3 Top Dividend Stocks to Buy and Hold for the Next 20 Years

Core Viewpoint - Dividend stocks are strong long-term investments, outperforming non-dividend-paying stocks by over 2-to-1, with the best returns coming from companies that consistently grow their dividends [1] Group 1: Brookfield Renewable - Brookfield Renewable has achieved a 6% compound annual growth rate in dividends since 2001, marking its 14th consecutive year of at least a 5% increase [2] - The company generates stable cash flow, with 90% of its revenue supported by long-term contracts averaging 14 years, and about 70% of revenue indexed to inflation, ensuring steady income growth [3] - Additional growth drivers include margin enhancement, a significant development pipeline, and acquisitions, which are expected to increase funds from operations (FFO) per share by over 10% annually for the next decade, supporting a 5% to 9% annual dividend increase [4] Group 2: Realty Income - Realty Income has raised its dividend 130 times since its public listing in 1994, maintaining a growth streak of 30 years and 110 consecutive quarters, with a compound annual growth rate of 4.3% [5] - The REIT owns a diversified commercial real estate portfolio and benefits from long-term net leases, providing stable rental income as tenants cover taxes, insurance, and maintenance, with rents typically escalating at a low-single-digit fixed rate [6] - Realty Income's strong financial profile allows for continued investment in income-producing real estate, with a total addressable market for net lease real estate estimated at $14 trillion, indicating a long growth runway [7] Group 3: Medtronic - Medtronic has delivered its 47th annual dividend increase, with a compound annual growth rate of 16% in dividends [8] - The company's diversified medical technology portfolio generates durable cash flows, with a commitment to return at least 50% of free cash flow to investors through dividends and share repurchases, while maintaining a strong balance sheet for acquisition flexibility [9] - Medtronic's large and growing market opportunity, along with ongoing investments in innovation, positions the company well for continued dividend increases in the future [10] Group 4: Durable Dividend Growth Stocks - Brookfield Renewable, Realty Income, and Medtronic have consistently grown their dividends, supported by durable cash flows, strong balance sheets, and visible growth profiles, making them excellent long-term dividend stocks [12]