3 Rock-Solid Dividends to Hold for the Next Decade

There's something very comforting about having cash deposited into your investment account quarter after quarter and year after year. Well-chosen dividend stocks can supply you with just such an income stream, as well as valuable share price appreciation.

Even better is when you can find high-quality businesses that are poised to grow their profits for many years to come. It's these types of long-term investments that can help you build a fortune in the stock market.

To help you in your pursuit of these wealth-creators, here are three outstanding dividend stocks that are particularly attractive buys today.

1. Brookfield Infrastructure Partners

Few assets can supply more dependable long-term returns than infrastructure. The aptly named Brookfield Infrastructure Partners (BIP) (BIPC) excels in this lucrative sector, and it's poised to deliver handsome gains to its investors in the coming decade.

Brookfield owns and operates vital assets that facilitate the transportation of people, energy, freight, and data across the globe. Think toll roads, pipelines, ports, and cell towers. With demand for this critical infrastructure assured, Brookfield is able to generate bountiful and consistent cash flow through all manner of market environments.

Brookfield passes this cash on to its investors through a steadily rising dividend income stream. With powerful global trends — such as digitalization, decarbonization, and onshoring — fueling the growing need for exactly the type of infrastructure investments that Brookfield excels at making, the company expects to grow its cash payout by 5% to 9% annually over the long term. And that's on top of the greater than 4% yield it offers investors today.

2. Lockheed Martin 

The war in Ukraine shows the importance of companies that help nations defend themselves. As a leading defense contractor, Lockheed Martin (LMT) plays a vital role in restoring and preserving peace.

Lockheed produces several of the key defensive systems that have proven their worth in Ukraine, such as the High Mobility Artillery Rocket System (HIMARS). Lockheed also makes the F-16 and F-35 fighter jets, which play pivotal roles in the defense strategies of the U.S. military and multiple allied nations. Helicopters, spacecraft, and a wide variety of other defensive platforms help to further diversify the company's well-stocked product portfolio. 

Several of Lockheed's offerings are expected to remain in use for many years. The F-35, for example, is projected to be in service until at least 2070 — and generate well over $1 trillion in revenue for Lockheed along the way.

This level of revenue visibility and stability allows Lockheed to produce dependable free cash flow. The defense giant uses this cash to reward its shareholders with hefty stock buybacks and a growing dividend. After boosting its quarterly cash payout by 7% to $3 per share in October, Lockheed's stock currently yields a solid 2.6%.

3. McDonald's

Some things never go out of style. A tasty burger served fast and priced right is likely to remain a staple of many people's diets around the world. McDonald's (MCD) helps to make this possible. Its sprawling global empire of fast-food restaurants serves up inexpensive yet flavorful fare day after day and year after year.

The company's consistent quality and low prices are even more attractive to consumers during challenging economic environments. Today, with inflation still stubbornly high, many people seek to save money by trading down to less-expensive meals. Its value-priced menu thus positions it perfectly to gain market share from its higher-priced restaurant rivals.

The company's technology investments, such as its automated drive-through lanes and popular mobile app, should help it continue to provide a hard-to-beat combination of convenience and value to its massive customer base.

Better still, McDonald's employs a lucrative franchise model, which enables it to turn its franchisees' growing sales into steady profits for shareowners. The fast-food king's stock currently yields a respectable 2.2%. McDonald's has also increased its dividend for 46 straight years — a remarkable streak that should persist well into the next decade.

Final Thoughts and Additional Resources

In conclusion, investing in the best dividend stocks can be a great way to generate income while also growing your wealth. By researching stable and growing companies, focusing on resilient sectors, and diversifying your portfolio, you can maximize your chances of success and achieve your financial goals.

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Originally published on Fool.com

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and Lockheed Martin. The Motley Fool has a disclosure policy.