3 Magnificent Dividend Growth Stocks With Yields Above 5% to Buy Now and Hold at Least a Decade

Group 1: Dividend-Paying Stocks Performance - Dividend-paying stocks in the S&P 500 index produced a 9.17% average annual return from 1973 to 2023, compared to 4.27% for non-dividend-paying stocks [2] - Companies that return earnings to shareholders through dividends tend to behave differently and provide better returns over time [2] Group 2: Realty Income - Realty Income is a REIT that has consistently raised its monthly dividend since its market listing in 1994, currently offering a 5.8% dividend yield [4] - The company's dividend payout growth has been limited to 2.5% annually over the past five years due to rising interest rates, but potential rate cuts by the Federal Reserve could enhance growth prospects [5][6] Group 3: Pfizer - Pfizer's stock has decreased by approximately 57% since its peak in 2021, primarily due to declining sales of COVID-19 products and concerns over an upcoming patent cliff for Eliquis [7] - Despite these challenges, Pfizer offers a 6.7% dividend yield and has raised its dividend for 16 consecutive years, with total sales increasing by 7% last year when excluding COVID-19 product sales [8] - The first generic versions of Eliquis are not expected until 2031, and new cancer treatments may offset potential losses from Eliquis [9] Group 4: Altria Group - Altria Group has continued to increase its dividend payouts despite a long-term decline in cigarette smoking, with a current yield of 7.7% [11][12] - While total cigarette sales fell by 10.2% in 2024, price increases on Marlboro products helped mitigate revenue losses, resulting in a minimal decline in smokable product sales [12] - Growth in non-smokable products, particularly through the acquisition of the NJOY brand, has contributed to a 3.4% increase in adjusted earnings last year [13]