3 Monster Dividend Stocks to Buy Now and Hold for Decades

Key Points

• UPS shares have hit a rocky patch, but that performance just doesn’t reflect the company’s likely future.
• Brookfield Renewable is neither a conventional utility nor a mutual fund. Yet, it offers the upside of both.
• Lockheed Martin may not be a growth stock, but it could be particularly fruitful for income investors.
• 10 stocks we like better than United Parcel Service ›

Do you get the feeling that growth opportunities are going to be fewer and farther between in the foreseeable future, while investment income is going to be prioritized in more portfolios? Maybe you're even already making such a strategic shift?

If you are (or are going to), here's a closer look at three great dividend stocks you can feel good about buying and holding for decades.

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1. United Parcel Service

It's been tough to stick with United Parcel Service (NYSE: UPS) of late. Shares peaked in 2022, at the same time that all the online shopping prompted by the COVID-19 pandemic did. For a short time late last year, it finally looked as if the stock might start to rebound. As last year's decision to dial back the number of low-margin deliveries it was doing for Amazon started becoming a reality this year -- at the same time fuel prices soared -- that budding recovery effort was upended. Shares recently hit a new multi-month low and seem to still be sinking.

The underlying concern may be overdone, however. While the scaled-back partnership with Amazon is taking a toll on revenue, there are already signs of the wider profit margins that CEO Carol Tomé expected. And as a reminder, while UPS voluntarily gave up some of its Amazon business, it still managed to grow its top line by a respectable 6% during the quarter ending in June. Not bad.

Perhaps the piece that's being overlooked here, though, is that there's still plenty of profitable demand for delivery and logistics for everyone, and there will only be more of it in the long term. An outlook from Coherent Market Insights suggests the worldwide parcel delivery market is on pace to grow at an average annual pace of more than 5% through 2033.

It's also worth noting that while Amazon may have led e-commerce's growth up until this point, competitors like Walmart, as well as brands themselves, are finally keeping Amazon in check. These rivals aren't using Amazon's in-house delivery network, but rather, third-party logistics services like FedEx and UPS.

Given all of this, the recent weakness that pushed UPS's forward-looking dividend yield above 7% makes for a fantastic long-term entry opportunity despite the near-term weakness.

2. Brookfield Renewable

In many ways, Brookfield Renewable (NYSE: BEPC) represents a new frontier in income investing. It's neither a stand-alone business nor a collection of handpicked publicly traded tickers with a common thread. Rather, Brookfield Renewable is a stakeholder in several privately owned and privately managed renewable energy utility businesses, including solar power farms, wind energy, and hydropower plants.

And this seemingly small detail matters in a big way. Not only does owning a piece of Brookfield Renewable give you exposure to the future of the energy business, but this flexible structure also offers direct access to opportunities that aren't investable any other way.

For instance, in June 2026, Brookfield and Mitsubishi HC Capital (OTC: MIUFY) announced the formation of a private joint venture meant to capitalize on the growing demand for renewable energy within Europe, with several long-term power purchase agreements already in place.

More than anything, ownership of utility companies remains a fantastic way to generate reliable investment income. Consumers and corporations alike do whatever it takes to keep the lights turned on. Brookfield Renewable's past and planned dividends say as much too. Not only has this stock's per-share quarterly dividend grown every year since 2021, but the company has publicly committed to long-term annual dividend growth of between 5% and 9%.

Given this organization's flexibility to buy, develop, and sell utilities assets of its choosing, that industry-beating dividend growth goal is certainly achievable. You'd be plugging into a forward-looking dividend yield of 5.5%, by the way.

3. Lockheed Martin

Last but not least, add Lockheed Martin (NYSE: LMT) to your list of monster dividend stocks to buy now and hold for decades. OK, its projected dividend yield of 2.7% may not exactly be thrilling. With 23 consecutive annual increases to its credit, though (and almost certainly more on the way), it's an income investment you can feel good about holding for the long haul.

You may know this aerospace and defense contractor best by its F-35 and F-22 fighter jets, although it's so much more. This company not only supplies the U.S. military and its allies with an enormous amount of equipment and supplies, but it's also the maker of the Orion spacecraft and several commercial and civilian aircraft. While its growth is usually modest, its diverse product portfolio means it's always got something to sell somewhere.

That being said, it's worth noting that the White House is requesting $1.5 trillion in funding for the U.S. military in fiscal 2027, up 41% from 2026's defense spending. It's only a request, and it's only for one year. But it's also a glimpse of a broader, longer-term shift toward a more militarized global environment. If worldwide defense spending remains on its current growth trajectory, the United Nations believes, global military-related outlays could reach $6.6 trillion by 2035. That's five times the amount spent during the last year of the Cold War, and twice what was shelled out in 2024.

Societal safety concerns aside, that spells opportunity for arms suppliers like Lockheed Martin, bolstered by the stock's recent pullback.

Should you buy stock in United Parcel Service right now?

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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Lockheed Martin, United Parcel Service, and Walmart. The Motley Fool recommends Brookfield Renewable and FedEx. The Motley Fool has a disclosure policy.