3 Enduring Dividend Stocks for Long-Term Portfolio Growth

Key Points

• AbbVie is a Dividend King that has proven its resilience.

• Enbridge appears to have a straightforward path to delivering double-digit total returns.

• Realty Income offers a highly reliable dividend plus attractive growth potential.

Successful investing does not always require complex strategies. At times, the most prudent approach is simply acquiring exceptional dividend stocks and holding them indefinitely.

Of course, identifying the right equities is crucial. While numerous candidates exist, the following three dividend stocks represent excellent choices for perpetual holding.

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1. AbbVie

The most critical fact regarding AbbVie (NYSE: ABBV) is its status as a Dividend King. This prestigious designation belongs to companies that have raised their dividends for a minimum of 50 consecutive years. AbbVie boasts a dividend increase streak spanning 53 straight years, a record that includes its tenure as part of Abbott Labs (NYSE: ABT).

Membership in the Dividend Kings typically signals a remarkably resilient underlying business, which is certainly true for AbbVie. The company traces its origins to 1888 and has successfully navigated its 138-year history despite facing significant obstacles.

One of AbbVie’s greatest hurdles was the patent expiration for Humira, a product that dominated its sales for years. However, management strategically prepared for the loss of exclusivity. Today, AbbVie relies on two successors to Humira—Skyrizi and Rinvoq—which combined have already surpassed Humira’s peak performance.

AbbVie’s business development strategy has proven effective as well. Most recently, the company announced plans to acquire Apogee Therapeutics for $10.9 billion, a move that further expands its immunology pipeline.

2. Enbridge

Enbridge (NYSE: ENB) is not yet a Dividend King, but it is well on its way to earning that distinction. The energy company has raised its dividend for 31 consecutive years. With a dividend yield of approximately 5.6%, Enbridge does not require substantial share price appreciation to deliver double-digit total returns.

I believe such attractive returns are highly likely going forward. Four key trends serve as major growth drivers for Enbridge: the surging construction of data centers, rising demand for liquefied natural gas (LNG), onshoring trends, and the conversion of power plants from coal to gas.

Enbridge forecasts a compound annual growth rate of approximately 5% for its distributable cash flow, earnings per share, and earnings before interest, taxes, depreciation, and amortization (EBITDA). As long as the company’s dividends continue to flow at least at current levels, double-digit total returns should be achievable.

Fortunately for investors, Enbridge’s business stability should ensure the safety of its dividend. The company operates the world’s longest oil and liquids transportation system, with its pipelines moving 40% of U.S. crude oil imports and 30% of North American crude oil production. It is also North America’s largest natural gas utility by volume.

3. Realty Income

Speaking of business stability, the third dividend stock on our list ranks highly in this regard. Realty Income (NYSE: O) shares have outperformed the S&P 500 (SNPINDEX:^GSPC) during 13 drawdowns of 10% or more since its public listing in 1994, delivering an average total return of -2.6% compared to -22.6% for the S&P 500.

The real estate investment trust (REIT) has also increased its dividend for 31 consecutive years and has paid a dividend for 674 consecutive months.

What underpins Realty Income’s remarkable record? A highly diversified real estate portfolio is a key factor. The REIT owns over 15,500 properties leased to clients across 92 industries, including recession-resistant sectors such as grocery stores, convenience stores, and dollar stores.

Realty Income’s growth prospects also appear bright. The company has a $15 trillion total addressable market. Approximately $9 billion of this market is in Europe, where a highly fragmented landscape offers attractive risk-adjusted returns.

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