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5 Dividend Stocks to Hold for the Next 10 Years | The Motley Fool

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  Published in Stocks and Investing on Thursday, October 30th 2025 at 4:30 GMT by The Motley Fool
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Five Dividend Stocks to Hold for the Next 10 Years

The Motley Fool’s October 30, 2025 article, “5 Dividend Stocks to Hold for the Next 10 Years,” highlights a handful of well‑established companies that are expected to provide reliable dividend income and solid long‑term growth. Below is a concise summary of each pick, the key reasons they were selected, and what investors should keep in mind.

1. Procter & Gamble Co. (PG)

Why PG?
Procter & Gamble is a consumer‑goods juggernaut with a portfolio that spans household staples, personal care, and health products. The company’s long‑standing reputation for brand equity translates into consistent revenue streams, even during economic downturns.

Dividend Profile
- Current Yield: ~2.5%
- Dividend Growth: 67 consecutive quarters of increases
- Payout Ratio: ~60%
PG’s dividend ladder is supported by its ability to raise prices, absorb commodity costs, and continue investing in marketing and innovation. The firm’s 2024 earnings guidance projects a 5% organic growth in net sales, which should comfortably cover dividend expansion in the next decade.

What to Watch
- Price Sensitivity: Consumer discretionary items can be affected by changing consumer habits and e‑commerce growth.
- Currency Exposure: A sizeable portion of sales comes from overseas; currency swings can affect reported earnings.

2. Johnson & Johnson (JNJ)

Why JNJ?
Johnson & Johnson’s diversified business—pharmaceuticals, medical devices, and consumer health—provides a built‑in hedge against industry cyclicality. Its drug pipeline includes several high‑barrier drugs in oncology and immunology that promise robust cash flow.

Dividend Profile
- Current Yield: ~2.8%
- Dividend Growth: 73 consecutive quarters of increases
- Payout Ratio: ~55%
JNJ’s dividend stewardship is underpinned by a disciplined capital allocation policy. The company routinely balances share repurchases with dividend hikes, ensuring sustainable payouts even amid therapeutic developments.

What to Watch
- Regulatory Risk: Ongoing legal matters and drug approval processes could impact earnings.
- Competition: New entrants in biologics and biosimilars may erode market share.

3. Coca‑Cola Co. (KO)

Why KO?
Coca‑Cola’s beverage empire remains the world’s most recognizable brand. The firm has maintained a “drink of choice” status for more than a century, translating into dependable sales across a broad geographic spread.

Dividend Profile
- Current Yield: ~3.1%
- Dividend Growth: 73 consecutive quarters of increases
- Payout Ratio: ~70%
KO’s dividends are buttressed by a strong cash conversion cycle and a steady free‑cash‑flow generation of $3.2 billion in 2023. The company’s portfolio includes emerging market growth opportunities that should offset Western saturation.

What to Watch
- Health Trends: Rising consumer demand for low‑sugar and functional drinks may pressure traditional revenue streams.
- Commodity Costs: Fluctuating prices for sugar and aluminum can compress margins.

4. Walmart Inc. (WMT)

Why WMT?
Walmart’s omnichannel strategy, combining brick‑and‑mortar and e‑commerce, positions it as a retail bellwether. The company’s massive scale and cost‑leadership allow it to maintain competitive pricing while investing in technology and logistics.

Dividend Profile
- Current Yield: ~1.9%
- Dividend Growth: 57 consecutive quarters of increases
- Payout Ratio: ~75%
Walmart’s dividend growth is tied to its ability to expand same‑store sales, increase average ticket size, and boost online sales. The firm’s 2024 guidance projects a 4.5% EPS growth, giving room for dividend hikes.

What to Watch
- Labor Costs: Minimum‑wage increases and workforce shortages could squeeze margins.
- Competitive Pressures: Amazon and other retailers are expanding their grocery and same‑day delivery services.

5. NextEra Energy, Inc. (NEE)

Why NEE?
NextEra Energy is the world’s largest generator of wind and solar power. With a forward‑looking approach to renewable energy, it offers a blend of stable cash flows from regulated utilities and growth from distributed energy resources.

Dividend Profile
- Current Yield: ~2.4%
- Dividend Growth: 45 consecutive quarters of increases
- Payout Ratio: ~55%
NEE’s dividend reliability is anchored by its regulated utility arm, Florida Power & Light, which provides a predictable revenue base. At the same time, its solar and wind projects deliver high margins and offer an expanding pipeline for future earnings.

What to Watch
- Regulatory Environment: Changes in renewable energy incentives could impact profitability.
- Capital Expenditure: Continued investment in infrastructure requires significant cash outlays, potentially limiting dividend expansion in the short term.

How These Stocks Fit a 10‑Year Horizon

The common thread among these five picks is a blend of:

1. Stable Cash Flow – Each company’s core business delivers consistent cash, ensuring dividends can be maintained and increased.
2. Dividend Growth Track Record – All five have a history of raising dividends for more than five years, often consecutively.
3. Defensive Business Models – Consumer staples (PG, KO), healthcare (JNJ), and retail (WMT) thrive in various economic cycles, while NEE offers a future‑oriented energy mix.

Investors looking to build a dividend‑focused portfolio for the next decade can use these stocks as cornerstones. Pair them with a mix of growth and defensive sectors, keep an eye on payout ratios, and monitor the macro environment that could affect commodity prices, regulatory policy, and consumer behavior.