Buy two high-yield dividend stocks that you can hold for 10 years.

Great dividend stocks don't always have exceptionally high yields. But it's nice to see a solid income stock with an above-average yield. If the company can reward its shareholders by continually raising its dividend, and if it can do so over the long term, even better. There are many dividend stocks on the market that fit this description.

Let's take a look at two stocks in the healthcare sector:Bristol-Myers Squibb (Bristol) Myers Squibb (New York Stock Exchange: BMY)(math.) andNovartis (Novartis) (NYSE: NVS)These two pharmaceutical companies offer a number of investment opportunities for investors seeking long-term returns. These two drug companies offer a number of investment opportunities for investors seeking long-term returns.

1. Bristol-Myers Squibb

Bristol-Myers Squibb is a good choice for income investors looking for a name-valued stock. Over the past year, the drug company has been lagging the market due to slow top-line growth after a major patent cliff. As a result, Bristol-Myers currently trades at a forward P/E of 14.3, compared to the drug industry's average P/E of 17.4.

Despite some recent problems, Bristol-Myers Squibb has stuck to its dividend program. Over the past five years, the company's payout ratio has increased by 461 TP3T, with a dividend yield of about 51 TP3T.

In addition, Bristol-Myers Squibb should be able to rebound, although revenue growth is currently slow. As always, the key is to develop newer medicines to replace those that have lost or will soon lose their patents. Bristol-Myers Squibb has been working on this project for years, and has a pipeline of new drugs approved since 2019.

As the company undergoes significant changes in its product mix, it should eventually be able to return to strong financial performance. Bristol-Myers Squibb expects revenues from its new product groups to exceed $10 billion by 2026. Revenues from these products were $3.6 billion last year, an increase of 771 TP3T.

The drugmaker expects sales of this product group to reach $25 billion by 2030. In light of its large product line, however, Bristol-Myers Squibb will receive other brand-new approvals in the meantime. The company is conducting dozens of clinical trials. While the transition may present some challenges, Bristol-Myers Squibb is poised to deliver a competitive return on the strength of its product line and renewed product portfolio.

As a result, the company can still make a difference in the next decade. Yield-seeking investors should not be scared off by Bristol-Myers Squibb's recent downturn.

2. Novartis

Novartis' financial performance has been relatively strong lately. Last year, the Swiss drugmaker's net sales rose 81 percent to $45.4 billion. The company had 13 blockbusters throughout the year, with most of them going for the good.

The most important of these is Entresto, a drug for heart failure, which has sales of $6 billion in 2023, up 30%. Novartis's overall product line is too diverse for any one product to account for a significant portion of its sales.

In addition, the drugmaker continues to introduce new drugs. Last year, the company received approval for a new drug that could be an important growth driver, called Fabhalta, for the treatment of episodic nocturnal hemoglobinuria, a rare blood disorder. It's a treatment for episodic nocturnal hemoglobinuria, a rare blood disorder, called Fabhalta, which some analysts predict will top out at $3.6 billion, a figure not to be underestimated.

Novartis also made a major move last year when it decided to spin off its pharmacy and biological-type drug division, Sandoz, into a separate company. A number of drug giants have opted for similar deals in recent years. Novartis' goal is to streamline its business and invest more money in the development of new therapeutics, which will ultimately lead to growth. In my view, this deal does little to change Novartis' fundamental thesis - that it remains a great stock to buy for the long term.

The drugmaker's dividend history is another piece of evidence to support this view. Novartis is a bit short of a dividend king, as it has increased its dividend for 27 consecutive years, and its current dividend yield is 4.04%. The company's current dividend yield is 4.04%, and Novartis shares are inexpensive, with a forward price-to-earnings ratio of 13.5, all of which make it an excellent passive-income stock to own for the long term.

Should you invest $1,000 in Bristol-Myers Squibb now?

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*Stock Advisory Rates as of April 15, 2024

Prosper Junior Bakiny does not hold any of the above stocks.The Motley Fool holds a recommendation for Bristol-Myers Squibb.The Motley Fool has a disclosure policy.

2 High-Yield Dividend Stocks to Buy and Hold for 10 Years was originally published by The Motley Fool.