Dividend Growth Powerhouses: Three “Buy and Hold” Stocks for the Long Term

Investing in dividend growth stocks isn’t easy. It’s not enough to simply find companies that pay a decent yield today — you also need the confidence that these payouts will keep growing in the future, while the stock price doesn’t swing wildly during market downturns.

Now, if you apply strict filters — five-year total return above 70%, dividend growth over the past five years of at least 100%, and a payout ratio that leaves room for future increases — the list of candidates shrinks dramatically.

And if you also demand low volatility — the kind of stability that lets you sleep soundly even during a market crash — only a handful of companies remain. Today, three stand out.

A Canadian oil and gas producer headquartered in Calgary, Cenovus has grown significantly since its founding in 2009. The most notable expansion came in 2021, when it acquired Husky Energy. Today, Cenovus is one of Canada’s largest crude oil and natural gas producers, as well as a leading refiner. The company uses steam-assisted gravity drainage technology for oil extraction and aims to achieve net-zero emissions from its oil sands projects by 2050.

Second-quarter 2025 results came in weaker than last year:

• Revenue: $8.9 billion (-18% YoY)
• Net income: $615.3 million vs. $730.7 million a year earlier
• EPS: $0.34 per quarter

Still, dividends remain attractive for long-term investors. The forward dividend is CAD 0.80 per share (about USD 0.58), yielding 3.9% with a payout ratio near 50%. Over the past five years, dividends have surged 268.75%, and the 60-month beta of 0.97 points to moderate volatility.

Wall Street is optimistic: among 14 analysts, there are no “sell” ratings, and the consensus stands at “Strong Buy.” The high-end price target of $23.02 implies an upside potential of 56.5% from current levels.

An American oil and gas giant focused primarily on exploration and production. The company concentrates on finding new fields, drilling, and delivering raw materials, rather than refining.

Recent quarterly results show solid growth:

• Revenue: $17.1 billion (+18% YoY)
• Net income: $2.85 billion
• EPS: $2.23 (+12% YoY)

The forward annual dividend stands at $3.12 per share (yield of about 3.37%) with a payout ratio around 40%. Over the past five years, dividends have grown 132.84%, while the stock price has gained 126.85%. With a beta of just 0.67, the stock is less volatile than the broader market.

Analysts are unanimous: 26 recommend “buy” or “strong buy,” with zero “sell” ratings. The top price target is $137 per share — nearly 48% above the current price.

The company behind popular U.S. restaurant brands like Olive Garden, LongHorn Steakhouse, and Cheddar’s Scratch Kitchen. Darden operates full-service restaurants that focus on atmosphere and table service rather than fast food.

In the latest quarter:

• Revenue: $3.27 billion (+10.6% YoY)
• Net income: $303.9 million (slightly down from $308.1 million a year ago)
• EPS: $2.59 vs. $2.57 a year earlier

The forward dividend is $6 per share (yield of 2.9%) with a payout ratio of 58%. Over the past five years, dividends have increased 112.12%, while the stock price has soared 145.82%. With a beta of 0.75, the stock remains relatively resilient during market volatility.

Of 28 analysts covering DRI, 18 rate it as “buy” or “strong buy,” and the highest price target is $255 per share, suggesting an upside of 23.4%.

Cenovus Energy, ConocoPhillips, and Darden Restaurants operate in different sectors but share one key trait: a proven track record of dividend growth. All three combine solid fundamentals, growth potential, and moderate volatility — making them compelling candidates for a long-term “buy and hold” portfolio.

If you’re looking for a mix of stability and growing income, these stocks could form a solid foundation for building wealth over time.