The idea of steady money flowing in, year after year, should appeal to nearly everyone. This isn't an unrealistic dream; investing in stocks that pay reliable dividends can make it a reality.
And some dividend stocks can make the dream come true better than others. Want decades of passive income? Here are three stocks to buy now and hold forever.
1. Abbott Laboratories
Abbott Laboratories' (ABT -1.01%) history dates back to 1888. Today, Abbott ranks among the world's largest healthcare companies. It develops cardiovascular-care devices, diabetes-care solutions, diagnostic systems, neuromodulation devices (altering the activity of the nervous system to treat various conditions), nutrition products, and branded generic medicines.
For investors seeking passive income, probably the most important thing to know about Abbott is that it's a member of the elite group of stocks known as Dividend Kings. To join this group, a company must increase its dividend annually for at least 50 consecutive years. Abbott's streak of increases stands at 53.
How much income do Abbott's consistent dividends pay? The healthcare company's forward yield is roughly 1.8%. That yield won't excite too many income investors.
However, anyone would bought Abbott's shares 10 years ago would now enjoy an effective dividend yield of around 5.6%. That underscores the power of the company's dividend growth.
Keeping the dividends flowing and growing shouldn't be a problem for Abbott. Its underlying business remains strong and diversified across multiple healthcare areas. The company's dividend payout ratio is a low 28.6%, reflecting ample flexibility to increase the dividend in the future.
2. AbbVie
If you like Abbott, you'll probably love AbbVie (ABBV 0.13%). The similarity between their names isn't coincidental; Abbott spun off AbbVie in 2013. While Abbott continued to focus on medical devices and branded generic drugs, AbbVie went after the broader pharmaceuticals market.
Image source: Getty Images.
AbbVie inherited Abbott's status as a Dividend King. Like Abbott, AbbVie has more than quadrupled its dividend payout since the 2013 spinoff. However, the big drugmaker pays a more generous dividend than its parent. AbbVie's forward dividend yield is around 2.9%.
Stock performance is another area where AbbVie is outshining Abbott. Whether we're talking about the last 10 years, five years, three years, or so far in 2025, AbbVie's gains have been greater than Abbott's.
I like that AbbVie has faced a huge patent cliff and emerged relatively unscathed. The company's longtime top-selling drug Humira lost U.S. patent exclusivity in 2023.
AbbVie quickly returned to growth despite plunging sales of its flagship product thanks to rising stars, including its two successors to Humira, Rinvoq and Skyrizi. The company should be poised for strong long-term growth as its newer drugs gain momentum.
3. Johnson & Johnson
Johnson & Johnson (JNJ 0.31%) might be the best-known name in healthcare, and its roots go back to 1886. For years, J&J was the largest healthcare company. But the spinoff of its consumer health unit in 2023 and the rapid rise of Eli Lilly resulted in a change at the top.
What didn't change for Johnson & Johnson, however, is its status as a Dividend King. The giant medtech and pharmaceutical company has increased its dividend for a remarkable 63 consecutive years. Only a handful of other companies have longer track records of dividend hikes.
J&J's dividend yield of 2.7% is also attractive. So is its dividend payout ratio of 49%, which indicates plenty of room for the company to keep its streak of dividend increases going.
Granted, Johnson & Johnson hasn't delivered jaw-dropping revenue growth lately. However, earnings soared more than 18% year over year in the second quarter of 2025. J&J has a robust pipeline and a history of innovation that should enable it to continue growing over the long run.
