Want Decades of Passive Income? 2 Stocks to Buy Now and Hold Forever.

Who wouldn't want passive income -- money that comes to you with little to no effort required of you? One of the best forms of passive income is dividend income. Healthy and growing dividend-paying stocks will reward shareholders with regular payouts and over time those payouts are likely to grow, often outstripping inflation.

Here, then, are two solid dividend payers to consider for your long-term portfolio.

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1. Otis Worldwide

Otis Worldwide (NYSE: OTIS) has specialized in elevators since 1853 -- before the Civil War. It's grown to a recent market value surpassing $30 billion, and its dividend recently yielded 2.1%. If that doesn't sound like a lot, note that it's been growing briskly, with its quarterly payout of $0.42 per share up 8% from the year before and more than doubling over the past five years.

Otis moves about 2.5 billion people daily and makes a lot of its money not just from selling new people-moving systems but also from updating and modernizing existing ones. Recent new-system sales have been growing slowly, but modernizations are in greater demand. Otis has also been buying back a a lot of shares, leading to a total yield for shareholders of 4.7%.

The stock's valuation is also attractive, with a recent forward-looking price-to-earnings (P/E) ratio of 18.3 well below the five-year average of 23.4.

2. American Tower

American Tower (NYSE: AMT) is another solid dividend-paying stock, with a recent yield of 3.7%. It has been raising that payout over time, too, with the recent total annual payout of $6.89 per share up considerably from $4.53 in 2020 and $2.17 in 2016.

The company is structured as a real estate investment trust (REIT), which means it owns and rents out lots of properties. In American Tower's case, it encompasses nearly 42,000 telecommunication towers, along with data centers, antenna systems, and more.

American Tower's growth prospects are not in doubt, especially with the company expanding abroad. Its foray into data centers may also power growth, as data centers are becoming critical for the proliferation of artificial intelligence (AI) operations.

The stock has averaged annual gains of nearly 11% over the past 15 years, and though it's growing more slowly lately, it's still delivering plenty of income to investors. With a recent forward P/E of 28.3 well below the five-year average of 37.6, the stock is appealingly priced, too.

Permit me to sneak in one more recommendation -- a dividend-focused exchange-traded fund (ETF) that offers a great mix of growth and income: the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), recently yielding 3.3%. It encompasses about 100 high-quality companies with track records of paying dividends for at least 10 years. Its top holdings recently included Lockheed Martin, ConocoPhillips, and Chevron.

Remember, too, that there are plenty of other excellent dividend-focused ETFs out there, along with solid dividend-paying stocks.

Selena Maranjian has positions in American Tower and Schwab U.S. Dividend Equity ETF. The Motley Fool has positions in and recommends American Tower and Chevron. The Motley Fool recommends ConocoPhillips, Lockheed Martin, and Otis Worldwide. The Motley Fool has a disclosure policy.