Choosing to invest in long-term dividend stocks means selecting companies with a strong track record of dividend payments, robust cash flow, and sustainable growth. These companies often prioritize financial health and stability, rewarding shareholders through regular income and attractive yield metrics. By focusing on essential indicators like a dividend payment streak exceeding ten years, consistent free cash flow growth, and a favorable P/E ratio, investors can identify dividend stocks that not only offer reliable payouts but also long-term value appreciation. This approach provides a balanced investment option, blending income with growth potential.
Methodology: How Did We Choose These Stocks?
To identify the most promising long-term dividend stocks, we applied a rigorous selection process using a set of key financial metrics designed to pinpoint companies with stable income potential and sustainable growth. Here are the metrics we used:
Dividends Payment Streak: We considered only companies with a history of paying dividends for over ten consecutive years, reflecting a commitment to returning capital to shareholders.
Unlevered Free Cash Flow Growth: By focusing on companies with over 10% growth in unlevered free cash flow, we ensured they have a solid financial foundation to support ongoing dividend payments.
Dividend Yield: A minimum yield of 3% was required, which offers investors an attractive income stream relative to other asset classes.
P/E Ratio: To avoid overvalued stocks, we filtered for those with a price-to-earnings ratio between 10 and 30, indicating fair valuation based on current earnings.
Market Capitalization: Only companies with a market cap above $1 billion were included, as larger firms typically have more stable cash flows and are less volatile.
Dividend CAGR (5-Year): We looked for companies with a five-year dividend compound annual growth rate (CAGR) of over 10%, signaling a trend of increasing dividends over time.
Shareholder Yield: Finally, we prioritized stocks with a shareholder yield above 10%, indicating strong returns through dividends and share buybacks.
By combining these metrics, we were able to identify dividend stocks that not only meet high standards for financial health and reliability but also align with a long-term income-focused investment strategy.

Best Long-Term Dividend Stocks
Company Name | Symbol | Dividends Payment Streak | P/E Ratio | Market Cap |
Mitsubishi UFJ Financial Group Inc | 8306 | 24 | 12.5x | 149.9 B |
Swiss Life Holding AG | SLHN | 20 | 20.5x | 25.204 B |
China Galaxy Securities Co Ltd | 6881 | 11 | 14.4x | 20.157 B |
Wilmar International Ltd | F34 | 19 | 13.1x | 15.343 B |
Qatar Islamic Bank | QIBK | 21 | 11.3x | 13.63 B |
Conagra Brands Inc | CAG | 50 | 26.4x | 12.997 B |
KT Corporation | A030200 | 11 | 23.5x | 8.161 B |
Industry: Banking
Market: Japan
Dividends Payment Streak: 24
P/E Ratio: 12.5x
Market Cap: 149.9 B
Mitsubishi UFJ Financial Group, Inc. operates as the bank holding company, that engages in a range of financial businesses in Japan, the United States, Europe, Asia/Oceania, and internationally. It offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. The company was founded in 1880 and is headquartered in Tokyo, Japan.
Industry: Life Insurance
Market: Switzerland
Dividends Payment Streak: 11
P/E Ratio: 20.5x
Market Cap: 25.204 B
Swiss Life Holding AG provides life, pensions, and financial solutions for private and corporate clients. It operates through Switzerland, France, Germany, International, Asset Managers, and Other segments. It engages in the private equity, information technology, real estate, finance, banking, reinsurance, brokering, staff restaurant/canteen, and investment funds businesses.
Industry: Securities Brokerage
Market: China
Dividends Payment Streak: 18
P/E Ratio: 14.4x
Market Cap: 20.157 B
China Galaxy Securities Co., Ltd. provides various financial services in China. The company operates through Wealth Management, Investment Banking, Institutional Business, International Business, Investment Trading, and Parent-subsidiary Integration Business segments. It serves various individual and institutional clients comprising multinational corporations, medium and small-sized enterprises, high-net-worth clients, and retail clients.
Industry: Agribusiness
Market: Singapore
Dividends Payment Streak: 19
P/E Ratio: 13.1x
Market Cap: 15.343 B
Wilmar International Limited operates as an agribusiness company in Singapore, South East Asia, the People’s Republic of China, India, Europe, Australia/New Zealand, Africa, and internationally. It operates through four segments: Food Products, Feed and Industrial Products, Plantation and Sugar Milling, and Others.
Industry: Islamic Banking
Market: Qatar
Dividends Payment Streak: 15
P/E Ratio: 37.8x
Market Cap: 1.13 B
Qatar Islamic Bank, together with its subsidiaries, provides corporate, retail, and investment banking products and services in Qatar and internationally. It serves individual customers, institutional investors, corporates, small and medium enterprises, financial institutions, and investment vehicles.
