3 Brilliant Dividend Stocks to Buy Now and Hold for the Long Term

Dividend stocks come in all shapes and sizes, from boring and safe to highly risky. There are good investment options all across the range. Here's why you might want to buy Realty Income (NYSE: O), W.P. Carey (NYSE: WPC), and Ares Capital (NASDAQ: ARCC) to collect yields of up to 9.1%.

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Realty Income keeps it boring

Realty Income is the largest net lease real estate investment trust (REIT), with a portfolio of more than 15,500 properties. It is more than three times the size of runner-up W.P. Carey. The size difference is an advantage in that it allows the investment-grade-rated real estate investment trust easier access to capital markets. That, in turn, leads to a lower cost of capital.

Realty Income has been focusing on increasing the number of growth paths it has. For example, it has expanded into Europe, started investing in casinos, and just recently entered the Mexican market. That's all good news, but there's one overriding fact that you have to accept if you buy the stock: Realty Income is a slow-growing business because of its vast size. However, if you are a conservative dividend investor, that could be just what you are looking for.

With a 5.3% yield and a 30-year history of annual dividend growth, Realty Income could be a cornerstone investment for your retirement portfolio.

A dividend reset sets W.P. Carey up for growth

While Realty Income boasts decades of dividend growth, peer W.P. Carey cut its dividend in 2023. However, it has increased the dividend every quarter since the cut. That's important because it shows that the dividend cut was actually a business reset, precipitated by the REIT's decision to exit the troubled office sector.

Today, W.P. Carey invests in industrial, warehouse, and retail assets in the United States and Europe. The capital raised from the office exit was used to buy new properties. Meanwhile, W.P. Carey's smaller size relative to Realty Income means it will have an easier time growing its portfolio. For example, in the third quarter of 2025, Realty Income's adjusted funds from operations (FFO) increased just under 3%, while W.P. Cary's adjusted FFO expanded nearly 6%.

With a 5.3% yield, investors willing to accept that the dividend cut was merely a reset may find W.P. Carey an appealing choice.

Ares Capital's dividend will vary

Last up is Ares Capital and its huge 9.1% dividend yield. Ares is one of the largest business development companies (BDCs). Like REITs, BDCs pay out at least 90% of their taxable income as dividends to avoid corporate-level taxation. However, BDCs make high-interest-rate loans to smaller companies, which is an inherently riskier business model. There are positives and negatives to consider.

The positive is that the company's average loan yield of 10.6% generates more than enough income to cover its hefty dividend. The negative is that recessions often lead to BDCs having a large number of troubled loans. That usually forces a dividend cut. However, the BDC structure means that dividends are likely to recover alongside the economy.

With an ultra-high yield, Ares Capital could be a good addition for those with the financial leeway to accept a variable dividend.

Three options to consider across the risk spectrum

Realty Income is slow and boring, but it is also a reliable dividend payer. W.P. Carey offers more opportunities for growth, which should support a long-term return to reliable dividend growth. And Ares Capital is a high-yield and high-risk dividend stock that could be a complement to lower-yielding investments. Do a deep dive, and there's likely to be one dividend stock here that will serve you well as a long-term investment.

Reuben Gregg Brewer has positions in Realty Income and W.P. Carey. The Motley Fool has positions in and recommends Ares Capital and Realty Income. The Motley Fool has a disclosure policy.