These 3 Dividend Stocks Are Money-Printing Machines

If you want your stocks to pay you to hold them, dividend investing is for you. And the best way to find fantastic dividend stocks is to, well, follow the money. I mean that literally.

When companies consistently generate more cash profits than they need to reinvest in the business, they tend to distribute the excess to shareholders as dividends. The best dividend-paying companies will even raise that amount year in and year out.

Consumer-facing companies are fertile ground for dividends. Not only is consumer spending the largest contributor to America's economy, but this is the space where companies with strong brands and long track records of success tend to have staying power.

Here are three money-printing machines that investors can confidently buy and hold for the long term.

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1. A monthly cash machine

Realty Income (NYSE: O) serves as the landlord for thousands of consumer-facing tenants, including restaurants, pharmacies, grocery and convenience stores, and more. As a real estate investment trust (REIT), Realty Income acquires properties to lease out, then distributes most of its taxable income to investors as nonqualified dividends.

Unlike most companies, Realty Income pays a monthly dividend, something it's actually become famous for. The company has also raised its dividend for over 31 consecutive years, and the payout remains well funded at just 73% of guided 2026 funds from operations. That dividend growth streak includes recessions and the COVID-19 pandemic, a testament to the company's strong fundamentals.

The stock also yields more than 5.1%, so investors get immediate sizable income. Investors looking for a money-printing business with a dividend to match can't go wrong by adding Realty Income to their portfolio. It's a no-brainer for anyone looking for monthly cash hitting their account.

2. Cashing in on the housing market

In another corner of the real estate universe, The Home Depot (NYSE: HD) rakes in cash from a lucrative U.S. housing market worth more than $55 trillion. The world's largest home improvement retailer sells products and supplies to professionals and do-it-yourself customers looking to build or remodel homes.

Home Depot is somewhat sensitive to recessions, as consumers pull back from big projects when times are tough. The company does navigate this well and has increased its dividend for 17 consecutive years. The dividend also has plenty of financial breathing room at 64% of Home Depot's cash flow.

The stock currently yields 2.7%, a respectable starting point for income-hungry investors. Analysts estimate that Home Depot will grow earnings at a mid-single-digit rate going forward, so shareholders should continue to see the dividend climb as the business continues to print money.

3. Cashing in on smoke-free products

There may not be a more resilient industry than tobacco. Even though smoking rates are declining in many countries worldwide, Philip Morris International (NYSE: PM) has arguably never been better. The world's largest publicly traded tobacco company sells Marlboro outside the United States and boasts a stellar portfolio of smoke-free products, including Iqos and Zyn.

Philip Morris was one of the early movers in smoke-free nicotine, and that move has paid off. Iqos kickstarted the world's heat-not-burn category, and its 2022 acquisition of Swedish Match brought the leading oral nicotine salt product, Zyn, under its roof. Meanwhile, the stock has continued to pay and raise its dividend every year since it began trading in 2008, following its separation from Altria Group.

The dividend yields 3.1% and consumes approximately 71% of the company's cash flow. Resilient pricing power in combustible cigarettes, combined with growth in smoke-free products, has analysts calling for earnings growth averaging 10% annually over the next three to five years. That should help Philip Morris pad its current dividend obligations and fund future increases for years to come.

Justin Pope has positions in Philip Morris International. The Motley Fool has positions in and recommends Home Depot and Realty Income. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.