In this article, we will take a look at some of the best dividend stocks to buy and hold forever.
In recent years, many investors have shifted from dividend-paying stocks to high-growth companies that usually do not pay dividends. However, history shows the importance of dividends. According to AGF Investments, if one dollar had been invested in the market in 1927 without reinvesting dividends, it would be worth $243 today. That same dollar, if dividends were reinvested, would be worth $3,737, showing the powerful impact of dividends on long-term returns.
Due to this potential for steady earnings and income, dividend stocks often attract investors when markets become volatile. While these stocks may not always outperform the broader market, analysts remain hopeful about their future. A report from J.P. Morgan suggested that global equities are entering a period of strong dividend growth. This trend is driven not only by a rebound in payouts but also by rising long-term momentum. Over the last 20 years, global dividends per share grew at 5.6% annually. Analysts expect this growth rate to rise to 7.6%, largely because of currently low payout ratios. Many companies cut dividends in 2020 during the COVID-19 crisis, causing a 12% global drop, which was even sharper than during the Global Financial Crisis. These cuts were a logical response to an uncertain situation.
Given this, we will take a look at some of the best dividend stocks to buy and hold forever.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Our Methodology
For this list, we scanned through various credible sources, including Business Insider, Forbes, Morningstar, and Barron’s, and identified their consensus picks from their recent articles. Next, we sorted these companies based on the number of hedge funds in Insider Monkey’s database that owned stakes in these companies, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. MSA Safety Incorporated (NYSE:MSA)
Number of Hedge Fund Holders: 28
MSA Safety Incorporated (NYSE:MSA) is an American company that produces and supplies safety equipment used in high-risk environments such as construction, firefighting, the military, and the chemical, oil, and gas industries.
In recent years, MSA Safety Incorporated (NYSE:MSA) has increasingly focused on software, with nearly half of its engineering team now dedicated to software development. This transformation has allowed it to become more integrated into its customers’ daily operations by providing real-time data and predictive analytics that enhance safety and decision-making, without driving up manufacturing costs. Alongside this internal shift, the company has followed a strategic acquisition approach, bringing companies like Bacharach and BTQ into its portfolio to strengthen its presence in related safety sectors.
MSA Safety Incorporated (NYSE:MSA) is a strong dividend stock. On May 2, the company declared a 3.9% hike in its quarterly dividend to $0.53 per share. Through this increase, the company achieved its 55th consecutive year of dividend growth, which makes it one of the best dividend stocks. MSA offers a dividend yield of 1.19%, as recorded on July 31.
9. Graco Inc. (NYSE:GGG)
Number of Hedge Fund Holders: 30
Graco Inc. (NYSE:GGG) is an American industrial firm that focuses on designing and producing fluid-handling systems and equipment. The company reported strong earnings in the second quarter of 2025. Its revenue came in at $571.8 million, which showed a 3.3% growth from the same period last year.
However, Graco Inc. (NYSE:GGG) experienced a decline in organic sales within its Contractor segment, primarily due to weakness in the North American construction sector, cautious spending by distribution channels and contractors, and decreased customer traffic in home improvement stores. This downturn in organic revenue was largely concentrated in the Americas, while the EMEA and Asia Pacific regions reported volume growth. Meanwhile, sales of powder finishing equipment remained strong during the quarter, supported by increased activity in the Chinese market.
Graco Inc. (NYSE:GGG)’s cash position for FY25 remained strong. YTD, the company generated an operating cash flow of $308 million, which was up by $50 million from the prior-year period. Due to this consistent cash position, GGG was able to raise its payouts for 24 consecutive years, which makes it one of the best dividend stocks to buy and hold. The company currently pays a quarterly dividend of $0.275 per share and has a dividend yield of 1.31%, as of July 31.
