3 Consumer Dividend Stocks for Investors Seeking Steady Income: Costco, Coca-Cola, and Altria

There's a lot to like about investing in dividend stocks. They pay you income that you can reinvest for more dividends, or simply take that money and pay your bills with it. The beauty of it all is that you never have to sell your shares.

Consumer spending is the heartbeat of the economy. Investors can find many high-quality dividend stocks in consumer-facing companies with strong brands and long track records of success.

Some excellent examples include Costco Wholesale (NASDAQ: COST), The Coca-Cola Company (NYSE: KO), and Altria Group (NYSE: MO). All three represent very different investing styles. Here is the skinny on each one.

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1. A leading retailer with a loyal customer base

Costco Wholesale might be the only store with a borderline cult following. People flock to the membership-only big-box retailer for its famous hot-dog meal deal and deals on bulk quantity merchandise. As one of the world's largest retailers, it can source and sell products at low prices. In fact, most of Costco's profit doesn't come from merchandise sales, but from the subscription fees members pay.

The company has paid and raised its dividend for 20 consecutive years. While the stock yields only 0.5%, there is room for growth, as Costco spends only a quarter of its earnings on dividends. Costco has also paid an occasional special dividend over the years, a potential bonus for long-term investors.

2. A global icon with decades of dividend growth

Coca-Cola built a global empire on its namesake soda. Today, the company sells billions of servings of soda, water, juice, coffee, and other beverages worldwide. Everyone gets thirsty, so Coca-Cola has rarely felt its business fall into slumps over the years. As a result, Coca-Cola is a Dividend King, with more than 50 consecutive annual dividend increases -- 62, to be exact.

The stock also offers a solid balance of income and growth. Shares yield just under 3% today, while the company is growing at a mid-single-digit growth rate. A rising global population, worldwide brand recognition, and a highly fragmented beverage market leave room for decades of growth yet to come. Investors can simply hold shares and reinvest dividends for as long as they'd like.

3. A steady stock with a juicy 6.8% yield

Altria Group, the tobacco giant and parent company of Marlboro cigarettes in the United States, has defied the doubters. Cigarette smoking has declined for decades after peaking around the 1960s. However, the addictive nature of tobacco affords Altria incredible pricing power. As a result, Altria's profits continue to grow despite the company selling fewer cigarettes each year. That playbook hasn't stopped working yet.

Although Altria's earnings grow at a low single-digit rate these days, it's still enough to make Altria a Dividend King. The company has managed 54 consecutive annual dividend increases, and the stock's whopping 6.8% dividend yield helps make up for its sluggish growth. Eventually, Altria must pivot away from traditional tobacco products. That said, investors can likely count on its dividend for a while yet.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.