2 Dividend Stocks to Hold for the Next 10 Years

Key Points

• Some healthcare stocks can be great dividend growth options thanks to their stable businesses.

• Despite Novo Nordisk's recent setbacks, it remains a leader in its niche and boasts a deep pipeline.

• Amgen is developing several important medicines that should allow it to overcome patent cliffs.

• 10 stocks we like better than Novo Nordisk ›

The healthcare industry is a good place to look for strong dividend-paying stocks. Many companies in the sector offer products that are consistently in demand, regardless of the state of the economy. When the going gets tough and consumers tighten their purse strings, some medical products are likely to be among the last things they decide to cut back on.

That's why some healthcare companies continue to generate somewhat consistent earnings over the long run, even if they face their own challenges. Of course, just any corporation in the sector won't do, but let's consider two top healthcare, or, more specifically, pharmaceutical players that are also excellent dividend payers: Novo Nordisk (NYSE: NVO) and Amgen (NASDAQ: AMGN).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

1. Novo Nordisk

Novo Nordisk has encountered several clinical setbacks over the past year. The company's financial results have also failed to meet market expectations. However, the sell-off has gone too far, making Novo Nordisk's shares attractive. The drugmaker's revenue in the first half of the year increased by 16% year-over-year to 154.9 billion Danish kroner ($24.1 billion), which remains a strong performance for a pharmaceutical giant.

The company is also making progress on its pipeline. It recently earned approval for Wegovy in metabolic dysfunction-associated steatohepatitis (MASH). It became the first GLP-1 therapy -- and the second overall -- approved by the U.S. Food and Drug Administration for this disease, which affects millions of patients in the U.S. alone. Novo Nordisk is awaiting approval for Wegovy in Mash in other countries as well.

Further, the Denmark-based drugmaker could also launch an oral formulation of Wegovy in weight management. It would be the first time an oral medicine is indicated to target obesity. Given that it is easier and cheaper to manufacture oral pills than subcutaneous injections, and considering that many patients prefer this form, the new version of Wegovy could achieve some success.

Novo Nordisk's drug discovery engine is not broken, despite the setbacks it experienced over the past year. The company's deep pipeline, which it has been enhancing recently, should lead to more regulatory breakthroughs and approvals, resulting in consistent revenue and earnings growth. Lastly, the company is a solid dividend stock. Its forward yield of 3% is significantly higher than the S&P 500's average of 1.3%, and it has increased its dividends by 296.2% over the past decade. The stock remains a worthwhile investment, particularly at current levels, for long-term income seekers.

2. Amgen

Amgen is performing well this year. In the second quarter, the company's revenue increased by a strong 9% year over year to $9.2 billion. The company's top performers included Repatha for high cholesterol, asthma medicine Tezspire, and Evenity, which treats osteoporosis in postmenopausal women. Amgen is facing some patent cliffs, including for Prolia and Xvegia, two medicines for bone health (in different patient populations) that share the same active ingredient.

They ran out of patent exclusivity this year. The drugmaker will face more in the next few years. However, Amgen should be able to overcome these challenges. The company's investigational weight loss medicine, MariTide, is one of the more promising in the industry outside of those being developed by the two leaders in the field, Novo Nordisk and Eli Lilly. MariTide could generate $3.7 billion in revenue from this medicine by 2030, according to some estimates.

The company is making progress elsewhere. In June, Amgen reported positive results from a phase 3 clinical trial for bemarituzumab in gastric cancer. That's another product that could strengthen Amgen's lineup. Furthermore, the company has a robust pipeline of products, some of which are expected to receive approval and help it overcome patent cliffs, just as it has done in the past. Finally, Amgen is a strong dividend stock with a 3.2% yield and a 185% dividend increase over the past decade.

Even with the challenges it will face in the mid-term, Amgen remains a top income stock to hold through the next decade.

Should you invest $1,000 in Novo Nordisk right now?

Before you buy stock in Novo Nordisk, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $661,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,114,162!*

Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Amgen. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.