Want Decades of Passive Income? 2 Stocks to Buy Right Now

Market downturns are inevitable. Accepting this fact can help you avoid making fear-based decisions as a long-term investor. The good news is, not only does the market have a habit of always recovering from downturns, but quality stocks often rebound faster and stronger than their lower-quality counterparts when markets turn around.

Avoid making investment decisions based on social media buzz or alarming headlines. Base your choices on a thorough analysis of a company's underlying business fundamentals and your original investment thesis.

Investing in dividend-paying stocks is one of numerous approaches that can help you maximize your portfolio growth, and provide you with extra income to save or reinvest as you desire. If you're looking for decades of passive income, here are two top stocks to buy and hold right now.

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1. Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) boasts an exceptional track record as a Dividend King, and has raised its dividend for over 60 consecutive years and counting. Its annual payout is $5.20 per share ($1.30 quarterly), and the stock's current yield is in the ballpark of 2.5%. Its current return (including dividends) stands at about 165% over the trailing decade. While that's about half the return of the S&P 500 during that same time frame, the value-oriented healthcare stock could be a great anchor stock for a long-term investor's portfolio.

Johnson & Johnson is one of only two U.S. companies with an AAA credit rating (which is higher than the U.S. government). The company's total reported sales in Q3 came to $24 billion, which was a 6.8% increase compared to one year ago. Sales in the Innovative Medicine segment were partially impacted by the loss of patent exclusivity for Johnson & Johnson's longtime blockbuster Stelara, which is approved to treat conditions including plaque psoriasis, Crohn's disease, and ulcerative colitis.

However, the J&J is successfully navigating this impact overall with strong growth driven by other key products including top-selling oncology drugs (Darzalex, Carvykti, Erleada) and MedTech products (e.g., cardiovascular and surgical medical devices). Management aims for the Johnson & Johnson to be a global leader in oncology by 2030.

As of 2024, Johnson & Johnson was the third-largest oncology company in the world. Key products include Rybrevant (an intravenous infusion) plus Lazcluze (a once-daily pill), which are targeted therapies used together to treat advanced non-small cell lung cancer (NSCLC) with specific EGFR mutations. Inlexzo for bladder cancer should also prove to be a vital tailwind for Johnson & Johnson's oncology portfolio.

The combination of Rybrevant and Lazcluze has emerged as a new first-line standard of care for EGFR-mutated NSCLC that provides a statistically significant overall survival benefit compared to the previous industry standard (which is made by AstraZeneca). In December 2025, the FDA approved Johnson & Johnson's Rybrevant Faspro, the first subcutaneous therapy for patients with EGFR-mutated NSCLC. J&J has projected peak annual revenue of $5 billion for its Rybrevant franchise.

Inlexzo received FDA approval on Sept. 9, 2025. It is the first drug-releasing system approved for adults with a type of bladder cancer kown as BCG-unresponsive, non-muscle invasive bladder cancer with carcinoma in situ, a type of cancer that isn't responsive to traditional immunotherapy. Inlexzo is a pretzel-shaped, silicone device that stays in the bladder and releases a chemotherapy drug directly into the bladder over time. The approval of Inlexzo is practice-changing because it offers an alternative option for patients who would otherwise require surgical removal of the bladder.

Then there's Johnson & Johnson's drug Tremfya (approved for a range of concerns including moderate-to-severe plaque psoriasis and ulcerative colitis), which is also rapidly scaling in use for inflammatory bowel diseases and is effectively replacing Stelara as its patent expires.

Johnson & Johnson also boasts more than 20 novel therapies in its pipeline and expects 50 more product expansions by 2030. With several potential blockbuster assets in development and an impressive lineup of established as well as disruptive pharmaceutical products in its approved portfolio, this continues to be a top-notch healthcare stock to buy and hold for the long run.

2. Walmart

Walmart (NASDAQ: WMT) also boasts a a strong, consistent dividend history, and has paid a dividend quarterly since the 1970s. It's also increased its payouts annually for 53 years and counting. The stock's current yield is less 1%, and its forward annual dividend is just under $1 per share. However, its total return (including share price increases and dividends) stands at about 560% over the past decade, so it's been a definitive market beater.

Walmart has demonstrated impressive financial strength and operational efficiency even during tough macro times. In Q3, total consolidated revenue reached $179.5 billion, a 5.8% year-over-year increase, and adjusted operating income grew 8%. The company has shown it can expand its profitability even amid inflationary and consumer cost pressures.

As the world's largest retailer by sales, Walmart's focus on everyday essentials and low prices attracts customers across all economic conditions, including during economic downturns. This tends to make its business inherently resilient. Walmart has successfully integrated its physical store footprint with its e-commerce operations to offer convenient services like same-day pickup and delivery that pure online retailers struggle to match. Global e-commerce revenue grew 27% in Q3 2025 alone.

Beyond core retail, its asset-light businesses like its advertising platform (Walmart Connect) and membership programs (Walmart+ and Sam's Club) are growing rapidly and contributing significantly to the company's operating income. Walmart Connect revenue grew 33% in the U.S. in Q3. Extensive investments in artificial intelligence and automation across its supply chain and operations remains a significant tailwind for the overall business.

For example, Walmart is using automation and robotics in its fulfillment network to speed up the process of moving goods from suppliers to stores and customers. The company employs advanced automation systems to plan the most efficient delivery routes, and reduce fuel costs as well as delivery times. Walmart even uses artificial intelligence and machine learning to analyze vast amounts of data to forecast customer demand for specific products to prevent stockouts and minimize excess inventory.

It's also worth noting that Walmart's grocery business accounts for nearly 60% of its U.S. net sales, so nondiscretionary spending remains the largest product category and a primary driver of the company's growth. The company's expansion both domestically and internationally also bodes well for investor returns in the years ahead.

Walmart's International segment had a very strong third quarter, with net sales up 11.4% and adjusted operating income rising 16.9% driven by significant growth in China and its Flipkart business in India. Now looks like a great time to scoop up some Walmart shares.

Rachel Warren has positions in Johnson & Johnson. The Motley Fool has positions in and recommends AstraZeneca Plc and Walmart. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.