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.
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.
7. The Kroger Co. (NYSE:KR)
Projected 10-Year Yield: 8.48%
Dividend Yield as of October 30: 2.30%
5-Year Average Dividend Growth Rate: 13.94%
Grocery shopping is a recurring expense for consumers, and that gives The Kroger Co. (NYSE:KR) a relatively dependable source of demand across economic cycles. The retailer is also putting that business strength to work for dividend investors. Its shares offered a 2.30% dividend yield as of October 30, while its five-year average dividend growth rate stands at 13.94%. If the company maintains a similar growth trajectory, its projected 10-year yield could reach 8.48%.
Kroger recently raised its quarterly dividend by 11%, from $0.35 to $0.39 per share, marking its 20th consecutive year of dividend increases. The company has grown its quarterly payout at a compounded annual rate of 13% since reinstating dividends in 2006.
Cash generation remains important to sustaining that growth. During the first half of fiscal 2026, Kroger generated $3.085 billion in operating cash flow, down from $3.688 billion in the same period last year. Capital investments reached $2.651 billion, leaving approximately $434 million after these investments. The company also paid $431 million in dividends during the period.
Kroger expects to generate $2.7 billion-$2.9 billion in free cash flow in FY26, which will be sufficient to fund the business and allow for further capital return to shareholders.
Read more about KR: Kroger (KR) Combines a Low Valuation with a Growing Dividend
6. Prologis, Inc. (NYSE:PLD)
Projected 10-Year Yield: 9.48%
Dividend Yield as of October 30: 3.25%
5-Year Average Dividend Growth Rate: 11.31%
Prologis, Inc. (NYSE:PLD) is demonstrating that industrial real estate can be more than just a source of rental income. The REIT generated $1.21 billion of core adjusted funds from operations (AFFO) in Q3 2026, up from $1.06 billion in the prior year. That AFFO was sufficient to cover the $1.045 billion paid out to common shareholders and unitholders.
That cash flow growth is absolutely key if you’re a company looking to grow its dividend over the long term. Prologis delivered 5.9% cash same-store net operating income growth in the quarter, occupancy was 95.6%, and core FFO came in at $1.60 per share, up from $1.49 per share in the prior-year period.
Investors are currently getting a 3.25% dividend yield on the October 30 share price. The dividend has grown at an average of 11.31% per year over the last 5 years. If Prologis can maintain that growth rate, then the 10-year yield on the original investment could be as high as 9.48%. For the income investors, the mix of growing property-level cash flow and a track record of very significant dividend increases makes PLD well worth watching.
Guinness Global Investors highlighted PLD in its Q3 2026 investor letter. Read here.
5. Morgan Stanley (NYSE:MS)
Projected 10-Year Yield: 10.47%
Dividend Yield as of October 30: 2.5%
5-Year Average Dividend Growth Rate: 15.4%
Morgan Stanley (NYSE:MS) has an edge that is not just down to its investment banking business. It has the ability to provide a full range of services to its clients across their entire financial lifecycle. It has institutional securities, wealth management, and investment management all in one. It can build relationships with corporates and executives and then naturally extend those relationships into personal wealth management, lending, and investment. Its global footprint and its advisory network are also a significant competitive advantage which is difficult for a smaller firm to match. Read more about the company’s moat here.
This is a very diversified business model too, which is why its dividend is certainly worth keeping an eye on. It was paying a 2.5% dividend yield as of October 30, and its 5-year average dividend growth rate was 15.4%. On that basis, its projected 10-year yield is 10.47%, which is a very attractive yield for a dividend investor over the long term.
Morgan Stanley increased its quarterly dividend by 15% in 2026, from $1 to $1.15 per share, which equates to an annual dividend of $4.60 per share. The most recent results provide further support for its shareholder returns. Q3 2026 net revenues were $20.34 billion, up from $18.22 billion in Q3 2025. Net income was $4.91 billion, up from $4.61 billion, and EPS was $3.03. Wealth Management attracted $232.4 billion in net new assets.
4. United Parcel Service, Inc. (NYSE:UPS)
Projected 10-Year Yield: 15.54%
Dividend Yield as of October 30: 5.98%
5-Year Average Dividend Growth Rate: 10.02%
United Parcel Service, Inc. (NYSE:UPS) is a standout in the income stock space with a dividend yield of 5.98% as of October 30. It’s been increasing its dividend at a 5-year average annual rate of 10.02%. If that rate of growth is maintained, investors could end up with an estimated 15.54% yield on cost over the next 10 years, assuming they buy at the current price and no reinvestment.
