3 Monster Dividend Stocks to Hold for the Next 10 Years

Bob Dylan's lyrics that "the times, they are a-changin'" have never been truer. Artificial intelligence (AI) is disrupting businesses. The geopolitical world order is undergoing major upheaval. Populations are aging in many countries, including the U.S.

How can income investors best position their portfolios for this era of radical transition? Here are three monster dividend stocks to hold for the next 10 years.

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1. Enterprise Products Partners LP

In the midst of massive changes, at least one thing will remain constant: The world will need energy. And it's become increasingly clear that natural gas and natural gas liquids (NGLs) will remain critical components in meeting those energy needs. That's great news for Enterprise Products Partners LP (NYSE: EPD).

This limited partnership (LP) is one of my favorite pipeline stocks. Enterprise Products Partners operates over 50,000 miles of pipelines across the U.S. It also has other midstream energy assets, including 45 natural gas processing trains and over 300 million barrels of liquid storage facilities. Roughly 55% of Enterprise's gross operating margin stems from its NGL business, and 16% comes from its natural gas operations.

Income investors seek stability. Enterprise Products Partners delivers. The company has consistently generated dependable cash flow, even during tumultuous periods such as the financial crisis of 2007 through 2009 and the COVID-19 pandemic of 2020 through 2022.

Enterprise's forward distribution yield currently stands at almost 6%. The LP has increased its distribution for an impressive 27 consecutive years. I think it's in a great position to keep that streak going over the next decade.

2. Pfizer

An unfortunate reality with aging populations is that the demand for healthcare increases. As individuals age, they're more likely to be diagnosed with cancer and other serious diseases. Their immune systems become weaker, so vaccines are more critical. Pfizer (NYSE: PFE) is one of the top pharmaceutical companies poised to address these challenges.

Pfizer markets 13 blockbuster drugs. Seven of them generated sales of over $2 billion last year. The company's pipeline includes 102 candidates in clinical testing, with 32 in late-stage clinical studies and two awaiting regulatory approvals.

Yes, Pfizer faces some headwinds. Several of its top-selling products will lose patent exclusivity over the next few years. The good news, though, is that the company expects that its newer drugs already on the market will largely offset the anticipated revenue decline.

In the meantime, Pfizer offers the most attractive dividend among large-cap healthcare stocks. Its forward dividend yield tops 6.4%. Pfizer's ability to generate solid free cash flow makes this juicy dividend relatively safe.

3. United Parcel Service

Will logistics and package delivery remain important over the next 10 years? Of course they will. Could AI make it easier for new companies to enter these markets? Probably not. The cost of building a logistics network is simply too high. This means that United Parcel Service (NYSE: UPS) should be able to count on steady business for the foreseeable future.

UPS delivers around 20.8 million packages and documents every day. It operates in more than 200 countries and territories. The company has 295 jets and a fleet of around 125,000 cars, vans, tractors, and even motorcycles.

Granted, UPS is in a period of transformation. The package delivery giant is reducing shipments from its top customer, Amazon (NASDAQ: AMZN), and dramatically reconfiguring its network in conjunction with this move. However, UPS expects to emerge with higher profit margins and a nimbler structure. And management hopes to replace much of the Amazon business by focusing on higher-margin opportunities, including healthcare logistics.

UPS' forward dividend yield of 6.7% should be quite attractive to income investors. The company's improving free cash flow should also enable it to continue paying dividends at least at current levels.

Keith Speights has positions in Amazon, Enterprise Products Partners, Pfizer, and United Parcel Service. The Motley Fool has positions in and recommends Amazon, Pfizer, and United Parcel Service. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.