3 Top Dividend Stocks to Buy and Hold for the Next 20 Years

Dividend stocks are great long-term investments. They've outperformed non-dividend-paying stocks by more than 2-to-1 over the long term. The best returns have come from companies that pay a growing dividend.

Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), Realty Income (NYSE: O), and Medtronic (NYSE: MDT) have multi-decade histories of increasing their dividends. With lots of growth still ahead, they're great dividend stocks to buy and hold for the next couple of decades.

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A powerful dividend growth stock

Brookfield Renewable has grown its dividend at a 6% compound annual rate since 2001. This marked the 14th straight year that Brookfield hiked its dividend payment by at least 5%.

The leading global renewable energy producer should have plenty of power to continue increasing its dividend in the future. The company generates very stable cash flow. It has long-term contracts supporting 90% of its revenue, with an average remaining term of 14 years. Those agreements index about 70% of its revenue to inflation. Because of that, it should generate steady, growing income.

Brookfield has multiple additional growth drivers, including margin enhancement activities, its massive development pipeline, and acquisitions. These catalysts should grow its funds from operations (FFO) per share by more than 10% annually for at least the next decade. That easily supports the company's plan to increase its dividend by 5% to 9% per year.

A consistent dividend grower

Realty Income routinely raises its dividend. The real estate investment trust (REIT) has boosted its monthly dividend payment 130 times since its public market listing in 1994. It currently has dividend growth streaks of 30 straight years and 110 quarters in a row. The company has grown its dividend at a 4.3% compound annual rate during that period.

The landlord owns a diversified commercial real estate portfolio, including retail, industrial, gaming, and other property types. It net leases its properties under long-term agreements with many of the world's leading companies. Those net leases provide it with very stable rental income, because tenants cover real estate taxes, building insurance, and routine maintenance. Meanwhile, they typically escalate rents at a low-single-digit fixed annual rate.

Realty Income has one of the strongest financial profiles in the REIT sector. That gives it lots of flexibility to continue investing in income-producing real estate. With the estimated total addressable market for net lease real estate at $14 trillion, Realty Income has a very long growth runway.

A very healthy dividend stock

Medtronic delivered its 47th annual dividend increase last May. The medical technology giant has grown its dividend payment at a 16% compound annual rate during that period.

The company's diversified portfolio of medical technology products generates very durable and growing cash flows. The healthcare company aims to return a minimum of 50% of its free cash flow to investors via dividends and share repurchases. It retains the rest to maintain a strong balance sheet, giving it the flexibility to make acquisitions as opportunities arise. Medtronic also invests heavily in research and development to discover and test new medical devices.

Medtronic has a large and growing market opportunity for its existing products. Meanwhile, its continued investments in innovation will enhance its ability to grow. These drivers put the company in a very healthy position to continue increasing its dividend in the decades to come.

Durable dividend growth stocks

Brookfield Renewable, Realty Income, and Medtronic have steadily grown their dividends over the years. That should continue in the decades ahead. They produce durable cash flows, have strong balance sheets, and have visible growth profiles. That makes them great dividend stocks to buy and hold for the next 20 years.

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Matt DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Medtronic, and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, and Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.