Want Decades of Passive Income? 2 Stocks to Buy Now and Hold Forever

Investing for passive income is a smart strategy for retirement portfolios, and dividend stocks are an excellent way to achieve this goal. Two stocks that stand out for their consistent dividend growth and attractive payout ratios are Realty Income (O) and Toronto-Dominion Bank (TD). Both companies have proven track records of reliable income streams and offer long-term growth potential.

Realty Income, a net lease REIT, has increased its dividend for 29 consecutive years, providing a compelling 5.1% yield. Its diversified portfolio of over 15,400 properties across North America and Europe ensures stable income and growth. Realty Income's rock-solid investment-grade balance sheet and focus on long-term leases with built-in rent escalators make it an attractive choice for long-term investors.

Realty Income (O)	Toronto-Dominion Bank (TD)
5.1% yield	4.6% yield
29-year dividend growth streak	160+ year dividend history
Diversified portfolio (15,400+ properties)	Entrenched position in Canadian banking

Toronto-Dominian Bank, Canada's largest bank, has paid a dividend every year since 1857, with a current yield of 4.6%. Despite recent legal issues, the bank's conservative culture and entrenched position in the Canadian market make it a reliable income source. TD Bank's payout ratio of 46% is lower than its peers, reflecting its conservative approach to dividend payouts.

Both Realty Income and TD Bank have dividend payout ratios within their industry averages, indicating strong financial health. Their dividend growth is sustainable in the long term due to their robust business models and consistent cash flow generation. Realty Income's net lease strategy and diversified portfolio, along with TD Bank's conservative lending approach, ensure reliable dividend payments.

Realty Income (O)	Toronto-Dominian Bank (TD)
65% payout ratio	46% payout ratio
Industry average: 70-80%	Industry average: 40-50%

Investing in dividend-paying stocks like Realty Income and TD Bank offers decades of passive income and potential for capital appreciation. As interest rates normalize, these stocks' stable yields and growth prospects create opportunities for both income and capital gains. By focusing on reliable income-generating investments, you can secure steady returns and achieve your financial goals.



In conclusion, Realty Income and Toronto-Dominian Bank are excellent choices for investors seeking decades of passive income. Their consistent dividend growth, attractive payout ratios, and strong business models make them ideal for a buy-and-hold strategy. By incorporating these stocks into your portfolio, you can achieve long-term income stability and growth.