The 3 Best Long-Term Dividend Stocks to Buy for Passive Income

Finding stocks for long-term investment can be challenging due to evolving circumstances and risks. However, established dividend stocks are certainly worth the search. There are companies that are showing consistent dividend growth driven by market dominance in stable or growing industries. Historical data shows that dividends have contributed significantly to overall stock market returns.

Having said that, it’s crucial to remember that there are no assurances and that no stock’s future earnings can ever be predicted. The inclusion of dividend’s equities in an expanded investing plan and a variety of securities enables traders to profit from market changes while minimizing potential downsides.

This article presents three dividend stocks that have an established history for achievement and ought to be taken into account for incorporation in any portfolios of income streams.

Restaurant Brands (QSR)

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Investing in individual dividend stocks can outperform ETFs, and Restaurant Brands International Inc. (NYSE:QSR) has delivered impressive returns. With a 53% increase in share price throughout the past year and a 41% gain across three years, long-term shareholders have plenty to be happy about.

QSR stock, with a market cap of $45 billion, has a strong global presence with more than 29,000 restaurants in 100+ countries. In Q1 2023, the company reported revenue of $1.59 billion, a year-over-year increase, and a net income of $277 million. The company’s portfolio of brands and global scale contribute to its success.

Restaurant Brands has outperformed the S&P 500 despite market challenges. Its growth is driven by initiatives like Burger King’s investment plan and strategies to improve franchisee training and restaurant locations. The company offers investors growth potential, increasing dividends, and a commitment to community and environmental responsibility. With its international presence and focus on operational improvements, Restaurant Brands presents an appealing long-term investment opportunity.

Realty Income (O)

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A real estate investment trust (REIT) with its headquarters in San Diego, Realty Income (NYSE:O) is a member of the Standards and Practices 500 Dividend Aristocrats Index. This index includes businesses with a history of growing payouts for 25 years running. Thus, this is a company that’s proven its ability to provide dividend growth over time.

Additionally, with ownership of more than 12,000 properties under long-term net lease agreements, Realty Income offers the advantage of consistent dividend payments. As a REIT, it is required to distribute at least 90% of its taxable income to shareholders, making it an attractive option for dividend growth.

Realty Income showcased exceptional performance by surpassing revenue and earnings expectations, boasting a remarkable 99% occupancy rate. Furthermore, the company raised its 2023 guidance for normalized funds from operations per share to $4.15, exceeding the consensus estimate of $4.12. With an impressive track record of 26 consecutive years of increasing dividend payouts, Realty Income stands out as a compelling investment opportunity.

Coca Cola (KO)

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Coca-Cola (NYSE:KO) offers investors a combination of income, stability, and long-term growth potential. The company is renowned for its reliable dividend, which has remained intact since 1963. With a low Beta of 0.55, Coca-Cola provides stability and acts as a hedge against market volatility, offering peace of mind to investors.

Coca-Cola ended 2022 with $11 billion in revenue and is projected to reach more than $17 billion by 2030. This growth represents a significant 54% increase. Despite inflationary pressures, the company maintains its steady growth. It has exceeded historical profitability averages, and is venturing into the alcoholic beverages sector. Through strategic acquisitions and product introductions, such as Finlandia vodka and ready-to-drink Jack Daniels and Coke cans, Coca-Cola is making a notable impact in the premium spirits market.

On the date of publication, Chris MacDonald has a position in QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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