Warren Buffett once said that his favorite holding period is “forever.” The following two top dividend stocks are worth buying and holding forever to generate lifelong passive income.
First is Brookfield Renewable (BEP). As a leading global provider of renewable energy and decarbonization solutions, the company owns a diversified portfolio of hydroelectric, wind, and solar assets capable of generating stable and growing cash flows. Currently, Brookfield sells approximately 90% of its power to utilities and large corporate customers through long-term power purchase agreements with an average remaining term of 14 years. About 70% of these contracts include inflation-linked provisions, making cash flows highly predictable and resistant to inflation while also supporting a current dividend yield of 4.4%. The company expects inflation-driven electricity price increases to boost funds from operations (FFO) per share by 2%–3% annually. Moreover, as renewable energy prices are rising faster than inflation, new contracts are expected to be signed at higher market rates once existing agreements expire, contributing an additional 2%–4% in annual growth. Additionally, Brookfield continues to expand through the development of new projects and acquisitions of existing platforms, projecting FFO growth of over 10% per year. Dividends are also expected to grow by 5%–9% annually, building on a compound annual growth rate of 6% since 2001.
Next is Realty Income (O), a real estate investment trust (REIT) operating under a net lease model. The company holds a diversified portfolio of commercial properties across retail, industrial, gaming, and other sectors, with long-term net lease agreements in place with many leading global enterprises. Under this structure, tenants bear all property operating costs, resulting in highly stable rental income that reliably supports monthly dividend distributions (current yield: 5.6%). The REIT allocates approximately 75% of its adjusted operating cash flow to dividend payments, reinvesting the remainder into new income-generating assets. With a strong balance sheet that ranks among the best in the industry, the company is well-positioned for continued portfolio expansion. Since its listing in 1994, Realty Income has increased its dividend 131 times, including 111 consecutive quarterly hikes, demonstrating exceptional dividend discipline and growth resilience.
For investors, Brookfield Renewable Partners and Realty Income not only boast robust financial foundations and sustainable growth trajectories but also offer steadily expanding passive income.
