2 Monster Dividend Stocks to Buy Now and Hold Forever

When it comes to successful investing, time in the market beats timing the market. Steady returns, such as from dividends, can snowball a modest grubstake into a large portfolio balance over time. That's what makes high-quality dividend stocks, particularly those with long track records of payout growth, so appealing to investors of all stripes.

Among high-yield dividend stocks (or monster dividend stocks, if you will), two stand out as strong choices for sustainable payout growth and price appreciation potential: Enterprise Products Partners (NYSE: EPD) and Verizon Communications (NYSE: VZ). Both companies, essentially "toll operators" of one kind or another, may lack the excitement of AI stocks or other hot investing trends, but based on track records and current developments, they have the ingredients in place to deliver strong total returns in the years ahead.

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A midstream energy powerhouse with a decades-long dividend growth streak

Enterprise Product Partners is a master limited partnership (MLP) that is one of America's largest midstream energy companies. That is, Enterprise owns a vast network of pipelines and other midstream energy assets such as storage terminals.

Hence, the toll booth comparison above. Rather than its success hinging on crude oil and gasoline prices, as is the case with downstream and upstream energy stocks, Enterprise generates steady cash flow from the fixed fees it collects for the use of its infrastructure.

Because it's an MLP and must distribute 90% of pretax income, the company pays out the lion's share of this cash as distributions. Currently, it has a forward dividend yield of around 6%. Those considering investing in the stock should be aware, however, that its business structure creates added tax documentation requirements for investors.

With 29 consecutive years of annual dividend growth, Enterprise has been one of the most consistent dividend growth plays among pipeline stocks. Over the past decade, distribution growth has averaged around 3% to 4% each year.

Regarding potential share price appreciation, management remains focused on growth. Besides investing billions into new midstream energy projects, the MLP remains active in acquiring existing infrastructure, such as the recent purchase of pipeline assets from Occidental Petroleum.

No matter which direction fossil fuel prices head from here, Enterprise Product Partners remains well positioned to deliver modest earnings and dividend growth. Potential share price appreciation, coupled with the 6% forward yield, could pave the way for above-average returns.

Don't let the Dow removal scare you away from Verizon

Telecommunications company Verizon has 22 years of consecutive dividend growth. The stock also has one of the highest yields among blue chip dividend stocks, at about 6.75%. However, for many years, the company's reputation as a value trap and a yield trap outweighed its high yield and steady payouts.

Even so, I wouldn't assume Verizon is destined to keep phoning it in as a dividend trap, with weak or negative price action. Shares have pulled back recently after rallying in late 2025 and early 2026, but you can argue that this move, driven by Verizon's removal from the Dow Jones Industrial Average, is merely a hiccup.

Yes, it may sound like a big step backward, given the loss of institutional ownership and price support. However, further success with Verizon's turnaround efforts could more than offset this. The telecom company is successfully cutting costs while gaining customers.

Per analyst estimates, earnings per share could rise 5% in 2026 to $4.95 and by nearly 6.5% in 2027 to $5.27. Mid-single-digit earnings growth may not sound too impressive, but if Verizon can demonstrate steady profit growth, especially if it's unaffected by the rise of satellite telecom services like Space Exploration Technologies' Starlink, the stock could rise in line with earnings growth, or perhaps even gain a higher forward multiple. Currently, shares trade for only 8.5 times forward earnings.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners, Occidental Petroleum, and Verizon Communications. The Motley Fool has a disclosure policy.