Forever Holdings: Top Dividend Machines to Buy and Hold

Investors seeking to buy and hold stocks for the long term should focus on companies that can generate high returns on capital. This can be achieved through dividend payments, capital appreciation, or a combination of both. Dividend stocks are particularly attractive, as they provide a relatively stable source of income and the potential for long-term capital appreciation.

Investors seeking to buy and hold stocks for the long term should focus on companies that can generate high returns on capital. This can be achieved through dividend payments, capital appreciation, or a combination of both. Dividend stocks are particularly attractive, as they provide a relatively stable source of income and the potential for long-term capital appreciation.

Given the current economic uncertainty, investors may be inclined to collect more cash while waiting for the worst to pass. Here are five high-yielding dividend stocks to consider adding to your portfolio:

1. Verizon Communications (VZ)
- Dividend Yield: 6.2%
- Verizon Communications, one of the country's largest wireless service providers, boasts over 100 million paying customers and generated nearly $135 billion in revenue last year. The company's dividend has been raised for 18 consecutive years, providing a forward-looking yield of 6.2%. However, growth potential is limited due to a saturated U.S. wireless market.

2. Realty Income (O)
- Dividend Yield: 5.6%
- Realty Income, a real estate investment trust (REIT), owns a portfolio of rent-bearing real estate. It offers a monthly dividend payment, unlike most dividend stocks. Despite the retail apocalypse, Realty Income has been able to raise its payout annually for 30 consecutive years, underscoring its resilience.

3. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
- Dividend Yield: 4.6%
- This ETF tracks the 80 highest-yielding names within the S&P 500. It provides a diversified mix of dividend stocks, with a little more potential for capital appreciation than individual stocks like Verizon or Realty Income.

4. Pfizer (PFE)
- Dividend Yield: 6.9%
- Pfizer has underperformed since the wind-down of COVID-19, but it has a promising pipeline of new blockbuster drugs. The company's forward-looking dividend yield is nearly 7%, making it an attractive option for income investors looking at long-term growth.

5. Global X Nasdaq 100 Covered Call ETF (QYLD)
- Dividend Yield: 14%
- This ETF generates income by selling covered calls against its stock holdings. While the income is reliable, it is erratic and may not fully capture the Nasdaq-100's long-term upside. However, with a double-digit yield, it remains an attractive option for income-focused investors.

These stocks offer a mix of high dividend yields and potential for long-term capital appreciation, making them suitable for investors seeking to weather economic uncertainty.

References:
[1] https://www.usatoday.com/story/money/2025/07/20/5-high-yield-stock-picks-dividends/85297794007/
[2] https://www.ainvest.com/news/kinder-morgan-dividend-growth-strategic-infrastructure-expansion-signal-strong-income-growth-potential-2507/