Long-Term Investing: Alpine Income and Dollar General Shine Bright

Long-term investing is a proven approach for achieving sustainable returns in the stock market, as it mitigates short-term volatility, allowing a company’s fundamental value to emerge. Regular dividend payments provide consistent income that has the potential to grow over time. Here, we examine why Alpine Income (NYSE: PINE) and Dollar General (NYSE: DG) stand out as excellent buy-and-hold candidates.

1. Alpine Income

Since their inception in 1960, real estate investment trusts (REITs) have provided significant wealth for middle-class Americans. These companies avoid corporate taxes by distributing the majority of profits back to shareholders via dividends. By 2025, numerous well-known REITs have grown into giants, leaving new investors feeling behind. However, Alpine Income offers a refreshing alternative.

Founded in 2019, Alpine Income is a relatively new REIT with a market capitalization of $216.6 million, making it considerably smaller compared to peers like Realty Income, valued at $51 billion. Both companies share a similar business model, focusing on single-tenant net-lease properties, where tenants cover expenses such as taxes and maintenance.

Alpine Income’s smaller size allows its management to pinpoint lucrative property acquisitions that may be skipped by larger companies like Realty Income. This approach has led to a high-quality portfolio. Currently, Alpine Income owns 134 properties, which are 99% occupied and spans 35 U.S. states. Notable tenants include popular brands like Dicks Sporting Goods and Lowe’s.

With a dividend yield of 7.6%, Alpine Income significantly outperforms the S&P 500 average of 1.27%, making it a compelling option for income-seeking investors who also desire growth potential.

2. Dollar General

Dollar General shares have climbed 22% year-to-date, indicating a recovery from challenges faced in 2024 when high inflation impacted its business model. While potential tariff changes may pose risks to retail, Dollar General seems well-placed to navigate this landscape more effectively than its competitors.

Analysts at Citigroup report that only 10% of Dollar General’s inventory is susceptible to global tariffs due to its focus on food products. This positions the retailer advantageously compared to competitors like Dollar Tree, which has 50% exposure, and others facing nearly 100% exposure according to analysts.

Regardless of broader economic conditions, consumers will always need food. Dollar General’s low prices and minimal tariff exposure could attract customers away from larger competitors like Walmart and Target. The retailer has created an economic moat by targeting rural and underserved urban locations, where operational costs are lower and competition is limited.

Moreover, Dollar General has an appealing valuation. Its forward price-to-earnings (P/E) multiple stands at 17, considerably cheaper than industry leader Walmart, which trades at 37 times its expected earnings. With a dividend yield of 2.6%, Dollar General offers additional value for shareholders.

The Power of Compound Interest

Taking a long-term investment approach enables investors to overlook market fluctuations. Consistent and escalating dividend payments can amplify growth through the magic of compound interest. By reinvesting dividends into a quality company, investors can experience significant wealth accumulation. Alpine Income and Dollar General appear to be strong candidates for this strategy.

Is it Time to Invest $1,000 in Dollar General?

Before proceeding to invest in Dollar General, consider the following:

The Motley Fool analyst team recently highlighted what they regard as the 10 best stocks for investors at this time; however, Dollar General did not make the list. The chosen stocks are projected to generate notable returns in the coming years.

Consider the example of Netflix, which was listed on December 17, 2004. If you had invested $1,000 then, you’d have $614,911 today! Additionally, Nvidia was included on April 15, 2005, and an investment of $1,000 would now be worth $714,958!

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Citigroup is an advertising partner of Motley Fool Money. Will Ebiefung holds positions in Realty Income. The Motley Fool has positions in and recommends Realty Income, Target, and Walmart, and recommends Lowe’s Companies. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.