3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

Energy demand is strong and growing. The world's energy demand is on pace to grow 15% by 2050. While wind and solar will be meaningful contributors to supplying this incremental energy, they can't power the world on their own. Because of that, the demand for fossil fuels should continue to rise for at least the next decade.

That future bodes well for energy stocks. In particular, energy infrastructure companies should be able to continue expanding their footprints, which should grow their cash flows and dividends. That makes leaders like Energy Transfer (NYSE: ET), Enterprise Products Partners (NYSE: EPD), and Enbridge (NYSE: ENB) stand out as great stocks to buy for those seeking a high-octane income stream over the coming decade.

Energy Transfer is a leader in the U.S. energy midstream industry. The master limited partnership (MLP) has a nationwide footprint of pipelines, processing plants, storage terminals, and export facilities. Those assets generate stable cash flows backed by long-term contracts and government-regulated rate structures.

The MLP distributes a little more than half of its stable cash flow to investors each year. That income stream currently yields nearly 8%. The company retains the rest of its cash to invest in expansion projects and maintain a strong financial foundation.

Energy Transfer currently has several expansion projects under construction that should come online through 2026. They provide it with lots of near-term visibility into its ability to grow its cash flow and distribution. In addition, the company has several other large-scale projects under development, including Lake Charles LNG, its Blue Marlin oil export terminal, and lower-carbon projects like blue ammonia and carbon capture and sequestration.

The MLP's strong financial profile and growing backlog of projects fuel its view that it can increase its already massive distribution by 3% to 5% annually in the coming years. That makes it an excellent option for those who are seeking a steadily rising income stream and are comfortable investing in MLPs, which send their investors a Schedule K-1 federal tax form each year.

Enterprise Products Partners is another leading MLP. The company has a remarkable record of consistency. It has increased its distribution payment for 26 straight years.

The MLP currently yields more than 7%. That hefty payout is on a very sustainable foundation. Enterprise Products Partners has a low payout ratio (55% of its adjusted cash flow from operations over the last 12 months) and the strongest balance sheet in the energy midstream sector.