3 Monster Dividend Stocks to Hold for the Next 10 Years

_"If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." _

That's the advice from legendary investor Warren Buffett. His point was that you should have enough confidence in the underlying business that you're comfortable holding the stock for the long term.

The good news is that there are plenty of stocks that warrant such confidence -- and many of them pay attractive dividends. Here are three monster dividend stocks to hold for the next 10 years.

Image source: Getty Images.

  1. AbbVie

AbbVie (ABBV +0.56%) is a leading pharmaceutical company. Its product lineup features multiple blockbuster drugs, such as Skyrizi, Rinvoq, Humira, Botox, Vraylar, Imbruvica, and Venclexta. AbbVie's pipeline includes around 90 programs, of which roughly 60 are in mid- or late-stage clinical trials.

The drugmaker is a member of the Dividend Kings, an elite group of stocks that have increased their dividends for at least 50 consecutive years. AbbVie's streak of dividend hikes stands at 53 years, including the time it was part of Abbott Labs (ABT 0.41%). The company's forward dividend yield tops 3.2%.

Expand

NYSE: ABBV

AbbVie

Today's Change

(0.56%) $1.20

Current Price

$215.70

Key Data Points

Market Cap

$381B

Day's Range

$215.70 - $220.01

52wk Range

$181.73 - $244.81

Volume

5.4M

Avg Vol

6.7M

Gross Margin

70.58%

Dividend Yield

3.12%

I view this stock as one to hold for the next 10 years largely because its growth prospects are compelling. The autoimmune disease drugs Skyrizi and Rinvoq have particularly strong growth potential. Several of AbbVie's cancer therapies in development are also promising.

AbbVie has also demonstrated its ability to adapt effectively to daunting challenges. The company's longtime top-selling product, Humira, lost U.S. patent exclusivity in 2023. But AbbVie's growth barely skipped a beat, thanks to its investments in research and development and smart acquisitions that added new growth drivers. The drugmaker now appears to be in a great position to cruise over the next decade and beyond.

  1. Enterprise Products Partners

Enterprise Products Partners (EPD +0.41%) is one of the top players in the North American midstream energy market. The limited partnership (LP) operates more than 50,000 miles of pipelines that transport crude oil, natural gas, natural gas liquids (NGLs), and other hydrocarbon products.

This pipeline stock pays an especially juicy distribution yield of 5.5%. Enterprise Products Partners has increased its distribution for 27 consecutive years, a record that few in the midstream industry have achieved.

Expand

NYSE: EPD

Enterprise Products Partners

Today's Change

(0.41%) $0.16

Current Price

$39.63

Key Data Points

Market Cap

$86B

Day's Range

$39.22 - $39.73

52wk Range

$30.01 - $40.16

Volume

3.6M

Avg Vol

4.5M

Gross Margin

13.45%

Dividend Yield

5.53%

The energy sector can be highly volatile. For example, major disruptions to the sector during the last two decades include the financial crisis of 2007 through 2009, the oil price collapse of 2015 through 2017, and the COVID-19 pandemic of 2020 through 2022. But Enterprise Products Partners generated resilient cash flow throughout the period.

What does the future hold for the LP? I predict more success. Data centers hosting artificial intelligence (AI) applications require massive amounts of electric power. Natural gas is a great fit for fueling the power plants serving these data centers. The demand for U.S.-produced oil and gas is also likely to grow, which should translate to higher volumes flowing through Enterprise's pipelines.

  1. NextEra Energy

NextEra Energy (NEE 1.27%) ranks as the largest utility company by market cap. It owns Florida Power & Light. The company is also the world leader in renewable energy and battery storage.

The utility giant's forward dividend yield stands at around 2.8%. NextEra expects the dividend to rise by roughly 10% this year, followed by an average annual growth rate of 6% through 2028. This target should be quite attainable if the company achieves its goal of compound annual growth in adjusted earnings per share of at least 8% through 2035.

Expand

NYSE: NEE

NextEra Energy

Today's Change

(-1.27%) $-1.14

Current Price

$88.55

Key Data Points

Market Cap

$185B

Day's Range

$87.95 - $89.84

52wk Range

$66.77 - $98.75

Volume

10.8M

Avg Vol

10.3M

Gross Margin

36.10%

Dividend Yield

2.62%

The same AI tailwinds for Enterprise Products Partners should also help NextEra Energy. The company is also poised to benefit from continued population growth in Florida.

NextEra should soon be in an even stronger position to profit from AI. It plans to acquire Dominion Energy (D 0.91%) for around $66.8 billion. Dominion serves customers in Virginia, North Carolina, and South Carolina. Virginia is the home to the world's largest data center market.

ABBV0.62%
EPD0.17%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned