2 High-Yield Dividend Stocks I Won't Ever Sell

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A Long-Term Wealth Strategy

Dividend investing offers a reliable path to building wealth, providing steady income and the potential for capital appreciation. High-yield dividend stocks, particularly those with sustainable payouts and a history of dividend growth, are especially appealing. 

These stocks deliver consistent cash flow, which can be reinvested to compound returns over time. Unlike ultra-high-yield stocks, which often signal financial distress, moderately high-yield stocks from stable companies offer a better balance of income and safety. Stocks that consistently grow their dividends demonstrate strong fundamentals and management’s confidence in future earnings, making them ideal for investors seeking long-term financial security.

A Buy-and-Hold Philosophy with Flexibility

As a long-term buy-and-hold investor, my strategy is to purchase stocks with the intent of never selling, focusing on companies with durable business models and consistent dividend growth. This approach maximizes the power of compounding and minimizes trading costs. 

However, I remain pragmatic: if a company’s fundamentals deteriorate significantly beyond just a temporary setback, I will sell to protect my capital. 

For example, if there is a permanent shift in a business’s competitive landscape or evidence of mismanagement, it might be necessary to sell the stock. I used to own Walgreens Boots Alliance (NASDAQ:WBA), but the rapid deterioration in its business, a lack of strategic focus, and a dramatic slashing of its dividend payment — before ultimately suspending the payout — had me selling its stock.

That said, some companies are so resilient and reliable that they earn a permanent place in my portfolio. Below are two stocks, however, that I never plan to sell.

Altria (MO): A Resilient Dividend Powerhouse

Altria (NYSE:MO) is the premier U.S. tobacco company and is a cornerstone investment in my never-sell portfolio. It is the leading manufacturer of cigarettes,  primarily under the Marlboro brand, –which continues to own almost half of the U.S. market — as well as smokeless tobacco, and vaping products.

Despite declining smoking rates, Altria’s pricing power and loyal customer base ensure steady cash flows. Its dividend yields 6.8% and is backed by consistent profitability and a payout ratio that, while seemingly high, remains sustainable due to the company’s stable revenue stream. 

Altria has raised its dividend for over 50 years, earning it Dividend King status and demonstrating its reliability.

What makes Altria a never-sell stock is its ability to adapt. The company is investing in non-combustible products like e-cigarettes and oral nicotine pouches, positioning itself for growth in a changing industry. 

Regulatory risks exist, but Altria’s history of navigating legal and regulatory challenges demonstrates its resilience. Regardless of its stock price, Altria’s high yield and dividend growth make it a cash-flow machine for income investors. Its entrenched market position and ability to generate excess cash ensure it remains a core holding for those seeking dependable dividends over decades.

Realty Income (O): The Monthly Dividend Stalwart

Realty Income (NYSE:O) is a real estate investment trust (REIT) that I also plan to hold indefinitely. Known as “The Monthly Dividend Company,” Realty Income owns a diversified portfolio of over 15,600 commercial properties leased to tenants in retail, industrial, and other sectors. 

Its tenants, including major retailers like Tractor Supply (NASDAQ:TSCO) and Dollar General (NYSE:DG), sign long-term net leases, ensuring predictable rental income. With a dividend yield of 4.8% and a track record of 30 consecutive years of dividend increases, Realty Income is a Dividend Aristocrat, offering both income and growth.

Realty Income’s strength lies in its disciplined capital allocation and diversified portfolio, which helps mitigate risks from economic downturns or sector-specific challenges. The company’s ability to acquire high-quality properties and maintain high occupancy rates supports its ability to grow dividends consistently. Its monthly dividend payments are particularly appealing for investors seeking regular income to cover expenses or reinvest. 

Regardless of stock price fluctuations, Realty Income’s stable cash flows and commitment to dividend growth make it a must-own for any long-term portfolio. Its ability to power through market cycles and focus on shareholder value cement its place as a stock I’ll never sell.

Key Takeaway

Altria and Realty Income exemplify the qualities of high-yield dividend stocks that belong in a never-sell portfolio. Their sustainable yields, consistent dividend growth, and robust business models provide income and stability, regardless of market conditions. For investors prioritizing long-term wealth, these stocks are indispensable.

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