The Best Dividend Stocks to Buy and Hold Forever | The Motley Fool
The Motley Fool
by newsfeedback@fool.com (Marc Guberti)February 14, 2026
AI-Generated Deep Dive Summary
The article highlights two standout dividend stocks that offer both attractive yields and long-term growth potential: Silicon Motion Technology (SIMO) and Microsoft (MSFT). These stocks are particularly appealing due to their strong performance in tech sectors influenced by emerging trends like artificial intelligence (AI) and cloud computing.
Silicon Motion Technology, a Hong Kong-based company specializing in NAND flash controllers for storage devices, has seen significant revenue growth driven by AI infrastructure demand. The company's 46% year-over-year revenue growth in Q4 and a projected "significantly stronger-than-seasonal start" to the first quarter underscore its promising outlook. Despite its rally, which has pushed shares up by 130% over the past year, Silicon Motion Technology remains undervalued with a respectable 1.56% yield. The company's robust cash reserves of $277.1 million provide financial stability, ensuring it can sustain and potentially increase dividends in the future.
Microsoft, on the other hand, offers a unique blend of growth and income. While its dividend yield may not be high enough to attract all income investors, its recent 15% year-to-date decline has made it undervalued. Microsoft's Q2 fiscal 2026 results showed strong revenue growth, with Azure leading the charge at a 39% year-over-year increase. The company also returned $12.7 billion to shareholders through buybacks and dividends, demonstrating its commitment to returning value. Despite concerns over rising AI spending, these investments have already translated into significant net income growth, such as the 60% year-over-year increase in Q2.
For investors seeking a mix of stability and growth, these dividend stocks provide compelling opportunities. Silicon Motion Technology's role in AI-driven data centers positions it for sustained long-term growth, while Microsoft's dominance in cloud computing and its growing dividend payouts make it an attractive option for those looking to balance income and capital appreciation. These stocks highlight the potential for tech sectors to deliver both reliable cash flow and significant returns, making them valuable additions to any diversified portfolio.
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Originally published on The Motley Fool on 2/14/2026