Verizon Communications Inc.

(New York Stock Exchange)
Slightly Bullish +25

Want Income for Life? Here Are 3 Stocks to Buy Now and Never Sell.

🚜 Specialty retailer Tractor Supply (NASDAQ: TSCO) has found a niche in the self-sufficiency lifestyle, though its Q1 results recently missed earnings expectations.

πŸ“‰ The company reported per-share earnings of $0.31 versus the expected $0.34, with same-store sales growth of 0.5% missing forecasts.

πŸ” Despite recent misses, management projects same-store sales improvements of 1-3% and overall revenue growth of 4-6% for the current year.

πŸ“ˆ Tractor Supply has raised its dividend for 17 consecutive years with a forward yield currently at 2.6%.

🏒 Realty Income (NYSE: O) owns 15,511 retail properties totaling 355 million square feet with over 98% occupancy.

πŸ’΅ The REIT has paid and raised dividends every quarter since its founding in 1969, including increases for the past 114 quarters.

πŸ“… Realty Income is unique among dividend stocks by paying monthly distributions rather than quarterly ones.

πŸ“‰ With a healthy forward dividend yield of 5.1%, Realty Income offers reliable recurring income to investors.

πŸ“± Telecom giant Verizon Communications (NYSE: VZ) offers stable recurring income with a forward dividend yield just over 6%.

πŸ”„ Verizon has increased its per-share dividend for 19 consecutive years, with the current payment nearly 75% higher than in 2006.

πŸ“Š Wireless consumption is viewed as essential by consumers who check their phones an average of 186 times per day.

πŸ†™ Verizon added 340,000 net postpaid wireless customers in the first quarter of this year.

🎯 The company expects to add up to one million new customers over the course of 2026 while remaining competitive.

πŸ“‰ While capital appreciation may be limited, Verizon offers plenty of ever-rising income for defensive investors.

πŸ’Ό Collectively, these three stocks are recommended for investors seeking reliable income that can be held long-term without selling defensively.

Bullish Signals
  • Tractor Supply (NASDAQ: TSCO) expects same-store sales to improve between 1% and 3% this year, supported by overall revenue growth of 4% to 6%.
  • The company has raised its dividend for 17 consecutive years with a forward-looking yield of 2.6%.
  • Realty Income (NYSE: O) maintains a highly occupied portfolio of 15,511 retail properties with over 98% occupancy and has increased dividends in every quarter for the past 114 quarters.
  • Realty Income offers a healthy forward dividend yield of 5.1% and distributes monthly rather than quarterly for consistent cash flow.
  • Verizon Communications (NYSE: VZ) added net 340,000 new postpaid wireless customers in Q1 and expects to add up to one million customers by 2026.
  • Verizon has increased its per-share dividend for 19 consecutive years, with the current quarterly payment nearly 75% larger than in 2006.
Risk Factors
  • Tractor Supply missed earnings per share estimates of $0.34, reporting only $0.31, causing a sharp sell-off that drove the stock into multiyear territory.
  • Tractor Supply's same-store sales growth of 0.5% significantly underperformed analyst forecasts, which expected 1.6% year-over-year growth.
  • The prevailing narrative suggests brick-and-mortar retailing is facing significant headwinds and potential decline, with misery concentrated in malls and department stores.
  • Realty Income was excluded from a list of 10 best stocks identified by The Motley Fool Stock Advisor analyst team, despite its long history as a dividend stalwart.
  • Verizon faces increasing competitive pressure from rivals AT&T and T-Mobile US to retain wireless customers.
  • Telecom giants like Verizon may not offer enormous growth potential, limiting opportunities for capital appreciation beyond dividend income.
Full Analysis
This article outlines a financial perspective on three dividend-focused stocks suitable for long-term income strategies: Tractor Supply, Realty Income, and Verizon. The author suggests that while specialty retailers face challenges from declining mall-based department stores, companies like Tractor Supply (NASDAQ: TSCO) benefit from cultural shifts toward self-sufficiency in suburban and rural areas. Despite reporting first-quarter results that missed earnings expectationsβ€”specifically per-share earnings of $0.31 versus a consensus of $0.34 and same-store sales growth of 0.5% against forecasts of 1.6%β€”the company maintains that same-store sales will improve to 1%-3% in the coming year with revenue growth of 4%-6%. Tractor Supply has raised its dividend for 17 consecutive years, offering a forward yield of approximately 2.6%. Realty Income (NYSE: O) is presented as a real estate investment trust that owns 15,511 retail properties comprising over 355 million square feet of space with more than 98% occupancy. Founded in 1969, the REIT has paid a dividend consistently and raised its quarterly per-share payout in each of the past 114 quarters. A distinguishing feature highlighted is its monthly dividend distribution schedule rather than the typical quarterly timing, providing regular cash flow for investors relying on income for monthly expenses. The current forward-looking dividend yield is noted as healthy at 5.1%. Verizon Communications (NYSE: VZ) is categorized as a telecom giant offering reliable recurring income with minimal growth expectations. The investment thesis rests on the essential nature of mobile connectivity, supported by data from Reviews.org indicating Americans check their phones an average of 186 times per day. Verizon added 340,000 net postpaid wireless customers in the first quarter and expects to add up to one million customers through 2026. The company has increased its per-share dividend for 19 consecutive years, with the current quarterly payment nearly 75% higher than it was at the start of 2006. Verizon currently offers a forward-looking dividend yield of just over 6%, positioning it as a stable income stock despite limited potential for capital appreciation. The article concludes by noting that while these three names are recommended for "buy and hold" strategies, The Motley Fool Stock Advisor analyst team recently identified ten different stocks they believe are superior choices, in which Realty Income was notably absent from their top list.