3 Monster Dividend Stocks to Hold for the Next 10 Years

Dividend stocks come in all shapes and sizes. Some companies offer lower yields with higher dividend growth rates, while others are more yield-focused with limited growth.

However, some companies stand out for their ability to pay high-yielding dividends that are growing at solid rates. Here's a closer look at three monster dividend stocks that have the potential to deliver robust total returns over the long term.

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Brookfield Infrastructure Partners

Brookfield Infrastructure Partners (NYSE: BIP) currently yields 4.8%. That's several times higher than the S&P 500's level of around 1.2%. It's also higher than its corporate twin, Brookfield Infrastructure Corporation, which yields 4%. The economically equivalent partnership has a higher yield simply because it sends investors a Schedule K-1 Federal tax form each year, which can complicate tax filing.

Brookfield Infrastructure has increased its high-yielding dividend for 17 consecutive years, growing it at a 9% compound annual rate. The global infrastructure operator expects to increase its payout by 5% to 9% annually over the long term. It should have plenty of fuel to continue growing its dividend.

The company expects to grow its funds from operations (FFO) at a more than 10% annual rate in the coming years. Growth drivers include inflation-linked rate increases, growth capital projects, and acquisitions. The company currently has over $9 billion in commercially secured expansion projects underway, including over $1.2 billion in utility expansions and more than $7.1 billion in investments to grow its data infrastructure platform. Meanwhile, Brookfield secured $1.5 billion in new acquisitions last year, including investing $500 million in a leading U.S. refined products pipeline system. With a yield approaching 5% and its earnings growing by more than 10%, Brookfield has the fuel to generate total annualized returns in the low-to-mid teens over the next decade.

Clearway Energy

Clearway Energy (NYSE: CWEN)(NYSE: CWENA) currently yields 4.6%. The clean power company generates very stable cash flow by selling electricity to utilities and large corporations under long-term, fixed-rate power purchase agreements.

The company has clear visibility to grow its cash flow per share at a 7% to 8% annual rate through 2030. It has completely secured its growth for the next two years by signing deals to acquire or repower renewable energy assets that will enter commercial service during that time frame. Meanwhile, its parent company, Clearway Energy Group, is a leading renewable energy developer with an extensive pipeline of projects underway. Clearway expects to acquire additional assets from its parent company as they enter commercial service in the coming years, further securing its growth outlook.

Meanwhile, surging power demand driven by the growth of AI data centers and other catalysts should support Clearway's continued expansion. The company expects to grow its cash flow per share at a 5% to 8%+ annual rate beyond 2030. Clearway's growing cash flow should enable it to continue increasing its dividend. The leading renewable energy dividend stock's yield-and-growth combination could enable it to deliver more than 10% annualized total returns over the coming decade.

Energy Transfer

Energy Transfer (NYSE: ET) currently yields 7.1%. The master limited partnership (MLP), which also sends a Schedule K-1 Federal tax form, generates very stable cash flow (90% fee-based earnings).

The MLP expects to invest over $5 billion into growth capital projects this year. That's part of a multi-year backlog of projects that stretches through 2030. Notable expansions include the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Desert Southwest Expansion project. These secured expansion projects support Energy Transfer's plans to grow its high-yielding distribution by 3% to 5% each year.

Energy Transfer will likely continue to secure expansion projects. Demand for natural gas is surging due to AI data centers, LNG exports, and advanced manufacturing. Securing additional expansion projects would further enhance and extend the company's long-term growth outlook. The MLP's high-yielding, steadily rising distributions could help drive total returns above 10% annualized in the coming decade.

Monster total return potential

Brookfield Infrastructure Partners, Clearway Energy, and Energy Transfer offer investors high-yielding dividends that are growing at solid rates. As a result, these dividend stocks could deliver high-octane total returns over the next decade. That makes them great dividend stocks to buy and hold long-term for income and growth.

Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Clearway Energy, and Energy Transfer. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.