3 Dividend Stocks to Buy and Hold Forever

Collecting regular dividends is great for passive income or for unleashing the power of compounding through dividend reinvestment. That is, until a corporation decides to suspend its dividend program altogether. Fortunately, investors don't have to deal with that problem or, at least, can reduce their exposure to this risk by buying shares in proven dividend-paying companies that are unlikely to halt their payout programs. Here are three to consider: Johnson & Johnson (NYSE: JNJ), Coca-Cola (NYSE: KO), and Walmart (NASDAQ: WMT). These dividend stocks are worth holding onto for good.

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1. Johnson & Johnson

Johnson & Johnson is having a good year, partly due to its strong financial performance. In the second quarter, the company's net sales increased by 6.6% year over year to $25.3 billion. The company raised its guidance for the full fiscal year 2026, after also doing so when it reported its first quarter earnings. This is all the more impressive considering Stelara's (an immunosuppressant that was a meaningful growth driver) U.S. patent cliff happened just last year. But Johnson & Johnson is marching on. The company continues to launch brand-new products to expand its already deep and diversified lineup.

Johnson & Johnson recently earned approval for Icotyde, an important milestone, as it is the first once-daily oral IL-23-targeted peptide (a drug that blocks an immune protein that drives inflammation) for moderate-to-severe plaque psoriasis, offering a convenient alternative to injectable biologics. The company also earned clearance for its Ottava robotic system, which should also become a meaningful growth driver down the line.

Further, Johnson & Johnson took a major step toward resolving most of the tens of thousands of talc-related lawsuits it faces. With a resilient underlying business, excellent prospects, and a rock-solid balance sheet -- Johnson & Johnson has an AAA rating from S&P Global, the highest available -- it's hard to argue against the company. Finally, Johnson & Johnson is a Dividend King, or a company with 50 or more straight annual payout increases. All of these factors make the stock a no-brainer long-term pick for dividend seekers.

2. Coca-Cola

Coca-Cola's shares recently jumped after it reported excellent second-quarter results. The company's net revenue grew by 7% year over year to $13.4 billion, while its adjusted earnings per share were $0.97, 11% higher than the year-ago period. Coca-Cola is showing resilience amid a somewhat shaky economic environment, and that's a solid reason for long-term investors to stick with the stock. Coca-Cola is a leading consumer staples company, an industry that is fairly defensive and tends to perform better than most when the economy tanks.

Coca-Cola's strengths include a powerful brand name that can almost effortlessly attract customers, a vast portfolio of beverages across almost every category known to man, and innovative capabilities that enable it to launch new products -- or introduce twists on existing ones -- and stay ahead of changing consumer preferences. None of that will change anytime soon. Finally, Coca-Cola is also a Dividend King and has raised its payouts for 64 consecutive years, matching Johnson & Johnson's streak. That is an impressive achievement that strongly suggests that the beverage giant can sustain solid dividend growth for much longer.

3. Walmart

Walmart's shares haven't performed well this year. Broader macroeconomic issues, including rising oil prices, have impacted its expenses, putting downward pressure on its earnings. However, many retail giants face the same issues, and Walmart is arguably as well-positioned as any of its peers to overcome these challenges. The company's large retail footprint covers most of the U.S. (with about 90% of people living within 10 miles of one of its stores). Also, it leverages its large scale to offer comparatively low prices by negotiating deals with suppliers. These factors mean that foot traffic in its stores tends to remain somewhat robust.

Walmart may not bounce back overnight, but it should, eventually, especially as it continues to ride important long-term tailwinds. Walmart's higher-margin e-commerce business has been growing much faster than sales within its brick-and-mortar stores. E-commerce will continue to gain traction in the long run and should help lift Walmart's profits and margins. We could say the same about the company's fast-growing advertising business, which has also been a bright spot in recent years. Walmart's stock is down, but it isn't out, and it may be an excellent buy on the dip for income seekers. The company is yet another Dividend King with 53 consecutive annual payout increases.

Prosper Junior Bakiny has positions in Johnson & Johnson and Walmart. The Motley Fool has positions in and recommends Walmart. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.