Coca-Cola combines an iconic global brand with pricing power and a 64-year dividend-growth streak that’s hard to match.
Colgate-Palmolive sells must-have everyday essentials with massive global penetration and decades of reliable dividend growth.
PepsiCo pairs a dominant snacks business with beverage scale, supporting a higher yield and dividend increases.
Investing in consumer staples with dependable demand can be a smart way to boost dividend income. Many of the iconic brands you see in the grocery store have been paying shareholders a growing stream of dividends for decades.
If you want more income, Coca-Cola (NYSE: KO), Colgate-Palmolive (NYSE: CL), and PepsiCo (NASDAQ: PEP) have the brand recognition and global scale to keep paying you for years to come.
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Coca-Cola is an iconic brand that has been around for over a century, and it has one of the best dividend records you'll find. The company is a Dividend King, a title reserved for companies that have increased their annual dividend for at least 50 consecutive years. In Coca-Cola's case, the company has increased its dividend for 64 consecutive years, one of the longest streaks in the market. Its 2.78% forward yield and steady growth make it a top candidate for an income investment that could pay you for a lifetime.
Longtime company veteran Henrique Braun is taking over as CEO. Management plans to continue balancing volume growth with smart pricing, while using artificial intelligence (AI) to run the business more efficiently and to sharpen its consumer targeting worldwide.
Coca-Cola can point to just one down year in sales volume in the last 50 years (2020). That kind of consistency gives it room to invest, including its largest marketing campaign ever for the FIFA World Cup, and AI to analyze data and drive more customer engagement in local markets internationally.
Analysts expect earnings to grow about 7% annually, supporting continued dividend increases. Coca-Cola has grown its dividend per share at a 5% annualized rate over the past three years, bringing the quarterly payment to $0.53 (about $2.12 annually) with a sustainable payout ratio of 67%. It's a standout consumer staple for building passive income.
Colgate-Palmolive is another strong dividend stock because it sells products people buy year round. Colgate toothpaste is the top brand globally, and the company's portfolio spans personal care, oral care, and pet nutrition. Its strong brand portfolio has supported a 63-year streak of dividend growth. Like Coca-Cola, Colgate is a Dividend King.
Colgate has grown its dividend per share by about 3.5% annually over the past three years. It recently announced another 1.9% increase, bringing the quarterly payment to $0.53 and the forward yield to 2.52%.
Even with inflation, tariffs, and cautious consumers, results were solid in 2025. Full-year organic sales grew 1.4%, and adjusted earnings rose 3%. Colgate generated $4.2 billion in cash from operations and returned $2.9 billion to shareholders through dividends and buybacks.
CEO Noel Wallace cited "improved momentum" to end the year, with sales growth across all categories in the fourth quarter. With leading brands in essential categories and innovation across price points, Colgate looks like a reliable lifetime dividend holding.
PepsiCo owns far more than its namesake soda, with powerhouse brands like Quaker, Lay's, Gatorade, and Mountain Dew. That diversity supports the steady revenue and earnings needed for long-term dividend income. PepsiCo has increased its dividend for 54 straight years and offers a 3.6% forward yield.
Pepsi's North American food business has faced a challenging operating environment, as inflation has hurt consumer spending. The recent results demonstrate the business's resiliency. Management credited innovation and value initiatives for driving 2% volume growth in the recent quarter. Organic revenue rose 2.6% year over year, while adjusted earnings increased 5% -- solid gains for a tough environment.
PepsiCo also saw improving momentum internationally. This sets up an additional tailwind once the North American food business picks up. A key advantage is that its brands usually command top-shelf space in retail stores, making it easier to market them and drive consistent growth that fuels dividend increases.
The current dividend is $5.69 annually ($1.4225 quarterly), representing roughly 66% of expected earnings this year. PepsiCo has grown its dividend by about 7.5% annually over the past three years. With top brands, global reach, and strong retail visibility, it can be a solid long-term investment.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colgate-Palmolive. The Motley Fool has a disclosure policy.