When searching for reliable income streams, dividend yield is often the first metric investors examine. However, it’s crucial to look beyond yield alone to ensure a company can provide sustainable passive income for years to come. A prime example of this is AGNC Investment, which boasts an impressive 13% dividend yield but is ultimately a poor choice for most income investors due to its complex business model and declining dividend payments.
On the other hand, Realty Income, Toronto-Dominion Bank, and Alexandria Real Estate Equities offer attractive yields and a proven track record of supporting their dividends over the long term. Realty Income, with its 5.1% yield, has consistently increased its dividend for 29 consecutive years and boasts a robust investment-grade balance sheet. As the largest player in its niche, it has a vast portfolio of over 15,400 assets across North America and Europe, providing ample opportunities for growth.
Toronto-Dominion Bank, one of Canada’s largest banks, offers a reliable 4.6% yield and has paid dividends every year since 1857. Although it’s currently facing legal and regulatory issues, the bank’s conservative culture and entrenched position make it an attractive contrarian play.
Alexandria Real Estate Equities, often misunderstood as an office REIT, is actually a pure play in the medical research sector, owning vital laboratory and office spaces. With a 14-year history of annual dividend increases and a historically high 4.2% yield, now is the time to invest in this reliable income generator.
When building a portfolio focused on passive income, it’s essential to prioritize companies with proven track records of supporting their dividends over the long term. Realty Income, TD Bank, and Alexandria Real Estate Equities offer just that, making them ideal additions to your portfolio for decades of reliable income.
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