Three Dividend Stocks That Can Offer A Strong Income Stream For The Rest Of Your Life

The last three years have been difficult for income-oriented investors looking for steady and reliable income in the stock market. First a pandemic-induced market crash, then the highest inflation in four decades that pushed markets into bear territory, and now the word recession is scaring everyone.

But despite the myriad macroeconomic pressures, there are still reasonable ways to add stability to your portfolio. One proven way to secure a growing income is to buy quality dividend growth stocks. Companies that have historically increased their quarterly cash payouts have shown that they can generate stable and reliable income for their investors in good times, downturns and recessions alike. Such shares also offer an excellent tool to beat inflation. Unlike bonds, which make fixed principal and interest payments, these companies provide a regular income boost in the form of dividends to increase your purchasing power. You can reinvest this cash and use it to buy more shares or cover your monthly expenses. Below, we've reviewed three low-risk, high-quality names suitable for long-term retirement portfolios.

Home Depot

• 5-Year Average Dividend Growth per Share: 19.4
• Dividend Yield: 2.44
• Distribution Rate: 45

Home Depot (NYSE:HD) is in a perfect position to keep sending dividend checks to retirees. The home decor retailer has invested heavily in recent years to prepare itself for the onslaught of e-commerce and changing consumer behavior. The stock now offers a good entry point after losing 25% this year. Before the deadly COVID-19 pandemic struck, the Atlanta-based chain had completed an $11 billion restructuring plan to modernize its stores, strengthen its digital offerings and improve offerings for key business customers. With these improvements, Home Depot should remain in a growth cycle, especially as factors such as a hot real estate market and changes in how people use their homes drive demand for home furnishing and improvement products. The company is also a reliable dividend payer. The company's quarterly dividend payment has increased by an average of 19% over the past five years. With an annual dividend yield of 2.44%, the company pays $1.9 per share quarterly.

Apple

• 5-Year Average Dividend Growth: 10%
• Dividend Yield: 0.54
• Distribution Rate: 14.7

Apple Inc (NASDAQ:AAPL) is another big name that pays regular dividends with a very stable outlook. The iPhone maker's stockpile of cash and cash equivalents is now about $180 billion and it has only had dividend expenses of $14 billion in each of the last three years. Apple shares are down just 4% this year, while the tech-heavy NASDAQ 100 index is down more than 15% over the same period. With a decent distribution rate of just 14%, Cupertino, California-based Apple has plenty of room to continue generating income in both good times and bad with a powerful combination of rising dividends and share buybacks. Over the past five years, Apple has increased its dividend by almost 10% each year. Apple has also repurchased the most shares of any company in the S&P 500 in recent years. The maker of smartphones, personal computers and wearables spent $85.5 billion on share buybacks and $14.5 billion on dividends in fiscal 2021, which ended in September. This strength and solid earnings are one of the main reasons why Apple shares are less volatile in the current sell-off among high-growth names.

Visa

• 5-Year Average Dividend Growth: 19
• Dividend Yield: 0.7
• Distribution Rate: 21

Global payment services giant Visa (NYSE:V) is another strong choice for retirees looking to invest in less risky companies with a reliable dividend history. Visa has raised its annual dividend for 13 straight years and has plenty of cash to comfortably sustain that increase. In the last five years alone, Visa's dividend growth per share has averaged close to 20% each year. Over that time, the stock has returned 112%, more than double the return offered by the S&P 500. As the travel economy recovers from the pandemic-induced shock, Visa is in an ideal position to capitalize on its massive competitive advantage. Visa is the world's largest payment processing network. It has more than 100 million merchants worldwide and more than $13 trillion in transactions passed through its system in 2021.