3 stocks worth considering for long-term passive income

Investing in stocks with growth potential is a common strategy, but with age and changing needs, many investors are looking for more stable and less time-consuming solutions. Passive income from dividend stocks may be an ideal option. Below you'll find three companies that not only offer stable dividends, but also long-term potential.

Which 3 stocks are they? 👇

Bank of America

Bank of America $BAC is one of the largest banks in the world, managing nearly $2.6 trillion in assets. This financial institution has a long history and provides a wide range of financial services, giving it stability even in challenging times.

Although the bank faced challenges during the 2008 financial crisis, when it had to cut dividends sharply, it has since gradually recovered and restored its growth. Despite rising NPLs and charge-offs (NPLs stood at USD 5.8 billion in Q3 2023), net income remains strong enough to cover dividends. With a forward dividend yield of 2.2%, it may not be the highest number in the market, but Bank of America's stability and resilience make it an attractive choice.

W. P. Carey

The W. P. Carey $WPCreal estate investment trust is a lesser-known name, but it provides an interesting opportunity for investors looking for passive income. The fund manages a variety of property types, ranging from industrial properties to shopping centers, and its unique approach is a "net lease. This means that the tenants - and not the owner - are responsible for taxes, insurance and maintenance.

Despite a recent dividend cut due to the divestment of office properties affected by the pandemic, the fund has adapted quickly. Current occupancy is 98.8%, indicating stable rental income. The forward dividend yield is nearly 6.3%, making W. P. Carey an attractive option for those seeking higher passive income.

British American Tobacco

British American Tobacco $BTI is a well-known cigarette manufacturer whose portfolio includes brands like Lucky Strike and Camel. The company also focuses on alternative products such as e-cigarettes and heated tobacco, while still generating most of its revenue from traditional cigarettes.

Although smoking is on a downward trend globally, the pace of this decline is slowing. Due to the growth of the world population as well as the development of alternative products, the number of tobacco users is expected to remain close to the current 1.2 billion in 2030. In addition, British American Tobacco offers an exceptionally high forward dividend yield of over 8%, making it an attractive option for investors looking for stable income despite the potential long-term downside risk to shareholder value.

Disclaimer: There is plenty of inspiration to be found on Bulios, but stock selection and portfolio construction is entirely up to you, so always conduct a thorough analysis of your own.

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