3 Top Dividend Stocks to Buy and Hold Forever for Growing Income

The best dividend stocks combine long-term gains with steady cash flow that grows over time. You can boost your dividend income by reinvesting dividends and waiting for companies to hike their dividends each year.

A high yield isn't the only factor to consider, and some of the lowest-yield dividend stocks have been the top performers. These three dividend stocks have respectable yields, but their true value lies in their strong fundamentals and high dividend growth rates.

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Charles Schwab sees strong engagement as investing becomes more popular

Charles Schwab (NYSE: SCHW) has been silently growing over the past few years as investors focus on newer fintech stocks like Robinhood Markets and SoFi Technologies. Total client assets increased by 17% year over year and reached a record $11.59 trillion in Q3 2025.

Margin balances also inched up by 16% compared to year-end 2024, reaching $97.2 billion. Investors who use margin are more likely to be active and place more trades since they are borrowing money against their portfolios. That has been good for Schwab's business, translating into a 70% gain over the past five years.

Schwab only has a 1% yield, but it is an excellent long-term performer that is gaining momentum. The brokerage firm is also boosting its net profit margins, with net income up by 67% year over year in Q3.

Texas Roadhouse is powering through industry headwinds

2025 was a tough year for many fast-food restaurant stocks, but Texas Roadhouse (NASDAQ: TXRH) is one of the few national restaurant chains that saw its stock value go up last year. The company is also starting strong this year, and recent financial results suggest that the momentum can continue.

Revenue increased by 12.8% year over year in Q3 2025, while comparable sales jumped by 6.1% year over year at company-owned restaurants. Texas Roadhouse also opened seven additional restaurants and two franchise locations.

Texas Roadhouse has a 1.5% yield and raised its quarterly dividend from $0.61 to $0.68 per share last year, marking an 11.5% year-over-year increase.

Broadcom is an AI giant that is growing its dividend at a rapid pace

Broadcom (NASDAQ: AVGO) isn't the right stock for dividend income investors since it only has a 0.75% yield. However, the company has crushed the stock market with a 670% gain over the past five years while achieving a double-digit annualized dividend growth rate for many years.

Just recently, the AI chipmaker hiked its dividend by 10%. That announcement came in Broadcom's earnings release for the fourth quarter of fiscal year 2025 (ended Nov. 2), which included 28% year-over-year revenue growth and an accelerating AI segment.

AI chips are a key part of Broadcom's long-term thesis. Seeing that it performed well and that Broadcom expects this segment to double its revenue year over year in the first quarter of fiscal year 2026 is a great sign of long-term durability. AI chips are vital for AI models, robotics, self-driving vehicles, and other resources. As these innovations scale and require more chips, Broadcom stands to benefit.

Charles Schwab is an advertising partner of Motley Fool Money. Marc Guberti has positions in Broadcom. The Motley Fool has positions in and recommends Texas Roadhouse. The Motley Fool recommends Broadcom and Charles Schwab and recommends the following options: short March 2026 $100 calls on Charles Schwab. The Motley Fool has a disclosure policy.