3 of the best dividend stocks to buy for long-term passive income

Building a reliable and consistently growing stream of passive income is one of the best goals you can pursue when investing in the stock market. When you buy the best dividend stocks on the market and build a portfolio that can continually generate passive income, it not only gives you stability, but it also gives you flexibility and a way to grow wealth regardless of market conditions.

That’s why dividend stocks are often the foundation of that strategy for long-term investors. Not only do dividends provide regular income, but when reinvested they can significantly boost compounding over time. Furthermore, high-quality dividend stocks are often among the most established and dominant companies in their sector.

So not only do they consistently generate returns for investors, but they are also among the best stocks to rely on during periods of higher volatility or increasing uncertainty in the economy.

However, not all dividend stocks are reliable passive income generators. Some offer high yields but little growth, while others are growing quickly but not generating enough cash today to support meaningful income.

The best dividend stocks offer investors an attractive mix. They pay compelling but reliable dividends today, have room to grow those payouts over time, and run businesses that can perform under a wide range of economic conditions.

So if you want to increase the passive income your portfolio generates each year, here are three of the best dividend stocks to buy right now.

Two top real estate stocks for passive income seekers

If you’re looking for some of the best dividend stocks to buy for years of passive income, choose high-quality REITs Granite REIT (TSX:GRT.UN) and CT REIT (TSX:CRT.UN) are some of the best to consider.

Real estate is one of the best sectors for passive income if you pick the right stocks, because these companies generate tons of recurring cash flow every month and often even pay dividends monthly instead of quarterly.

CT REIT is one of the best in particular for its high-quality portfolio of retail properties across Canada, with the vast majority of its properties leased to Canadian band and the affiliated brands.

That relationship with one of the best-known retailers in Canada is what makes CT REIT so reliable. Canadian Tire is not just an investment grade tenant; it is also the largest shareholder of CT REIT.

This structure gives CT REIT highly predictable cash flow, which is exactly what income-oriented investors want. Additionally, as Canadian Tire invests in new stores, renovations and expansions, CT REIT often plays a role in financing and owning that real estate, creating a steady growth pipeline without taking on excessive risk.

Moreover, CT REIT offers a compelling yield of more than 5.8% and has increased its dividend every year since the IPO.

Meanwhile, Granite REIT is one of the best dividend stocks to buy for growing passive income thanks to its portfolio of industrial, warehouse and logistics properties across North America and Europe.

These properties continue to see growing demand, which has rapidly increased Granite’s profitability. In fact, the payout ratio has adjusted over the past five years, even as the company has continued to increase its dividend money from operations (AFFO) fell from 81% to 68% during that period.

So if you’re looking for the best dividend stocks to buy for decades of passive income, Granite is one of the best choices on the TSX with its current yield of 4.3%.

One under-the-radar dividend stock to buy for years of passive income

In addition to these top two REITs, the third stock on this list might surprise some investors, but it deserves serious consideration. easy (TSX:GSY) is widely known as a fast-growing stock, but it’s also one of the best dividend growth stories on the TSX.

In the past five years alone, the dividend has increased by more than 120%. Because the stock has grown so quickly, returns have remained lower, allowing goeasy to fly under the radar as a top dividend stock.

But now that shares have fallen significantly, it’s not just cheap trading; it offers a return of over 4.4%. Furthermore, the stock pays out only 36% of its last twelve months’ earnings per share.

So if you’re looking for the best dividend stocks in Canada to buy for years of passive income, goeasy is undoubtedly a stock that should be on that list.