I Own These 2 High Dividend Stocks and Plan to Hold Them Forever. Here's Why.

I've been a fan of dividend stocks ever since I started investing. I own more than a dozen of them in my portfolio, and that's not including several ETF holdings that make regular distributions. To be clear, I buy every stock in my portfolio with the intention of holding for the long term, and that's especially true when it comes to income stocks.

However, there are only a select few that I consider to truly be "forever stocks," which I can't see myself selling unless something dramatically changes (e.g., the company gets acquired). Here are two in particular that I've owned for years and plan to keep for decades to come.

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My first (and favorite) dividend stock

Realty Income (NYSE: O) was the first stock I bought specifically because it was an excellent income investment. I added shares of the massive real estate investment trust (REIT) to my portfolio in 2014 and have added to the position many times since.

I've called Realty Income my favorite all-around dividend stock in the market, as it is an excellent combination of consistently growing income, market-beating total return potential, and low volatility.

If you aren't familiar with the company, Realty Income owns about 15,700 properties, most of which are leased to retail tenants. It specifically chooses high-quality tenants whose businesses are recession-resistant and aren't easily disrupted by e-commerce competition. Not only that, but tenants sign long-term triple-net leases, which have built-in annual rent increases and require tenants to cover taxes, insurance, and maintenance costs.

Realty Income has increased its dividend for more than 100 consecutive quarters. It has a 5.3% dividend yield, paid monthly. And it has produced annualized total returns of 13.6% since its 1994 NYSE listing.

A high yield at a discount

Vici Properties (NYSE: VICI) hasn't exactly been a top performer lately. It specializes in casino properties, and Las Vegas tourism has struggled recently, plus the extremely long-term nature of its leases (40+ years) makes it highly sensitive to interest rates, which have remained stubbornly high.

However, this is an excellent business with a 6.8% dividend yield and significant growth potential. It owns a portfolio of iconic assets, including Caesars Palace, MGM Grand, and The Venetian in Las Vegas. It has a strong balance sheet and excellent credit, which gives it the financial flexibility to grow. And it has an established track record of adding shareholder value when it finds an attractive acquisition target.

As of this writing, Vici trades for about 10.8 times expected 2026 funds from operations (FFO-the real estate equivalent of "earnings"). It's a rare bargain in an expensive market, and it's a position that I plan to add to significantly and hold forever.

Matt Frankel, CFP® has positions in Realty Income and Vici Properties. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy.