If you’re prowling the financial jungle for some steady passive income, dividend stocks might just be your holy grail. These gems don’t just pay you quarterly; they play the long game with a portfolio boost. According to a Hartford Funds study, companies that regularly pay and increase dividends tend to offer better returns with lower volatility than their non-dividend counterparts. If that doesn’t perk your interest, I don’t know what will.
Here’s the scoop on three income stocks you might want to snuggle up with for the next decade.
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Realty Income: The Monthly Payer
Realty Income (NYSE: O) is one of the big fish in the REIT pond, making it a tasty option for those chasing passive income. What makes this outfit stand out? It’s all about the monthly dividend checks, boasting a juicy annual yield of 5.2%. These guys own a slew of commercial spaces under long-term leases, hitting tenants with the bills for taxes, insurance, and maintenance. With no single tenant hogging more than 3.3% of the rent pie, it’s diversified and ready to weather any storm.
Moreover, Realty Income’s got these nifty built-in rent escalators, dancing gracefully with inflation. And with interest rates chilling recently, their borrowing costs have taken a comforting dip. For the real estate moguls at heart, this one’s golden.
Lowe’s: The Dividend King
Enter Lowe’s Companies (NYSE: LOW), struttin’ in with a modest 1.7% dividend yield. It’s no rookie, having amped up its dividend every year for a whopping 54 consecutive years—now that’s classic. Lowe’s keeps a smart payout ratio at 39% of its net income, so even when things get dicey, it’s got the buffer to keep rolling out dividends.
Recently, the company snagged Foundation Building Materials for $8.8 billion, cementing its foothold in the building products sector. Their pro sales segment has rocketed from 19% to 30% of total sales in just five years. For those craving both growth and income, Lowe’s fits the bill perfectly.
Chevron: Energy’s Undisputed Champion
Chevron (NYSE: CVX) knows the energy game isn’t for the faint-hearted, yet it has soared high for 38 consecutive years with growing dividends, even when the oil tides turned treacherous. No small feat, am I right? From the infamous 2008 crash to the pandemic disruptions, Chevron held steady.
Their business model sprawls across the oil and gas spectrum, mixing short-cycle and long-cycle assets. In 2025, Chevron snagged the offshore Stabroek Block in Guyana, offering low-cost, multi-decade production capabilities. And with a nifty joint venture with GE Vernova to power up to 4 gigawatts through natural gas plants, they’re poised for future gains. Chevron’s track record and foresight make it a heavyweight in the sector.
But hold up, before you dive head-first into Realty Income stocks, there’s a twist. According to Motley Fool’s Stock Advisor, it’s not cracking the top 10 list of stocks right now, though other big names are flaunting potential for hefty returns. Remember when Netflix hit this list in 2004? A $1,000 investment back then could have fetched you $474,578. Not too shabby, huh? You might want to peek at their latest picks for some rock-solid guidance.
Hey, even the seasoned analysts need backup sometimes. So why not subscribe to Stock Advisor and buddy up with a community carved out by investors, for investors?
Courtney Carlsen is keeping tabs on Chevron and GE Vernova, while The Motley Fool has its eyes on Realty Income, Chevron, and Lowe’s. They’ve got their noses in the game with a disclosure policy to boot.
3 Dividend Stocks to Hold for the Next 10 Years was originally published by The Motley Fool.
