What’s better than receiving passive income? Enjoyed it for decades.
Generating long-term passive income is easier than you might think. Here are three stocks to buy now and hold forever for a lifetime of dividends.
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Let’s start with some bona fide dividend royalties. AbVie (NYSE: ABBV) is a Dividend Kingwith 52 consecutive years of dividend increases. We’re not talking about tight dividend increases. Since the spin-off of Abbott Labs in 2013, AbbVie increased its dividend payout by 310%.
The major drugmaker’s dividend yield currently stands at almost 3.6%. That has been at the lower end of AbbVie’s dividend yield in recent years. But there’s a good reason for that: AbbVie shares have performed well.
I expect AbbVie to continue to deliver share price appreciation and growing dividends over the next decade and beyond. Although sales of the company’s best-selling drug, Humira, are declining due to a loss of patent exclusivity, AbbVie has a strong product lineup and a pipeline that continues to advance to market.
Autoimmune diseases Rinvoq and Skyrizi in particular should drive AbbVie’s revenue growth in the coming years. However, the company has plenty of other rising stars, including migraine therapies Ubrelvy and Qulipta, leukemia drug Venclexta and antipsychotic Vraylar. AbbVie’s pipeline also offers tremendous potential, with more than 90 programs in clinical development – more than 50 of which are in mid- to late-stage clinical testing.
Real estate income (NYSE:O) is not a Dividend King like AbbVie. However, the company is the seventh largest in the world real estate investment trust (REIT)has an impressive track record, with dividend increases for 30 years in a row.
Investors looking for passive income should like Realty Income’s projected dividend yield of 5.4%. They should also be happy that the REIT pays its dividend monthly instead of quarterly. Realty Income even calls itself “The Monthly Dividend Company.”
The commercial real estate market can be volatile at times. The good news about Realty Income is that its portfolio is highly diversified, with more than 1,550 clients representing 90 industries. About 90% of the company’s total rental income is largely protected from economic downturns and threats from e-commerce.
While Realty Income’s dividend is the main draw for investors, I think this REIT will also be able to deliver solid growth. The company has additional capabilities in the US in several areas, including consumer-facing medical facilities, data centers, freestanding retail and industrial facilities. It has even greater growth prospects in Europe, especially in Britain, with an estimated total addressable market of $8.5 trillion.