2 Dividend Kings to Buy and Hold Forever

Popular companies aren't always great businesses. Some are well-known for all the wrong reasons, while others may have been worth investing in at some point but are no longer attractive due to losing market share to competitors or other factors.

There are, however, some popular corporations that are as good as advertised, depending on one's investing style.

Consider Walmart (NASDAQ: WMT) and Coca-Cola (NYSE: KO). These well-established market leaders won't attract every investor, but for those looking for steady and reliable dividend stocks to hold onto for good, these are excellent options.

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1. Walmart

Walmart faced multiple threats in 2025. The retail leader had to deal with tariffs and increased costs, which it had no choice but to pass on to consumers. The result? Lower retail activity for Walmart.

It wasn't an easy year, yet Walmart navigated it pretty well. The company's third-quarter financial results were strong, considering the challenges it faced up to that point. Investors shouldn't be surprised, though.

Walmart has an incredibly resilient business built on its vast retail presence as the overwhelming majority of people in the U.S. (about 90%) live within 10 miles of a Walmart location. Plus, it tends to keep its low-price guarantee (at least relative to competitors), even when dealing with cost-related challenges.

These aspects of the business paid off yet again in 2025. Furthermore, Walmart has struck a deal with OpenAI that will enable consumers to utilize a shopping-checkout feature integrated into ChatGPT to browse and purchase items from Walmart.

The company is adapting to technological changes, as it has before, which has allowed it to remain a leader in its niche. Even as many retail stores went bankrupt due to their inability to compete with e-commerce platforms, Walmart has established itself as one of the largest online retail stores in the U.S., ranking second only to Amazon.

What does all this tell us about Walmart? It can navigate economic downturns relatively well, and the company is innovative, constantly looking for new ways to adapt to changing consumer preferences. Add to that the company's everyday low price guarantee, which it achieves as the world's largest retailer.

This allows the company to negotiate lower prices from suppliers and pass these cost savings on to consumers, generally undercutting competitors. It's a brilliant business model that's likely to remain successful for a long time.

Then there's the dividend. Walmart has increased its payouts for 52 consecutive years, making it a Dividend King, a corporation with at least 50 straight years of dividend hikes. In short, Walmart has the profile of a forever stock.

2. Coca-Cola

Coca-Cola, a leading beverage maker, has several things going its way. First, the company has a vast portfolio of products, including some of the best-known soft drinks on the market.

There's something for everyone in Coca-Cola's catalog. This includes athletes, coffee lovers, alcohol enthusiasts, health-focused consumers, and the rest of the people who don't mind the occasional (or not so occasional) sugary beverage.

Second, Coca-Cola is an innovative company. That's important since consumer preferences change relatively frequently, and Coca-Cola wouldn't be successful if it never evolved with them. Instead, Coca-Cola routinely introduces new products -- or at the very least, new takes on well-established brands that people love -- allowing it to continuously attract customers.

Third, the beverage maker is a consumer staples giant. This is a defensive sector that performs pretty well, even when the economy isn't.

Fourth, Coca-Cola boasts a strong economic moat through its brand name. People naturally gravitate toward the brands they're familiar with and trust (sometimes subconsciously). That certainly applies to Coca-Cola, which has one of the world's most valuable brands. This factor also grants the company a degree of pricing power.

Coca-Cola may not be a high-growth stock but compensates for this, at least for certain types of investors, with consistent revenue and earnings. Lastly, it has a dividend streak of 63 consecutive payout increases. All these factors make Coca-Cola a top stock to buy and hold forever.

Prosper Junior Bakiny has positions in Amazon and Walmart. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool has a disclosure policy.