3 Dividend Growth Stocks to Buy and Never Sell

In today's investment landscape, the allure of artificial intelligence (AI) stocks has captivated many investors. However, the lack of profitability in many AI ventures and the uncertain path to profitability should give pause. Instead, consider sectors that generate stable profits and cash flows, such as utilities, renewable energy, and REITs. Here are three dividend growth stocks to buy and hold for the long term.

1. **Cohen & Steers Quality Income Realty Fund (RQI)**
- Dividend Yield: 6.5%
- Dividend Growth Rate: 5-year CAGR of 7%
- Payout Ratio: 60%

RQI offers a high, stable yield and has a history of dividend growth. Its focus on quality real estate investments and conservative management style make it an excellent choice for income-oriented investors. With a low payout ratio, RQI has room for future dividend increases, providing a potential catalyst for capital gains.

2. **Brookfield Renewable Partners (BEP)**
- Dividend Yield: 3.5%
- Dividend Growth Rate: 10-year CAGR of 10%
- Payout Ratio: 75%

BEP provides a stable, inflation-protected income stream with a strong dividend growth track record. Its long-term contracts and diverse portfolio of renewable energy assets make it an attractive choice for income investors. BEP's strategic acquisitions and future growth prospects further enhance its appeal as a long-term hold.

3. **Scotiabank (BNS)**
- Dividend Yield: 5.5%
- Dividend Growth Rate: 10-year CAGR of 8%
- Payout Ratio: 55%

Scotiabank offers a high dividend and strong institutional stability. Its focus on income generation and consistent dividend growth make it an attractive option for long-term investors. With a low payout ratio, Scotiabank has the potential for future dividend increases, driving capital appreciation.

Investing in these dividend growth stocks aligns with the future flow of capital, as the demand for power driven by AI and digital technology growth continues to rise. By focusing on sectors that generate profits and cash flows, investors can secure steady and reliable income returns over the long term.



In conclusion, the income-focused approach advocated by the Income Method is particularly suited for retirement portfolios. By capitalizing on undervaluations created by market perceptions, such as high interest rates affecting REITs, investors can secure stable yields and potential capital gains. Diversification and adaptability of investment strategies, as seen in the interest in XAI Octagon Floating Rate & Alternative Income Trust (XFLT) and REITs like AWP and GOOD, further enhance the appeal of this approach.