When businesses reach a certain level of maturity and have a history of consistent profits, they often return excess cash to investors through dividends. For certain market participants, these companies are at the top of their wish lists.
Here are three dividend stocks to hold for the next 10 years. All of them pay dividend yields that are vastly greater than what the S&P 500 produces.
Just to be clear, investors should realize that these companies aren’t likely to deliver market-beating returns. But they have proven their worth by generating a steady income stream for shareholders.
Image source: Getty Images.
1. Coca-Cola
Today’s Change
(-1.82%) $-1.46
Current Price
$78.95
Key Data Points
Market Cap
$340B
Day’s Range
$78.91 – $80.32
52wk Range
$65.35 – $82.66
Volume
578
Avg Vol
15.2M
Gross Margin
61.82%
Dividend Yield
2.61%
The first company on this list is Coca-Cola (KO 1.82%). In more than 200 countries and territories across the globe, this business sells over 200 different drink varieties. And 2.2 billion servings are consumed every single day, a clear sign of incredible adoption.
Over the past five years, Coca-Cola has reported an average quarterly operating margin of 26.6%, indicating robust profitability. Adjusted free cash flow is projected to total $12.2 billion in fiscal 2026. This bottom-line performance is made possible due to the business model, which outsources capital-intensive bottling and distribution operations to third parties.
Sizable earnings allow the company to pay a dividend that totals $2.12 on an annual basis, translating to a current dividend yield of 2.64%. What’s really impressive is that in February, Coca-Cola’s board of directors raised the dividend payout, marking 64 straight years of implementing a hike. Any business with a streak of more than 50 years is considered a Dividend King.
Steady demand for its beverages, coupled with proven pricing power, supports Coca-Cola’s dividend. This is a huge draw for investors.
2. Lowe’s
Today’s Change
(-1.63%) $-3.56
Current Price
$214.36
Key Data Points
Market Cap
$120B
Day’s Range
$214.15 – $219.07
52wk Range
$208.00 – $293.06
Volume
2.6K
Avg Vol
2.7M
Gross Margin
30.96%
Dividend Yield
2.24%
Lowe’s (LOW 1.63%) is next on this list. The home improvement enterprise, which collected $23.1 billion in revenue in the fiscal 2026 first quarter (ended May 1), is only behind Home Depot in the industry when it comes to sales. However, it has certainly developed brand recognition, inventory availability, and omnichannel capabilities to succeed in the long run.
Last May, the company’s board of directors increased the dividend payout by 4% to $1.20, supporting a current dividend yield of 2.2%. Lowe’s has raised its dividend for more than 25 straight years, driven by consistent profitability.
It’s no surprise that this business is highly exposed to macroeconomic forces, particularly interest rates and their impact on the broader housing market. Add in stubborn inflationary pressures, and it makes sense why households might be hesitant to take on expensive renovation projects.
Same-store sales at Lowe’s rose just 0.6% in the latest fiscal quarter, which isn’t an encouraging trend. And management expects this key metric to grow 1% (at the midpoint) for the entire fiscal year. But the company has successfully weathered past economic cycles.
3. Procter & Gamble
Today’s Change
(-1.61%) $-2.35
Current Price
$143.56
Key Data Points
Market Cap
$334B
Day’s Range
$143.20 – $145.63
52wk Range
$137.62 – $169.04
Volume
10.2K
Avg Vol
9.5M
Gross Margin
50.88%
Dividend Yield
2.97%
The final dividend stock investors should hold for the next 10 years is Procter & Gamble (PG 1.61%). This company sells some of your favorite household items. These include Tide laundry detergent, Head & Shoulders shampoo, and Bounty paper towels, among many others.
This is a recession-resilient business. In robust economic times, as well as during recessionary periods, consumers need Procter & Gamble’s products. They’ve even developed an affinity for the brand, resulting in customer loyalty that’s difficult to disrupt.
Of the three companies on this list, Procter & Gamble might have the most incredible streak going. The business just increased its dividend payout in April, marking the 70th consecutive year.
And it has paid dividends for 136 straight years. It’s impossible for investors not to be impressed by this, as it highlights Procter & Gamble’s staying power over an extremely long period.
Procter & Gamble’s dividend yield of 2.98% tops the other stocks on this list. It can be a nice addition to a portfolio for income investors.
Leave a comment