4 top stocks I feel could pay me passive income for life

Stocks with high dividend yields are what appeal to me. But when I try to find stocks that can pay me (hopefully) a lifetime of passive income, that’s not the only result I have to look forward to. However, I am concerned about the dividend history.

This is the reason, together with some of the stocks I move the box.

A proven track record

The best way I can mark the difference in potential income is to illustrate with two stocks. Stock X has a dividend yield of 4%, and has a record of ten consecutive dividend payments.

Y stock returned 6%, which has increased significantly over the past year as the stock price has fallen. It has a track record of paying dividends, which are high during good times and zero during bad times.

Over the coming decade, what stocks will I be looking for? Even though the second company is currently producing 50% higher than the first, I am not sure that it can be paid reliable income in the following years. Therefore, I would be happy to accept a lower yield today, confident that the business has a good track record.

As a side note, I understand the risks of predicting future dividends. This is not guaranteed in any way and depends on the performance of the business. Even the most reliable companies can reduce their payments if they fall on hard times.

Top shares to consider

Based on the above, the next logical step is to filter out the relevant companies with a long dividend history! There are 18 FTSE 100 stock and 36 FTSE 250 Shares that have grown dividend payments consecutively for at least the past decade. From this pool, I can identify some good options.

In the FTSE 250, there are several large investment trusts that focus on income. Two examples are Murray Income Trust (4.15% dividend yield) and City of London Investment Trust (4.74%).

Both have more than two decades of consecutive annual dividend growth. The Trust mainly focuses on investments in companies listed on the LSE.

In the FTSE 100, I like it National Grid (4.96%) and Unilever (3.66%). Again, both have a payment history of more than ten years. It’s no surprise that both stocks are well-known, well-established companies with great histories.

Earnings today and tomorrow

I can’t say for certain that stocks will continue to pay me income for the rest of my life. But if I had invested in the top four stocks ten years ago, I wouldn’t be sitting here disappointed. That’s why I’m considering putting money into each stock, to help me get potential dividends in the future.