Investing for the long term is essential for achieving sustainable returns in the stock market, as it allows for the smoothing out of short-term volatility, enabling a company’s fundamental value to truly shine. Regular dividend payments enhance the investment experience by providing a steady stream of income that has the potential to grow over time. In this article, let’s delve into compelling reasons why Alpine Income (PINE 0.86%) and Dollar General (DG -0.43%) could be excellent choices for investors looking to buy and hold for the long haul.
1. Unlocking the Potential of Alpine Income REIT
Since its inception in 1960, real estate investment trusts (REITs) have proven to be a lucrative source of wealth for middle-class Americans. These unique companies benefit from the ability to avoid corporate taxes by distributing a significant portion of their profits back to shareholders in the form of dividends. As of 2025, many leading REITs have evolved into industry giants, leaving newer investors feeling as though they have missed their opportunity. However, Alpine Income is breaking this mold and presenting a compelling case for new investors.
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Founded in 2019, Alpine Income is a relatively recent player in the REIT market. Its market capitalization of approximately $216.6 million positions it as a smaller but intriguing alternative to established companies such as Realty Income, which boasts a market cap of $51 billion. Both REITs share a similar business model, primarily focusing on single-tenant net-lease properties where tenants assume responsibility for expenses like taxes, insurance, and maintenance, resulting in lower operational costs for the REIT.
Alpine Income’s smaller size may provide its management team with the flexibility to identify and acquire lucrative property opportunities that larger entities like Realty Income might simply overlook. The portfolio of Alpine Income also adheres to high-quality standards. Currently, its 134 properties maintain a remarkable occupancy rate of 99% and are spread across 35 U.S. states. Notable tenants include well-respected consumer goods brands such as Dicks Sporting Goods and the renowned home improvement retailer, Lowe’s.
The impressive dividend payout further enhances the appeal of Alpine Income. With an attractive dividend yield of 7.6%, this small-cap company significantly outperforms the average <span data-preserver-spaces="true">S&P 500</span> index yield of 1.27%. This makes Alpine Income an exceptional option for income-focused investors seeking growth potential in their portfolios.
2. Why Dollar General is a Smart Investment Choice
With its stock price climbing 22% year-to-date, Dollar General is emerging from the challenges it faced in 2024, when persistent high inflation adversely affected its low-cost business strategy. Despite the potential threats posed by new tariff policies introduced during Trump’s administration, Dollar General appears to be better equipped to navigate these challenges compared to its competitors in the retail sector.
As per analysts from Citigroup, only 10% of Dollar General’s inventory is susceptible to global tariffs, thanks to the retailer’s emphasis on food products. This strategic positioning provides Dollar General with a significant competitive edge relative to rivals like Dollar Tree (which has 50% of its inventory exposed) and other retailers that are at risk of facing nearly total exposure. This insight suggests that Dollar General is well-prepared to endure economic fluctuations.
Regardless of the state of the broader economy, people will always need to eat. Dollar General’s affordability and limited tariff exposure could attract customers from larger competitors like Walmart and Target. Furthermore, the company has successfully established an economic moat by targeting rural and underserved urban areas, where it benefits from lower land and labor costs, along with significantly reduced competition.
In addition to its strategic advantages, Dollar General offers an appealing valuation. With a forward price-to-earnings (P/E) ratio of 17, its shares are considerably more affordable compared to industry leader Walmart, which trades at 37 times its projected earnings. Moreover, Dollar General’s dividend yield of 2.6% adds further attractiveness for discerning investors.
Harnessing the Power of Compound Interest for Wealth Growth
Adopting a long-term investment strategy equips investors with the ability to disregard short-term stock market fluctuations. Consistent and growing dividend payments can significantly amplify this investment approach through the extraordinary power of compound interest. By reinvesting dividends back into a high-quality company, investors can experience a snowball effect of wealth accumulation over time. Both Alpine Income and Dollar General present themselves as promising options for investors looking to adopt this effective long-term investment strategy.
Citigroup is an advertising partner of Motley Fool Money. Will Ebiefung holds positions in Realty Income. The Motley Fool has vested interests in and recommends Realty Income, Target, and Walmart. Additionally, the Motley Fool recommends Lowe’s Companies. For further details, please refer to the Motley Fool’s disclosure policy.
