Set It and Forget It: 2 Dividend Stocks to Hold for the Next 20 Years

Most investors aren’t willing or equipped to constantly hover over every stock they own. At the same time, it’s usually not wise to ignore where you’re putting your money. Fortunately, there is a way to compromise.

Companies with dominant business models and decades of proven success earn a bit more trust. There’s arguably no individual stock you can’t set and forget, literally speaking, but these two blue chip stocks come as close to the spirit of hands-off investing as you’ll find.

Both have an uncanny ability to pay dividends to shareholders and increase them year after year. Investors should be able to buy and hold these stocks for the next 20 years, with minimal supervision along the way.

Image source: The Motley Fool.

  1. More than 60 years of dividend growth from a classic Warren Buffett stock

Legendary investor Warren Buffett’s famous affinity for Coca-Cola (KO 0.30%) and its 64 years of uninterrupted dividend increases make it a Dividend King and a legendary dividend stock. The global beverage giant sells 2.2 billion servings of soda and other drinks worldwide each day. In all, Coca-Cola has 32 billion-dollar brands today, and 75% of them fall outside carbonated soft drinks. Its vast distribution network is a formidable competitive advantage in a fragmented beverage industry.

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NYSE: KO

Coca-Cola

Today’s Change

(-0.30%) $-0.23

Current Price

$76.04

Key Data Points

Market Cap

$327B

Day’s Range

$75.51 - $77.01

52wk Range

$65.35 - $82.00

Volume

790K

Avg Vol

19M

Gross Margin

61.75%

Dividend Yield

2.71%

Coca-Cola won’t grow quickly, but it’s a fantastically steady business, with various growth levers it can pull, such as pricing, product mix, volume growth, market share expansion, new products, and acquisitions. After decades of increases, Coca-Cola’s legendary dividend remains responsibly funded at just 65% of earnings. The stock won’t make you rich overnight, but holding shares and reinvesting the dividends can compound earnings over 20 years.

  1. Enjoy the 5.3% dividend yield from this leading REIT

Real estate is anything but a set-it-and-forget-it investment. That’s why Realty Income (O +0.49%) stands out. As a real estate investment trust (REIT), Realty Income acquires properties and leases them, paying out roughly 75% of its distributable cash profits to shareholders in 2025. It’s probably the easiest way for individual investors to add real estate exposure to their portfolios without a lot of money or risk. Realty Income has more than 15,500 properties across the United States and in Europe, making it one of the world’s largest REITs.

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NYSE: O

Realty Income

Today’s Change

(0.49%) $0.30

Current Price

$61.18

Key Data Points

Market Cap

$57B

Day’s Range

$60.75 - $61.61

52wk Range

$50.71 - $67.94

Volume

5.5K

Avg Vol

6.6M

Gross Margin

48.73%

Dividend Yield

5.72%

After historically focusing on single-tenant retail properties, Realty Income has expanded into new segments in recent years, including entertainment and gaming, industrials, and data centers. Realty Income has declared a staggering 669 consecutive monthly dividends, a testament to management’s ability to allocate capital wisely and navigate economic downturns. Most investors hold the stock for the dividends. Reinvesting them for a couple of decades can create a powerful dividend snowball that will eventually shower you with income.

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