Bram Berkowitz, The Motley Fool

Sat, Jun 7, 2025, 12:14 AM6 min read

• Dividend stocks can generate reliable passive income.

• The key is to find companies that have a strong track record of paying and increasing their dividends.

• Investors also want to be sure that they are picking companies that can generate enough earnings and free cash flow to cover and raise their dividends in the future.

• These 10 stocks could mint the next wave of millionaires ›

Since the pandemic began, the stock market has proven to be erratic, plunging at times only to quickly recover and launch into fresh bull markets. Today, with plenty of new uncertainty due to issues including President Donald Trump's trade wars, U.S. fiscal concerns, and the concerning trajectory of the U.S. economy, more volatility is certainly on the docket. That's why investors may want to check out some dividend stocks, which can provide reliable passive income. The returns of dividend stocks can be much more dependable than those of non-payers, especially if you choose ones with good track records and the ability to grow their earnings and free cash flows so they can keep regularly increasing their payouts.

Here are two dividend stocks that meet those criteria that investors can feel comfortable buying and holding for the next two years.

The iconic footwear and apparel company Nike (NYSE: NKE) has been less than iconic as a stock lately. It's now down by about 39% over the last five years (as of June 4). Intensifying competition in the footwear and apparel space, struggles with the brand, and an excessive focus on digital promotions and sales have resulted in the company underperforming in recent years.

To change its trajectory, the board hired longtime Nike veteran Elliot Hill out of retirement to take the helm, and Nike is now deeply entrenched in his turnaround plan. Hill is focused on getting the company back to what it does best -- renewing its intense focus on the brand, leading the way on product innovation, and reactivating and improving its sales relationships with wholesalers. Hill also said earlier this year that Nike will be focused on five product areas -- running, basketball, football, training, and sportswear -- and three markets: the U.S., the United Kingdom, and China.

But as some analysts have pointed out, Nike's turnaround could take longer than expected, especially if the global trade war continues or if the U.S. economy tips into a recession. A longer turnaround could make it difficult to entice investors to buy and hold the stock, which is why Nike is likely to make paying and raising its dividend a priority. Its yield of about 2.6% at the current share price isn't bad, but it trails most Treasury yields right now and over the past few years.