Long-term investing is often regarded as a strategy for achieving sustainable returns in the stock market, as it helps to mitigate short-term volatility and highlight a company’s fundamental strengths. Regular dividend payments further enhance this approach by providing consistent income, which can increase over time. This article examines why Alpine Income and Dollar General are considered promising options for a long-term investment strategy.
### 1. Alpine Income
Since their inception in 1960, real estate investment trusts (REITs) have served as a significant wealth source for many Americans, enabling companies to bypass corporate taxes by distributing the majority of profits to shareholders via dividends. By 2025, numerous top REITs have expanded considerably, potentially discouraging new investors. However, Alpine Income presents a unique opportunity.
Established in 2019, Alpine Income is a newer REIT with a market capitalization of $216.6 million, presenting a smaller alternative compared to companies like Realty Income, valued at $51 billion. Both entities engage in similar business models, focusing on single-tenant net-lease properties where tenants cover expenses such as taxes, insurance, and maintenance, thereby reducing the REIT’s overhead.
Alpine Income’s smaller size allows management to pursue advantageous property acquisitions that might be overlooked by larger companies like Realty Income. Its portfolio maintains high standards, with 134 properties that are 99% occupied and diversified across 35 U.S. states. Notable tenants include prominent brands such as Dicks Sporting Goods and Lowe’s.
The company’s attractive dividend yield of 7.6% significantly surpasses the S&P 500 index average of 1.27%, making Alpine Income appealing to investors focused on both income and growth potential.
### 2. Dollar General
Dollar General’s stock has increased by 22% year-to-date, recovering from challenges faced in 2024 due to high inflation affecting its low-cost business model. Despite potential threats from new tariff policies, Dollar General is reportedly in a strong position to navigate these industry challenges.
Analysts from Citigroup note that only 10% of Dollar General’s inventory is subject to global tariffs, largely because of the retailer’s emphasis on food items. This provides a competitive edge over rivals like Dollar Tree, with 50% exposure, and others who face nearly full exposure.
In any economic climate, people still need essential goods. Dollar General’s affordable pricing and relatively low tariff exposure may attract customers away from larger competitors such as Walmart and Target. The company also benefits from an economic moat through its strategic focus on rural and under-served urban areas, which offer lower costs and less competition.
Additionally, Dollar General presents an appealing valuation, with a forward price-to-earnings (P/E) ratio of 17, making its shares more affordable compared to industry leader Walmart, which has a ratio of 37. Its dividend yield of 2.6% adds further value for investors.
### The Magic of Compound Interest
Adopting a long-term view can help investors withstand market volatility. Stable and growing dividends further enhance this strategy through compound interest. When reinvested, these dividends can create a compounding effect in wealth generation. Alpine Income and Dollar General are well-positioned to support this long-term investment approach.
Citigroup is an advertising partner of Motley Fool Money. Will Ebiefung has positions in Realty Income. The Motley Fool holds positions in and recommends Realty Income, Target, and Walmart. The Motley Fool also recommends Lowe’s Companies.
