Want Decades of Passive Income? 3 Stocks to Buy Now and Hold Forever

Key Points

• Medtronic is closing in on Dividend King status and has a historically high yield.

• Becton, Dickinson is already a Dividend King and has a relatively high yield.

• Universal Health has a huge yield and a four-decade dividend streak going.

• 10 stocks we like better than Medtronic ›

There are no guarantees on Wall Street, especially when it comes to dividends. The board of directors of each company decides on the dividend in private. But income investors can glean some information from past dividend decisions, which is the only information available. Medtronic (NYSE: MDT), Becton, Dickinson (NYSE: BDX), and Universal Health Realty Trust (NYSE: UHT) all have dividend records that make them worth examining today if you want to generate decades of passive income.

Medtronic has a high yield and a great dividend record

There are key numbers when it comes to dividend streaks. The first is 10 years. The next is 25 years. And the really big one is 50 years. Medical device maker Medtronic's dividend streak is two years short of that last goal. You don't build a record like that by accident. It shows that there's a strong business model that is executed well in good markets and bad ones. And, just as important, it signals that the company places a priority on returning value to investors via a progressive dividend.

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Right now Medtronic's dividend yield is 3.2%. That happens to be near the high end of the historical yield range. There are reasons for the lofty yield, including a slowdown in growth and a stretch of time where new innovation was lacking. But both of those factors are being addressed, with management streamlining the business to focus on its most profitable segments. On the new product front, meanwhile, the company's R&D efforts are finally starting to come to fruition as new technologies make their way to market.

If you are a long-term income investor, Medtronic is a good stock to consider right now. Eventually Wall Street is likely to catch on to the improvements being made.

Image source: Getty Images.

Becton, Dickinson has passed the 50-year mark

While Medtronic's dividend streak is at 48 years, Becton, Dickinson's streak is at 53 years, which makes it a Dividend King. The board of directors clearly keeps dividend investors top of mind when making decisions here. The dividend yield is 2.4%, which is modest relative to the other two dividend stocks on this list. That said, it is still toward the high end of Becton, Dickinson's historical yield range. So dividend investors looking for a reliable dividend should probably at least consider a look.

That said, Becton, Dickinson, which describes itself as a medical technology company, is something of a turnaround story right now. Notably, it has made a number of strategic missteps in recent years and was involved in a major product recall.

Most recently, the company inked an acquisition (it bought the critical care product group from Edwards Lifesciences to bolster its core operations and announced a major disposition (management is planning to spin off the biosciences & diagnostic solutions division, which will then be bought by Waters in a fairly complex transaction) , which likely won't take place until 2026. There are a lot of moving parts today.

However, given the dividend history, more aggressive investors might want to consider buying and holding Becton, Dickinson through this period. The spinoff is expected to be accretive to earnings in the first year, which suggests that the dividend could survive this transaction. Even if the dividend is reset lower, however, the company's remaining business is well positioned and dividend growth would likely resume pretty quickly.

This isn't a great pick for everyone; however, for more aggressive types who don't mind a turnaround story, it might be of interest.

Universal Health Realty Trust is boring

While Becton, Dickinson is, politely speaking, an exciting stock, Universal Health Realty Trust is pretty much the exact opposite. This real estate investment trust (REIT) is focused on owning medical office properties and other healthcare assets. The REIT basically just collects rent, but that's a very reliable business model. And it has allowed the REIT to increase its dividend annually for four decades and counting. The most recent dividend increase was announced in June of 2025.

The dividend yield, meanwhile, is a very high 7.4%. Don't rush out and buy the stock just yet, however. There's some caveats. Dividend growth is very slow, with the average annualized increase over the past decade coming in at just 1.5% or so. You should only buy Universal Health Realty Trust if you are looking to maximize the income your portfolio generates today.

And then there's the external management issue, with the REIT effectively controlled by its largest tenant, Universal Health Services. It isn't unreasonable to worry that management might make decisions that are better for Universal Heath Services than for the REIT's shareholders. And that may turn some investors off despite the long history of dividend growth.

Three proven dividend track records

Every dividend stock won't be right for every investor. That said, if you are looking for a lifetime of income, you should be examining Medtronic, Becton, Dickinson, and Universal Health Realty Trust.

Medtronic likely has the broadest appeal here, with a strong dividend history and a solid business that is starting to see improved performance. Becton, Dickinson will be more appropriate for turnaround investors. And Universal Health Realty Trust's boring rent-driven business will likely appeal to conservative investors who need as much income as possible right now.

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Reuben Gregg Brewer has positions in Medtronic. The Motley Fool has positions in and recommends Edwards Lifesciences. The Motley Fool recommends 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.