The stock market and risk go hand in hand. While growth stocks offer excellent opportunities to earn high long-term returns, they are best suited to investors with a high risk tolerance.

Dividend stocks, meanwhile, serve as a relatively safe haven and generate consistent passive income. Dividend stocks, especially those that have consistently increased and increased their dividends, are more attractive to income investors. Here are two dividend stocks that investors can trust and hold for over a decade.

Dividend Stock #1: Lowe’s Companies

Lowe’s Company LOW is a leading player in the home improvement retail industry and is known for its diverse product assortment, which includes everything from building materials to home appliances. With 1,746 stores, it is the second largest home improvement retailer in the United States.

With a value of $136.9 billion, LOW stock has gained 12.4% year-to-date compared to the S&P 500 Index. SPX Profit of 18.1%.

The home improvement industry has grown rapidly in recent years due to a tight housing market, rising homeownership rates and the growing DIY culture. Lowe’s has capitalized on these trends by expanding its product offerings and improving its online presence. Its earnings have increased from $5.49 per share in 2020 to $13.20 per share in 2024, reflecting the stability of its earnings.

Lowe’s has increased its dividend for 53 consecutive years. This also earned the company the title of Dividend King. Dividend Kings are a group of companies that have increased their dividends for 50 consecutive years.

Lowe’s has an attractive forward yield of 1.9%, compared to the consumer discretionary sector average of 1.89%. In addition, the forward dividend payout ratio of 35.9% suggests that the company’s earnings can cover current dividend payments while also enabling future growth.

In the second quarter of fiscal 2024, earnings fell to $4.17 per share from $4.56 per share due to the difficult macroeconomic environment. Nevertheless, Lowe’s paid out $629 million in dividends and repurchased $1.0 billion worth of shares during the quarter.

Due to lower than expected DIY sales and a tight macroeconomic environment, management expects adjusted earnings per share in the range of $11.70 to $11.90 per share in fiscal 2024, compared to $13.20 per share in fiscal 2023. Management believes that the Company’s efficient and disciplined capital program will help it create long-term value for shareholders.

Similarly, analysts expect Lowe’s earnings to decline 10.5% in full-year 2024 before rising 8.6% in 2025.

Overall, Wall Street has rated LOW stock as a “moderate buy.” Of the 24 analysts covering the stock, 15 rate the stock as a “strong buy,” one as a “moderate buy,” and 14 as a “hold.” The average analyst price target for LOW is $247.13, which has already been surpassed. However, the $280 price target set by Wall Street as the highest price target suggests an upside potential of about 12%.

Dividend Stock No. 2: Walmart

Walmart WMT is the world’s largest retailer, operating more than 10,500 stores in 19 countries. Its enormous size gives it significant negotiating power with suppliers and allows it to offer competitive prices. This size, combined with a robust supply chain and efficient operations, allows Walmart to maintain its leadership position in the retail sector.

Jim Cramer, host of CNBC’s “Mad Money,” recently stated that Walmart will likely soon join the trillion-dollar market cap club thanks to its strong loyalty programs and e-commerce initiatives.

With a market cap of $607.9 billion, WMT stock is up 44% year-to-date, outperforming the broader market.

Its network of hypermarkets, supermarkets and members-only warehouse clubs has shaped the company’s identity today.

Additionally, Walmart has earned the title of Dividend King by increasing dividends for the past 51 years. The company recently increased its dividend by 9%, marking its 51st consecutive year of increases. Walmart has a dividend yield of 1.1%, compared to the 1.8% average in the consumer goods sector. The 30.5% payout ratio suggests the company can maintain its current dividend payments while allowing for dividend growth.

The consistency of dividend payments reflects Walmart’s strong fundamentals. In the most recent second quarter of fiscal 2025, the company’s revenue rose 4.8% to $169.3 billion, while adjusted earnings rose 9.8% to $0.67 per share.

Walmart has focused on several strategic initiatives to maintain its growth trajectory, including working with Symbotic SYM to automate the supply chain process and plans to acquire Vizio’s SmartCast operating system (OS) to connect with its customers.

Walmart’s future looks bright thanks to its strong market position, strategic initiatives and ability to adapt to changing consumer behavior. This means growing earnings and makes the company a reliable income stock for long-term investors.

While Walmart is focused on expansion, the company has kept its debt ratio low at 0.44, allowing it to provide value to its shareholders in the form of dividends. Analysts expect Walmart’s earnings to grow steadily over the next two years, with growth expected at 10.3% in fiscal 2025 and 10.7% in fiscal 2026.

Overall, Wall Street rates Walmart stock as a “strong buy.” Of the 24 analysts covering WMT, 24 have a “strong buy” recommendation, four rate it as a “moderate buy,” and three recommend “holding.” The average price target of $78.07 suggests an upside of 3.1% from current levels. However, Wall Street’s high estimate of $85 implies a potential upside of about 12.3% over the next 12 months.

As of the date of publication, Sushree Mohanty had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see Barchart’s disclosure policy here.