7 Dividend Stocks to Hold for the Next 20 Years

Investing in the stock market is an excellent way to build long-term wealth. Key to this is patience, discipline, and owning stocks in quality businesses.

Businesses that consistently reward shareholders with steady dividend payments can be an excellent choice for those seeking a blend of income and growth. The ability to pay and consistently raise dividends over time is a sign of financial strength and stability, not just short-term success.

According to a study by Hartford Funds in conjunction with Ned Davis Research, over the past five decades, dividend growers tend to outperform non-dividend growers while experiencing less volatility along the way. If you're interested in dividend stocks, here are seven solid investments you can buy and hold for the next 20 years and beyond.

1. Coca-Cola

Coca-Cola's (NYSE: KO) appeal stems from its unmatched global brand portfolio, vast distribution network, and high-margin beverage concentrate model. Operating in over 200 countries, Coca-Cola collects steady cash flows while bottlers shoulder most capital costs. Its consistent pricing power and scale buffer against inflation and currency swings.

Coca-Cola has raised its dividend payment every year for 63 consecutive years, with annual increases reflecting steady free-cash-flow generation and disciplined capital management. Its strategic expansion into low-sugar drinks, coffees, and energy beverages broadens growth beyond soda while maintaining brand dominance.

2. Procter & Gamble

Procter & Gamble (NYSE: PG) may be the gold standard of dividend dependability. The company has made more than 135 years of uninterrupted payments and has grown its dividend payment for 69 consecutive years -- one of the longest streaks among today's Dividend Kings.

Procter & Gamble's strength comes from its portfolio of trusted consumer brands, which includes Tide, Pampers, Gillette, and Crest. These strong brands deliver consistent, recession-resistant cash flow. With its scale and global reach, brand pricing power enables steady margins even amid inflation. The company converts over 90% of earnings to free cash flow, funding dividends and buybacks without straining its balance sheet.

3. Enterprise Products Partners

Enterprise Products Partners (NYSE: EPD) is a master limited partnership operating a highly stable fee-based energy infrastructure network in North America. It operates over 50,000 miles of pipelines and over 300 million barrels of liquid storage, along with processing assets that span crude oil, natural gas, and natural gas liquids (NGLs).

As a midstream operator, Enterprise is more insulated from commodity-price swings. That's because most of its revenue comes from fee-based contracts tied to the volume of oil, gas, and natural gas liquids moved through its pipelines, not their market price. Approximately 90% of its contracts include an escalation provision to mitigate the impact of inflation on cash flow and distributions.

Enterprise Products Partners has grown its distribution for 26 consecutive years. Given its stable, fee-based model and growth in domestic oil and gas production, along with its 7% yield, Enterprise is a solid dividend stock for investors.

4. ExxonMobil

ExxonMobil (NYSE: XOM) operates as an integrated oil and gas company. In other words, it engages in activities across the entire value chain, including exploring and producing crude oil and natural gas (upstream operations) and refining crude oil into fuel, lubricants, and other petroleum-based products (downstream operations).

Operating across the value chain enables ExxonMobil to weather volatile oil prices and deliver for investors. This diverse business model is a big reason why the company has grown its dividend payout to investors for 42 consecutive years.

Exxon's expansion in liquefied natural gas (LNG), Guyana oil production, and low-carbon technologies such as carbon capture and hydrogen add future cash-flow resiliency.

5. Realty Income

Realty Income (NYSE: O), also known as "The Monthly Dividend Company," is a diversified real estate investment trust (REIT) with a diversified portfolio of more than 15,000 properties leased to blue chip tenants like Walgreens, Dollar General, and FedEx on long-term, triple-net leases (NNN).

By utilizing triple net leases, it shifts most expenses, such as taxes, insurance, and maintenance, to tenants to ensure a more predictable cash flow. This has enabled the company to raise its dividend payment every year since 1994.

With consistent occupancy rates near 99% and disciplined capital management, Realty Income offers investors a combination of dependable monthly income and steady long-term growth.

6. Aflac

Aflac (NYSE: AFL) offers life insurance and supplemental insurance, providing its customers with coverage that traditional health insurers typically do not cover. Its strength as a steady dividend payer comes from its conservative underwriting and a strong market position in both the U.S. and Japan.

The company has a strong brand and a long history of profitability, fueling its dividend, which it has grown consistently for over 42 years. The company's focus on high-return insurance lines and disciplined cost control provides it with resilience through economic cycles.

7. Chubb

Chubb (NYSE: CB) provides an array of insurance policies, including commercial and consumer property and casualty (P&C), personal accident, supplemental health, life insurance, and reinsurance. The company is a major player in the industry, with operations spanning 54 countries.

Chubb's strength lies in underwriting discipline. With policies spanning a wide array of risk types, it's vital that Chubb accurately assesses its risks and prices its policies accordingly. Its combined ratio, a key measure of profitability in the insurance industry, consistently beats the industry average, showing strong risk selection and cost control.

With more than three decades of uninterrupted dividend increases and a payout ratio of 33%, Chubb's dividend is both sustainable and positioned for continued growth.

Courtney Carlsen has positions in ExxonMobil. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Enterprise Products Partners and FedEx. The Motley Fool has a disclosure policy.