Want Decades of Passive Income? 2 Top Dividend Stocks to Buy in 2025 and Hold Forever.

Core Viewpoint - The article highlights two strong dividend stocks, Waste Management and AT&T, as potential sources of passive income for investors. Group 1: Waste Management - Waste Management (WM) is a leading supplier of waste management services in North America, making it a reliable dividend stock due to the consistent demand for garbage collection [2][3]. - The company operates a vast network of landfills and transfer stations across the U.S. and Canada, facing limited competition due to homeowner opposition and strict regulations [3]. - Waste management is considered recession-resistant, as the need for trash collection persists during economic downturns, while population and economic growth are expected to drive disposal volumes and earnings higher in the coming decade [4]. - WM's growth strategy includes acquisitions, exemplified by its $7.2 billion purchase of Stericycle, which is anticipated to enhance cash flow generation in the future [5]. - WM has a 22-year history of increasing dividends, with a current yield of 1.5% [6]. Group 2: AT&T - AT&T is a telecommunications giant favored by dividend investors, currently offering a substantial yield of 4.5% [7]. - The company benefits from providing bundled wireless and broadband internet services, which appeals to consumers seeking simplicity and cost savings [8]. - In the fourth quarter, AT&T gained 482,000 postpaid phone subscribers and 307,000 fiber customers, marking its 20th consecutive quarter of adding at least 200,000 broadband accounts [9]. - These customer gains are expected to drive free cash flow to over $18 billion by 2027, up from approximately $16 billion in 2025, with plans for $40 billion in dividends and share repurchases over the next three years [10]. - AT&T aims to reduce debt using its cash flow, targeting net debt-to-adjusted earnings goals by the first half of 2025, which should lower financing costs and enhance profits [11]. - The stock is currently valued at less than 11 times its projected free cash flow in 2025, presenting a favorable investment opportunity [12].