Want Passive Income for Life? Here Are 2 Dividend Stocks to Buy and Never Sell

One type of stock will reward you no matter which direction the major indexes take, and that's the dividend stock. These companies share the wealth with investors by paying them a specific amount on a predetermined basis, for example, quarterly or annually. This passive income can be a major plus for your portfolio during difficult market times, as it may at least partially compensate for any declines. And during better days, dividend payments offer you an extra boost. Holding on to these stocks for the long term is key, as this allows you to truly benefit from these payments, adding to the value of your portfolio year after year.

If you want this passive income for life, it's a great idea to carefully select companies that have proven their commitment to dividend payments and dividend growth, and you will find these players on the Dividend Kings list. These are companies that have lifted their dividend payments for at least 50 straight years. This shows that rewarding shareholders is important to them. With this in mind, let's check out two dividend stocks, both Dividend Kings, to buy now and never sell.

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1. Abbott Laboratories

Abbott Laboratories (NYSE: ABT) pays a dividend of $2.52, at a yield of 2.5%, higher than the 1% dividend yield of the S&P 500. The healthcare giant's high levels of free cash flow show that it has what it takes to keep these payments going and growing, and its Dividend King status confirms its commitment to dividend growth. This makes it a stock you probably can count on for passive income well into the future.

ABT Free Cash Flow data by YCharts

When selecting dividend stocks, you won't look at this element alone, but you'll also aim to get in on a well-established business with strong long-term prospects. And Abbott scores a win here, too. One of the elements I like the most about Abbott is its diversification across four businesses: medical devices, diagnostics, nutrition, and established pharmaceuticals. This is a major plus because if one unit faces headwinds at a certain time, others may compensate.

I also like the fact that Abbott offers many products that are leaders in their spaces, from Ensure nutrition drinks to the FreeStyle Libre continuous glucose monitor. And this has helped the company generate earnings growth over time. Abbott isn't resting on its laurels, though, and continues to innovate. It's expecting exciting market launches in the coming year, including the release of the Libre Duo, the world's first dual glucose-ketone biowearable sensor, a product that represents a significant milestone in diabetes monitoring.

So, when you buy shares of Abbott now, you can get in on a company with a well-established source of revenue and potentially a new wave of growth ahead -- and benefit from passive income over time.

2. Johnson & Johnson

Like Abbott, Johnson & Johnson (NYSE: JNJ) has also proven its commitment to dividend growth. Today, the healthcare powerhouse pays $5.36 a share, at a dividend yield of 2%. And J&J, too, with free cash flow of more than $22 billion, has the ability to continue increasing its payments. So, investors seeking passive income can buy the shares with confidence, knowing their investment likely will grow over time.

And, like Abbott, J&J is also a fantastic business. This healthcare player operates two units: innovative medicine and medtech. In the second quarter, these businesses drove growth of more than 6% to $25 billion in revenue, and the company says it's on track to reach more than $100 billion in annual revenue. This would mark its highest annual revenue ever.

Though J&J is a long-established company, this player is heading toward a fresh phase of growth. J&J managed the loss of exclusivity of its blockbuster immunology drug Stelara, and today has 28 products or platforms that generate more than $1 billion in annual revenue. The company's oncology portfolio has kept it on track to become No. 1 in that area by 2030 with potentially more than $50 billion in sales.

All of this makes J&J an investment you will want to hold onto, possibly forever, for the company's strength -- and the solid commitment to passive income.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.