3 Dividend Stocks to Buy and Hold Forever

Dividend stocks are the foundation of a great portfolio. They provide stability and reliable passive income, protecting your portfolio while other funds do the heavy growth work.

If you own a group of excellent dividend stocks that can withstand market volatility, you'll be less likely to panic when it happens. Walmart (NASDAQ: WMT), Realty Income (NYSE: O), and Home Depot (NYSE: HD) are three excellent candidates.

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1. Walmart

Walmart is the largest retail chain in the world, with more than 5,000 stores in the U.S. alone and more than 10,000 stores globally under different banners. As a discount store, it attracts business whether the economy is doing well or not. However, it's expanding into a wider range of merchandise to attract a broader customer base.

It consistently reports higher sales, which is quite a feat considering its massive size. Although its sales were recently topped by Amazon, it's still well ahead of any other company and any other retailer. It's reliably profitable and adapts to the times to create new opportunities and stay ahead of the game.

Recently, it's been demonstrating momentum in e-commerce, which increased 24% year over year in the 2026 fiscal fourth quarter (ended Jan. 31). It has an edge in using its massive store base as a distribution network, which helps it reach shoppers faster, and it also provides customers with varied options like store pickup.

Walmart is a Dividend King, and it just raised its dividend for the 53rd consecutive year. That's an elite status that speaks to its reliability under all circumstances. It only yields 0.7% at the current price, and that's partially because the stock has been outperforming. With Walmart stock, you get the power of stock gains and stable passive income together in one stock.

2. Realty Income

Realty Income calls itself "the monthly dividend company," and it's one of the few companies today that can claim that incredible feature. But it's so much more than that. It has paid the monthly dividend for more than 55 years through thick and thin and raised it for 114 quarters, an unusual and compelling track record. More than that, the dividend yields 5.1%.

The company is a real estate investment trust (REIT), and it owns more than 15,000 properties globally. It's one of the largest REITs in the world, and it's well funded to keep buying new properties and grow its business.

Despite the challenging real estate market, Realty Income continues to identify attractive properties, and it has been reporting strong performance. In Q4 2025, adjusted funds from operations (AFFO), the standard profit metric for REITs, increased from $1.05 to $1.08 year over year, and the company had a 104.9% rent recapture rate on released properties.

It works predominantly with top retail chains, including Walmart, that are stable and well-established, and it has a portfolio occupancy rate of 98.9%. Realty Income is a forever dividend stock that can provide years of high-yield passive income.

3. Home Depot

Home Depot has been struggling in the depressing housing market, but it still has a massive home improvement business, with more than 2,300 stores in North America and nearly $165 billion in sales.

In general, home improvement is an excellent space to be in; housing is the largest expense for Americans, and they need to take care of their homes. However, there are cycles in housing, and Home Depot has been reporting declining sales and comparable sales. Revenue fell 3.4% from last year in fiscal Q4 2025 (ended Feb. 1), and comps were roughly flat.

The stock has been sluggish as well, down 6% over the past year. Since the dividend yield moves in contrast with stock price, the yield has risen to 2.8%. The stock is also more attractively priced at a price-to-earnings ratio of 24.

Home Depot is the kind of rock-solid company you can count on for passive income, and it just raised its dividend despite pressure on the business. That's a commitment shareholders are looking for in a forever dividend stock.

Jennifer Saibil has positions in Walmart. The Motley Fool has positions in and recommends Amazon, Home Depot, Realty Income, and Walmart. The Motley Fool has a disclosure policy.