The Best Dividend Stocks to Buy and Hold Forever

What's the best kind of stock to buy and never sell? Perhaps the best answer is high-quality dividend stocks. By "high-quality," I mean dividend stocks with solid underlying businesses, exceptional track records, and strong moats.

Several stocks check off all of those boxes. However, I think a handful stand out in particular. Here are my picks for the three best dividend stocks to buy and hold forever.

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1. The Coca-Cola Company

Warren Buffett has held shares of The Coca-Cola Company (NYSE: KO) in Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) portfolio for longer than any other stock. That's saying something, considering Buffett has stated that his "favorite holding period is forever."

Coca-Cola is a member of the Dividend Kings, a group of stocks that have increased their dividends for at least 50 consecutive years. The beverage giant's streak of dividend hikes currently stands at 64. Income investors get an attractive yield of 2.7% with that record, too.

Buffett has owned Coke for so long for one simple reason: the company has an exceptionally resilient underlying business. He wrote to Berkshire shareholders a few years ago about Coca-Cola, "When you find a truly wonderful business, stick with it."

Coca-Cola's brand ranks among the most valuable in the world. Despite shifts in consumer preferences over the decades, Coke retains a loyal customer base. With its history dating back to 1886, this company is built to last.

2. Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) shares a lot in common with Coca-Cola. For starters, it's also a Dividend King. J&J also recently announced its 64th consecutive annual dividend increase. Its dividend yield of 2.4% is in the ballpark of Coke's, too.

The similarities don't stop there. Johnson & Johnson was founded in 1886 -- just like Coca-Cola. While the company has been highly successful, it has also faced serious challenges through the years, including the Tylenol scare of 1982 and opioid-related litigation that ended up costing billions of dollars to settle.

Of course, Johnson & Johnson's business model is much different than Coca-Cola's. J&J ranks as one of the world's largest healthcare companies by market cap. It markets multiple blockbuster drugs and a long lineup of successful medical devices.

I think the most compelling reason Johnson & Johnson is a great dividend stock to buy and hold forever is that the company has proven its ability to survive and thrive amid a rapidly changing healthcare landscape. J&J continues to innovate, as evidenced by its 100-program development pipeline and its steady stream of new medtech product launches.

3. Enbridge

Enbridge (NYSE: ENB) could be a surprising choice to make the list. It isn't a Dividend King. The company operates in the often volatile energy sector. Enbridge isn't even based in the U.S.; it's headquartered in Calgary, Alberta, Canada. However, this stock has much to offer income investors.

A juicy dividend yield of 5.3% tops the list. And while Enbridge hasn't increased its dividend for 64 consecutive years like Coca-Cola and Johnson & Johnson, its 31-year streak of dividend hikes isn't too shabby.

Enbridge is also much less volatile than most energy stocks. That's partly because the company focuses on the midstream part of the energy sector. Its thousands of miles of pipelines generate steady revenue regardless of how the prices of oil and gas flowing through them fluctuate. But Enbridge is a "boring" utility stock, too. Thanks to acquisitions over the past few years, it's the largest natural gas utility in North America by volume.

The company has met or exceeded its financial guidance for 20 consecutive years, a nearly unheard-of feat. Enbridge also has clear visibility for future growth, with roughly $50 billion of opportunities identified through the end of the decade.

I don't see the need for Enbridge's pipelines and other assets to disappear in my lifetime. This stock is quite different from Coke and J&J, but like both of those blue chip stars, it's one to buy and never sell.

Keith Speights has positions in Berkshire Hathaway and Enbridge. The Motley Fool has positions in and recommends Berkshire Hathaway and Enbridge. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.