2 Unstoppable Dividend King Stocks to Buy Right Now for Less Than $1,000

The S&P 500 index (SNPINDEX: ^GSPC) has a tiny 1.1% dividend yield. Coca-Cola's (NYSE: KO) yield is 2.6% and Procter & Gamble's (NYSE: PG) yield is 2.7%. The big story, however, is that Coca-Cola and P&G are both Dividend Kings, with over 50 years' worth of annual dividend increases behind each one. Here's why now could be a good time to buy one, or both, of them.

You will keep buying consumer goods

Coca-Cola makes beverages, such as soda. Procter & Gamble makes consumer products such as deodorant, toilet paper, and toothpaste. You aren't going to stop buying the things these companies sell because of geopolitical conflicts or economic downturns. They are life necessities. This fact provides a very solid business foundation for both of these Dividend Kings.

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That said, both are industry leaders in their respective niches, offering higher-end products. However, because the products are relatively low-cost, they are often viewed as affordable luxuries and have very loyal customer bases. Meanwhile, Coca-Cola and P&G both have strong distribution, marketing, and innovation abilities that should help to keep them growing for years to come. That, in turn, should keep their dividends expanding, too.

Not cheap, but not expensive

The fact that Coca-Cola and P&G are industry-leading consumer staples businesses is very well known on Wall Street. In fact, they rank among the largest consumer staples companies in the world, according to Motley Fool research. But you can buy them both for a reasonable price today.

Coca-Cola's price-to-earnings ratio is 25x right now, which is a touch below its five-year average P/E of 26x. P&G's P/E ratio is just under 23x, which is below its five-year average P/E of 25x or so. Neither is a screaming value, but both look at least fairly priced, if not a little cheap. A $1,000 investment will let you buy 12 shares of Coca-Cola or six shares of P&G.

You can rest comfortably with these two Dividend Kings

Given their seemingly unstoppable dividend growth, well-above-market yields, attractive valuations, and strong business foundations, even the most conservative investor should find Coca-Cola and P&G of interest amid rising uncertainty. And if there is a recession and/or bear market, you can focus on the dividends you are collecting instead of stock prices. That way, you can sleep well at night as you wait for the market to resume its steady, long-term upward climb again. Just like it has done after every other recession and bear market before.

Reuben Gregg Brewer has positions in Procter & Gamble. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.