The Best Dividend Stocks to Buy and Hold Forever
Key Points
Investors need to know about this consumer goods leader that has a 69-year streak of increasing its dividend.
This financial stock’s dividend yield is low, but the payout has climbed almost fivefold in the last decade.
While these companies provide rising dividends, their stocks aren’t necessarily going to offer big returns.
- 10 stocks we like better than Procter & Gamble ›
Investing in the stock market is not always about scoring the biggest capital gains. Investors can have many different objectives. Generating income is a priority for a lot of people.
Here are two of the best dividend stocks to buy and hold forever. The first one is a Dividend King, with a more than 50-year streak of payout increases. The second company stands out for a different reason.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Procter & Gamble
Procter & Gamble (NYSE: PG) is a top dividend stock for investors to consider. The dividend yield of 2.8% is more than double what the average stock in the S&P 500 index offers. The company's track record of consistent dividend growth is mind-boggling. Procter & Gamble has raised its dividend for 69 consecutive years. And it has paid a dividend of some kind for 135 straight years. Each share pays out $4.23 in annual income.
The business dominates the consumer packaged goods industry. It owns leading brands in categories like beauty, grooming, and healthcare. These are time-tested products that are essential items for households, allowing the company to avoid fluctuating demand due to economic trends. Procter & Gamble has been around for almost two centuries, which is an unbelievable feat.
When it comes to safe stocks, there might be none that tops this one. With sizable profits and free cash flow, Procter & Gamble's dividend is something shareholders can count on.
Visa
The second-best dividend stock to buy and hold forever might be an unconventional choice. The company is Visa (NYSE: V), which holds a commanding position in the global payments industry. There are billions of Visa cards in circulation around the world. And it handles trillions of dollars in payment volume each and every quarter.
Visa's dividend yield of 0.9% isn't going to attract much attention. But in the past decade, the business increased the payout by 379%. That's light years ahead of Procter & Gamble's 58% dividend gain over the same decade.
Investors will also appreciate the company's growth potential. Visa benefits from rising economic and spending activity around the world, as well as further penetration of cashless transactions. Its net income is up 200% over the last 10 years. There's a good chance the annual double-digit profit growth will continue for the long term.
These companies highlight durability over gains
Both Procter & Gamble and Visa are fantastic businesses. They have strong positions in their respective industries, generate robust profits, and face almost no threat of disruption. These positive traits will support ongoing dividend strength.
However, investors should set the right expectations. Owning these stocks probably isn't going to produce sizable returns that outperform the market every year. But they will serve as great income stocks over the long-term.
Should you buy stock in Procter & Gamble right now?
Before you buy stock in Procter & Gamble, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Procter & Gamble wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $513,407!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,237!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 188% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 17, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.
Recommended Articles
