Want decades of passive income? 3 Stocks to Buy Now and Hold Forever

In a sense, there is no such thing as easy money. However, once you have accumulated money to invest, it can be easy to earn more. This is the key to generating passive income.

Some investment options require constant monitoring. You may not be able to hang on to them for long. However, others are excellent long-term choices.

Want decades of passive income? Here are three stocks to buy now and hold forever.

1. AbbVie

AbbVie (ABBV 0.10%) is one of the largest biopharmaceutical companies in the world, with a market capitalization of around $345 billion. Its product line includes four blockbuster drugs and several others with the potential to generate sales of $1 billion or more.

You might not be too impressed with AbbVie’s forward dividend yield of 3.17%. However, the company’s dividend track record is impressive. AbbVie has increased its dividend for 52 consecutive years, making it a member of the elite group of stocks known as the Dividend Kings.

The main knock against AbbVie is that its revenue and earnings have fallen due to biosimilar competition for its best-selling drug Humira. Investors have nothing to worry about, though. AbbVie expects to quickly return to growth thanks to other rising stars in its lineup, including Humira’s two successors — Rinvoq and Skyrizi.

I’d even argue that AbbVie’s handling of the loss of patent exclusivity for Humira underscores why this is a great stock to generate long-term passive income. The company’s strategy of expanding Humira’s market dominance while investing in new drug development and making smart acquisitions shows it should be able to successfully navigate future patent cliffs.

2. Brookfield Infrastructure

Brookfield Infrastructurehis (BEEP 0.27%) (BIPC 1.07%) the name sums up its business: infrastructure. The company owns cell towers, data centers, power transmission lines, pipelines, rail, semiconductor manufacturing foundries, toll roads and more.

Because of its origin as a limited partnership (LP), Brookfield Infrastructure pays distributions instead of dividends. Whatever you call them, they are attractive. The forward distribution yield for the LP (which trades under the symbol BEP) is 5.12%, while the yield for the corporate entity (which trades under the symbol BEPC) is 4.04%.

These distributions are also very reliable. Brookfield Infrastructure has increased its distributions for 15 consecutive years. The company expects to maintain this trend with annual distribution growth between 5% and 9%.

Brookfield Infrastructure also has a solid, repeatable strategy for long-term growth. The company acquires infrastructure assets that are attractively valued. It then increases business value using operational expertise. Finally, the company sells mature assets with limited growth potential to finance new investments.

3. Verizon Communications

Most Americans are probably at least somewhat familiar with Verizon Communications (See 1.30%). The company is one of the largest telecommunications providers in the world.

Verizon offers a forward dividend yield of 6.27%, the highest of the three stocks on this list. The telecom giant has increased its dividend for 18 consecutive years. With Verizon’s free cash flow improving, I expect this streak of dividend hikes to continue.

Income investors aren’t the only ones who like something about Verizon. The stock should also appeal to value investors with its low price-to-earnings ratio of 9.3.

Of course, Verizon probably won’t deliver amazing organic growth. However, the company is well positioned to grow through acquisitions. As an example, Verizon plans to buy Border communications for $20 billion in an all-cash deal. This deal will greatly expand Verizon’s fiber footprint in the US