3 Dividend Stocks to Buy and Hold for the Next Decade

The global economy is always adapting and evolving. As a result, companies need to remain innovative to stay ahead. Some companies have done an excellent job at keeping up with the times over the years, enabling them to grow their earnings and dividends for decades.

Enbridge (NYSE: ENB), ExxonMobil (NYSE: XOM), and NextEra Energy (NYSE: NEE) stand out for their dividend growth records. These energy companies have increased their payouts each year for more than three decades, which should continue for at least the next 10 years despite the sector's shift toward cleaner energy. That makes them ideal dividend stocks to buy and hold for the next decade.

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Steadily growing cleaner

A decade ago, Enbridge got nearly three-quarters of its earnings from its oil and liquids pipeline segment, with the rest from lower-carbon energy (gas and renewable power). Today, more than half its earnings come from lower-carbon energy. Enbridge has invested heavily to grow its cleaner energy platforms through acquisitions and organic expansion projects.

The Canadian pipeline and utility company's shift to lower-carbon energy should continue in the coming decade. Enbridge ended the first quarter with 40 billion Canadian dollars ($28 billion) of secured growth capital projects in the backlog, which should enter service by the early 2030s. While its projects span liquids, gas, and renewables, the bulk of its spending is on cleaner energy. Meanwhile, it's pursuing about CA$50 billion ($35 billion) in additional growth capital projects, which it could approve by 2030, primarily in gas and renewables.

These projects should support about 5% annual cash flow per share growth after this year. That will give Enbridge the fuel to continue increasing its more than 5%-yielding dividend in the coming decade. The company has now raised its payout for 31 consecutive years (in Canadian dollars).

Investing in the energy needed today and in the future

ExxonMobil's current focus is on becoming an even more profitable oil and gas producer. It's investing heavily to develop its advantaged resources (lowest cost and highest margins) while also executing a multi-year structural cost-savings program. This strategy should grow its earnings capacity by $25 billion and cash flow by $35 billion by 2030, at the same margins and prices as in 2024. That's double-digit annual growth rates.

The oil giant's plan would enable it to produce $145 billion in surplus cash during that period at $65 oil. That would give Exxon the funds to continue increasing its 3%-yielding dividend, which it has done for 43 consecutive years.

While Exxon's main focus is on producing oil and gas, the energy giant is also ramping up its investments in the energy sources we'll need in the future. It's developing carbon capture and storage, lithium, and biofuels projects. Additionally, Exxon is investing in new businesses, including Proxxima (polyolefin thermoset resin systems that outperform epoxy and polyurethane) and carbon materials. These businesses have the potential to reach $13 billion in earnings by 2040, while driving Exxon's growth for decades.

Accelerating the strategy

NextEra Energy owns the country's largest electric utility and is a leading clean energy development company. It has invested heavily in renewable energy over the years, driving robust growth. NextEra has increased its nearly 3%-yielding dividend for more than 30 consecutive years, including delivering double-digit compound annual dividend growth over the last two decades.

The company currently expects to invest between $295 billion and $325 billion in capex through 2032 to support surging U.S. power demand. That should give NextEra Energy the power to grow its adjusted earnings per share at a compound annual rate of more than 8% through 2032, with it highly likely to continue growing at that rate through at least 2035. That should support continued dividend increases, with NextEra targeting 6% compound annual growth in 2027 and 2028.

NextEra Energy recently pounced on the opportunity to accelerate its growth by agreeing to acquire Dominion Energy. The deal will create the world's largest regulated electric utility business and boost its growth rate to more than 9% annually through 2032, a rate it believes it can extend through 2035. The larger-scale company will be able to operate more efficiently, putting it in an even stronger position to capitalize on the AI power boom. As a result, it should have plenty of power to continue increasing its dividend in the decade ahead.

These dividends should continue rising in the coming decade

Exxon, Enbridge, and NextEra Energy have already increased their dividends every year for decades. That upward trend should continue over the coming decade as they support the world's growing energy needs. Their combinations of higher yields and visible growth make them ideal dividend stocks to buy and hold for the next 10 years.

Matt DiLallo has positions in Enbridge and NextEra Energy. The Motley Fool has positions in and recommends Enbridge and NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.