Boost Your Passive Income with These 5 Top Dividend Stocks for Long-Term Growth

Investors looking for a steady passive income stream can consider dividend stocks. These companies typically have effective business models, prudent capital management, and a strong commitment to rewarding investors. Five quality dividend stocks to consider are JPMorgan Chase, Ares Capital, Hartford Funds, Realty Income, and AT&T. They offer stability, dividend growth potential, and strong financials.

Investors seeking a reliable income stream can consider dividend stocks, which offer a portion of a company's profits to shareholders. Dividend-paying companies often exhibit strong business models, sound management, and a commitment to returning capital to shareholders. Research from Hartford Funds shows that dividend stocks have outperformed non-dividend counterparts over the long term, with lower volatility [1].

Here are five quality dividend stocks that investors should consider adding to their portfolios:

1. JPMorgan Chase (NYSE: JPM)
JPMorgan Chase is the largest U.S. bank by assets and has a history of capital discipline and profitability. Under the leadership of CEO Jamie Dimon, the bank has consistently outperformed peers. The bank has steadily increased its dividend over the past 15 years, with a current yield of nearly 2% and a low payout ratio, indicating room for future increases. Its strong capital position is reinforced by consistent results in Federal Reserve stress tests, allowing it to return capital to shareholders [1].

2. Ares Capital (NASDAQ: ARCC)
Ares Capital is the largest publicly traded business development company (BDC) in the U.S. As a BDC, it focuses on providing debt financing to middle-market companies. BDCs are required to distribute at least 90% of their taxable income to shareholders, making them ideal for dividend investors. Ares Capital has a well-managed, diversified portfolio with a history of strong underwriting and credit management, even during volatile periods. Its portfolio spans hundreds of companies across various industries, reducing exposure to sector-specific downturns. As of March 31, 2025, its portfolio comprises 566 companies across numerous industries. Ares Capital's dividend yield typically exceeds 9%, and it has provided 15 years of stable or growing dividend payouts [1].

3. T. Rowe Price Group (NASDAQ: TROW)
T. Rowe Price is a leading asset management firm recognized for its active investment strategies and strong long-term performance. As of March 31, 2025, 61% of its U.S. mutual funds' assets under management (AUM) outperformed their Morningstar median during the past year, and 87% outperformed during the past 10 years. The company's fee-based model generates steady earnings, which helps maintain and expand its payout. T. Rowe's dividend yield is about 5%, and it has raised the dividend every year for 39 consecutive years [1].

4. Aflac (NYSE: AFL)
Aflac is a leading provider of supplemental health and life insurance, with a strong presence in Japan and the U.S. The company's Japanese business accounts for more than half of its revenue, providing a steady, cash-generating base. Aflac has raised its dividend for over 42 consecutive years, with a current yield of 2.2% and a payout ratio of 31%, allowing room for continued increases. Its conservative financial management, strong underwriting discipline, and stable cash-flow generation make it a reliable dividend stock [1].

5. Marsh & McLennan (NYSE: MMC)
Marsh & McLennan is a global leader in insurance brokerage, risk management, and consulting services. The company's dominance in insurance brokerage positions it well to benefit from continued increases in insurance premiums. As a fee-based business, it avoids underwriting risk and generates steady, fee-based cash flows. Marsh & McLennan has delivered consistent revenue and earnings growth during the past decade, increasing adjusted earnings per share for 17 consecutive years. The company's dividend yield is about 1.5% backed by strong free cash flow, making it another solid dividend stock to consider today [1].

These five dividend stocks offer stability, dividend growth potential, and strong financials, making them attractive choices for investors seeking a reliable passive income stream.

References:
[1] https://finance.yahoo.com/news/5-brilliant-dividend-stocks-buy-104500945.html