2 Dividend Stocks to Buy and Hold Forever

Finding investments you can truly hold for the long haul can be difficult during periods of macroeconomic uncertainty. During such times, there’s constant market noise and too many short-lived trends. As Foolish investors, we look for stability, consistent returns, and businesses that could weather different market cycles.

That’s where dividend investing stands out. It gives you a steady income stream while offering the potential for capital appreciation. More importantly, it helps you build wealth gradually through compounding. The key is to focus on high-quality businesses that consistently return capital to shareholders and have the ability to rise over time.

Peyto Exploration & Development stock

Peyto Exploration & Development (TSX:PEY) could be a great stock to hold forever. This Canadian energy firm is mainly focused on natural gas, oil, and natural gas liquids in Alberta’s deep basin. It’s currently trading at $26.85 per share with a market cap of $5.5 billion.

PEY stock has delivered strong returns, rising 48% over the past year. Over three years, it’s up 124%, and over five years, an impressive 397%. Right now, it offers a 4.9% dividend yield, paid monthly.

Peyto’s recent financials highlight its strong execution. In 2025, it generated funds from operations (FFO) of US$860.5 million, or US$4.24 per diluted share. Similarly, its free funds flow came in at US$375.2 million, allowing it to return US$264.9 million in dividends, or US$1.32 per share.

Meanwhile, the company’s production also remained strong, hitting a record 145 Mboe/d (thousand barrels of oil equivalent per day) in December 2025, up 7% YoY (year over year). Its capital efficiency stood at US$9,900 per boe/d (barrels of oil equivalent per day), with a solid 72% operating margin.

Now, Peyto plans to invest between US$450 million and US$500 million in 2026, focusing on high-return projects. Its disciplined hedging strategy and strong balance sheet should help it manage commodity price volatility while continuing to reward shareholders.

Killam Apartment REIT stock

Killam Apartment REIT (TSX:KMP.UN) operates a portfolio of apartments and manufactured home communities across Canada. It currently trades at $15.98 per unit with a market cap of $2 billion and offers a 4.5% dividend yield, paid monthly. While the stock declined 8.9% over the past year, the business continues to generate steady cash flow.

In 2025, same-property net operating income (NOI) grew 6.1% YoY, supported by higher rental rates and strong occupancy. Funds from operations rose 4.2% to US$1.23 per unit, while adjusted funds from operations increased 5.1% to US$1.04 per unit.

The company has also been actively optimizing its portfolio by selling non-core assets and reinvesting in higher-quality opportunities, including developments in Ottawa, New Brunswick, Waterloo, and Halifax.

For 2026, Killam plans to recycle $100 million to $150 million in capital and has paused its distribution reinvestment plan to prioritize unit buybacks. This reflects confidence in its valuation and a focus on improving shareholder returns.

The post 2 Dividend Stocks to Buy and Hold Forever appeared first on The Motley Fool Canada.

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* Returns as of March 24th, 2026

More reading

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• 1 Year After the Rate Pivot: 3 Canadian Stocks I’d Buy Today
• A Perfect March TFSA Stock With a 4.6% Monthly Payout
• Got $10,000? This Dividend Stock Could Deliver $37 a Month in Passive Income
• TSX Today: What to Watch for in Stocks on Thursday, March 12

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.