3 Dividend Stocks You Can Safely Hold for Decades

In a world of dizzying changes, it’s nice to have at least a few constants. These are things that don’t change — at least not in a bad way. You can count on them year in and year out.

This is especially important for income-seeking investors. You don’t want to have to whipsaw in and out of different stocks on a continual basis. Instead, you’ll want to buy the stocks of solid companies that pay steady dividends. The good news is that such stocks do exist. Here are three dividend stocks that you can safely hold for decades.

Brookfield Renewable 

Do you foresee the demand for renewable energy increasing or decreasing over the next two, three, or even four decades? You don’t need an uncanny ability for predicting the future to expect higher usage of renewable energy sources for a long time to come.

That’s great news for Brookfield Renewable (NYSE:BEP) (NYSE:BEPC), one of the world’s top providers of renewable energy. The company operates hydroelectric, wind, solar, and storage facilities across North America, South America, Asia, and Europe. It has strong growth prospects, with a development pipeline that’s nearly 29% larger than its installed capacity.

Brookfield Renewable has increased its distribution (dividend) payout by a compound annual growth rate of 6% since 2000. It targets annual increases of between 5% and 9%.

You can buy Brookfield Renewable in two ways. Shares of the limited partnership (LP) Brookfield Renewable Partners trade under the BEP ticker and currently offer a dividend yield of 3.2%. Shares of Brookfield Renewable Corporation trade under the BEPC ticker with a current dividend yield of nearly 3.1%.

Both stocks reflect the same underlying business. Brookfield Renewable set up BEPC to give investors an alternative to buy without encountering some of the tax issues associated with LPs.

Easterly Government Properties

Easterly Government Properties (NYSE:DEA) board chairman Darrell Crate summed up the key thing to know about the company in just 12 words in Easterly’s Q1 conference call. He stated that the real estate investment trust (REIT) has “leases backed by the full faith and credit of the U.S. government.” 

A REIT is only as strong as its tenants. Easterly is one of the most attractive dividend stocks around because its tenant — Uncle Sam — is as strong as you’ll find. The company currently owns 82 properties, and 80 of them are leased to U.S. government agencies.

As a REIT, Easterly must return at least 90% of its taxable income to shareholders in the form of dividends. Its dividend currently yields nearly 5.2%.

The company should also deliver solid growth, primarily by acquiring new properties. Easterly bought three buildings in March and another in April, all of which have been leased to federal agencies.

Full story on Fool.com

Leave a Comment