Long-Term Dividend Stocks Keep for the Next Three Decades

Long-Term Dividend-Paying Stocks to Maintain Over the Next Three Decades

In the world of investment, finding reliable sources of income is crucial for many investors. Here, we take a closer look at three standout options: Realty Income, Ares Capital, and Energy Transfer.

Realty Income: A Resilient REIT

Realty Income, one of the world's largest real estate investment trusts (REITs), has consistently demonstrated its resilience. Since its public debut, its occupancy rate has remained above 96%, even during three major recessions. This impressive feat is attributed to its diversified tenant base, which spans 89 different industries and focuses on recession-resistant businesses like convenience stores, discount retailers, and drugstores.

Realty Income's strong financial performance is evident in its ability to easily cover its annual dividends. In 2021, it reported an adjusted funds from operations (AFFO) of $4.19 per share, more than enough to support its dividend. Its high forward yield of 5.6%, paid monthly, and its track record of raising the dividend 131 times since its initial public offering in 1994, make it an attractive long-term income investment.

Ares Capital: Financing the Middle Market

Ares Capital, the world's largest business development company (BDC), focuses on providing financing to "middle market" companies, often too small to attract investments from private equity firms. As of 2025, it allocates 58.6% of its portfolio to first-lien secured loans, 5.7% to second-lien secured loans, and 5% to senior subordinated debt.

Ares aims to invest $30 million to $500 million in debt and equity per client, and it looks for businesses that generate $10 million to $250 million in EBITDA annually. Its high forward dividend yield of 8.7% is a testament to its successful investment strategy.

Energy Transfer: A High-Yield MLP

Energy Transfer, a master limited partnership (MLP), operates in the energy sector, providing pipelines, storage, and services at terminals for natural gas, natural gas liquids, crude oil, and other refined products. As a MLP, it pays a high forward yield of 7.2%. However, it's important to note that Energy Transfer, like other MLPs, must distribute at least 90% of its pre-tax income as dividends to maintain its special tax status.

Investor Ownership

In 2025, institutional investors held significant stakes in all three companies. Realty Income had approximately 77% institutional ownership, reflecting significant participation by large investment funds and institutions. The specific major shareholders for Ares Capital and Energy Transfer in 2025 were not detailed in the available data.

Risk and Returns

While all three companies offer attractive dividend yields, it's important to consider the risk associated with each investment. Ares Capital, for example, charges higher interest rates than traditional banks to take on more risk. Energy Transfer, as an MLP, is exposed to the volatility of the energy market.

In conclusion, Realty Income, Ares Capital, and Energy Transfer each offer unique opportunities for income-focused investors. Realty Income's diversification, scale, and resilience make it a great long-term income investment. Ares Capital's focus on middle market companies and its high dividend yield are appealing, but it carries a higher risk due to the nature of its investment strategy. Energy Transfer's high yield is attractive, but it comes with the inherent risks associated with the energy sector. As with any investment, it's crucial to conduct thorough research and consider your risk tolerance before making a decision.