Relax, do what you love and earn money. That probably sounds like a great life to most people. Making this a reality is not easy, but it is possible.
The key is to generate passive income. You’ll need money to make money, but once you have it, there are plenty of great alternatives for making your money grow. Want decades of passive income? Here are three dividend stocks to buy now and hold forever.
1. AbbVie
AbbVie (NYSE:ABBV) is one of the largest biopharmaceutical companies in the world. It sells 12 blockbuster drugsincluding Humira and Botox, as well as several others that generate hundreds of millions of dollars per year.
You won’t find many companies with a stronger dividend program than AbbVie. It’s a dividend king with 52 consecutive years of dividend increases. Since he separated from Abbott in 2013, AbbVie increased its dividend by more than 287%. Its forward dividend yield is around 4%.
AbbVie’s finances are rock solid. The drugmaker’s revenue totaled $54.3 billion last year, with a profit of nearly $4.9 billion. As of March 31, 2024, AbbVie’s cash position was more than $18 billion.
I particularly like the resilience of AbbVie. The company began facing competition from biosimilars for its top-selling drug, Humira, last year. However, it is poised to return to robust growth soon thanks to new products such as Rinvoq and Skyrizi.
2. Lowe Enterprises
Lowe’s Companies (NYSE: LOW) ranks second among home improvement retailers. It operates more than 1,700 stores in the United States.
At first glance, you might not be too impressed with Lowe’s forward dividend yield of just over 2%. However, like AbbVie, Lowe’s is a dividend king. The company has increased its dividend for 51 consecutive years. Over the past five years, Lowe’s has doubled its dividend.
The home improvement giant is a money machine. Lowe’s generated $86.4 billion in revenue during its fiscal year ended February 2, 2024, with a profit of more than $7.7 billion.
Certainly, the current macroeconomic environment, characterized by stubbornly high inflation and uncertainty over the timing of potential interest rate reductions, is having a negative impact on the home improvement industry. However, the long-term outlook remains strong, particularly with the median age of housing in the United States now exceeding 40 years.
3. Public storage
Public storageIt is (NYSE:PSA) the name reflects its activity well. The real estate investment trust (REIT) owns and operates more than 3,300 self-storage facilities in 40 U.S. states.
REITs often offer juicy dividends. Public Storage is no exception with its forward dividend yield of 4.3%. Last year, the company increased its dividend payout by 50%.
Public Storage continues to generate strong funds from operations (FFO), arguably the most important financial metric for a REIT. It benefits from strong A2 and A credit ratings of Moody’s And S&P, respectively. The company’s cumulative same-store net operating income growth over the past 20 years has more than doubled the core real estate industry average.
The self-storage market is expected to continue to grow. In addition, the significant fragmentation of this market offers Public Storage development opportunities through the acquisition of new properties. The company’s size, brand awareness, balance sheet and technology give it competitive advantages that should keep it at the forefront for decades.
Should you invest $1,000 in AbbVie right now?
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Keith Speights holds positions at AbbVie and Lowe’s. The Motley Fool features and recommends Abbott Laboratories, Moody’s and S&P Global. The Motley Fool recommends Lowe’s Companies. The Mad Motley has a disclosure policy.
Want decades of passive income? 3 Stocks to Buy Now and Hold Forever was originally published by The Motley Fool
