2 Monster Dividend Stocks to Buy and Hold Forever

If you want to make life-changing returns in the stock market, focus on long-term investing, which generally involves holding equities for periods of five years or more. This strategy helps investors ignore the short-term volatility, giving time for a company's real value to shine through. Consistent dividend payments help juice returns by adding a source of compounding passive income.

Let's discuss why Alpine Income Property Trust (NYSE: PINE) and Home Depot (NYSE: HD) could make great stocks to buy for the long haul.

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Alpine Income Property Trust

Alpine Income is a real estate investment trust (REIT). These are a class of companies that are exempt from federal corporate income taxes as long as they return the vast majority of their profits to shareholders through a dividend. REITs give regular people access to consistent wealth generated by real estate without the headaches associated with traditional property ownership. And Alpine Income stands out because of its small size and epic long-term growth potential.

In physics, the smaller something is, the less force is needed to move it. And this concept can also hold true in financial markets, where smaller companies often have an easier time finding deals that can move the needle. For Alpine Income, this has included a flurry of recent purchases, such as the $20.7 million acquisition of 177,441 square feet of property anchored by mainstream brands like Walmart Supercenter and TJ Maxx.

While such acquisitions would be a drop in the bucket for larger REITs, they are massive compared to Alpine Income's market capitalization of just $287 million. They should help the company grow its earnings and maintain its dividend.

Alpine Income aims for high-quality, well-capitalized tenants that can reliably meet their obligations. And it adds another layer of safety through triple net leases, where the tenant is responsible for property-level operating costs like insurance, property taxes, and maintenance. This strategy helps shield its cash flow from challenges like inflation.

Alpine Income's shares currently boast a dividend yield of 6.08%, which is significantly higher than the S&P 500 average of just 1.2%. And over time, these compounding payouts could help it outperform the market.

Home Depot

The United States boasts one of the most robust and resilient economies on the planet. And consumer spending plays a big part in that, especially as people repair and upgrade their living spaces. Home Depot allows investors to tap into this long-term growth opportunity while also enjoying an above-average dividend payout with the potential to expand.

On the surface, this might not look like the best time to bet on a home improvement chain like Home Depot. Consumer spending is currently under pressure after years of above-average inflation and weakness in the job market. And this directly reduces the amount of money people have to spend on non-essentials like upgrading their cabinets or flooring. Furthermore, relatively high mortgage rates have slowed home sales, which are a major source of demand for major renovations.

That said, investors should always look toward the future when making long-term investment decisions. The American consumer market has a track record of bouncing back -- even from significantly worse economic challenges, such as the COVID-19 pandemic or the Great Recession. And there is no reason to assume this time will be any different.

Mortgage rates are expected to come down over the next few years as the Federal Reserve lowers its benchmark interest rates. This move could unlock the floodgates of home improvement demand as consumers refinance their homes to take out equity, which can then be spent.

Home Depot is also attractive because of its reasonable valuation. The stock's forward price-to-earnings (P/E) multiple of just 21 is in line with the market average. And its dividend yield of 2.8% is the icing on the cake.

Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.