2 Dividend Stocks to Hold for the Next 10 Years

Key Points

• Warren Buffett's Berkshire Hathaway has owned American Express for over 30 years.

• American Express has paid a dividend each year since going public in 1977.

• Disney reinstated its dividend in 2023 after pausing it during the pandemic.

• 10 stocks we like better than American Express ›

When looking for a long-term investment, studies show that companies with consistent dividend payments often deliver stronger long-term returns while experiencing less volatility than the broader market. Dividends also signal financial strength, reflecting management's confidence in the business. With that in mind, here are two dividend-paying stocks worth holding for the next decade.

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1. American Express

American Express (NYSE: AXP) remains one of Warren Buffett's favorite stocks, accounting for nearly 16% of Berkshire Hathaway's stock portfolio. Berkshire's original $1.3 billion purchase in 1995 has grown to a $47.6 billion position today without reinvesting any dividends.

Today, American Express pays a quarterly dividend of $0.82 per share, leading to a 1% annual yield. The company does not raise the payout every single year, but management has increased it consistently over time, including the past four consecutive years. To demonstrate its rising dividend, Berkshire is expected to collect $479 million in dividends in 2025, or nearly 37% of its original investment.

American Express is also a perennial share repurchaser, leading to Berkshire's stake having risen from roughly 10% to 21.8% despite Berkshire not making additional investment since 1995. Management has decreased the share count by 13.6% in the past five years alone and has the authorization to repurchase 68 million more of its 696 million shares outstanding.

AXP Dividends Paid (TTM) data by YCharts

Beyond management's capital allocation strategy, American Express continues to grow, reporting record quarterly revenue of $17.9 billion for Q2 2025, up 9% year over year. Quarterly net income dipped 4% to $2.9 billion as credit losses edged higher to $1.4 billion, but management reaffirmed full-year guidance for revenue growth of 8% to 10% and earnings per share (EPS) in the range of $15.00 to $15.50.

At 22.7 times earnings, American Express shares trade at a higher premium than their five-year median multiple of 18.7. Still, with consistent buybacks, steady dividends, and a global payments brand that continues to grow, American Express offers a reliable way for investors to collect income while holding a stake in one of the financial industry's most dominant players.

2. The Walt Disney Company

After a challenging few years, including a pandemic, a failed CEO succession, and a dividend pause, The Walt Disney Company (NYSE: DIS) returned its semi-annual dividend in early 2024. Today, Disney pays a semi-annual $0.50 per share, which amounts to a 0.8% annual yield and a payout ratio of about 13.7%.

Beyond its dividend, Disney generated $23.7 billion in revenue and $1.9 billion in free cash flow for its fiscal 2025's third quarter, representing year-over-year increases of 2% and 53%, respectively.

With Disney's top and bottom lines growing again, management has paid down its net debt by 15% over the past year to $36.9 billion. Also, management kick-started its share repurchase program, spending $3 billion in fiscal 2024 and $2.5 billion through the first three quarters of fiscal 2025, lowering its shares outstanding by 2%.

Looking ahead, management is optimistic. For fiscal 2025, it reaffirmed its outlook for operating income in the entertainment segment to increase by "double digits" compared to fiscal 2024. Additionally, management projects adjusted EPS to come in at $5.85 for the year, representing a year-over-year increase of 18%.

As for its valuation, Disney trades at 18.6 times trailing free cash flow, well below its three-year median of 25.1, placing the stock at a clear discount compared to its recent valuation norms.

DIS Price to Free Cash Flow data by YCharts

Are these dividend stocks buys?

In uncertain times, it's fair to be cautious about anyone making bold predictions a decade ahead. Still, it's hard to imagine a future where these two iconic brands aren't leading their industries. For investors who want to buy shares, hold them, and collect dividends year after year, these names deserve a spot near the top of the list.

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American Express is an advertising partner of Motley Fool Money. Collin Brantmeyer has positions in American Express, Berkshire Hathaway, and Walt Disney. The Motley Fool has positions in and recommends Berkshire Hathaway and Walt Disney. The Motley Fool has a disclosure policy.