2 Passive Income Stocks I Plan to Hold for the Next Decade
2026-07-19 12:15
•Matt Dilallo •The Motley Fool
•••• ••• Axe Capital view
Two Reliable Income Stocks for the Long Haul
Brookfield Renewable and Realty Income stand out for steady dividends and growth potential over the next decade.
If you’re looking for investing ideas with dependable income, Brookfield Renewable (BEPC) and Realty Income (O) are worth a serious look. BEPC’s strong dividend growth—over 5% annually since 2011—is backed by long-term contracts covering 90% of cash flows for the next 12 years. Their renewable energy projects, including a major contract with Microsoft, suggest solid growth ahead. Realty Income has paid dividends for 115 consecutive quarters, supported by triple-net leases where tenants cover expenses, making its cash flow very reliable. With a large addressable market and smart partnerships, Realty Income’s growth looks sustainable. Both carry risks—BEPC depends on successful development projects and Renewable Energy policies; Realty Income’s value is tied closely to the health of the US commercial real estate market and interest rates. For South African investors, these names provide global diversification beyond local market cycles, while USD/ZAR currency moves will impact returns. this is just my opinion and not financial advice
I’d hold BEPC and Realty Income for steady dividend income and growth, but monitor currency risks closely. Avoid jumping in if you expect a stronger rand or anticipate US interest rate hikes raising yields elsewhere.
- BEPC
- O
- USD/ZAR
- Renewable energy regulations and project execution risk
- US commercial real estate market downturn and rising interest rates
6/10
The author recommends Brookfield Renewable and Realty Income as core passive income holdings for the next decade. Both companies offer high dividend yields (4.5%+ and 4.9% respectively), strong dividend growth track records, stable financial profiles, and significant growth potential. Brookfield Renewable benefits from renewable energy development projects and contracted cash flows, while Realty Income leverages private capital partnerships and a large addressable market in net-lease real estate.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Matt Dilallo
Categories: Equities, IPOs, Capital Returns, Financials
Tickers: BEPC, O, MSFT
Sentiment: Positive - Strong dividend growth track record (5%+ annually since 2011), stable contracted cash flows (90% for 12 years), comfortable payout ratio, expected 10%+ annual FFO growth through 2031, and large development pipeline including 10.5 GW for Microsoft. Projected mid-teens total annual returns. Consistent dividend growth for 115+ consecutive quarters since 1994 IPO, strong financial profile with triple-net leases and A3/A- credit rating, $14 trillion addressable market opportunity, and strategic partnerships with Apollo, GIC, and Cloud Capital to enhance growth and access new markets.
Keywords: passive income, dividend stocks, dividend growth, renewable energy, real estate investment trust, long-term investing, financial independence
Insights:
- BEPC: Positive: Strong dividend growth track record (5%+ annually since 2011), stable contracted cash flows (90% for 12 years), comfortable payout ratio, expected 10%+ annual FFO growth through 2031, and large development pipeline including 10.5 GW for Microsoft. Projected mid-teens total annual returns.
- O: Positive: Consistent dividend growth for 115+ consecutive quarters since 1994 IPO, strong financial profile with triple-net leases and A3/A- credit rating, $14 trillion addressable market opportunity, and strategic partnerships with Apollo, GIC, and Cloud Capital to enhance growth and access new markets.
- MSFT: Neutral: Mentioned as a major customer of Brookfield Renewable with a 10.5 GW power generation contract, but no direct investment recommendation or analysis provided.