In today’s investment landscape, passive income generation is a key objective for many investors. While the phrase “easy money” may not be entirely accurate, once you’ve built up your investment portfolio, there are proven strategies to create sustainable income streams. Here are three prominent stocks that stand out as excellent long-term investment options for anyone looking to secure a reliable source of revenue.
First up is AbbVie (NYSE: ABBV), a titan in the biopharmaceutical sphere with a market capitalization of roughly $345 billion. AbbVie’s impressive portfolio includes several blockbuster medications, capable of generating annual sales exceeding $1 billion. While its current forward dividend yield sits at 3.17%, the company has consistently demonstrated a commitment to shareholders with a remarkable history of increasing its dividend for 52 consecutive years, earning a place among the elite Dividend Kings.
Though AbbVie has recently faced challenges with declining revenues tied to biosimilar competition against its flagship drug, Humira, the company’s proactive approach in navigating these hurdles is commendable. AbbVie is rapidly pivoting towards new growth avenues with promising successors like Rinvoq and Skyrizi leading the charge. Their strategic maneuvering to preserve and expand their market presence amid challenges positions AbbVie as an outstanding option for investors aiming for long-term passive income.
Another vital player is Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC), aptly named for its core focus on essential infrastructure across various sectors. Spanning cell towers, data centers, electricity grids, and more, Brookfield Infrastructure packages its earnings as distributions, appealing to income-driven investors. With a forward distribution yield of 5.12% for its limited partnership shares and 4.04% for its corporate entity, the distributions are not only attractive but are backed by a solid track record—15 years of consecutive growth.
The company’s approach hinges on acquiring undervalued infrastructure assets, optimizing their performance through operational excellence, and reinvesting proceeds to fuel ongoing growth. Looking ahead, Brookfield expects to maintain its distribution growth between 5% and 9% annually, making it a robust choice for your portfolio.
The third stock worth considering is Verizon Communications (NYSE: VZ), an established leader in the telecommunications sector. Known for its exceptional customer base and reliable service, Verizon offers a hefty forward dividend yield of 6.27%, making it the highest on this list. With a strong history of increasing its dividends for 18 years straight, Verizon has positioned itself favorably for income investors.
As the company continues to enhance its free cash flow, expectations for future dividend increases remain optimistic. While Verizon may not be known for lightning-fast growth, it does have significant potential for expansion through strategic acquisitions. Its recent decision to acquire Frontier Communications for $20 billion is expected to substantially enhance Verizon’s fiber optic footprint across the United States.
As you contemplate investing in AbbVie, Brookfield Infrastructure, and Verizon Communications, it’s worthwhile to consider that these companies offer reliable options for generating substantial passive income over the long haul. Each possesses unique strengths, illustrating their commitment to growth while delivering consistent returns to shareholders.
For any potential investor, investing in these stocks could be an outstanding strategy for building a steady stream of passive income. Remember to evaluate how these investments fit into your overall financial landscape and consider the long-term growth potential and historical performance before committing your capital. By prioritizing thoughtful investments in companies with proven track records, you’re on the right path to achieving your financial objectives.