s forward dividend yield currently stands at nearly 3.6%, showcasing its commitment to rewarding shareholders. Despite challenges with its top-selling drug, Humira, AbbVie has a strong product lineup and pipeline that bodes well for future growth. With promising drugs like Rinvoq and Skyrizi in its portfolio, AbbVie is poised for continued success in the years to come.
Realty Income (NYSE: O) may not be a Dividend King like AbbVie, but it has an impressive track record of increasing its dividend for 30 consecutive years. As a real estate investment trust (REIT), Realty Income offers investors a forward dividend yield of 5.4% and pays its dividend monthly, making it an attractive option for passive income seekers. The company’s diversified portfolio, with over 1,550 clients across 90 industries, provides stability and insulation from economic downturns. With additional growth opportunities in various sectors, including consumer-centric medical facilities and data centers, Realty Income is well-positioned for long-term success.
Verizon Communications (NYSE: VZ) is a telecommunications giant that has been popular with income investors for years. The company offers a generous forward dividend yield of 6.07% and has increased its dividend for 18 consecutive years. Despite operating in a competitive industry, Verizon’s strong free cash flow and resilience make it a reliable choice for passive income. With the potential for accelerated growth in the future, especially with the advent of 6G wireless networks, Verizon’s dividend program is likely to remain robust for years to come.
Investing in dividend-paying stocks like AbbVie, Realty Income, and Verizon Communications can provide investors with a steady stream of passive income for decades. By holding onto these stocks for the long term, investors can enjoy a lifetime of dividends and potentially benefit from share price appreciation as well. Consider adding these stocks to your portfolio for a reliable source of passive income and a solid foundation for financial security in the future.
