3 Dividend Stocks to Hold for the Next 10 Years

Several fast-growing industries, such as artificial intelligence, are currently attracting much of Wall Street's attention. That makes a lot of sense. Some companies in this market could deliver life-changing returns over the long run, and investors shouldn't miss out.

However, it's important not to forget about time-tested methods for earning excellent returns in equity markets over the long run, one of which is investing in dividend stocks. In that spirit, let's consider three dividend-paying companies to invest in for the next decade: Bristol Myers Squibb (NYSE:BMY), Pfizer(NYSE:PFE), and Gilead Sciences (NASDAQ:GILD).

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1. Bristol Myers Squibb

Bristol Myers is racing toward the losses of patent exclusivity for its two best-selling drugs: Eliquis, an anticoagulant it co-markets with Pfizer, and Opdivo, a cancer medicine. Why, then, has the pharmaceutical giant performed so well over the past year? The market is rewarding Bristol Myers for strong clinical progress. The company is building a portfolio that should help it navigate upcoming patent cliffs.

In 2024, Bristol Myers earned approval for Opdivo Qvantig, a subcutaneous version of the medicine that is much easier and faster to administer. The company is also developing a next-gen anticoagulant called Milvexian that has shown highly promising efficacy results in clinical trials while decreasing the risk of bleeding, a major drawback of current options in this niche. We should see other brand-new approvals from Bristol Myers over the next few years.

These will complement the company's existing growth portfolio, which mostly comprises newer brands that won't lose patent exclusivity anytime soon. So, Bristol Myers could perform well over the long run, and it should keep its dividend program intact in the meantime. Bristol Myers offers a forward yield of 3.8%, versus the S&P 500's average of 1.1%, and the company routinely increases its dividends.

2. Pfizer

Pfizer is entering a new era. The company no longer relies on its coronavirus business for top-line growth. Other products, like Padcev, a cancer drug, and Abrysvo, a vaccine for the respiratory syncytial virus, are pushing sales in the right direction, while Eliquis continues to be the biggest contributor. But what happens once it loses patent exclusivity? Pfizer's large pipeline should help it overcome that problem. The company has a vast oncology pipeline and should make significant clinical progress over the next few years.

It may have an even greater opportunity in the weight-loss market. Pfizer is developing several differentiated weight loss drugs that may help establish the company as a leader in this fast-growing space. Could the pharmaceutical giant encounter clinical setbacks? Sure. However, given its deep late-stage pipeline, even a modest 50% success rate should lead to important approvals and a much-improved portfolio.

Some investors worry that Pfizer's 6.1% dividend yield isn't sustainable. But based on its pipeline and the fact that it has continued to boost its dividend in recent years despite several obstacles, I'd say the dividend is safe.

3. Gilead Sciences

Gilead Sciences is one of the leaders in the HIV drug market. The company's portfolio in this area accounts for the large majority of its top line. That could be a problem if Gilead Sciences faces increased competition and loses share in the HIV market. However, that seems unlikely to happen. Gilead Sciences' Biktarvy is the leading HIV regimen in the U.S. As Gilead Sciences has argued, this medicine routinely makes year-over-year gains in market share. Gilead Sciences' HIV portfolio also includes Descovy for PrEP, as well as Yeztugo, a newer PrEP medicine that the company launched in the U.S. last year.

Further, Gilead Sciences has an attractive pipeline in this area. Earlier this year, it reported positive phase 3 results for an oral, once-weekly HIV therapy. This medicine is a combination of Gilead Sciences' Lenacapavir and Merck's (NYSE:MRK) Islatravir.

It could be yet another breakthrough in this niche, since it would be the first once-weekly, oral HIV regimen, if approved. Gilead Sciences' other businesses, including oncology and liver diseases, are less important, but they are helping with its diversification efforts. The company has also made acquisitions that will boost its pipeline, especially in oncology. Gilead's efforts to continue building its HIV business while making progress elsewhere should pay rich dividends down the road, literally.

The company offers a forward yield of 2.2%. Gilead Sciences' business isn't the most exciting, but the company's solid underlying operations could support consistent dividend growth over the long term.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb, Gilead Sciences, Merck, and Pfizer. The Motley Fool has a disclosure policy.