2 Dividend Stocks to Buy and Hold for the Next 10 Years

Stock market investing can be very stressful, especially if you bet on speculative, volatile growth stocks. Investors who want to sleep easier often gravitate toward safe, reliable companies that you can buy and forget while earning quarterly passive income.

Coca-Cola (NYSE: KO) and Realty Income (NYSE: O) fit into this category. Let's discuss why they might be good enough to hold for the next 10 years.

Image source: Getty Images.

1. Coca-Cola

Blue chip stocks are shares in the markets' most established, dominant companies in their industries. Coca-Cola is a great example.

Over the last few decades, the company has created a brand so dominant that it would be difficult to find someone anywhere in the world who wouldn't recognize it. And this edge allows it to continue creating value for shareholders, even in a challenging economy.

Analysts consider Coca-Cola to be recession-resistant because people tend to keep splurging on their comfort drinks, even in a weak economy. However, the last few years have shown that the soda giant is also inflation-resistant. Soda prices have nearly doubled since 2020 as Coca-Cola grapples with high input costs like those for aluminum and sugar, which it has managed to pass on to consumers while maintaining consistent sales.

Revenue grew a modest 2% in 2025, which is acceptable for a company as large and diversified as Coca-Cola. Investors should expect the top line to slowly improve over time instead of booming quickly like a smaller company. That said, operating income jumped 38% to $13.8 billionfor the full year, which is impressive considering the macroeconomic challenges like Trump's tariffs on aluminum and other important inputs.

Coca-Cola returned a good chunk of those profits to shareholders via an $8.8 billion total dividend, which it has increased annually for 63 years in a row. The stock boasts a current yield of 2.63% compared to the S&P 500's (SNPINDEX: ^GSPC) current average of just 1.15%.

2. Realty Income

Realty Income is a real estate investment trust (REIT), a type of company that can avoid taxes by returning the vast majority of its profits to shareholders through a dividend. The company stands out because of its remarkably high yield and safe, diversified business model.

With an annual payout of 4.86%, Realty Income trounces the market average. It also has a track record of consistency -- increasing its payout for 32 years in a row. And it pulls this off through its safe business model, which involves acquiring freestanding single-tenant commercial properties across the U.S. and renting them out to well-known national brands like Dollar General, Home Depot, and 7-Eleven.

With such tenants, Realty Income can count on stable and reliable cash flows. It boosts safety through triple net leases, an arrangement where the tenant is responsible for costs like maintenance, property taxes, and insurance. This strategy shields Realty Income's cash flow from real estate industry inflation and allows it to focus on expansion.

Dividends are taxed as regular income, instead of the lower capital gains rate for regular stock sales. This can be a disadvantage for high-yield REITs. However, investors can make the most of stocks like Realty Income by holding them in tax-advantaged accounts like Roth IRAs or 401(k)s to allow the payouts to compound tax-free over the long term.

Which dividend stock is best for you?

Coca-Cola and Realty Income both have what it takes to generate reliable passive income for years or even decades into the future. That said, they serve different investment strategies.

Realty Income is better for investors who prioritize a massive yield and diversification across different sectors of the U.S. economy. While Coca-Cola offers a smaller payout, it has a track record of superior stock price appreciation, which will help boost its total return over the long term.

Will Ebiefung has positions in Realty Income and is short shares of Dollar General. The Motley Fool has positions in and recommends Home Depot and Realty Income. The Motley Fool has a disclosure policy.