UPS’s latest results are a bright spot for dividend investors. Q3 2026 revenue was $22.9 billion, up 6.7% on the prior-year period; adjusted operating profit was $2.1 billion, and adjusted diluted EPS was $1.69. The company has also raised its full-year adjusted free cash flow guidance to around $6.1 billion.
Cash generation remains of the utmost importance given the scale of the dividend commitment. UPS expects to pay out around $5.4 billion in dividends in 2026, subject to board approval. In the first nine months of the year, it generated $5.99 billion in operating cash flow and $4.22 billion in free cash flow versus $2.74 billion in the corresponding period of last year. That’s a significant improvement and provides a much stronger cash flow base on which to base shareholder distributions. The issue remains whether UPS can continue to grow its dividend as it does whilst at the same time managing its operating costs and its investment in the delivery network.
Also read: United Parcel Service (UPS) Charges More Per Package, but Is the Dividend Safe?
3. Tractor Supply Company (NASDAQ:TSCO)
Projected 10-Year Yield: 16.72%
Dividend Yield as of October 30: 2.78%
5-Year Average Dividend Growth Rate: 19.37%
Tractor Supply Company (NASDAQ:TSCO) offers investors a combination of a growing dividend and exposure to the relatively resilient rural lifestyle retail sector. It’s a very niche business, operating in a segment that caters to farmers, ranchers, pet owners, and homeowners. The business is built on a customer base that will continue to have a need for its products on a regular basis: livestock feed, animal health, etc.
The company is currently paying a $0.24 per share quarterly dividend, which is $0.96 per year and a yield of around 2.8%. In February 2026, the company increased its dividend by 4.3%, marking its 17th consecutive year of dividend growth. Read the company’s dividend analysis here.
Cash generation absolutely warrants attention. Q3 2026 revenue was $3.91 billion, up 5.1% YoY, but operating income was down 10.2% to $307.7 million. Operating cash flow was $882.6 million, and capex was $651.6 million for the first 9 months of 2026, resulting in approximately $231 million of free cash flow. The company paid out $124.9 million in dividends in Q3.
The recent free cash flow provides less coverage than the earnings-based payout ratio would indicate, but the long track record of dividend growth is still a very attractive feature for income investors.
2. Canadian Natural Resources Limited (NYSE:CNQ)
Projected 10-Year Yield: 19.85%
Dividend Yield as of October 30: 3.34%
5-Year Average Dividend Growth Rate: 19.39%
Canadian Natural Resources Limited (NYSE:CNQ) offers dividend investors both income growth and a very substantial level of cash generation. It currently has a dividend yield of around 3.34% on a C$2.50 annualized dividend. In March 2026, the company increased its quarterly dividend by around 6.4% to C$0.625 per share, which is the 26th consecutive year of dividend growth. That dividend has been compounding at 20% per year over that time.
The company’s latest reported results also highlight its ability to produce significant cash flow in the face of the inherent cyclical nature of the energy industry. For Q2 2026, Canadian Natural generated adjusted funds flow of C$6.87 billion versus C$3.26 billion in Q2 2025. Operating cash flow was C$6.82 billion and free cash flow was C$2.98 billion, up from negative C$79 million in the same period last year.
Canadian Natural’s long life, low decline reserves and relatively low production costs underpin its cash-generating capacity. Net debt is down to C$14.5 billion as at the end of June, and the company is in a far stronger position to continue to grow its dividend and return capital to shareholders. Read CNQ’s dividend analysis here.
1. The Goldman Sachs Group, Inc. (NYSE:GS)
Projected 10-Year Yield: 21.94%
Dividend Yield as of October 30: 2.20%
5-Year Average Dividend Growth Rate: 25.64%
The Goldman Sachs Group, Inc. (NYSE:GS) is handing out a larger dividend to shareholders as its investment banking and trading businesses continue to produce strong results. The dividend has increased by 25% over the last year and is now $5 per share quarterly. That works out at $20 per share annually, and offers a dividend yield of around 2.2%, as of October 30.
The Q3 2026 results provided further support for the bank’s shareholder returns. Net revenue was $18.68 billion, net earnings $5.29 billion, and diluted earnings per share $17.01. Goldman returned $4.49 billion to common shareholders in the quarter, $1.49 billion in dividends and $3 billion in share buybacks.
Goldman’s dividend growth is a reflection of its improving earnings power and its appetite for returning excess capital to shareholders. The most recent increase follows an 11.1% rise in July 2026; the quarterly dividend increased from $4.50 to $5.00. With such strong capital generation and an 18.7% annualized return on common equity in Q3, there is certainly scope to continue with a very attractive shareholder return policy. The caveat is that earnings are still very much a function of the market and deal-making. Read more about GS here.
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