2 Affordable Dividend Growth Stocks to Buy And Hold Forever

Long-term investing is the key to sustainable returns in the stock market because it smooths out near-term volatility to let a company's fundamental value shine through. Regular dividend payments sweeten the deal by providing consistent income that can grow larger over time. Let's explore some reasons why Alpine Income (NYSE: PINE) and Dollar General (NYSE: DG) could make great picks to buy and hold forever.

1. Alpine Income

Since their establishment in 1960, real estate investment trusts (REITs) have been a great source of wealth for middle-class Americans. These special companies are allowed to avoid corporate taxes by returning the majority of profits to shareholders through a dividend. But as of 2025, many top REITs have already grown into giants, leaving new investors feeling late to the party. Alpine Income bucks the trend.

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Founded in 2019, Alpine Income is a relatively new REIT. Its market cap of just $216.6 million makes it a smaller alternative to similar companies like Realty Income, which is worth $51 billion. Both REITs operate similar business models, focusing on single-tenant net-lease properties where the tenants are responsible for expenses like taxes, insurance, and maintenance, leading to less overhead for the REIT.

Alpine Income's small footprint will make it easier for management to find accretive property acquisitions that a larger company like Realty Income may overlook. Its portfolio has also maintained good quality standards. Alpine Income's 134 properties are 99% occupied and diversified across 35 U.S. states. Top tenants include well-known consumer goods brands like Dicks Sporting Goods and home improvement store, Lowe's.

Alpine's high payout is the icing on the cake. With a dividend yield of 7.6%, the small company towers above the S&P 500 index average of 1.27%, making it a great pick for income-focused investors who want growth potential.

2. Dollar General

With shares up 22% year to date, Dollar General is rapidly recovering from the weakness it experienced in 2024 as persistently high inflation ate into its low-cost business model. However, while Trump's new tariff policy could present a new threat to the retail industry, Dollar General looks better positioned to weather the storm than its rivals.

According to analysts at Citigroup, only 10% of Dollar General's inventory is exposed to global tariffs because of the retailer's focus on food items. This dynamic will put the company at a significant advantage compared to rivals like Dollar Tree (which has 50% of its inventory exposed) and other retailers, which the analysts claim can face nearly 100% exposure.

People need to eat, no matter what is going on in the broader economy. Dollar General's low prices and relatively low tariff exposure could draw customers away from big-box rivals like Walmart and Target. The company has also created an economic moat for itself by focusing on rural areas and neglected urban locations, where there are lower land and labor costs, and dramatically less competition.

Dollar General also boasts an attractive valuation. With a forward price-to-earnings (P/E) multiple of 17, shares are much cheaper than industry leader Walmart, which trades for 37 times its expected earnings. Dollar General's dividend yield of 2.6% sweetens the deal for investors.

The magic of compound interest

A long-term perspective helps investors ignore stock market volatility. Stable and growing dividend payments can take this investing strategy into hyperdrive through the magic of compound interest. When dividends are reinvested into a quality company, they can create a snowball effect of wealth creation. Alpine Income and Dollar General look like two great choices for implementing this long-term strategy.

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Citigroup is an advertising partner of Motley Fool Money. Will Ebiefung has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income, Target, and Walmart. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy.