2 Monster Dividend Stocks to Buy Now and Hold Forever

Enterprise Products Partners (EPD) is highlighted for 29 consecutive years of dividend growth and a ~6% forward yield, supported by steady midstream cash flows (fixed fees) rather than commodity price swings. Verizon (VZ) is framed as a potential medium/long-term winner after a pullback tied to removal from the Dow, with management cost cutting and customer gains; EPS is expected to rise ~5% in 2026 to $4.95 and ~6.5% in 2027 to $5.27, trading at ~8.5x forward earnings.

Analysis

EPD is less a commodity bet than a duration trade disguised as an income stock. The real upside comes if capital markets stay friendly to yield-covered cash flows: that supports a higher multiple for the whole midstream complex, especially names with stronger distribution coverage and lower leverage than smaller MLPs. The main second-order risk is that the market keeps treating EPD like a bond substitute; if Treasury yields back up, the stock can underperform even if operating performance stays fine.

VZ is a more interesting turnaround than a classic dividend story. At an 8x-9x forward multiple, modest execution on churn, pricing discipline, and opex can matter a lot more than raw growth, because even a small re-rating can drive more upside than the dividend alone. The catch is that wireless is still a promo-intensive market, so any evidence that customer gains are being bought with margin sacrifice would cap the multiple fast.

The consensus may be overconfident on the durability of both yield narratives. For EPD, the tax friction and MLP investor base limit how quickly new capital can flow in, so upside is likely gradual rather than explosive. For VZ, the market may be underestimating how quickly a satellite/direct-to-device narrative can keep a value stock cheap even before it takes meaningful share; the thesis is most vulnerable if next-quarter free cash flow and net adds fail to improve together.

Key Decisions for Investors

• Long EPD on market-wide pullbacks, 6-12 month hold: treat it as a carry trade with modest distribution growth, not a momentum idea. Falsify if distribution coverage or leverage trends worsen on the next two earnings prints.
• Do not chase VZ here; wait for the next quarter to confirm net adds plus capex discipline before owning the re-rating story. The risk/reward is attractive only if earnings stability becomes visibly self-funding.
• If VZ confirms execution, enter a small long VZ / short TMUS pair for a 3-6 month mean-reversion trade in telecom multiples. The bet is that VZ’s discount narrows faster than the market is willing to pay for TMUS growth.
• Use lower-rate days to add both EPD and VZ; if the 10Y yield rises materially, cut exposure because both names are crowded in the 'bond proxy' bucket and multiple expansion will stall.