2 Unstoppable Dividend Stocks to Buy and Hold Forever

Many investors are worried about the recent market volatility caused by Trump's trade policies. However, presidents come and go, and so do economic policies. Throughout it all, broader equities always deliver competitive returns over the long run. Dividend stocks in particular have produced much better performances than their non-dividend-paying peers. Purchasing shares of just any random dividend company won't do, but the following two look like solid buy-and-hold picks: Microsoft (NASDAQ: MSFT) and Visa (NYSE: V). Here's more on these leading companies.

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1. Microsoft

Though the Microsoft brand might still be closely linked to the company's computer operating systems, nowadays, its most significant growth driver is its cloud segment. Microsoft is a leader in this niche, where it only trails Amazon. Microsoft has even been gaining ground on its biggest competitor. The tech leader's artificial intelligence (AI) business only strengthens things. In the third quarter of its fiscal year 2025, ending on March 31, Microsoft's top line jumped by 13% year over year to $70.1 billion. Azure revenue was up 33% compared to the year-ago period.

Both cloud computing and artificial intelligence represent massive long-term opportunities. Amazon CEO Andy Jassy recently pointed out that over 85% of IT spend still happens on premises. As more of that migrates to the cloud, Microsoft should be one of the major beneficiaries. Beyond any specific opportunity, Microsoft has thrived for a long time because of an internal culture of innovation and the ability to identify and pursue lucrative growth avenues. '

The company does face some headwinds. Economic troubles -- which some investors think are brewing -- could reduce cloud spend and affect its financial results. Further, Microsoft's shares aren't exactly cheap. The company's forward price-to-earnings (P/E) of 33.6 is well above the average of 26.7 for the information technology industry to which it belongs. Those factors might make Microsoft's shares somewhat volatile in the short run, but the company's long-term outlook is intact. It can survive economic problems thanks to a robust underlying business and a higher credit rating than that of the U.S. government.

And though valuation might be an issue, that won't matter in 10 or 20 years. Lastly, Microsoft has increased its dividends by almost 168% in the past decade. The stock should deliver above-average returns even without reinvesting the dividend -- doing so will yield even stronger performances.

2. Visa

Visa's business is simple yet powerful. The company processes debit and credit card transactions through its payment network and charges a small fee for each transaction. Visa is an undisputed leader in this niche. It also benefits from a strong moat from the network effect. Visa's revenue and earnings have grown rapidly over the past decade, thanks to the company's role in displacing cash transactions. Cash and checks have significant disadvantages over debit cards.

For one, the latter are easier to carry, easier to conceal, and safer. It's hard to stop a thief from using stolen cash. With debit cards, it takes a few clicks of a button. Further, cards are far more versatile. We can't use cash when doing e-commerce transactions or across various apps that have become part of our daily lives.

That also points to a remaining massive opportunity for Visa. E-commerce is on a growth trajectory that won't stop anytime soon. There will be a greater need for digital payment methods, including the kinds Visa helps process. The company could also suffer in challenging economic times. People typically spend less during recessions, leading to lower payment volume and revenue than the company would have otherwise generated.

However, Visa has thrived over the long run despite that. Temporary periods of declining economic activity are no match for the long-run, upward direction of the economy. Turning to Visa's dividend, the company has increased its payouts by almost 392% in the past 10 years. Visa's forward P/E of 31.1 is well above the average of 16.4 for financial stocks. Expect some volatility in the short run, but Visa's performance over the long term should still be highly competitive.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Visa. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.