3 High-Yielding Dividend Stocks That Investors Can Safely Buy and Hold for Years

Chasing high-yielding dividend stocks can be risky. The stocks on this list, however, not only have high payouts but they also have solid underlying businesses, enabling them to consistently pay dividends. And, they've also been routinely increasing their dividend payments in recent years, giving investors ample incentive to buy and hold.

Three stocks that can be relatively safe income-generating investments to hang on to for years are Target (TGT +0.48%), Home Depot (HD +1.67%), and Lockheed Martin (LMT -0.22%).

Big-box retailer Target hasn't been a good investment in recent years, but thus far in 2026, it's been picking up steam — lots of it. Year to date, its share price has risen by nearly 60%. It's been long overdue, as this deeply discounted stock isn't as risky as it appears to be.

Target's business hasn't been attractive to investors because economic conditions haven't been ideal, and consumers have been cutting back on discretionary spending. But this is what I'd consider a temporary problem; the business isn't going to stay down for long. It's a matter of being patient. Meanwhile, with its stock trading at a lowly 16 times its trailing earnings, it's a fairly cheap and attractive buy, making now a great time to buy it and hang on for the long haul.

While sales aren't taking off, the business is by no means in bad shape. In the past four quarters, the company has generated more than $4 billion in profit on revenue totaling nearly $108 billion. This remains a massive retailer and a great company to invest in.

Premium FeatureMoneyball Superscore64/100Key data pointsMarket capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.$69.64BDay's range$153.95 – $157.3652wk range$83.44 – $170.75Volume1.9MAvg volume4MGross margin26.83%Dividend yield2.99%The stock currently yields 3%, which is close to three times the S&P 500 average of 1%. Target has raised its dividend for 55 consecutive years and is among the safest income stocks to own for the long haul.

Another retailer that makes for a solid income investment is Home Depot. It's also in the discretionary space, but home repairs and renovations inevitably spike as home sales rise; thus, in the long term, it arguably sells products and services that are essential for homeowners, making it a safer option than other retail stocks.

While consumer spending isn't through the roof these days, Home Depot still continues to generate solid numbers. Over the past four quarters, its revenue totaled $169 billion, with $14 billion of that flowing through to earnings, for a solid profit margin of 8%.

Premium FeatureMoneyball Superscore71/100Key data pointsMarket capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.$309.16BDay's range$310.64 – $317.7152wk range$277.15 – $397.63Volume3MAvg volume4.5MGross margin31.22%Dividend yield3.00%The market is nonetheless bearish on Home Depot's stock due to challenging economic conditions, but for long-term investors, that simply means a better valuation and a higher dividend yield right now. The stock is trading at 22 times its trailing earnings, and its yield is around 3%. Over the past five years, Home Depot has also increased its dividend by more than 40%.

Rounding out this list is aerospace and defense giant Lockheed Martin. It's another stock that makes for a good long-term investment as its close relationship with the U.S. government lends stability to its operations.

The company's financial results reflect that, as Lockheed's business has grown steadily, from $66 billion in 2022 to more than $75 billion in 2025. It's consistently profitable, often generating profit margins in the mid-to-high single digits.

The stock pays an above-average dividend, which currently yields 2.6%. It has raised its dividend for 24 consecutive years, and its payout has grown by approximately 29% in the past five years.

Premium FeatureMoneyball Superscore76/100Key data pointsMarket capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.$126.53BDay's range$545.73 – $559.4852wk range$437.25 – $692.00Volume1.1MAvg volume1.2MGross margin12.66%Dividend yield2.52%As defense spending continues to rise over the years, so too should Lockheed's financials, putting it in a great position to potentially continue increasing its dividend payments in the future. At 20 times its trailing earnings, this is a modestly priced stock that can make for a solid long-term investment.

(+0.51%)+$0.78Motley Fool Stock Advisor’s Latest PickGet Access—% Avg ReturnHome DepotNYSE: HD$315.15(+1.70%)+$5.27Lockheed MartinNYSE: LMT$547.00(-0.22%)-$1.23*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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