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10 Dividend Stocks to Hold for the Next 10 Years

The Motley FoolSep 9, 2025 9:10 AM

Key Points

Dividend stocks are the cornerstone of a great investment portfolio. The right mix of dividend stocks can provide security for your funds as well as a growing passive income stream, which is why they are even more important for retirees.

There are various features that mark a great candidate, and it's unusual to find them all together. A high yield is often the main feature investors look for, but it's not the only thing that counts. You want to see a long and strong track record of payments and raises, as well as quality fundamentals. A yield that's too high should also be a red flag, since it can indicate underlying risk.

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Here are 10 excellent stock picks that each have a different basket of great dividend features. What they share in common is that over the next 10 years (and longer), they should add tremendous value to your portfolio.

Person holding a piggy bank.

Image source: Getty Images.

1. Coca-Cola: 2.9% yield

Coca-Cola (NYSE: KO) is the classic dividend stock. It's a Dividend King that has raised its dividend for the past 63 years, and its dividend yields 2.9% at the current price, more than double the S&P 500's average. It's a top-tier business that you can count on to deliver.

Although Coca-Cola stock usually trails the market's gains, it outperforms when the market is down, making it a great hedge to your other stocks.

2. Target: 4.8% yield

Target (NYSE: TGT) is also a Dividend King, having raised its dividend for the past 54 years. Target stock has plunged over the past few years as it deals with one problem after the next, and at the current price, its dividend yields a very high 4.8%.

However, there are good reasons to believe it's going to bounce back and begin to climb again. In 10 years from now, you'll be enjoying the reliable passive income and likely a soaring stock price.

3. Realty Income: 5.4% yield

Realty Income (NYSE: O) is a real estate investment trust (REIT), and it's probably the most well-rounded dividend stock on this list. It also has the highest yield of these 10 stocks, the dividend is growing and rock solid, and the company has tremendous opportunities as it expands and buys new, quality properties.

It's one of few companies on the market that pays a monthly dividend, and it's paid its dividend for 662 months consecutively -- that's more than 55 years.

4. Walmart: 0.9% yield

Walmart (NYSE: WMT) is one of the lower-yielding stocks on this list, partially because its stock has performed so well recently, but it's valuable for its strength and reliability. Walmart is the largest retailer in the world and the largest company in the world by sales, yet it continues to expand and find new growth drivers such as e-commerce and an improved product assortment.

Walmart is another Dividend king, and it has raised its dividend for the past 52 years. Walmart is beating the market these days, another great feature you won't find in every dividend stock.

5. American Express: 0.9% yield

American Express (NYSE: AXP) is one of Warren Buffett's favorite stocks, and it has served Berkshire Hathaway well over the past 30 years, in large part due to its growing dividend.

The credit card network and bank attracts an affluent and resilient clientele, and it has performed phenomenally over the past few years despite economic turmoil. Like Walmart, the benefit here isn't in the yield, but in the growth and reliability.

6. Home Depot: 2.2%

Home Depot (NYSE: HD) is the largest home improvement chain in the world. It works in an essential industry, and it's proving resilient despite the harsh real estate environment. It managed a comparable sales increase year over year in the 2025 fiscal second quarter (ended Aug. 3) and a penny higher in earnings per share, plus the stock is starting to climb again.

Its dividend yields a sweet 2.2% at the current price, and it's reliable and growing.

7. Bank of America: 2.1%

Bank of America (NYSE: BAC) is another Buffett favorite, for its consumer-facing division that plays a large role in the U.S. economy and its dividend. It has also spent a lot of time being undervalued, although it's not as cheap today as it once was.

It still offers loads of value to investors as an anchor stock that you can rely on, as well as for its attractive and growing dividend.

8. Agree: 4.2%

Agree Realty (NYSE: ADC) is another REIT. It's similar to Realty Income because it pays the dividend monthly and has a strong yield at 4.2%. It's not nearly as big as Realty Income, but it also works in the retail space. Agree is focused on omnichannel retailers, which is where retail is going these days, giving it plenty of growth opportunities.

9. Prologis: 3.5%

Prologis (NYSE: PLD) is the third REIT on this list. It has a lower yield of 3.5%, but that's still nearly triple the S&P 500 average.

Yield is often inversely related to growth opportunities, and Prologis has a long growth runway as it invests in the data centers that drive artificial intelligence (AI) and the logistics infrastructure that makes e-commerce work. It's another way to invest in these trends.

10. Kimberly Clark: 3.9%

Finally, Kimberly Clark (NASDAQ: KMB) is the typical dividend giant that produces home essentials. It's slow growing, but it has products everyone needs and it's a leader in its space, with brands you use every day like Kleenex and Cottonelle. In other words, you can count on it to still be leading in 10 years from now, and you can count on its high 3.9% yield.

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American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Walmart. The Motley Fool has positions in and recommends Berkshire Hathaway, Home Depot, Prologis, Realty Income, Target, and Walmart. The Motley Fool recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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