Want Decades of Passive Income? 3 Reliable Dividend Stocks to Buy Right Now

By Courtney Carlsen
Updated: March 27, 2025

Investing in dividend-paying stocks can offer a pathway to long-term financial freedom and passive income. Studies show that companies that pay dividends often outperform their non-dividend counterparts over extended periods. Consistent dividend payers typically indicate strong business models and prudent capital management, making them appealing investment choices for individuals seeking both stability and growth.

The Case for Dividend Stocks

Research conducted by Hartford Funds and Ned Davis Research reveals significant differences in stock market performance based on dividend policies. Over the past fifty years, dividend-paying stocks have generated an average annual return of approximately 9.17%, while their non-paying counterparts returned only 4.27%. Even more compelling is the performance of companies that not only initiate dividends but also increase them, which saw an impressive average return of 10.19%.

Moreover, dividend growth stocks tend to exhibit reduced price volatility compared to the broader market, making them an excellent choice for investors looking for reliable income streams. This feature is particularly attractive for those focused on wealth-building over the long term.

Three Reliable Dividend Stocks

Here are three reliable dividend stocks currently recommended for investors looking to secure decades of passive income:

1. Chubb Limited (NYSE: CB)

Market Capitalization: $118 Billion
Current Price: $298.72 (as of March 27, 2025)

Chubb Limited is a global leader in insurance and reinsurance, recognized for its solid capital management and consistent dividend payouts. The company has a long history of increasing dividends, showcasing its commitment to rewarding shareholders. This reliability, combined with its robust business model, makes Chubb a strong candidate for those interested in dividend stocks.

2. Cincinnati Financial Corporation (NASDAQ: CINF)

This Midwestern insurance company has established a reputation for its strong performance and commitment to its dividend policy. Cincinnati Financial has consistently raised its dividends for several decades, proving its resilience and financial stability even during economic downturns. The company’s sound business strategy and customer-centered approach provide a solid foundation for continuous growth.

3. Aflac Incorporated (NYSE: AFL)

Aflac is widely known for its supplemental insurance products and has been a dependable dividend stock for years. The company has a strong history of increasing dividend payouts annually, demonstrating its financial strength and consistent commitment to returning value to shareholders. This makes Aflac an appealing pick for income-focused investors looking for companies with a proven track record.

Conclusion

Investing in dividend-paying stocks like Chubb, Cincinnati Financial, and Aflac can provide a consistent income stream while also allowing for potential capital appreciation. These companies have demonstrated a commitment to returning value to their shareholders through reliable dividend increases, making them ideal choices for long-term investors seeking passive income. As always, potential investors should conduct their own research and consider their financial situation before making investment decisions.

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