2 High-Yield Dividend Stocks to Buy in August and Hold for a Decade or Longer

Core Viewpoint - The article highlights Realty Income and W.P. Carey as attractive real estate investment trusts (REITs) for generating passive income, especially in the context of current market conditions influenced by tariffs and interest rates. Realty Income - Realty Income is a REIT that avoids income taxes by distributing nearly all profits as dividends, and it has a strong history of increasing its payouts, having raised dividends 131 times since 1994 [4] - The stock is currently down about 29% from its all-time high in early 2020, primarily due to rising interest rates [5] - Realty Income offers a yield of 5.7%, significantly higher than the average 1.2% yield from S&P 500 dividend-paying stocks [6] - Management expects adjusted funds from operations (FFO) to be between $4.22 and $4.28 per share in 2025, well above the current annualized dividend commitment of $3.228 per share [7] - The company has a diversified portfolio of 15,627 commercial properties, with major tenants including 7-Eleven, Dollar General, and Walgreens, which collectively account for only 10% of annualized rent [8][9] - Realty Income recently issued €1.3 billion in unsecured notes at an average yield of 3.7%, allowing it to maintain strong profits and competitive lease terms [9] W.P. Carey - W.P. Carey is another net lease REIT with a diverse tenant base, but it has a less consistent dividend-raising history, having lowered its dividend by 19.6% in 2023 due to a spinoff of underperforming assets [10] - The stock currently offers a yield of 5.5%, with potential for future increases as the company has raised its dividend six times since the spinoff [11] - W.P. Carey has a property portfolio of 178 million square feet, which is about half the size of Realty Income's, but it is growing rapidly, having invested $1.1 billion in new properties since early 2025 [12] - Management expects adjusted FFO to rise 4.5% this year to $4.91 per share, exceeding the current annualized dividend commitment of $3.60 per share [13] - The company maintains a high occupancy rate of 98.2%, which has not fallen below 98% since 2011, indicating a well-managed and diversified portfolio [14]