The Best 3 Retail Stocks to Buy and Hold for Decades

By Reuben Gregg Brewer – Mar 31, 2026 at 10:15AM ESTKey PointsTarget is a Dividend King and one of the largest retailers in the United States.Lowe's is another Dividend King retailer, and it has a more attractive valuation than its main rival.Dividend King Federal Realty has a small portfolio of very well-located retail properties.The retail sector can be difficult to follow because of often fickle consumer preferences. What's hot one day can be cold as ice the next. The best way for investors to sidestep this risk is to buy companies that have proven over time that they can adjust along with the markets they serve. Two retailers that have done just that are Target (TGT +0.79%) and Lowe's (LOW +0.49%). And high-yield retail-focused real estate investment trust (REIT) Federal Realty (FRT +1.06%) has also shown its resilience over time. The key dynamic is that all three are Dividend Kings. What does it take to be a Dividend King? A company must increase its dividend annually for 50 consecutive years to be considered a Dividend King. A record like that can't be built by accident; it requires a strong business model that gets executed well in both good times and bad. Simply put, Target, Lowe's, and Federal Realty have proven that they can survive over the long term. Image source: Getty Images. They will all go through difficult times, noting that Target is in the middle of a business overhaul right now. However, if history is any guide, these three retail-focused businesses will continue to reward investors with reliable dividends backed by growing businesses. Target is a work in progress Target is likely the most aggressive option on the list. It has a historically high dividend yield of 3.8%. Despite a recent stock rally, the shares are down more than 50% from their 2021 highs. If you have a value bias, this retailer will likely be of interest to you. ExpandNYSE: TGTTargetToday's Change(0.79%) $0.94Current Price$119.72Key Data PointsMarket Cap$54BDay's Range$118.81 - $120.3952wk Range$83.44 - $126.00Volume32KAvg Vol6.5MGross Margin25.44%Dividend Yield3.82% The key is that Target is generally focused on offering a more upscale retail shopping experience than its key rival, Walmart (WMT 0.03%). Consumers are tightening their belts right now, so Walmart is performing better. Target is making changes to bring back customers, including cutting costs. But it is also leaning into its upscale feel, so it remains differentiated from Walmart. Eventually, customers will likely reopen their wallets, and Target's business will improve as shoppers trade back up again. Lowe's beats Home Depot in two key ways Home improvement retailer Lowe's is a Dividend King. Key revival Home Depot (HD +0.34%) is not. Lowe's price-to-earnings ratio is 19x, and its price-to-sales ratio is 1.5x. Home Depot's P/E is 22x, and its P/S ratio is 1.9x. So, all in, Lowe's has a more impressive dividend history, and it looks more attractively valued. ExpandNYSE: LOWLowe's CompaniesToday's Change(0.49%) $1.14Current Price$233.72Key Data PointsMarket Cap$130BDay's Range$232.46 - $237.1452wk Range$206.38 - $293.06Volume19KAvg Vol2.9MGross Margin31.22%Dividend Yield2.04% To be fair, home improvement stores could be in for a rough ride if the U.S. economy falls into a recession. However, Lowe's has proven it can survive such downturns while continuing to reward investors well for sticking around. If you think in decades and like attractively valued stocks, Lowe's and its roughly 2% yield will probably be a good fit for your portfolio. Federal Realty is the only Dividend King REIT Federal Realty switches things up a little bit because it is a retail landlord, with a portfolio of roughly 100 well-located strip malls and mixed-use properties. It is the only REIT that has managed to achieve Dividend King status, proving its quality over quantity approach is a success. ExpandNYSE: FRTFederal Realty Investment TrustToday's Change(1.06%) $1.11Current Price$105.57Key Data PointsMarket Cap$9.0BDay's Range$103.69 - $105.8952wk Range$80.65 - $110.89Volume212KAvg Vol808KGross Margin38.49%Dividend Yield4.27% That said, the real key to Federal Realty's success is its highly active portfolio management. It is always redeveloping assets to keep them desirable for tenants and customers. And it will sell assets once they have reached full valuation, replacing them with new properties that need some tender loving care. If you don't mind owning a REIT that takes a sharp-shooter approach, Federal Realty's attractive 4.3% dividend yield could be a great fit for your income portfolio. Three reliable dividend stocks in the retail sector Retail brands come and go with surprising regularity, but Target and Lowe's continue to thrive. And they both reward investors with reliable dividends. Federal Realty owns properties that retailers want to be in, and it has an unmatched record of dividend growth in the REIT sector. If you plan to buy and hold a retail stock for decades, these three Dividend Kings should be on your short list today.Read NextMar 28, 2026 •By Will HealyThe Best 3 Consumer Staples Stocks to Buy and Hold for DecadesMar 26, 2026 •By Adria CiminoThis Previously Down-on-Its-Luck Stock Has Been Quietly Outperforming the Market. Time to Buy?Mar 23, 2026 •By Jeremy BowmanCan Target's New Circle Deal Days Spark a Turnaround for the Retail StockMar 22, 2026 •By Travis HoiumThe 3 Best Dividend Stocks to Buy Now and Hold ForeverMar 22, 2026 •By Rachel WarrenBest Apparel Stocks to Buy in 2026 and How to Invest in ThemMar 20, 2026 •By Parkev Tatevosian, CFAShould Passive Income Investors Buy Target Stock?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 MentionedTargetNYSE: TGT$119.68(+0.76%)+$0.90Lowe's CompaniesNYSE: LOW$233.57(+0.43%)+$0.99Federal Realty Investment TrustNYSE: FRT$105.48(+0.98%)+$1.02*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.