3 Dividend Stocks to Buy with $500 and Hold Forever: Resilience and Growth in Uncertain Times

Investors seeking stability in volatile markets often turn to dividend-paying stocks as anchors for their portfolios. Today, we spotlight three companies—Realty Income (O), Zoetis (ZTS), and NextEra Energy (NEE)—that offer unmatched long-term resilience, payout sustainability, and dividend growth trajectories. These stocks are prime candidates to buy with $500 and hold forever, even as economic uncertainty looms. Let's dive into why these names stand out.

1. Realty Income (O): The "Monthly Dividend Company" for Unwavering Income

Why Buy and Hold Forever?
- Defensive Portfolio: Realty Income owns over 10,000 properties leased to 1,600+ tenants, spanning retail, industrial, and healthcare sectors. This diversification shields it from industry-specific downturns.
- 28-Year Dividend Growth Track Record: O has hiked its dividend 110 times since 1994, including two increases in 2025. The 5.6% yield (as of May 2025) is among the highest in the REIT sector.
- Payout Sustainability: A 75% AFFO payout ratio (Q1 2025) leaves ample room for growth. AFFO per share is projected to rise 1%–1.6% in 2025, supporting future hikes.

• Catalysts: Global expansion (e.g., a $527M European deal with Decathlon) and a fortress balance sheet ($2.9B liquidity) fuel confidence.

Why Now?
The stock trades at a 12.8x P/FFO discount to its historical average, offering a rare entry point for income investors.

2. Zoetis (ZTS): Dominance in Animal Health with Tailwinds to Boot

Why Buy and Hold Forever?
- Pet Humanization & Protein Demand: Rising global pet ownership and meat consumption drive demand for Zoetis' vaccines, antibiotics, and livestock treatments.
- Conservative Payout Ratio: At 36% (Q1 2025), Zoetis retains 64% of earnings for reinvestment. The 0.95% yield is modest but growing rapidly—dividends have surged 22% annually over five years.
- Earnings Power: Q1 2025 EPS of $1.48 beat estimates, and consensus forecasts a 7% EPS growth in 2025, underpinning further dividend hikes.

• Catalysts: New product launches (e.g., anti-inflammatory drug for dogs) and a 2025 sales target of $9.2B ($8.5B in 2024) position ZTS to capitalize on secular trends.

Why Now?
At 22x forward P/E, Zoetis trades at a discount to its five-year average. A 35.91% payout ratio ensures dividends remain a priority.

3. NextEra Energy (NEE): Renewable Energy Leader with a 10% Dividend Growth Pledge

Why Buy and Hold Forever?
- Regulatory Tailwinds: Governments globally prioritize decarbonization, locking in demand for NEE's wind and solar projects.
- Dividend Machine: NEE has raised dividends 15 consecutive years, with a 10% annual growth target through 2026 (vs. 7% 2025 EPS growth). The 3.21% yield is a steal.
- Payout Sustainability: A 79% payout ratio (Q1 2025) is high but manageable due to regulated utility earnings. However, cash flow constraints (zero free cash flow in 2025) warrant monitoring.

• Catalysts: $27B in 2025 capital spending to expand renewable capacity and regulatory approvals for projects in Florida and Texas.

Why Now?
Despite free cash flow headwinds, NEE's A-rated balance sheet and 2026 dividend growth target make it a buy at $78/share (near 52-week lows).

The Case for Forever: Why These Stocks Outperform Over Decades

• Dividend Aristocrat Status: O and NEE have decades of uninterrupted hikes; ZTS is a rising star with similar potential.
• Defensive Sectors: Real estate (O), animal health (ZTS), and energy transition (NEE) are recession-resistant.
• Math of Compounding: A $500 investment in each stock (total $1,500) could grow into a $10,000+ portfolio in 10 years, assuming modest dividend reinvestment.

Final Call to Action

In an era of market whiplash, these three stocks offer income, safety, and growth. Realty Income's monthly dividends, Zoetis' innovation-driven cash flows, and NextEra's clean energy dominance all align with a “buy-and-hold-forever” strategy.

Act now: With yields at historically attractive levels and growth catalysts in place, there's no better time to lock in these positions.

Disclaimer: Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.