3 Dividend Stocks to Hold for the Next Decade

Yahoo Finance highlighted three dividend stocks for long-term portfolios on May 25, 2026, focusing on stability and income generation. The selections represent sectors known for resilient cash flows: regulated utilities, consumer staples, and midstream energy infrastructure. These firms offer an average dividend yield of 4.2%, well above the current S&P 500 yield of 1.5%. The analysis underscores a strategy prioritizing durable payouts over aggressive growth for the next decade.

Context — why dividend stability matters now

The macroeconomic backdrop remains defined by persistent inflation and volatile interest rates. The 10-year Treasury yield oscillates near 4.5%, pressuring growth stocks and elevating the appeal of predictable income. The last comparable shift towards defensive, yield-focused equities occurred during the 2018-2019 rate-hike cycle, when utility and consumer staple sectors outperformed the broader market by 8% and 5%, respectively. The current catalyst is twofold: institutional capital is rotating from cyclical exposures, and retail investors are seeking inflation-protected returns beyond fixed income. Dividend growth has become a critical metric for total return in a lower-return equity environment.

Data — what the numbers show

The three highlighted stocks present distinct value propositions based on concrete financial metrics. Johnson & Johnson (JNJ) trades at a forward P/E of 15.8 with a dividend yield of 3.4%. The company has increased its dividend for 63 consecutive years. NextEra Energy (NEE) offers a 3.1% yield and has delivered 10% annual dividend growth over the past decade, supported by a $85 billion capital investment plan through 2026. Enterprise Products Partners (EPD), a midstream energy master limited partnership, provides a strong 7.2% yield, with distributable cash flow covering its payout by 1.7x. For comparison, the Vanguard Dividend Appreciation ETF (VIG) yields 2.0%. The following table illustrates key yield and growth metrics:

Ticker	Current Yield	5-Yr Div Growth Rate	Payout Ratio
JNJ	3.4%	5.8%	44%
NEE	3.1%	10.1%	55%
EPD	7.2%	2.5%	60%

Analysis — what it means for markets and sectors

The selection signals a defensive tilt within equity income strategies. Sectors like utilities and consumer staples typically see inflows when economic uncertainty rises, as seen in the 4.5% year-to-date outperformance of the Utilities Select Sector SPDR Fund (XLU) versus the S&P 500. A key second-order effect is pressure on high-dividend, low-growth sectors like traditional telecoms, where yields may not compensate for eroding business models. The primary counter-argument is that rising rates increase discount rates, potentially compressing valuation multiples for slow-growth dividend payers. However, flow data indicates pension funds and retirees are adding to positions in these names for yield stability, creating a technical bid. Positioning is clearly long, with ETF flows into low-volatility and dividend growth funds accelerating by $12 billion in Q1 2026.

Outlook — what to watch next

The sustainability of these dividends depends on specific catalysts. Investors should monitor Johnson & Johnson's Q2 2026 earnings report on July 18 for pharmaceutical pipeline updates and margin guidance. For NextEra Energy, regulatory decisions on rate cases in Florida, expected by August 2026, will impact future cash flow. Enterprise Products Partners' distribution coverage will be tested by natural gas liquids pricing, with key inventory data from the EIA every Wednesday. Key technical levels to watch include the 200-day moving average for the Global X SuperDividend ETF (DIV), currently at $17.50, as a sector sentiment gauge. If the 10-year Treasury yield breaches 5.0%, a re-evaluation of equity income alternatives becomes necessary. For broader market context, explore our analysis on sector rotation at https://fazen.markets/en.

Frequently Asked Questions

What does a 'dividend aristocrat' label mean for Johnson & Johnson?

A Dividend Aristocrat is an S&P 500 company that has increased its dividend payout for at least 25 consecutive years. Johnson & Johnson's 63-year streak places it among the most elite, a status held by only 65 companies. This record signals a deeply ingrained corporate commitment to returning capital to shareholders through economic cycles. It also reflects a business model with pricing power and resilient demand, often in healthcare essentials, that generates consistent free cash flow.

How does Enterprise Products Partners' 7.2% yield compare to junk bonds?

Enterprise's yield is comparable to BB-rated high-yield corporate bonds, which currently offer an average yield of 6.8%. However, the investment thesis differs. EPD's yield comes from distributable cash flow from fee-based energy infrastructure contracts, not corporate credit risk. The partnership structure provides tax advantages via K-1 forms, but it also introduces complexity not found in bond coupons. The 1.7x distribution coverage ratio provides a margin of safety that many high-yield issuers lack.

What is the historical performance of utilities during rate-hike cycles?

Historically, utility stocks underperform in the initial months of a rapid rate-hike cycle, as seen in 2022 when the sector fell 12% while the Fed raised rates. However, they tend to recover and outperform in the latter stages and during pauses, as income-seeking capital returns. From 2004 to 2006, the last extended hiking cycle, utilities returned 54% cumulatively versus 22% for the S&P 500 after the initial shock. Performance is heavily tied to regulated return on equity approvals, which can offset higher financing costs.

Bottom Line

In a volatile rate environment, these three stocks represent a strategic bastion of predictable income from non-cyclical cash flows.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.