Top Dividend Stocks to Own for the Next Decade: Why Visa and Novartis Stand Out

Investors seeking long-term dividend growth and sustainability often look for companies with a proven track record of financial stability, disciplined capital allocation, and robust business models. Two such names that stand out in this regard are Visa (V) and Novartis (NVS). These global leaders in their respective industries-payment processing and pharmaceuticals-have demonstrated resilience, innovation, and a commitment to rewarding shareholders through consistent dividend increases. This analysis evaluates their dividend sustainability, growth potential, and long-term strategic positioning, drawing on recent financial data and analyst projections.

Visa: A Payment Industry Powerhouse with Conservative Dividend Payouts

Visa has long been a favorite among income-focused investors, thanks to its dominant position in the digital payments sector and its ability to scale with global economic trends. Over the past five years, the company has delivered a 13.5% compound annual growth rate (CAGR) in dividend per share, increasing from $0.30 in 2020 to $0.67 in 2025. This growth trajectory, combined with a current dividend payout ratio of 23.9% (as of November 2025), underscores its financial prudence. A low payout ratio means Visa retains a significant portion of its earnings, providing a buffer against economic downturns and fueling reinvestment in its network infrastructure.

Analysts highlight Visa's "stable but limited" growth potential, noting that while the company is unlikely to deliver explosive dividend hikes, its business model-anchored by high switching costs and network effects-ensures long-term sustainability. For instance, Visa's forward yield of 0.8% (as of late 2025) appears modest compared to high-yield sectors, but its earnings growth and share buyback program which has reduced the float by double digits over the past decade position it to outperform in a low-interest-rate environment.

Looking ahead, management guidance and analyst forecasts suggest a conservative but reliable dividend trajectory. Visa is projected to grow its annual dividend at a 14% CAGR through 2029, driven by its dominance in cross-border transactions and the accelerating shift to digital payments. While the 10-year outlook (2025–2035) remains speculative, the company's focus on innovation-such as expanding its tokenization and AI-driven fraud detection capabilities- positions it to maintain its competitive edge.

Novartis: A Healthcare Giant with a Legacy of Dividend Stability

In the pharmaceutical sector, Novartis stands as a paragon of dividend reliability, having raised its payout for 28 consecutive years. The company's most recent dividend of $3.86 per share (announced March 2025) reflects a 2.69% average annual growth rate over the past five years, albeit at a slower pace than its payment industry counterpart. With a Dividend Sustainability Score (DSS) of 72.65%, Novartis is well-positioned to maintain its payouts even amid macroeconomic headwinds, according to analysis. However, its Dividend Growth Potential Score (DGPS) of 5.59% signals limited upside for near-term increases.

What sets Novartis apart is its financial resilience and diversified product portfolio. In Q1 2025, the company reported 15% net sales growth and 27% core operating income growth, driven by blockbuster drugs like Entresto, Kisqali, and Leqvio. Management has raised its full-year 2025 guidance, projecting high single-digit sales growth and low double-digit operating income growth, which bodes well for its ability to sustain dividends.

Novartis's 10-year growth strategy further reinforces its long-term appeal. The company aims to deliver a 5-6% CAGR in sales from 2025 to 2030, supported by a pipeline of 30 high-value assets and a $23 billion investment in US manufacturing and R&D. These investments, including a $1.1 billion biomedical research hub in San Diego, are designed to future-proof its operations and drive innovation in areas like gene therapy and xRNA. While dividend growth may remain modest, Novartis's 42.1% core operating income margin (Q1 2025) and disciplined capital allocation ensure its ability to reward shareholders consistently.

Comparative Analysis: Balancing Growth and Stability

Both Visa and Novartis offer compelling dividend profiles, but their growth trajectories differ. Visa's low payout ratio and high earnings retention make it a safer bet for investors prioritizing sustainability over aggressive growth, while Novartis's diversified revenue streams and R&D focus provide a hedge against sector-specific risks.

For long-term investors, the key distinction lies in industry dynamics. Visa operates in a high-growth, low-margin sector (payment processing), where scalability and network effects drive value. Novartis, on the other hand, thrives in a capital-intensive, high-margin industry (pharma), where innovation and regulatory approvals dictate performance. Both companies, however, share a common trait: strong cash generation and a commitment to shareholder returns.

Conclusion: A Diversified Dividend Portfolio

In a world of economic uncertainty, Visa and Novartis represent two pillars of dividend investing: conservative growth and defensive stability. Visa's digital-first business model and Novartis's pharmaceutical innovation ensure their relevance across market cycles. While neither offers the explosive growth of a tech disruptor, their proven track records, low payout ratios, and strategic reinvestment make them ideal for investors seeking reliable income with long-term capital appreciation.

As the decade unfolds, these companies are likely to remain top-tier dividend performers, provided they continue to adapt to industry shifts and maintain their operational excellence. For those building a resilient dividend portfolio, Visa and Novartis are not just "top picks"-they are foundational holdings.