Want Decades of Passive Income? 3 Stocks to Buy Now and Hold Forever

Investing in Wall Street carries no absolute assurances, particularly concerning dividends. The board of each individual company holds the power to determine the dividend amount privately. However, for those interested in generating long-term income, analyzing a company’s past dividend decisions can provide valuable insights. For instance, companies like Medtronic (MDT), Becton, Dickinson (BDX), and Universal Health Realty Trust (UHT) have established dividend histories that warrant careful examination if your goal is to accumulate passive income over several decades.

Medtronic has a high yield and a great dividend record

In discussing dividend streaks, three significant milestones stand out: ten years, twenty-five years, and fifty years – with Medtronic, a medical device manufacturer, currently being just two years away from achieving the impressive 50-year mark. Such an achievement isn’t something that happens by chance; it underscores a robust business model that thrives in both favorable and challenging market conditions. Moreover, this streak highlights the company’s commitment to investor satisfaction by consistently focusing on progressive dividend payouts.

Currently, Medtronic’s dividend rate stands at approximately 3.2%, which falls toward the higher end of its typical range. This high yield can be attributed to a few factors such as a period of slower growth and a lull in innovation. However, these issues are being actively addressed by the company’s management. To optimize their operations, they are streamlining the business to concentrate on their most lucrative sectors. On the other hand, in terms of new products, Medtronic’s research and development efforts are beginning to bear fruit as novel technologies are being introduced into the market.

For those who prefer long-term income investments, Medtronic could be an excellent option currently. It’s anticipated that the broader financial market might eventually recognize the positive changes being implemented.

Becton, Dickinson has passed the 50-year mark

Becton, Dickinson boasts a 53-year long dividend streak, classifying it as a ‘Dividend King.’ This indicates that the company’s board of directors prioritizes dividend investors in their decision-making process. With a yield of 2.4%, while lower compared to other dividend stocks on this list, it still falls within the higher range of Becton, Dickinson’s historical yield. As such, those seeking a reliable income stream may want to consider including Becton, Dickinson in their portfolio.

Speaking of it, Becton, Dickinson, a firm identified as a medical technology company, currently finds itself in the midst of a transformation process. Importantly, it’s had its fair share of strategic blunders over the past few years, including a significant product withdrawal incident.

In a recent development, the company has made an acquisition (it bought the critical care product group from Edwards Lifesciences to strengthen its main operations). Additionally, it plans a significant divestment (the biosciences & diagnostic solutions division will be spun off and later purchased by Waters in a rather intricate deal), which is not expected to occur until 2026. At present, there are numerous aspects in motion.

For more daring investors, it might be worthwhile to purchase and retain shares of Becton, Dickinson during this period, considering its past dividend trends. The upcoming spinoff is anticipated to boost earnings in the initial year, indicating that the dividend should remain stable post-transaction. If the dividend rate does decrease temporarily, remember that the company’s core business remains robust and future dividend growth could rebound swiftly.

While this choice might not suit everyone, it could appeal to those with a bold spirit who are open to a transformation process.

Universal Health Realty Trust is boring

Contrasting Becton, Dickinson with Universal Health Realty Trust, the latter is more of a steady stock. This Real Estate Investment Trust (REIT) primarily invests in medical office properties and healthcare assets. Its main operation involves collecting rent, which is a consistent business strategy. Remarkably, this approach has enabled the REIT to raise its dividend every year for over four decades now. The latest increase in dividend was announced in June 2025.

The dividend return stands impressively high at 7.4%, but hold on before investing in this stock. There are some conditions to consider. The growth of these dividends has been quite sluggish, with an average yearly rise of merely around 1.5% over the last ten years. This stock might be suitable for your portfolio if you’re aiming to boost its current income generation.

Additionally, there’s a concern about external management, as the REIT appears to be heavily influenced by its major tenant, Universal Health Services. It’s not illogical to have apprehensions that decisions could be made which prioritize Universal Health Services over the REIT’s shareholders. This potential conflict may deter some investors, despite the impressive track record of dividend growth.

Three proven dividend track records

Not every dividend stock is suitable for every investor. However, if your goal is long-term income generation, you might want to consider analyzing stocks like Medtronic, Becton, Dickinson, and Universal Health Realty Trust.

Among the options given, Medtronic seems to be the most versatile choice due to its robust dividend record and improving business performance. Becton, Dickinson might attract turnaround investors looking for opportunities to revitalize a company. Lastly, Universal Health Realty Trust’s predictable rental-based business could appeal to conservative investors seeking stable income streams during these times.

2025-07-23 17:31

Medtronic has a high yield and a great dividend record

Becton, Dickinson has passed the 50-year mark

Universal Health Realty Trust is boring

Three proven dividend track records

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