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3 dividend stocks I’d buy for a lifetime of passive income

Would you like to be able to sit back and collect a regular income from your investments without having to do anything at all? That’s the end goal behind most of my investment choices. I’m comfortable with this style of long-term investing and I can’t always guarantee to have the time and energy required for more active investing.

Today, I want to highlight three stocks I think are good choices for this kind of long-term income growth portfolio, including two I already own.

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Packaged profits

As a society, we have a love-hate relationship with packaging. We can’t live without it, but I think we’d all agree it needs to become more efficient and less wasteful. My top pick in this sector is FTSE 100 firm DS Smith (LSE: SMDS). This group produces packaging for customers such as supermarkets and consumer goods firms, as well as products for retail and industrial use.

The firm’s strategy is based on complete lifecycle services, including recycling, not just supply. When the planned sale of its plastics division completes later this year, DS Smith will only produce cardboard packaging.

In the short term, demand could suffer if the economy slows. But on a longer view, I believe the growth outlook is strong. Trading on less than 10 times forecast earnings and offering a 5% dividend yield, I view the shares as a long-term buy.

A contrarian choice

Part of my investing strategy involves buying cyclical stocks when they’re out of favour. By doing this, I hope to lock in above-average dividend yields for the future.

One of my recent picks is British Land (LSE: BLND). This FTSE 100 commercial property REIT owns large chunks of London office property and shopping centres around the UK. It’s no secret conditions are tough in the retail sector, and the British Land share price has fallen by 30% over the last four years.

However, the company remains well financed and profitable and the stock now trades at a 35% discount to its net asset value of 905p per share. I think this provides a healthy margin of safety for investors.

This group has a diverse, high-quality portfolio that includes some of London’s most prestigious commercial property. The stock’s 5.4% dividend offers an attractive income. I think British Land should offer good value for long-term buyers.

Simple pleasures

When times are hard, we may cut back on big expenses like holidays and new cars. But we’re much less likely to cut back on small pleasures, such as soft drinks. I see Britvic (LSE: BVIC), whose brands include Robinsons, Fruit Shoot and J2O, as a good pick in this sector.

One special attraction is that, in addition to its own brands, Britvic also has an exclusive licence to produce drinks such as Pepsi and 7UP for the UK market.

BVIC shares rarely look cheap, but I think its reliable long-term performance makes it worth paying a fuller price. The dividend has risen by 180% over the last 12 years and operating profit has risen by 55% since 2013.

The shares are currently at record highs, trading on 18 times forecast earnings, with a 2.9% yield. I’d rather wait for a market sell-off to secure a better price. But even at current levels, I think Britvic stock should be a good long-term buy for income and growth.

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Roland Head owns shares of British Land Co and DS Smith. The Motley Fool UK owns shares of and has recommended Britvic. The Motley Fool UK has recommended British Land Co and DS Smith. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.