Could a Basket of Coca-Cola, Costco, and Walmart Support Decades of Passive Income?​

Coca-Cola (NYSE: KO), Costco (NASDAQ: COST), and Walmart (NASDAQ: WMT) are three of the most reliable dividend stocks. Coca-Cola has been in business for almost 140 years, while Costco and Walmart have both been around for more than 40 years.

These companies continue to gain market share in their industries while making it difficult for competitors to enter. Costco and Walmart offer competitive pricing for various products and services. Coca-Cola does that too, and the beverage brand will also acquire competitors who find opportunities to gain market share.

These three dividend stocks may be enough to generate passive income for decades, but there are some key details to keep in mind.

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Coca-Cola is for dividend income investors

If you are a dividend income investor who prioritizes high yields, Coca-Cola is the only pick on this list worth considering. Coca-Cola stock has a 2.90% yield, while Walmart and Costco both have yields under 1%.

All three companies steadily grow their dividends, so the payouts could look much better over the next decade, but Coca-Cola is the only one that offers respectable cash flow right out of the gate.

That may not be an issue for all dividend investors. Some people look at a company's fundamentals and are OK with lower yields in exchange for higher potential returns. However, it is important to keep the yields in mind if you choose to allocate capital between Coca-Cola, Costco, and Walmart stock.

These companies have endured various economic cycles

All three companies have reliably paid dividends to their investors during bull and bear markets. They are also some of the companies that actually get stronger during economic slowdowns.

When people tighten their belts, they look for discounts and deals. All three companies specialize in affordable products and attract people who want to save money. When other businesses shut down due to recessions, these three companies can capitalize on the opportunity and gain market share.

It's also easy for them to gain market share. The world consumes almost 200 billion liters of Coca-Cola per year, making it a juggernaut in the beverage industry. Walmart has more than 10,000 locations, and although Costco has slightly fewer than 1,000 locations, many people are willing to drive for more than an hour to arrive at the nearest Costco warehouse.

Economic slowdowns let these companies reach more customers, which positions them to benefit even more from bullish economic cycles. Investors can ride the long-term momentum of all three companies while receiving dividends for many years.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.