3 Dividend Stocks to Buy With $500 and Hold Forever

Core Viewpoint - The current market environment is characterized by volatility, with the S&P 500 experiencing corrections and potential bear market conditions due to tariff implementations by the Trump administration, prompting investors to consider dividend stocks as a stable investment option [1][2]. Group 1: Realty Income - Realty Income offers a monthly dividend payment with a yield of 5.6%, supported by a diverse retail property portfolio of over 15,600 properties, including tenants like 7-Eleven and Walgreens [3][4]. - The company utilizes a triple net lease model, allowing tenants to cover property taxes, maintenance, and insurance, which stabilizes cash flow and reduces operational costs [4][5]. - Realty Income maintains a well-diversified portfolio, with no single industry exceeding 10.2% of annual base rent and an average occupancy rate of 98.2% over the past 25 years [6]. Group 2: Digital Realty Trust - Digital Realty Trust provides data center infrastructure for cloud computing and AI, operating over 300 data centers across 25 countries, serving more than 5,000 customers [7][8]. - The company benefits from strong demand from hyperscalers, with a projected 33% annual growth in AI-ready data center capacity by 2030, and offers a dividend of 3.3% [9]. - Digital Realty has experienced a 25% decline from its December peak, presenting a potential buy opportunity for investors [9]. Group 3: Prologis - Prologis is a leading REIT specializing in warehouses and distribution centers, with a global presence across 20 countries and over 1.2 billion square feet of logistics space [10][11]. - The company is positioned to benefit from the growth of e-commerce, which accounted for 56% of retail sales growth in 2024, with projections indicating U.S. e-commerce penetration could reach 30% by 2030 [12]. - Prologis offers a dividend of 4% and has seen a 23% decline from its March peak, making it an attractive option for long-term investors despite potential short-term uncertainties [13].