Industry: Packaged Foods
Market: United States
Dividends Payment Streak: 50
P/E Ratio: 26.4x
Market Cap: 12.997 B
Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company sells its products under the Birds Eye, Marie Callender’s, Duncan Hines, Healthy Choice, Slim Jim, Reddi-wip, Angie’s, BOOMCHICKAPOP brands.
Industry: Telecommunications
Market: South Korea
Dividends Payment Streak: 11
P/E Ratio: 23.5x
Market Cap: 8.161 B
KT Corporation provides integrated telecommunications and platform services in Korea and internationally. The company offers mobile voice and data telecommunications services based on 5G, 4G LTE and 3G W-CDMA technologies. The company was formerly known as Korea Telecom Corp. and changed its name to KT Corporation in March 2002.
How to Find Long-Term Dividend Stocks
Investors can find long-term dividend stock opportunities easily using the advanced InvestingPro stock screener. Here are the steps:
Click on the Screener Tool.
- Navigate to the stock screener page to start filtering your stock options.
Set Dividend Payment Streak.
- Select the filter for “Dividends Payment Streak.”
- Set the minimum requirement to 10 years to focus on companies with a consistent history of paying dividends.
Filter by Unlevered Free Cash Flow Growth.
- Choose the “Unlevered Free Cash Flow Growth” filter.
- Set the threshold for growth to greater than 10% to ensure the company has strong financial health to support dividends.
Select Dividend Yield.
- Find the “Dividend Yield” filter.
- Adjust the settings to include only companies with a minimum yield of 3% to ensure a satisfactory income stream for investors.
Apply Price-to-Earnings Ratio.
- Locate the “P/E Ratio” filter on the screener.
- Set the range between 10 and 30 to identify stocks that are fairly valued.
Market Capitalization Filter.
- Select the “Market Cap” filter parameter.
- Set the minimum market capitalization threshold to $1 billion to focus on more stable and less volatile companies.
Add Dividend CAGR (5-Year) Criteria.
- Choose the “Dividend CAGR (5-Year)” filter.
- Set the threshold to greater than 10% to find companies with a trend of increasing dividends.
Final Filter for Shareholder Yield.
- Find the “Shareholder Yield” filter.
- Set the minimum requirement to greater than 10% to prioritize stocks providing strong returns through dividends and share buybacks.
Long-Term Dividend Stocks FAQs (Frequently Asked Questions)
1. What are long-term dividend stocks?
Long-term dividend stocks are shares in companies that have a consistent history of paying dividends to their shareholders over an extended period, typically more than ten years. These stocks are often sought for their potential to provide steady income and capital appreciation.
2. Why should I invest in long-term dividend stocks?
Investing in long-term dividend stocks can provide a reliable income stream, especially during market volatility. They often indicate financial stability and growth potential, as companies that consistently pay dividends tend to be well-managed with solid business models.
3. How do I evaluate long-term dividend stocks?
Key metrics to evaluate long-term dividend stocks include the dividend payment streak, unlevered free cash flow growth, dividend yield, P/E ratio, market capitalization, dividend CAGR (compound annual growth rate), and shareholder yield. These metrics help assess the company’s ability to sustain and grow its dividend payouts.
4. What is a good dividend yield?
A good dividend yield generally depends on market conditions and individual investment goals. However, a yield of 3% or higher is often considered attractive, as it offers a decent return compared to other asset classes.
5. What does a dividend payment streak indicate?
A dividend payment streak indicates a company’s commitment to returning capital to its shareholders. A long streak (typically over ten years) suggests that the company has maintained stable earnings and cash flows, which is crucial for sustaining dividend payments.
6. What is the significance of P/E ratio in dividend stocks?
The P/E ratio helps investors gauge whether a stock is overvalued or fairly priced based on its earnings. A P/E ratio between 10 and 30 is generally considered reasonable for dividend stocks, suggesting that investors are paying a fair price for expected earnings.
Shareholder yield encompasses both dividends paid and share buybacks, providing a comprehensive view of how much cash a company returns to its shareholders. A shareholder yield above 10% is often seen as a strong indicator of a company’s commitment to creating value for investors.
Dividend yield refers to the annual dividend payment expressed as a percentage of the stock’s current price, indicating the income generated solely from dividends. In contrast, shareholder yield includes not only dividends but also share buybacks, reflecting the total return to shareholders through both mechanisms. Thus, shareholder yield provides a broader view of how a company returns capital to its investors.
9. How often do dividend stocks pay dividends?
Most dividend stocks pay dividends quarterly, but some may pay monthly, semi-annually, or annually. It’s essential to check the specific company’s dividend policy for exact payment schedules.
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