2 Dividend Stocks to Buy and Hold Forever

There are very few things investors like more than a stock that keeps giving them money to own it. With that in mind, I'm flagging two rock-solid dividend stocks that not only are ultra-reliable in their dividend payouts, but also constantly raise them.

Let's take a closer look at this pair of stars, real estate investment trust (REIT) Realty Income (NYSE: O) and eternal beverage powerhouse Coca-Cola (NYSE: KO).

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1. Realty Income

Realty Income tops many a list of favorite income stocks, not least because the REIT is one of the very few companies that pays a monthly dividend, rather than the standard quarterly payout. It's been doing so for over three decades, enacting its first dividend raise shortly after its initial public offering (IPO) in 1994.

Realty Income has the financial power to do this because its business model is clever, straightforward, and very effective.

It specializes in retail properties and, within that category, favors recession-proof tenants like supermarkets and convenience stores -- all the better to weather the inevitable downturns in the commercial real estate market. No matter how lousy the economy, you and I will still need to buy food and other essentials, after all.

Yet there are plenty of other types of tenants, too, since the REIT had stakes in over 15,500 properties as of the end of March, with sky-high occupancy of 98.9%.

As for its financials, Realty Income continues to deliver admirable growth for its size. Full-year 2025 revenue grew by 9% from the previous year, with funds from operations (FFO; a key profitability line item for REITs) improving at an 11% pace to nearly $3.9 billion.

With inflation on the rise, some American consumers are tightening their belts, which will put pressure on the economy. When that happens, I think the market will embrace Realty Income even more, this time as a defensive play thanks to the structure of its portfolio. I believe this is a top-shelf REIT in both a strong and a weak economy.

Realty Income's latest monthly payout was slightly over $0.27 per share. The current dividend yield is 5.3%.

2. Coca-Cola

Coca-Cola is far more than just Coca-Cola the drink (and its many variants). It's amassed the most formidable portfolio of beverage brands in the world, to the point where if you're quaffing Minute Maid juice, Costa coffee, Gold Peak iced tea, or myriad other drinks, you're consuming one of its products.

Better, this sprawling collection of popular beverages requires little to no innovation or change (the company attempted to "update" its signature drink in the 1980s with disastrous consequences, but that's a story for another time). Compounding that, many are cheap to make. Given that, it's little wonder the company has been highly profitable, with rare exceptions, throughout much of its history.

From 2020 to 2025, the company's revenue has risen each year, from $38.7 billion to just under $48.4 billion. Headline net income has been more up-and-down but still well in the black, and it rose by an impressive 23% in 2025 to $13.1 billion.

I should also note that this occurred in a period when consumers became increasingly health-conscious and particular about their food and drink choices.

At this point, given its many enviable advantages, I think this company will be a dividend-paying, dividend-raising winner very far into the future.

Coca-Cola, by the way, is one of the market's few Dividend Kings (i.e., a company that has pulled the lever on dividend raises at least once a year for at least 50 years running). Its current quarterly distribution is $0.53 per share, yielding 2.6%. That's well above the 1.1% average of all component stocks in the bellwether S&P 500 index.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.