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3 Dividend Stocks You Can Safely Hold for Decades

By Keith Speights - May 20, 2021 at 6:01AM

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These stocks should allow you to sleep peacefully knowing the dividends should continue to flow.

In a world of dizzying changes, it's nice to have at least a few constants. These are things that don't change -- at least not in a bad way. You can count on them year in and year out.

This is especially important for income-seeking investors. You don't want to have to whipsaw in and out of different stocks on a continual basis. Instead, you'll want to buy the stocks of solid companies that pay steady dividends. The good news is that such stocks do exist. Here are three dividend stocks that you can safely hold for decades.

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Brookfield Renewable 

Do you foresee the demand for renewable energy increasing or decreasing over the next two, three, or even four decades? You don't need an uncanny ability for predicting the future to expect higher usage of renewable energy sources for a long time to come.

That's great news for Brookfield Renewable (BEP -1.60%) (BEPC -1.88%), one of the world's top providers of renewable energy. The company operates hydroelectric, wind, solar, and storage facilities across North America, South America, Asia, and Europe. It has strong growth prospects, with a development pipeline that's nearly 29% larger than its installed capacity.

Brookfield Renewable has increased its distribution (dividend) payout by a compound annual growth rate of 6% since 2000. It targets annual increases of between 5% and 9%.

You can buy Brookfield Renewable in two ways. Shares of the limited partnership (LP) Brookfield Renewable Partners trade under the BEP ticker and currently offer a dividend yield of 3.2%. Shares of Brookfield Renewable Corporation trade under the BEPC ticker with a current dividend yield of nearly 3.1%.

Both stocks reflect the same underlying business. Brookfield Renewable set up BEPC to give investors an alternative to buy without encountering some of the tax issues associated with LPs.

Easterly Government Properties

Easterly Government Properties (DEA -1.20%) board chairman Darrell Crate summed up the key thing to know about the company in just 12 words in Easterly's Q1 conference call. He stated that the real estate investment trust (REIT) has "leases backed by the full faith and credit of the U.S. government." 

A REIT is only as strong as its tenants. Easterly is one of the most attractive dividend stocks around because its tenant -- Uncle Sam -- is as strong as you'll find. The company currently owns 82 properties, and 80 of them are leased to U.S. government agencies.

As a REIT, Easterly must return at least 90% of its taxable income to shareholders in the form of dividends. Its dividend currently yields nearly 5.2%.

The company should also deliver solid growth, primarily by acquiring new properties. Easterly bought three buildings in March and another in April, all of which have been leased to federal agencies.

Johnson & Johnson

There aren't many stocks that are as safe as Johnson & Johnson (JNJ 1.52%). The healthcare giant has been in business for over 130 years and has weathered plenty of storms during its history. It's not only survived, but thrived.

The two greatest strengths for Johnson & Johnson are its diversification and financial position. It sells hundreds of products across the healthcare sector, from consumer products such as Band-Aids and Listerine to medical devices to prescription drugs. J&J generated sales of $82.5 billion last year, with profits totaling $14.7 billion.

Johnson & Johnson also ranks as a Dividend King, with 59 consecutive annual dividend increases. Its dividend yield currently stands at 2.5%.

The company should deliver decent long-term growth to boot. Wall Street analysts project that J&J will grow its earnings by an average of nearly 7.5% over the next five years. Johnson & Johnson's strong financial position allows it to invest heavily in research and development, as well as make strategic acquisitions to ensure it stays at the forefront of healthcare innovation.

Keith Speights owns shares of Brookfield Renewable Corporation Inc. and Brookfield Renewable Partners L.P. The Motley Fool recommends Easterly Government Properties and Johnson & Johnson. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Johnson & Johnson Stock Quote
Johnson & Johnson
$169.31 (1.52%) $2.54
Brookfield Renewable Partners L.P. Stock Quote
Brookfield Renewable Partners L.P.
$38.74 (-1.60%) $0.63
Easterly Government Properties, Inc. Stock Quote
Easterly Government Properties, Inc.
$18.87 (-1.20%) $0.23
Brookfield Renewable Corporation Inc. Stock Quote
Brookfield Renewable Corporation Inc.
$40.75 (-1.88%) $0.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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