Some stocks pay juicy dividends for a while only for the income to later dwindle. Others generate consistent and reliable dividends over the long run.
Want decades of passive income? Here are three stocks to buy now and hold forever.
1. Chevron
Chevron (CVX -0.23%) has increased its dividend for 37 consecutive years. The oil and gas producer doesn’t just have an impressive dividend track record, though. Its forward dividend yield of 4.15% is also appealing.
The company’s history dates back to 1879 when it was known as Pacific Coast Oil Company. Today, Chevron ranks as the world’s third largest oil and gas producer with a market cap of more than $280 billion and annual revenue approaching $200 billion.
Decades ago, some predicted that the world’s oil reserves would soon peak and then decline. Chevron continues to disprove those predictions. Its net reserve additions between 2013 and 2023 easily exceeded its production and sales. Technological advancements should enable the company to at least maintain production at current levels for many years to come.
One technology could especially help Chevron keep the dividends flowing: carbon capture and storage (CCS). In 2023, the company expanded a joint venture that’s building the largest CCS hub in the U.S. Chevron’s goal is to capture 25 million metric tons of carbon per year by the end of this decade.
2. Pfizer
Pfizer (PFE 0.31%) paid its 345th consecutive quarterly dividend on Jan. 24, 2025. The big pharmaceutical company has increased its dividend every year since 2010. I expect that streak to continue with Pfizer’s management consistently placing a high priority on growing the dividend. Income investors should love Pfizer’s forward dividend yield of 6.51%.
Two cousins, Charles Pfizer and Charles Erhart, founded Pfizer in 1849. The company is now one of the world’s largest drugmakers with a market cap of around $150 billion and annual revenue of close to $60 billion. Pfizer markets 12 blockbuster drugs, including blood thinner Eliquis and oral COVID-19 antiviral therapy Paxlovid.
Sure, Pfizer faces some headwinds over the next few years. Several of its top products will lose patent protection. The Centers for Medicare and Medicaid Services also selected some of Pfizer’s drugs to be on the list for Medicare price negotiations, which could impact revenue.
However, Pfizer has successfully navigated challenges in the past. I fully expect it will do so again. The company has several newer drugs that are key growth drivers (and haven’t been on the market long enough to make Medicare’s list for price negotiations). It also has a promising pipeline that features 108 candidates in clinical development.
3. Verizon Communications
Verizon Communications (VZ 0.92%) has increased its dividend for 18 consecutive years. The telecommunications leader is also a passive income machine with its forward dividend yield of 6.98%.
Technically, Verizon is the youngest of the three companies on this list. It was founded in 2000 with the merger of Bell Atlantic and GTE. However, Verizon’s roots through Bell Atlantic go back to 1877 with the creation of the American Bell Telephone Company.
Verizon today is one of the world’s biggest telecom companies with a market cap of $163 billion and annual revenue of roughly $134 billion. It could soon grow even larger with the pending acquisition of Frontier Communications.
Mergers and acquisitions are an important part of Verizon’s growth strategy. However, the company should have other major growth opportunities in the future, notably including the anticipated rollout of 6G networks over the next few years.
Keith Speights has positions in Chevron, Pfizer, and Verizon Communications. The Motley Fool has positions in and recommends Chevron and Pfizer. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
