This research deals with the problem regarding the optimal siting and sizing of distribution static compensators (D-STATCOMs) via the application of a master–slave optimization technique. The master stage determines the nodes where the D-STATCOMs must be located and their nominal rates by applying the generalized normal distribution optimizer (GNDO) with a discrete–continuous codification. In the slave stage, the successive approximations power flow method is implemented in order to establish the technical feasibility of the solution provided by the master stage, i.e., voltage regulation and device capabilities, among other features. The main goal of the proposed master–slave optimizer is to minimize the expected annual operating costs of the distribution grid, which includes the energy loss and investment costs of the D-STATCOMs. With the purpose of improving the effectiveness of reactive power compensation during the daily operation of the distribution grid, an optimal reactive power flow (ORPF) approach is used that considers the nodes where D-STATCOMs are located as inputs in order to obtain their daily expected dynamical behavior with regard to reactive power injection to obtain additional net profits. The GNDO approach and the power flow method are implemented in the MATLAB programming environment, and the ORPF approach is implemented in the GAMS software using a test feeder comprising 33 nodes with both radial and meshed configurations. A complete comparative analysis with the Salp Swarm Algorithm is presented in order to demonstrate the effectiveness of the proposed two-stage optimization approach in the fixed operation scenario regarding the final objective function values. In addition, different tests considering the possibility of hourly power injection using D-STATCOMs through the ORPF solution demonstrate that additional gains can be obtained in the expected annual operative costs of the grid.