Top 3 Dividend Stocks to Invest in Now for Long-Term Passive Income

Investors seeking to generate passive income from their investments often turn to stocks that pay dividends. While the initial dividend income may seem insignificant, over time, these payments can accumulate and provide a steady stream of income. Choosing stocks from companies that have a history of increasing their dividends can be particularly beneficial in the long run.

Three top picks for investors looking for a predictable stream of income from their investments are Realty Income (NYSE: O), Home Depot (NYSE: HD), and Starbucks (NASDAQ: SBUX). Each of these companies offers unique qualities that make them attractive options for passive income investors.

Realty Income, as selected by Jennifer Saibil, stands out for its monthly dividend payments. This real estate investment trust (REIT) not only pays a high yield, currently around 6%, but also operates a stable and reliable business. With over 15,000 properties globally and a diverse tenant base, Realty Income has demonstrated resilience in the face of challenges such as inflation and a tough real estate market. The company has a strong track record of paying dividends, with 646 consecutive monthly payments and 106 consecutive quarterly increases.

Home Depot, chosen by Jeremy Bowman, is a proven long-term winner in the home improvement retail sector. As part of a duopoly with Lowe’s, Home Depot has established a strong position in the market with barriers to entry for competitors. The company has been investing in its digital platform and returning capital to shareholders through dividends and share buybacks. With a history of double-digit dividend increases and a current yield of 2.56%, Home Depot offers investors a reliable source of passive income.

Starbucks, selected by John Ballard, is a global beverage brand with a tasty yield for investors. With a dividend yield of over 2.5% and strong earnings growth, Starbucks presents an attractive opportunity for passive income seekers. The company’s global brand recognition and growth opportunities make it a compelling investment choice. Starbucks has a large and loyal customer base, with 34 million members in its rewards program, allowing it to distribute a significant portion of its free cash flow to shareholders in the form of dividends.

In conclusion, Realty Income, Home Depot, and Starbucks are three top dividend stocks that offer investors the opportunity to earn passive income. Each company has unique qualities that make them attractive options for those looking to build a portfolio focused on generating a steady stream of income. By investing in these companies with a history of dividend growth, investors can benefit from reliable and growing passive income over the long term.