2 Dividend Stocks to Buy for Decades of Passive Income

If you're an income investor, you're probably looking for stocks that can offer low-risk dividend payments.

Meanwhile, you probably also want stocks that have a low chance of seeing their dividends slashed because of short-term problems.

And you definitely want stocks with high dividend yields, coupled with a history of annual dividend increases, so they're worth holding onto for the long haul.

That's a lot to ask, but here are two rock-solid dividend stocks that check all of these boxes!

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1. Realty Income Corporation: current yield 5.4%

If you're looking for high dividend payouts, real estate investment trusts (REITs) are a great place to start. These specialized businesses receive preferential tax treatment in exchange for paying out most of the funds from operations -- which are similar to cash flow for a REIT -- as dividends to shareholders, and Realty Income (NYSE: O) is one of the biggest of them all.

Realty Income has a highly diversified portfolio of 15,600 properties. Its biggest three categories are grocery stores (10.7% of the portfolio), convenience stores (9.8%), and restaurants (8.7%), but it also owns casinos, auto service stations, and many more. The revenue generated from these properties has sharply risen during the past three years, from less than $2 billion in 2022 to nearly $5.5 billion today. The company has consistently boasted an occupancy rate of more than 95% -- it's currently 98.6% -- and is also regionally diversified across all 50 states and eight European countries.

Realty Income's management has been increasing its dividend every quarter for more than 27 years, ensuring consistent growth for its shareholders. Better still for retirees and others looking to use their dividend payments to cover expenses, Realty Income pays its dividends monthly instead of quarterly, so you'll get a check every month. This situation is unlikely to ever change, considering Realty Income's registered trademark is "The Monthly Dividend Company."

Realty Income offers a solid and steadily growing payout, plus monthly payments to boot, making it a fantastic choice to buy and hold for decades.

2. MPLX: current yield 7.8%

Another place to find high dividend yields is the midstream oil and gas sector. Midstream companies handle the transportation and storage of crude oil, natural gas, and refined products like diesel fuel and propane. Many midstream companies organize as master limited partnerships (MLPs), which are similar to REITs in that they are required to pass on most of their operating cash flow to their investors as dividends. In return, they receive preferential tax treatment from the government.

Even among midstream MLPs, though, MPLX (NYSE: MPLX) has a high yield. However, the company has plenty of coverage for that yield. During the past year, the company generated $5.7 billion in funds from operations, while paying out $3.8 billion in dividends, meaning it has 1.5 times coverage for its payouts. Speaking of payouts, MPLX has doubled its dividend during the past 10 years, thanks in large part to hikes of 10% or more in each of the past four years.

The good news is that MPLX has been growing more than enough to support these big dividend bumps. Revenue has skyrocketed from less than $1 billion in 2016 to $11.5 billion today. This is largely due to management's aggressive acquisition policy. MPLX regularly acquires smaller companies to expand its operational footprint, most recently picking up New Mexico-based Northwind Midstream in a $2.4 billion deal that closed last month.

Perhaps the only drawback to MPLX is that -- like all MLPs -- it can require some additional paperwork at tax time, particularly if it isn't held in a tax-advantaged account. That's because MLPs report their income to shareholders on a Schedule K-1 Form, which has different filing requirements from most other investment types. Aside from that, MPLX is an excellent choice for investors looking for decades of passive income.

John Bromels has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.