3 Dividend Stocks to Buy and Hold Forever

Investors are contending with plenty of near-term noise. There's the war in Iran, disappointing economic data, and the specter of the Federal Reserve cutting interest rates just once this year. If oil prices stay elevated for an extended period, pushing the Consumer Price Index (CPI) higher, the Fed might even be forced to raise rates.

That's a lot more than investors had on their 2026 bingo cards. But there are ways to stay invested while potentially reducing volatility. You could migrate to cash or bonds, but the right dividend stocks can also get the job done in tumultuous times.

These dividend stocks have the capacity for long-term payout growth. Image source: Getty Images.

Here are consumer names with the potential to deliver reliable, growing dividend income and share-price appreciation.

Sweet dependability with this beverage giant

The gap over the last five years between PepsiCo (NASDAQ: PEP) and rival Coca-Cola is wide, with the latter outperforming the former by a wide margin: Pepsi stock rose by only 9%, and Coke by more than 46%. over that span.

It appears Pepsi has gotten the memo. Not only is the snack and soft-drink giant parting ways with some lagging brands, but it's also prioritizing healthy, value-oriented products, positioning itself to gain traction with today's health- and cost-conscious consumers.

The dividend is dependable. PepsiCo has boosted payouts for 54 straight years, with the most recent hike in late 2025. With $9.5 billion in cash on its balance sheet as of the end of last year and leverage ratios that analysts view as tolerable, this consumer staples company has the capacity to continue growing that payout.

Golden arches, golden opportunity

McDonald's (NYSE: MCD) lagged the broader consumer discretionary sector over the past three years as consumers grew frustrated with inflation-related price hikes. Like Pepsi, McDonald's appears to be aware of those gaffes, as its recent advertising campaigns focus on low-priced options with renewed emphasis on value meals.

The world's largest restaurant brand is also boosting spending on in-store technology, including artificial intelligence. Those investments may pay dividends by lifting unit economics and keeping McDonald's ahead of its rivals.

Speaking of dividends, the company's streak of payout increases is now 49 years; over the past four years, 56% of earnings have been returned to investors in the form of dividends. By one estimate, McDonald's dividend growth is likely to average 9% annually for the next decade, indicating the stock could be an inflation-fighter for shareholders.

Rolling the dice

Casino stocks can be tricky to own over extended periods, especially because the space isn't home to many dividend-growth stocks.

Las Vegas Sands (NYSE: LVS) alters that narrative. Yes, the company suspended its dividend to conserve cash early in the coronavirus pandemic. But since the payout was restored in 2023, it has been increased twice. An interesting, albeit speculative, tidbit about Sands' dividend is that its new CEO, Patrick Dumont, is the son-in-law of Dr. Miriam Adelson, the company's largest individual shareholder -- perhaps making any potential dividend cut less likely.

And one might not happen. Sands runs the most profitable casino in the world, Marina Bay Sands in Singapore. The company is the leading cash flow generator in the space. It has investment-grade credit ratings, which are hard to come by in the casino industry. It's also a dedicated buyer of its own shares.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.