The Best Dividend Stocks to Buy and Hold Forever

Forever is a long time, especially in investing, where a company can lose its edge for any number of reasons as the world around it changes over the years. Even businesses with decades of past success aren't a sure thing for the future.

That said, companies that are the best at what they do, have proven brands, and sell something consumers will need over and over again can be as close to forever stocks as you'll find. Here are three dividend stocks that fit that description. They all happen to hail from the consumer goods sector. After all, consumer spending is the engine of the U.S. economy.

These stocks all offer durable growth and dividends that can add up to tremendous investment returns over the years ahead. Consider buying and stashing them in your portfolio indefinitely.

Image source: The Motley Fool.

1. Costco Wholesale

The retail industry is ruthlessly competitive, but Costco Wholesale (COST 2.14%) stands out for several reasons. The company sells bulk merchandise in warehouse stores that require a paid membership. The membership fees drive Costco's bottom line, allowing the company to sell goods at razor-thin margins. The business model also attracts higher-income shoppers who are more likely to pay up for bulk quantities to recognize more savings per unit.

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NASDAQ: COST

Costco Wholesale

Today's Change

(-2.14%) $-22.47

Current Price

$1027.98

Key Data Points

Market Cap

$456B

Day's Range

$1025.19 - $1044.90

52wk Range

$844.06 - $1096.50

Volume

104.4K

Avg Vol

1.9M

Gross Margin

12.93%

Dividend Yield

0.52%

Costco has built its brand with some ingenious loss leaders, including its famous $1.50 hot dog meal, which seems to have a cult following. In fact, Costco is so well known that it spends no money on advertising. Costco continues to grow through a combination of sales growth and membership price hikes, and management has rewarded shareholders along the way with regular dividends and occasional special dividends.

COST Dividend data by YCharts

The formula works quite well. Costco Wholesale's stock has outperformed the S&P 500 by a wide margin over the years. While it's unclear whether that will continue, the company's formula seems likely to deliver plenty more years of share price appreciation and dividends.

2. Philip Morris International

Despite the slow and steady decline of cigarette use, the tobacco industry is very much alive. Philip Morris International (PM +0.28%) is the world's largest tobacco stock. It sells Marlboro cigarettes in non-U.S. markets but has paved the way for a bright future as a leader in alternative nicotine products, such as Iqos heat-not-burn tobacco devices and Zyn oral nicotine salt pouches.

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NYSE: PM

Philip Morris International

Today's Change

(0.28%) $0.53

Current Price

$188.99

Key Data Points

Market Cap

$295B

Day's Range

$187.35 - $190.49

52wk Range

$142.11 - $193.05

Volume

2.4M

Avg Vol

5M

Gross Margin

65.28%

Dividend Yield

3.05%

These alternative nicotine products accounted for 41.5% of total net sales in 2025 and represent the company's future. Meanwhile, Philip Morris can still enjoy huge profits from its cigarette business. Volumes are falling slowly, enough that Iqos is overcoming the drop and driving volume higher. Cigarettes are notoriously addictive and profitable as a result of that.

In all, Philip Morris International can pay a substantial, growing dividend with a 3% yield at its recent share price. Management has raised the dividend every year since the company spun off from Altria Group in 2008. The tobacco industry's resilience should give investors confidence that this industry leader will remain a top-notch dividend stock for the foreseeable future.

3. Coca-Cola

If there's one company built to last forever, it may be Coca-Cola (KO +0.49%). While its namesake soda is an iconic global brand, the company is actually a diversified beverage empire that sells billions of servings of sodas, juices, water, tea, coffee, and other prepared beverages each day. In all, Coca-Cola has nearly three dozen brands that each generate more than $1 billion in annual sales.

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NYSE: KO

Coca-Cola

Today's Change

(0.49%) $0.40

Current Price

$81.57

Key Data Points

Market Cap

$351B

Day's Range

$80.92 - $81.67

52wk Range

$65.35 - $82.66

Volume

434K

Avg Vol

15.3M

Gross Margin

61.82%

Dividend Yield

2.53%

Coca-Cola's superpower is its vast global distribution, which reaches millions of stores, vending machines, restaurants, and venues worldwide. Additionally, prepared beverages are a low-cost consumable product that people can enjoy across both developed and emerging markets. The company continues to grow organically and through new products, price increases, and acquisitions.

Perhaps that explains the company's legendary dividend track record. Having raised its dividend for 64 straight years, Coca-Cola is a Dividend King (companies that have raised dividends for 50 or more consecutive years). The company continues to deliver steady results, paving the way for what will likely be years of continued dividend hikes. Investors can sleep well at night with Coca-Cola nestled into their portfolios, reinvesting the dividends as they come.