2 Best Dividend Stocks to Buy Now and Hold Forever

By Reuben Gregg Brewer – Feb 25, 2026 at 6:24AM ESTKey PointsFederal Realty is the only REIT that is also a Dividend King.Realty Income's commitment to its dividend is so strong that it trademarked the nickname The Monthly Dividend Company.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: ORealty IncomeMarket Cap$61BToday's Changeangle-down(-0.24%) $0.16Current Price$66.52Price as of February 24, 2026 at 4:00 PM ETIf you are looking for reliable income, then you'll want to own this Dividend King and "The Monthly Dividend Company."Dividend investors are generally trying to create cash flow that can be used to supplement Social Security in retirement. It's a worthy objective, but you have to be careful not to reach so far for yield that you open yourself up to the risk of dividend cuts. That's why reliable dividend payers such as Federal Realty (FRT 1.23%) and Realty Income (O 0.24%) could be such valuable holdings. Two attractive yields The S&P 500 index (^GSPC +0.77%) has a miserly 1.1% yield today. The average real estate investment trust (REIT) yields 3.8%. Federal Realty is offering a 4.2% yield, with Realty Income's yield coming in even higher, at nearly 5%. Basically, if you're looking for yield, these two REITs have you covered. Image source: Getty Images. That said, they generate their dividends in slightly different ways. Federal Realty owns strip malls and mixed-use assets. It has a highly focused portfolio, with management taking a quality-over-quantity approach. It is always looking to redevelop assets and will happily sell properties that have reached their full potential, using the proceeds to buy assets in need of a little love. It is a repeatable model that has proven successful for decades. Realty Income is a retail-focused net lease REIT that owns over 15,500 single-tenant properties. While it is trying to buy good assets, the business model is clearly focused on growth through acquisition. That said, the company's size and financial strength generally afford it a low cost of capital. It has little problem finding accretive investments, though it is worth highlighting that the REIT has been expanding its reach in an effort to support growth. For example, a few years ago, it started to invest in Europe, and just recently, it made its first foray into Mexico. Debt investments and asset management operations are additional, and relatively new, developments. ExpandNYSE: ORealty IncomeToday's Change(-0.24%) $-0.16Current Price$66.52Key Data PointsMarket Cap$61BDay's Range$66.22 - $66.9252wk Range$50.71 - $67.15Volume10KAvg Vol6.4MGross Margin48.14%Dividend Yield4.85% What about those dividends? What really sets Federal Realty and Realty Income apart, however, is their dividend histories. Federal Realty has increased its dividend annually for 58 consecutive years, making it the only REIT that is also a Dividend King.

While Realty Income's 30 annual dividend increases aren't as impressive, they are hard to complain about. That said, Realty Income's focus on dividends is so intense that it actually trademarked the nickname "The Monthly Dividend Company." Attractive yields backed by attractive businesses that have produced impressive dividend records. What more could you ask for in a buy-and-hold dividend stock?Read NextFeb 24, 2026 •By Reuben Gregg Brewer3 Top Dividend Stocks to Double Up on Right NowFeb 23, 2026 •By Matt DiLalloHere's How Much You'd Need to Invest in These 3 High-Yielding REIT Dividend Stocks to Generate Over $250 in Passive Income Each MonthFeb 21, 2026 •By Reuben Gregg BrewerWhere Will Realty Income Stock Be in 1 Year?Feb 21, 2026 •By Matt DiLallo3 REITs Every Investor Should Know AboutFeb 8, 2026 •By Matt DiLallo1 Stock I Plan to Load Up on in 2026Feb 4, 2026 •By Matt DiLalloMy 3 Favorite High-Yield Dividend Stocks to Buy in February (1 Currently Yields 6.8%)About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedRealty IncomeNYSE: O$66.52 (0.24%) $0.16S&P 500 IndexSNPINDEX: ^GSPC$6890.07 (+0.77%) $+52.32Federal Realty Investment TrustNYSE: FRT$107.79 (1.23%) $1.34*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.