3 Superb Dividend Stocks to Hold for the Next 20 Years

Dividend stocks can provide a source of regular cash flow to your portfolio that can be reinvested to buy more shares or used as income. Whether you're a brand new investor or are closer to retirement, dividend stocks can certainly have a place in your portfolio.

Companies that pay consistent dividends are often well-established and financially stable, which can provide some cushion during market downturns. If you're looking for three dividend stocks to buy and hold for the next 20 years, here are three names to consider adding to the list the next time you go stock shopping.

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1. Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) is not only a leading pharmaceutical stock. It has increased its dividend for 63 consecutive years and counting, which makes it part of an elite group of stocks known as Dividend Kings. The yield is about 2.6%.

The company is one of only two U.S. enterprises (the other being Microsoft) to hold a balance sheet that is so fortified that the business has received the pristine "AAA" credit rating from S&P Global. This financial strength has historically provided stability, and also given Johnson & Johnson the ability to routinely invest heavily in research and development along with various strategic acquisitions.

Johnson & Johnson's most recent acquisition is Halda Therapeutics. The $3.05 billion deal is part of the company's strategy to expand its oncology pipeline and gain access to Halda's proprietary platform for developing oral cancer therapies.

Johnson & Johnson's other recent major acquisitions included Intra-Cellular Therapies ($14.6 billion), which boosts its neuroscience portfolio with mental health drugs like Caplyta, and Shockwave Medical ($13.1 billion), which enhances its medical device offerings, particularly in cardiovascular disease treatment.

The healthcare sector is generally considered a defensive one, as demand for its products and services remains relatively stable even during economic downturns. Johnson & Johnson's business held up well during the Great Recession, so even if economic conditions worsen, the company is amply positioned to address potential economic headwinds.

It's strategically focused on high-margin, innovative areas like oncology, immunology, and neuroscience within its Innovative Medicine segment, and high-growth markets such as surgical robotics and digital surgery in its MedTech business. In the third quarter, J&J reported net sales of $24 billion, up 6.8% year over year, and net income rose an eye-popping 91% to $5.2 billion.

2. Coca-Cola

Coca-Cola (NYSE: KO) is also among that special class of stocks known as Dividend Kings, and has boosted its dividend annually for 63 consecutive years. Its yield is about 2.8% at the time of this article. Coca-Cola uses an asset-light franchise model where the company focuses on concentrate production, brand strategy, and consumer marketing, while a global network of independent bottling partners manages manufacturing, packaging, and distribution of the finished products.

This strategy enables the company to maintain a lean operational structure, reduce capital expenditures, and leverage local expertise in diverse markets around the world while focusing on its financial fortitude. Coca-Cola possesses one of the world's most recognized and valuable brands, with products sold in over 200 countries.

This pricing power allows the company to raise prices to offset cost inflation without significantly affecting demand. While it's known for its namesake soda, Coca-Cola has strategically diversified its portfolio to include water, juices, coffee, tea, and energy drinks to meet evolving consumer preferences for healthier beverages. The company continues to gain value share in total nonalcoholic ready-to-drink beverages across key markets too.

As Coca-Cola is a consumer staples company, demand for its products remains relatively constant regardless of economic conditions. This makes Coca-Cola a dependable blue chip stock that can add a layer of safety and lower volatility to an investment portfolio.

In the third quarter of 2025, Coca-Cola reported strong results that beat analyst expectations, with net revenue bumping up 5% to $12.5 billion, and earnings per share (EPS) coming in at $0.86, a 30% increase. Management also expects to generate at least $9.8 billion in free cash flow for the full year 2025 (excluding specific one-time payments).

3. Realty Income

Realty Income (NYSE: O) has paid and raised its dividend every year for over 30 years and counting, but its key differentiator is that it pays a monthly rather than a quarterly dividend. It boasts a history of paying 665 consecutive monthly dividends to date, and that yield is in the ballpark of 5.7% at the time of this article.

Realty Income is a real estate investment trust (REIT) that acquires and manages commercial properties, primarily freestanding, single-tenant retail locations.

The company uses a triple-net lease structure, where the tenant is responsible for property taxes, insurance, and maintenance costs. This arrangement provides Realty Income with highly predictable and stable rental income, and slashes its exposure to rising operating expenses and general inflation.

Realty Income owns over 15,500 properties across the U.S. and Europe that are leased to approximately 1,650 clients in 92 industries. Its focus on service-oriented retail tenants (like grocery stores, dollar stores, and convenience stores) helps insulate its cash flows from economic downturns and e-commerce pressures. The company has also recently diversified into industrial properties, gaming, and data centers.

For Q3 2025, Realty Income reported net income of $315.8 million and funds from operations (FFO) of $981.1 million, which were up 21% and 15% respectively, from one year ago. It also experienced a strong rent recapture rate of 103.5% on released properties in Q3 alone. The REIT's total addressable market across its current focus areas in the U.S. and Europe is estimated to be around $14 trillion.

Realty Income's size and access to capital enable it to make large, selective acquisitions that can position it for steady growth over the next two decades.

Rachel Warren has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Microsoft, Realty Income, and S&P Global. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.