Future-Proof Your Income: 2 Dividend Stocks to Own for the Next 10 Years

Dividend stocks are a time-tested investment to secure a reliable income stream. Leading dividend-paying companies offer a combination of stability, growth potential, and a commitment to increasing their payouts over time. These attributes can help future-proof your income, especially amid economic uncertainty and volatility.

Among the top dividend-paying stocks, Agree Realty Corporation (ADC) and EOG Resources (EOG) stand out for their consistent dividend payment histories and ability to increase their dividends in all market conditions. These companies have strong business models and solid growth prospects, making them ideal for long-term investors seeking dependable income.

With this background, let’s explore these two stocks to understand why they could be excellent additions to your income portfolio for the next 10 years.

#1. Agree Realty

Agree Realty (ADC) is a leading real estate investment trust (REIT) known for its reliable and growing dividend payments. With a vast portfolio of 2,202 properties spread across 49 states, the company has strategically positioned itself by leasing to leading retailers with recession-resilient business models. The REIT's focus on high-quality tenants ensures that Agree Realty enjoys near-full occupancy rates and lease extensions. This adds stability to its operations, drives consistent earnings, and supports its monthly dividend payouts.

Agree Realty has increased its dividend at a CAGR of 5.7% in the past decade. This year in April, the REIT increased its monthly dividend to $0.25 per share, translating into a yield of over 4% near the current market price. Moreover, with a sustainable payout ratio of 72% of its adjusted funds from operations (AFFO), Agree Realty retains sufficient cash flow for reinvestment, which will support future earnings and distributions.

Thanks to its high-quality real estate portfolio, exposure to countercyclical sectors, and impressive occupancy rate of 99.8%, the REIT is poised to deliver solid earnings and cash flows that should support its payouts. Additionally, the firm effectively manages its portfolio to strengthen its long-term prospects by selling non-core assets, maintaining a low-leverage profile, and capitalizing on future opportunities.

Agree Realty’s development pipeline remains strong, which should further contribute to future cash flows and higher dividend payments.  

Analysts are bullish on Agree Realty’s prospects. Of the 17 analysts covering the stock, 11 rate it a “Strong Buy,” two recommend a “Moderate Buy,” and four suggest a “Hold.”

#2. EOG Resources

EOG Resources (EOG) is a reliable investment for securing decades of passive income. This leading oil (CLV24) and natural gas (NGU24) company has a proven track record of dividend growth through various economic and commodity cycles. This makes it an attractive stock for generating consistent income.

EOG has never suspended or reduced its dividend, underscoring its financial resilience. Further, the company increased its dividend by 10% for 2024, marking the 26th consecutive year of dividend growth. This payout history reflects its ability to grow earnings and consistently reward shareholders.

EOG’s management prioritizes returning significant portions of annual free cash flow to shareholders. The company targets distributing at least 70% of its free cash flows to reward its shareholders through dividends and share buybacks. EOG currently offers a forward yield of 2.87%.

At the core of EOG's success is its high-quality asset portfolio and efficient cost structure, which have enabled the company to navigate fluctuations in the energy market effectively. Looking ahead, EOG is investing in infrastructure that supports margins and unlocks multi-decade growth potential. 

The company’s focus on premium gas markets and long-term sales agreements further strengthens its growth prospects. Additionally, its diversification across products, pricing, and geography provides added protection against market volatility.

Among the 27 analysts covering EOG, 14 recommend a "Strong Buy," while the remaining 13 suggest a "Hold."

Bottom Line

For investors aiming to build a resilient income portfolio, dividend-paying stocks like Agree Realty and EOG Resources present a compelling blend of stability, growth, and consistent payouts.

Agree Realty’s solid real estate portfolio, high occupancy rates, and impressive dividend growth make it a dependable choice for reliable income. Meanwhile, EOG Resources’ solid dividend history, strategic investments, and resilience highlight its potential as a long-term income generator.

In summary, both companies are well-positioned to enhance their shareholders’ value through higher dividend payments. By incorporating Agree Realty and EOG Resources stock in your portfolio, you can future-proof your income and build a robust passive income portfolio.