2 Best Dividend Stocks to Buy Now and Hold Forever
The Motley Fool
by newsfeedback@fool.com (Reuben Gregg Brewer)February 25, 2026
AI-Generated Deep Dive Summary
Dividend investors seeking reliable income streams to supplement retirement funds often face a dilemma: balancing high yields with sustainability. The article highlights two standout REITs—Federal Realty (NYSE: FRT) and Realty Income (NYSE: O)—as top choices for their combination of strong dividends and stability, making them ideal candidates for long-term holdings.
With the S&P 500 yielding just 1.1%, the average REIT offering a more attractive 3.8% yield, these two REITs stand out. Federal Realty delivers a 4.2% yield, while Realty Income boasts an even higher 5% yield. Both companies have proven track records of consistent dividend payments and growth, reducing the risk of dividend cuts that often plague high-yield investments.
Federal Realty, known for its diverse portfolio of retail properties, has consistently increased dividends over time, reflecting strong cash flow and a conservative approach to leveraging debt. Meanwhile, Realty Income, dubbed "The Monthly Dividend Company," offers monthly payouts, providing steady income throughout the year. Its global property portfolio and focus on long-term stability further enhance its appeal.
For investors prioritizing dependable income without excessive risk, these REITs offer a compelling balance of yield and reliability. Their strong financial positions and track records make them excellent choices for both current income and long-term growth, aligning well with the goals of dividend-focused investors seeking sustainable returns in retirement.
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Originally published on The Motley Fool on 2/25/2026