2 Top Dividend Stocks to Buy and Hold in 2026

Stock market investing is one of the best ways to build wealth over the long term. But it can be stressful. After all, nobody likes watching their net worth fluctuate up and down in what can sometimes be volatile asset classes. Dividend-paying stocks take a lot of the guesswork out of investing because they promise steady periodic income that can increase over time based on the company's actual profits or cash flow.

In 2026, the macroeconomic situation is tense. And investors should focus on companies with strong business models that can weather a potential downturn while maintaining their payouts. Let's explore why Realty Income (NYSE: O) and Dollar General (NYSE: DG) fit the bill.

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1. Realty Income

Founded in 1965, Realty Income is one of America's best-known real estate investment trusts (REITs), a special type of company that gets tax advantages for returning the majority of its profits to shareholders. It's one of the biggest REITs in the world with a market cap of $53.4 billion. But that doesn't mean its growing days are over. The company's safe business model and diversification could ensure continued success.

Realty Income's real estate portfolio focuses on a diversified array of consumer staples providers, like grocery stores, auto repair shops, and fast-casual restaurants. While some of these categories are vulnerable to economic downturns, rent payments are a fixed cost and typically one of the last things a business can realistically cut while staying operational.

Realty Income further boosts its safety through what are called triple-net leases. These are rental contracts that obligate the tenant to take care of property-level expenses like maintenance, property tax, and insurance, shielding the REIT from inflation and stabilizing its cash flow.

With a dividend yield of 5.6%, Realty Income's current yield is somewhat elevated compared to historical levels before 2020, when the number was typically between 3%-5%. This disparity might have something to do with higher interest rates, which tend to make REITs look less competitive relative to risk-free assets like Treasury bonds or high-yield savings accounts. That said, rates are expected to decline in 2026 and beyond, so investors may want to lock in Realty Income's fat dividend while it lasts.

2. Dollar General

Dollar General enjoyed a bull run in 2025, with shares up 99% over the previous 12 months. While the deep-discount retailer had struggled with inflation earlier in the decade (which caused it to raise prices), the souring economy now seems to be working in its favor by attracting new income brackets to its stores. The rebound might be just getting started.

Dollar General fills a unique role in the U.S. retail landscape by offering customers some of the lowest possible prices for items. While it generally can't match big box retailers on value, it makes up for this by providing off-brand products or name-brand products in unusually small sizes. The company also operates streamlined stores in low-cost locations (regions with very little competition) to try to pass on some of those savings to consumers.

Dollar General's third-quarter earnings highlight impressive business momentum. Revenue increased by 4.6% to $10.6 billion, driven by a 2.5% improvement in same-store sales. And according to CEO Todd Vasos, the company is now seeing disproportionate growth from higher-income households looking for deals they wouldn't find at traditional retailers. Perhaps surprisingly, over 60% of the company's new customers are high-income households, defined as earnings over $100,000 per year.

With a dividend yield of 1.65% Dollar General's payout is no longer that impressive relative to companies like Realty Income. That said, the company offers the potential for a higher total return, which is calculated by including the dividend along with stock price growth. Dollar General's third-quarter operating income jumped by 31.5% year over year to $425.9 million, so there is plenty of room to return value to investors by increasing the dividend or restarting a share repurchase program.

Will Ebiefung has positions in Realty Income and is short shares of Dollar General. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.