3 Dividend Stocks to Hold for the Next 20 Years

Investing in the stock market is a great way to build wealth. If you're an investor looking to generate income from your portfolio, consider investing in dividend stocks. These companies distribute a portion of their earnings to investors on a regular basis, usually quarterly.

Dividend-paying stocks tend to outperform non-dividend-paying stocks. According to a study by Hartford Funds, dividend-paying stocks have consistently outperformed non-dividend-paying stocks over the past five decades, returning 9.2% annually compared to 4.3%. These stocks also experienced less volatility, making them a good choice for more risk-averse investors.

Dividends can be an excellent source of passive income for retirees or for investors seeking quality stocks with strong cash flow. If this sounds appealing to you, here are three dividend stocks you can buy today and confidently hold for the next 20 years.

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This highly recognized soft drink brand has a global presence

Coca-Cola (NYSE: KO) is one of the world's largest beverage companies. Its Coca-Cola soft drink is an iconic brand with distinctive flavors that is recognized worldwide. In addition, it offers a variety of soft drinks, juices, teas, water, coffee, and energy drinks. According to the company, beverages bearing its trademark account for 2.2 billion of the 65 billion beverages consumed daily.

Coca-Cola has an incredibly strong brand that makes it a staple among consumers and gives it staying power. According to Brand Finance, the company has the most valuable non-alcoholic beverage brand globally, valued at $46 billion, and more than double that of the second-most-valuable brand, PepsiCo ($22 billion).

Its strong brand provides the company with a moat that enables it to maintain pricing power and adapt during periods of inflation without significantly impacting sales. Not only that, but its distinctive flavors make it a go-to for many consumers, giving it resilience even during economic downturns. This, in turn, helps the company maintain stable sales.

Coca-Cola has a strong brand and a vast distribution network of bottlers worldwide. The company's steady sales across the economic cycles are a key reason it has increased its dividend for 63 consecutive years, making it an excellent choice for investors seeking reliable passive income.

This consumer staple has raised its payout for 69 consecutive years

Procter & Gamble (NYSE: PG) is another major consumer brand with products across numerous categories, including home care, baby and family care, beauty, healthcare, and grooming. Some of the company's largest products include recognizable names such as Tide, Pampers, Charmin, Head & Shoulders, Old Spice, and Gillette. It has global reach, with sales in 180 countries and territories.

What makes Procter & Gamble a compelling dividend stock is its massive scale and efficiency, as well as its ability to reach consumers across the entire economy. The company ensures it offers products for all customer segments, including luxury brands, and delivers deep value to appeal to a broad range of customers. This has enabled the company to reach a diverse range of consumers, from baby boomers seeking high-end heritage brands to Gen Z individuals purchasing grooming or beauty products featured on social media.

Procter & Gamble has a large portfolio of recognizable brands that drive steady sales, and it has paid a dividend to shareholders for 135 years. For the past 69 years, the company has consistently raised its dividend, making it an excellent stock for income-focused investors.

This integrated oil and gas giant is focused on efficient growth

Chevron (NYSE: CVX) is a global integrated energy giant with a significant presence. The company operates in the volatile oil and gas industry, making it susceptible to fluctuations in commodity prices. To mitigate some of this, its business is spread across this industry, with upstream operations focused on oil and gas production and exploration, and downstream operations focused on refining crude oil into fuels, lubricants, and petrochemicals.

One of Chevron's primary advantages is its mix of short-cycle and long-cycle assets. For example, its presence in the Permian Basin enables it to quickly ramp up or shut down production in response to rising prices. Meanwhile, the Stabroek Block in Guyana (acquired from Hess in 2025) provides it with huge, low-cost, multidecade production capabilities. As a result, its corporate breakeven price (including operations and dividends) is $50 per barrel.

Chevron has adopted a disciplined approach to capital deployment compared to previous decades and is focused on limited new spending and reducing its structural costs, aiming for $3 billion to $4 billion in savings by 2026. Chevron has raised its dividend for 38 consecutive years, despite operating in the volatile oil and gas industry, making it another stellar dividend stock to buy and hold for the long term.

Courtney Carlsen has positions in Chevron. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.