5 Dividend Stocks to Buy and Hold Forever

Johnson & Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG), and Federal Realty (NYSE: FRT) are all Dividend Kings, with at least 50 annual dividend increases. Medtronic (NYSE: MDT) is closing in on 50, while Realty Income (NYSE: O) has the shortest dividend streak at a still impressive 32 years. If you are looking for a dividend stock, this quintet is among the most reliable.

But that alone isn't enough to make them buy and hold dividend investments. What tips the scale is the fact that all five are very well-run businesses. Here's a look at each of them and why even the most conservative investor should feel comfortable jumping aboard.

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Healthcare isn't optional

The big story behind J&J and Medtronic is that they are healthcare companies. Healthcare spending tends to be resilient because of the potentially dire consequences of failing to take care of yourself. Johnson & Johnson, the Dividend King, is more diverse, with large divisions in the pharmaceutical and medical device spaces. It has the longest dividend streak of any healthcare stock. Medtronic, which has increased its dividend annually for 48 years (two shy of Dividend King status), is focused on medical devices.

Johnson & Johnson's is performing fairly well right now as a business and offers a yield of 1.9%. That's still notably above the broader market's roughly 1% yield, but the stock is best suited to risk-averse investors. Notably, it slightly increased its full-year 2026 guidance when it reported third-quarter earnings.

Medtronic is emerging from a business revamp, with growth accelerating after a period of weakness. Investors are still operating with a show-me attitude, leaving the stock with a 2.8% yield. But the medical device maker reported top-line growth of 13.7% in the first quarter of fiscal 2027, prompting it to raise its full-year guidance after just one quarter. If you can handle just a little more uncertainty, most dividend investors will likely find it attractive as it continues to deliver on its turnaround promises.

Procter & Gamble leads with innovation

Procter & Gamble is a consumer staples giant with global reach and a portfolio that includes paper products, makeup/skincare, toiletries, and over-the-counter drugs, among other things. However, the key defining factor here is that P&G products tend to sit at the high end of the market. That would suggest that it faces a material trade-down risk, but that hasn't panned out even as budget-conscious consumers pull back on spending today. The company's first quarter fiscal 2027 organic sales rose a very healthy 4%.

The key is that innovation has long driven the company's business. It leads the industry by introducing products that are worth buying despite a higher price tag. And its status as a Dividend King highlights just how successful this business approach has been. With a 2.6% yield, even the most conservative investor should feel comfortable buying P&G and socking it away for decades.

REITs amp up the income stream

Federal Realty is the only real estate investment trust (REIT) on the Dividend King list. Realty Income, which trademarked the nickname "The Monthly Dividend Company", has 32 annual increases behind it, which is hard to complain about. Both are kind of boring businesses, which is really what you want from a REIT.

Federal Realty's yield is hovering around 4%. It owns a focused portfolio of roughly 100 large and well-located strip mall and mixed-use assets. Basically, it owns properties that retailers want to be in. And it works very hard to develop and redevelop its assets to ensure they remain desirable for tenants and shoppers. It is the type of dividend stock you buy and only check in on a couple of times a year.

Realty Income is the largest net lease REIT, with a globally diversified portfolio of over 15,500 properties. Net leases require the tenant to pay for most property-level costs, which materially reduces Realty Income's expenses and risk. To be fair, this 5.5% yielding REIT isn't going to wow you with growth; it's too big for that. But it is built from the ground up to pay reliable dividends, and its growing business diversification should support years of dividend growth. It can provide a high-yield foundation for a passive income portfolio, allowing you to buy lower-yielding but higher-growth stocks like J&J, Medtronic, and P&G.

Five dividend stocks to buy and hold

Johnson & Johnson, Medtronic, P&G, Federal Realty, and Realty Income aren't "get rich quick" stocks. They are the types of investments you buy and hold for decades, perhaps even forever. If you are looking to generate a reliable income stream while benefiting from the long-term growth of the companies you own, this quintet should be high up on your wish list, if not on your buy list.

Reuben Gregg Brewer has positions in Federal Realty Investment Trust, Medtronic, Procter & Gamble, and Realty Income. The Motley Fool has positions in and recommends Medtronic and Realty Income. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.