Betting on dividend stocks, especially in the long run, can strengthen your portfolio.

To begin, dividend-paying companies offer stable returns, ensuring sustainable cash flow even in volatile markets. Most of these companies continually increase their dividend payouts over the years. These dividends provide a consistent income stream that requires no effort from you. Many major corporations also initiate frequent stock buybacks, which enhance shareholder value. This combination of reliability and easy earnings makes dividend stocks appealing to individuals looking for passive income.

Moreover, these dividend stocks are often backed by financially strong companies with a history of performance. This means you’re not just getting regular gains but putting your money into businesses with solid foundations. Adding them to your portfolio sets you up for a winning mix of income and growth. This balanced approach can lead to sustainable financial success. Now, let’s look at three companies that can help you achieve just that.

Realty Income (O)

When diving into REITs, you can’t overlook Realty Income (NYSE:O). The company offers more than just real estate investments, providing a solid 5.3% forward dividend yield and an impressive track record of 26 years of dividend growth.

Moreover, Realty Income’s recent second-quarter report was outstanding. It achieved a superb 31.4% year-over-year revenue surge, reaching $1.34 billion and surpassing expectations by a substantial 130 million. Alongside, a robust liquidity reserve of $3.8 billion positions it as a fortress to handle the ebb and flow of the real estate market.

Sumit Roy, the CEO of Realty Income, is thrilled about these remarkable results. His enthusiasm is palpable, especially as he highlights the sharp 6.0% spike in AFFO per share growth.  

Last but not least, with a forward-looking AFFO payout ratio of around 74.7%, I’m confident in Realty Income’s ability to sustain and grow its dividends, giving investors peace of mind at night.

Pfizer (PFE)

Pfizer (NYSE:PFE) is back at center stage, rebounding strongly from the challenges of the post-COVID-19 vaccine era. Even though its share price is down 15% over the past year, there’s more to it than meets the eye. Since hitting its low early this year, the company has actually been outperforming the market with its financials and advances.

Pfizer’s Q2 demonstrated a remarkable $13.28 billion revenue, topping expectations by $260 million. It’s no surprise since its pipeline is currently stacked with 113 promising candidates. Plus, it secured two new FDA approvals, highlighting its knack for rolling out innovative treatments and reinforcing investor confidence.

Lastly, for those who love a steady income, Pfizer’s dividends won’t disappoint. It has increased its payout for the last 13 years, with a five-year growth rate of 4.42% in dividends. Currently, the stock offers a forward dividend yield of 5.65%, which makes the expectations of positive momentum to sustain for a long time.

Mastercard (MA)

Mastercard (NYSE:MA) is speeding up its digital transformation efforts to better safeguard and serve its cardholders. One notable effort is its fraud-fighting artificial intelligence (AI) technology, which detects unusual patterns at the transaction level. This innovative technology has the potential to create a new standard in the digital payment business.

Speaking of setting new standards, Mastercard’s Q2 performance has truly raised the bar. The company blew past analysts’ expectations with an earnings-per-share of $3.59, outpacing the forecast of $3.51. Revenue soared to $7 billion, marking an impressive 11.1% YOY increase and beating estimates by $150 million. This performance is fueled by a 17% rise in worldwide cross-border volume, indicating strong growth in travel and non-travel expenditure.

Furthermore, Mastercard’s ambitious buyback program resulted in the repurchase of $2.6 billion of stock in Q2 alone. It also boasts a modest 0.60% forward dividend yield, with 12 consecutive years of dividend growth and a five-year CAGR of 15.5%, indicating significant long-term value creation.

On the date of publication, Nabeel Bukhari did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.