2 Monster Stocks to Hold for the Next 10 Years

If you are looking for stocks that you can buy and hold for the long term, you’ll likely find high-yielding Enterprise Products Partners (EPD +1.09%) and NextEra Energy (NEE +1.32%) attractive. They are not only monsters in their respective industries, but they have monster-sized dividend track records, too. Here’s a quick look at each one to get you started.

Enterprise Products Partners sidesteps commodity volatility

It might seem odd to suggest an energy company at a time when oil prices are so volatile. But Enterprise operates in the midstream, helping to move oil and natural gas around the world. It charges fees for the use of its energy infrastructure assets and thus cares more about the volumes flowing through its system than the prices of the commodities it is moving.

Image source: Getty Images.

The reliability of the business is highlighted by Enterprise’s streak of 27 annual distribution increases. On top of that, it has an investment-grade rated balance sheet, and its distributable cash flow covers its distribution by a very strong 1.7x. In fact, supply issues in the Middle East could actually help Enterprise if it leads to more demand for U.S. oil and natural gas. Even the most conservative investors will likely find the 5.8% distribution yield from this midstream giant attractive.

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NYSE: EPD

Enterprise Products Partners

Today’s Change

(1.09%) $0.40

Current Price

$36.99

Key Data Points

Market Cap

$79B

Day’s Range

$36.47 - $37.10

52wk Range

$27.77 - $38.22

Volume

96K

Avg Vol

4.5M

Gross Margin

12.86%

Dividend Yield

5.94%

NextEra Energy is a monster in two markets

NextEra Energy’s yield is more modest, at 2.7%. However, that is more than twice the market’s yield and above the utility average of roughly 2.5%. Meanwhile, NextEra Energy has increased its dividend annually for more than a quarter of a century.

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NYSE: NEE

NextEra Energy

Today’s Change

(1.32%) $1.21

Current Price

$92.94

Key Data Points

Market Cap

$191B

Day’s Range

$92.11 - $93.92

52wk Range

$61.72 - $95.91

Volume

288K

Avg Vol

9.8M

Gross Margin

36.20%

Dividend Yield

2.53%

However, what’s most exciting about NextEra Energy is its business model. It has a strong foundation because it owns one of the largest regulated utilities in the United States. On top of that, it has built a fast-growing renewable power business, making NextEra Energy one of the world’s largest owners of solar and wind power. The utility operations should provide slow, steady growth, while the renewable power division offers higher growth as it supports the ongoing shift toward cleaner energy sources. The company expects dividend growth of around 6% a year for the foreseeable future, so this could be a good pick for growth and income investors.

Dividend stocks and industry giants

If you are a dividend investor looking for monster stocks to add to your portfolio, Enterprise and NextEra Energy should be on your short list. Enterprise leans into yield while NextEra Energy leans into dividend growth. Both are worth buying and holding for the next decade if you are supplementing Social Security with your dividend checks.