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2 Dividend Stocks to Buy and Hold Forever (2025 Edition)

2 Dividend Stocks to Buy and Hold Forever (2025 Edition)

Author:
foolstock
Published:
2025-08-15 00:15:00
11
2

Dividend stocks are the slow-and-steady tortoises in a market obsessed with crypto hares. Here are two that actually deserve your cash.

1. The Cash Cow That Won’t Get Slaughtered

Forget meme stocks—this blue-chip’s payout ratio is tighter than a Bitcoin maximalist’s grip on their private keys. Yield? Solid 4.2%. Growth? Steadier than Tether’s alleged reserves.

2. The Reinvention Play Wall Street Ignores

This ‘boring’ utility stock is quietly building infrastructure for AI data centers. Dividend aristocrat meets tech disruptor—while paying you 3.8% to wait.

Pro tip: These won’t 100x by Tuesday. But unlike that DeFi token you’re bag-holding, they’ll still be here after the next Fed meeting.

Person sitting at a desk working on a computer.

Image source: Getty Images.

1. Apple

Apple has been under pressure all year due to President Donald Trump's aggressive trade policies. The tech leader manufactures most of its iPhones abroad, especially in China. The administration has been imposing stiff tariffs on imports, which could erode Apple's profits. However, the company's CEO, Tim Cook, recently reached a deal with TRUMP that will exempt Apple from some potentially damaging tariffs in exchange for increasing its investment in U.S. manufacturing to $600 billion.

These developments mitigate the threat from tariffs for Apple, making the stock even more attractive. Though the company no longer grows its revenue as fast as it once did, it still has a robust business and good long-term prospects. In its latest period (the third quarter of its fiscal year 2025, which ended June 28), sales increased by 10% year over year to $94 billion, while earnings per share jumped 12% year over year to $1.57.

Apple has generated $96.2 billion in free cash FLOW (FCF) over the trailing-12-month period. Although FCF has declined by 11.6% compared to the same time last year, that's still a substantial amount of cash at its disposal, which it can reinvest in the business to improve its financial results.

It could achieve this by finding more ways to monetize its vast ecosystem. The company has more than 2 billion active devices and over 1 billion paid subscriptions within its services segment, which boasts much juicier margins than the rest of the business.

Moreover, Apple is still looking to make waves in the AI market. Although it trails some of its tech peers, the company has often been late to the party, only to launch a device that its loyal base of customers loves and that ends up becoming massively successful.

Finally, Apple is a solid dividend stock. The company has doubled its payouts over the past decade and still has a modest cash payout ratio of 14%. Apple may have faced some headwinds recently, but it's proving its ability to navigate them. The stock looks highly attractive for long-term investors.

2. Novartis

Novartis, a leading pharmaceutical company, has outperformed broader equities this year. Although the company faces some headwinds -- such as the threat of tariffs, and upcoming generic competition for Entresto, a medicine for heart failure and its top-selling drug -- its financial results remain strong. In the second quarter, net sales increased by 12% year over year to $14.1 billion, while net income ROSE 24% to $4 billion.

True, Entresto's generic competitors hadn't entered the market yet in the second quarter, but Novartis continues to expect top-line growth in the high single digits for the year, and it recently increased its operating income guidance. For a company about to lose its best-selling medicine, that's impressive. It points to several key aspects of Novartis, including its diversified lineup featuring multiple blockbusters.

Through the first six months of 2025, seven of the company's products had already exceeded $1 billion each in annual sales.

Novartis is also excellent at developing new medicines. It will be able to offset Entresto-related losses thanks to some relatively newer products, including Kesimpta for multiple sclerosis, first approved in the U.S. in 2020, and Pluvicto, a cancer medicine that first earned the green light in 2022.

Even newer medicines that will help drive top-line growth well into the next decade include Vanrafia, approved just this year to reduce high levels of protein in urine for certain patients, and Fabhalta, a medicine for some rare blood and kidney disorders, launched in 2023.

These qualities are precisely what a drugmaker needs to perform well over the long run. As further evidence of its longevity, note that Novartis has increased its dividends for 28 consecutive years. The pharmaceutical giant looks like an outstanding stock to buy and hold through market downturns and volatility. Those looking for forever dividend stocks should strongly consider Novartis.

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