The Best Dividend Stocks to Buy and Hold Forever

Video published March 17, 2026: Motley Fool contributors Jason Hall and Tyler Crowe call CareTrust REIT (CTRE) and MPLX (MPLX) "own forever" dividend holdings; stock prices cited were from the afternoon of March 10, 2026. Disclosure: Jason Hall holds CTRE and Tyler Crowe holds MPLX; Motley Fool notes Jason Hall may earn compensation for promoting services and states no firm position in the mentioned stocks. This is a positive analyst endorsement/product promotion (Stock Advisor cited a 938% average return as of March 17, 2026) with limited new fundamental information—likely low but incremental positive impact on investor sentiment for the two names.

Analysis

MPLX and CareTrust are being treated as “own forever” income anchors; the non-obvious winner if that view holds is the fee-like segment of midstream that converts commodity volatility into stable FCF via long-term contracts and fee-based throughput. Second-order beneficiaries include refiners and local terminal operators that lean on midstream durability to secure crude/feedstock logistics — if MPLX keeps capex disciplined, smaller, higher-cost pipelines and spot-dependent terminals will lose incremental volume and pricing power.

Key tail risks play out on two planes: macro rates/cap-rate expansion for CTRE and commodity-price shock for MPLX. A 150–200 bps rise in real rates over 12 months would mechanically reprice REIT NAVs and could erase a multi-year dividend yield premium; conversely a sustained >25–30% drop in oil/gas realizations within 6–12 months would force distribution stress and rapid deleveraging chatter at midstream names.

Trade mechanics should therefore harvest yield while insulating against these bifurcated risks. For CTRE, options overlays (sell 3–6 month calls against a core long and buy 9–12 month 5–10% OTM puts) convert a yield view into asymmetric payoff. For MPLX, a cash-and-hedge approach (buy shares, fund with short-dated call sells, hedge commodity exposure with a small short in oil services or delta-hedged puts) buys time for cash generation to re-rate while capping drawdowns.

The contrarian: “own forever” ignores valuation regime shifts. CTRE’s secular demographic support is real but cap-rate sensitivity is underpriced; MPLX’s distribution durability is stronger than most peers only if management keeps the current capex cadence — any incremental M&A or growth spend materially increases downside. Use capital allocation signals (special dividends, buybacks, unit retirements) as the next 90–180 day confirmatory catalyst before escalating size.

Key Decisions for Investors

• Long CTRE (size 2–4% portfolio): buy shares, sell 3–6 month calls ~8–12% OTM to boost yield, and buy 9–12 month puts 5–10% OTM as tail insurance. Target IRR 8–12% over 3–5 years; downside scenario ~25–35% if cap rates widen sharply — hedge with puts to cap that tail.
• Long MPLX (size 3–6% portfolio, 12–24 month horizon): buy shares and write 1–3 month calls to monetize current distribution while maintaining exposure to cash flow. Expect 12-month total return potential 15–25% under base case; haircut ~30% if oil/gas realizations collapse — protect by buying modest 6–9 month puts or shorting an oil-services ETF (e.g., OIH) sized to limit portfolio drawdown.
• Pair trade (relative value, 6–12 months): long MPLX / short a higher-beta midstream or oil-services name (e.g., OIH or selected E&P exposure) to isolate distribution vs commodity beta. Aim for 10–15% asymmetric return if MPLX cashflow resilience proves superior; unwind if MPLX announces incremental growth capex or M&A.
• Trigger-based action: if 10-year real yields rise >150 bps or REIT cap rates move +100 bps within 90 days, trim CTRE to half size and redeploy into shorter-duration, high-quality corporate bonds; if WTI/NATGAS fall >25% in 90 days, reduce MPLX exposure by 50% and shift proceeds into cash + hedges.