Investing in the stock market is one of the most effective ways to build wealth over time. However, selecting the right stocks—those that can weather market volatility, deliver consistent dividends, and grow steadily—is critical. In this article, we’ll examine seven stocks that are ideal for buying and holding forever: Universal Health Realty Income Trust (UHT), Dow Inc. (DOW), Verizon Communications Inc. (VZ), Omega Healthcare Investors, Inc. (OHI), Saul Centers, Inc. (BFS), NNN REIT, Inc. (NNN), and LTC Properties, Inc. (LTC). These companies have proven track records, offer strong dividends, and operate in sectors with long-term growth potential.
1. Universal Health Realty Income Trust (UHT): Dependable Dividends and Stability
Universal Health Realty Income Trust (UHT) is a standout in the real estate investment trust (REIT) sector, specializing in healthcare properties. With 41 years of consecutive dividend growth, UHT has cemented its reputation as a reliable income generator.
Key Stats:
- Market Cap: $499.14 million
- Dividend Yield: 8.16%
- Payout Ratio: 224.41%
- Debt/Equity Ratio: 2.08
- Return on Equity (ROE): 9.27%
Why Hold UHT Forever?
Healthcare is a non-cyclical industry, meaning demand remains strong regardless of economic conditions. UHT’s portfolio of healthcare facilities benefits from consistent demand, making it a reliable source of income. While its high payout ratio (224.41%) may appear risky, UHT’s strong cash flow generation and a current ratio of 8.86 ensure stability. Its 8.16% dividend yield offers investors steady income in any market environment.
2. Dow Inc. (DOW): A Cornerstone of American Industry
Dow Inc. is a global leader in chemicals and materials, serving diverse industries from packaging to electronics. Its extensive portfolio and commitment to innovation make it a solid long-term investment.
Key Stats:
- Market Cap: $27.34 billion
- Dividend Yield: 7.19%
- PEG Ratio: 0.81 (indicating undervaluation relative to growth)
- ROE: 5.86%
- EPS Growth Forecast (5Y): 49.42%
Why Hold DOW Forever?
Dow Inc. combines growth potential with high dividend payouts. With a forward P/E ratio of 16.71 and a dividend yield of 7.19%, it offers exceptional value. The company is focused on sustainability, an essential factor as industries shift toward greener practices. Moreover, its diverse end markets and cost efficiency ensure resilience through economic cycles.
3. Verizon Communications Inc. (VZ): The Backbone of Connectivity
Verizon Communications is one of the largest telecommunications providers in the U.S., playing a critical role in the nation’s connectivity and digital transformation.
Key Stats:
- Market Cap: $163.92 billion
- Dividend Yield: 6.96%
- Beta: 0.45 (lower volatility)
- ROE: 10.43%
- Operating Margin: 22.74%
Why Hold VZ Forever?
Verizon’s position as a telecommunications giant ensures it remains indispensable. Its 6.96% dividend yield is supported by robust free cash flow generation ($18.54 billion in FCF), making it a reliable income stock. Furthermore, Verizon’s focus on expanding 5G networks and digital infrastructure positions it for long-term growth as connectivity becomes ever more essential.
4. Omega Healthcare Investors, Inc. (OHI): A Leader in Senior Housing
Omega Healthcare Investors is a REIT specializing in skilled nursing and senior living facilities, both of which benefit from demographic tailwinds as populations age.
Key Stats:
- Market Cap: $10.50 billion
- Dividend Yield: 7.08%
- Payout Ratio: 196.46%
- EBITDA Margin: 88.20%
- 5-Year Price Change: +24.52%
Why Hold OHI Forever?
The aging population in developed nations creates a long-term growth opportunity for Omega Healthcare. Its 7.08% dividend yield and impressive EBITDA margin of 88.20% showcase its ability to generate consistent cash flow. With increasing demand for senior care facilities, OHI’s portfolio of properties is well-positioned for growth.
5. Saul Centers, Inc. (BFS): A Small But Resilient Retail and Office REIT
Saul Centers focuses on owning and managing high-quality retail and office properties in stable markets. Its conservative approach to growth and strong institutional ownership (81.77%) make it a solid choice for long-term investors.
Key Stats:
- Market Cap: $1.28 billion
- Dividend Yield: 6.29%
- ROE: 14.67%
- Debt/Equity Ratio: 2.94
Why Hold BFS Forever?
Saul Centers operates in niche markets, focusing on properties that benefit from long-term leases and high occupancy rates. Its 14.67% ROE reflects efficient use of shareholder capital, while its 6.29% dividend yield provides steady income. Despite short-term challenges in retail real estate, BFS’s focus on well-located properties ensures its resilience.
6. NNN REIT, Inc. (NNN): A Dependable Dividend Aristocrat
NNN REIT is a triple-net lease REIT, meaning tenants cover property expenses, providing consistent income to shareholders. With 36 years of dividend growth, NNN is a reliable income generator.
Key Stats:
- Market Cap: $7.29 billion
- Dividend Yield: 5.96%
- Payout Ratio: 107.40%
- ROE: 9.28%
- Gross Margin: 96.61%
Why Hold NNN Forever?
NNN’s triple-net lease model ensures predictable income and reduces operating risks. Its 5.96% dividend yield, coupled with a 45.63% profit margin, makes it an excellent choice for income-focused investors. The company’s emphasis on long-term leases with high-quality tenants provides stability in any economic environment.
7. LTC Properties, Inc. (LTC): Profiting from Long-Term Demographics
LTC Properties invests in senior housing and healthcare facilities, benefiting from the growing demand for elder care as populations age.
Key Stats:
- Market Cap: $1.55 billion
- Dividend Yield: 6.66%
- Payout Ratio: 98.13%
- EBITDA Margin: 77.66%
- Free Cash Flow Yield: 7.57%
Why Hold LTC Forever?
LTC Properties capitalizes on the long-term demand for senior living facilities. Its 6.66% dividend yield and 77.66% EBITDA margin highlight its strong income-generating ability. With a free cash flow yield of 7.57%, LTC offers a compelling combination of income and growth potential.
Conclusion: A Portfolio for Long-Term Wealth
These seven stocks—UHT, DOW, VZ, OHI, BFS, NNN, and LTC—are ideal for a buy-and-hold strategy. Each company offers a unique combination of high dividend yields, strong financials, and industry-tailored growth opportunities. By investing in these reliable income generators, you can build a portfolio that provides steady returns and long-term wealth.
Whether you’re an income-focused investor or seeking stability amid market uncertainty, these stocks deserve a place in your portfolio. Their proven track records and resilient business models make them not just stocks to buy, but stocks to hold forever.
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