10 Best Dividend Stocks for Long Term Growth

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Dividend stocks have been lagging the broader market for a while, though that may be changing. The S&P 500 Dividend Aristocrats index is up over 7% in October to date, compared to just under 1% for the S&P 500.

Market volatility has been a factor in this shift. The semiconductor stocks and other AI-related names that were so popular a while ago have seen investors move away from them. Shares of companies that pay relatively high dividends have done well during that time. Falling bond yields have also made dividend stocks more attractive by increasing the appeal of their payouts relative to bonds. Most companies pay dividends quarterly, but some distribute them every month. For investors who prefer a more regular income stream, here are some monthly dividend stocks to consider.

That shift has benefited dividend payers, says Ayako Yoshioka, Director and Senior Investment Strategist at Wealth Enhancement. She cites the recent drop in bond yields during the tech selloff. Dividend-paying companies generally have stable operating cash flows and solid balance sheets, even if they’re not the most exciting companies in terms of technology. Tom Essaye, Founder & President of Sevens Report Research, made the same point. In his recent note, he observed that the high dividend stocks were still going up as rates came down, and the relative strength of the iShares Core High Dividend ETF was a clear indicator of strong underlying demand.

Also read: Top 10 Unstoppable Dividend Stocks to Buy

Dividend stocks have always been more than just a yield. A good dividend stock has a solid balance sheet, a proven track record of dividend growth, and a sustainable dividend payout. They can provide a reliable source of income, help to smooth out the impact of market falls, and be a contributor to long-term growth. WisdomTree reported that dividend-paying companies have, on the whole, seen smaller drawdowns during periods of market stress than some of the non-dividend-paying companies, though this hasn’t been the case in every market environment. Investors looking for high-yield dividend options can check out our list of highest-yielding stocks.

Dividend income can help offset capital losses, and the quality bias of dividend strategies tends to push investors toward well-established companies and away from more speculative businesses reliant on external funding. Markets have remained highly volatile through 2025 and 2026 with the continuing backdrop of geopolitical risk, divergent central bank policies, and weak global growth. Businesses that generate a steady stream of cash and pay dividends can often provide better risk-adjusted returns. When share prices are falling, the dividend yield will be higher, and this can in turn attract new buyers and help to limit the downside relative to a growth benchmark. Dividend payments are generally less volatile than earnings or share price momentum and so can provide some stability during periods of economic uncertainty. Given this, we will take a look at some of the best dividend stocks for long-term growth.

10 Best Dividend Stocks for Long Term Growth

Photo by lucas Favre on Unsplash

Our Methodology

To identify dividend stocks with strong long-term income growth potential, we first screened for companies that have increased their dividends for at least 10 consecutive years. This helped us focus on businesses with a consistent track record of rewarding shareholders through dividend growth.

Next, we narrowed the list to companies with a 5-year average annual dividend growth rate of at least 10%. We then estimated how much each company’s dividend yield could grow over the next decade by compounding its current dividend yield at its historical 5-year dividend growth rate.

We used the following formula:

Estimated Dividend Yield in 10 Years = Current Dividend Yield × (1 + 5-Year Dividend Growth Rate)^10

Finally, we ranked the remaining companies based on their estimated dividend yields in 10 years and shortlisted those with the highest projected yields.

Note: These estimates assume companies maintain their historical dividend growth rates over the next 10 years and their share prices remain unchanged. Actual dividend growth and future yields may differ.

10. UnitedHealth Group Incorporated (NYSE:UNH)

Projected 10-Year Yield: 6.42%

Dividend Yield as of October 30: 2.28%

5-Year Average Dividend Growth Rate: 10.9%

UnitedHealth Group Incorporated (NYSE:UNH) provides both dividend income and long-term dividend growth. As of October 30, the dividend yield was 2.28%, and the five-year average dividend growth rate is 10.9%. If that growth rate is maintained over the next 10 years, the dividend yield could be as high as 6.42%, based on the current share price.

The health giant has continued to increase shareholder distributions. In Q2 2026, it increased its quarterly dividend by about 5% to $2.32 per share, which equates to an annualized dividend of $9.28. UnitedHealth’s most recent results also point to its strong cash-generating ability. Q3 2026 revenue was $112.7 billion; operating earnings were $6.6 billion, up from $4.3 billion in the prior-year period. Operating cash flow was $5.1 billion, representing 1.2x net income. For the first 9 months of 2026, operating cash flow was $25.1 billion, up from $18.6 billion in the corresponding period last year.

These cash flows are supporting the dividend payments and future dividend increases. With a long track record of dividend growth and improving operating performance, UNH is an attractive proposition for the long-term dividend growth investor.

Read UNH’s complete valuation analysis here: UnitedHealth’s P/E Has Reset. Is the Stock Finally Undervalued?

9. Automatic Data Processing, Inc. (NASDAQ:ADP)

Projected 10-Year Yield: 7.47%

Dividend Yield as of October 30: 2.28%

5-Year Average Dividend Growth Rate: 10.9%

Automatic Data Processing, Inc. (NASDAQ:ADP) has a very solid dividend record underpinned by its recurring payroll and HR business. As of October 20, the dividend yield was 2.28%, and the 5-year average growth rate was 10.9%. If ADP can maintain that growth rate, then the yield on cost over the next 10 years could be as high as 7.47%. Read the stock’s complete dividend analysis here.

ADP’s latest quarter results confirm that the business is still in growth mode. Q1 2027 revenue was up 6% year on year to $5.49 billion and net earnings were up 11% to $1.13 billion. Diluted earnings per share were up 14% to $2.83.

Cash flow is another key indicator of ADP’s dividend strength. Operating cash flow for the quarter was $651 million, up 1.4% on the same quarter last year. The company paid out approximately $677 million in dividends.

ADP’s combination of steady earnings growth, recurring business revenue, and consistent dividend increases supports its appeal to long-term income investors.

8. Lowe’s Companies, Inc. (NYSE:LOW)

Projected 10-Year Yield: 7.70%

Dividend Yield as of October 30: 2.31%

5-Year Average Dividend Growth Rate: 11.84%

For investors willing to look beyond headline dividend yields, Lowe’s Companies, Inc. offers an interesting growth story. The company’s latest results also offer some insight into its dividend-paying capacity. For the second quarter of fiscal 2026, revenue increased 8.3% year over year to $25.96 billion, while net earnings remained relatively stable at $2.4 billion.

Its current yield of 2.31% as of October 30 may not appear particularly high, but the company’s dividend growth has been considerably faster. Lowe’s recorded a five-year average dividend growth rate of 11.84%, putting its projected 10-year yield at 7.70% if that growth trajectory continues. Read more about LOW’s dividend here.

Cash generation remains particularly important for the dividend story. During the first half of fiscal 2026, operating cash flow reached $7.01 billion. After accounting for $1.06 billion in capital expenditures, free cash flow stood at approximately $5.95 billion. Lowe’s also distributed $1.35 billion in dividends during the period.

With substantial cash generation supporting shareholder distributions, Lowe’s offers investors a combination of current income and meaningful long-term dividend growth potential.

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