3 Dividend Stocks to Set and Forget

Savings money growing over time by Nattanan23 via Pixabay

A retirement-ready portfolio consists of reliable, income-generating stocks that quietly compound over time.

Realty Income (O), Verizon Communications (VZ), and Pfizer (PFE) are all solid dividend stocks designed for long-term wealth. These are stocks that provide a strong balance of stability, income, and growth.

Few dividend stocks can match Realty Income’s (O) long-term resilience, consistent dividend growth, and dependable cash flow. The company’s most appealing feature for retirement investors is its consistent and growing monthly dividend, which is supported by long-term rental income from a well-diversified portfolio.

Realty Income has been paying dividends for 661 consecutive months. It has increased its dividend for more than 30 years in a row, earning the title of Dividend Aristocrat. Unlike most companies that pay quarterly dividends, Realty Income pays monthly dividends, a unique feature that perfectly fits retirees’ regular income requirements. It provides an attractive yield of 5.64%, which is higher than the real estate sector’s average of 4.46%.

Known as The Monthly Dividend Company, it is a real estate investment trust (REIT) that owns and manages a large portfolio of commercial properties leased to high-quality tenants under long-term net lease agreements. These leases are typically longer than nine years and are structured as “triple net leases,” which means the tenant is responsible for property taxes, insurance, and maintenance, reducing cost volatility for Realty Income and increasing predictable cash flows.

Adjusted funds from operations (AFFO) is the primary earnings metric for REITs. It reflects actual, recurring cash available to pay out for dividends. While its forward AFFO dividend payout ratio is high at 75.4%, the company has seen consistent AFFO per share growth in recent years.

Overall, Wall Street has rated Realty Income stock a “Moderate Buy.” Of the 23 analysts that cover the stock, five recommend a “Strong Buy,” one rates it a “Moderate Buy,” and 17 say it is a “Hold.” The mean target price for the stock is $60.97, which is 5% above current levels. The Street-high estimate of $68 implies upside of 19% over the next 12 months.

Verizon Communications (VZ) is one of the largest telecommunications companies in the U.S. Its revenue comes primarily from wireless service plans, data usage, and broadband subscriptions. These are recurring revenues that are not impacted by cyclical fluctuations. This allows the company to pay out generous and consistent dividends. The company pays an attractive dividend yield of around 6.5%. In addition, it has increased its dividend for the past 20 years.

Unlike some high-yield stocks that are volatile, Verizon’s dividend is supported by consistent free cash flow generated by a customer base that continues to renew its mobile and broadband services. Verizon maintains a reasonable dividend payout ratio of 56% of earnings, allowing for continued reinvestment in the business and potential hikes.

Overall, on Wall Street, Verizon stock is rated a “Moderate Buy.” Out of the 28 analysts who cover Verizon stock, nine rate it a “Strong Buy,” three suggest it’s a “Moderate Buy,” and 16 rate it a “Hold.” Its average price target of $47.70 suggests that the stock can increase by 15% over current levels. However, its high target price of $58 implies upside potential of 40% over the next 12 months.

Pfizer (PFE), valued at $146.6 billion, is one of the world’s largest pharmaceutical companies. While Pfizer is well-known for its COVID-19 vaccine, its portfolio includes essential medications and vaccines in oncology, cardiology, immunology, endocrinology, and neurology. With hundreds of millions of people relying on its therapies, Pfizer generates consistent revenue across economic cycles, allowing it to pay consistent dividends. Adjusted earnings increased by a staggering 69% in 2024.

Even as COVID-19-related revenues return to earth, Pfizer’s long-term outlook remains positive, thanks to a robust pipeline of candidates, many of which are in late-stage development. Some of its most well-known products include Eliquis (a blood thinner), the Vyndaqel family of treatments, and Ibrance (oncology), all of which generated significant revenue in the most recent first quarter of 2025.

Pfizer’s dividend yield hovers around 6.7%, which is significantly higher than the healthcare sector average of 1.6%. Additionally, its forward payout ratio is a manageable 55.7%, allowing for future increases and financial flexibility. Despite near-term headwinds, the company has consistently increased its dividend over the last 16 years, making it a reliable dividend stock.

On Wall Street, overall, Pfizer stock is rated a “Moderate Buy.” Out of the 22 analysts who cover PFE stock, six rate it a “Strong Buy,” one rates it a “Moderate Buy,” 14 say it is a “Hold,” and one suggests a “Strong Sell.” Its average price target of $27.71 suggests that the stock can increase by 8% over current levels. However, its high target price of $33 implies upside potential of 32% over the next 12 months.

On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com