2 Dividend Stocks to Buy and Hold for Long-Term Safety and Income

2026 has been a strong year for consumer staples. Shares of Coca-Cola (NYSE: KO) and Mondelez International (NASDAQ: MDLZ) have outperformed the S&P 500's 12% year-to-date return, rising 22% and 32%, respectively. Even after those gains, both still offer attractive dividend yields of 2.3% or more. Here's why they look like rock-solid income investments for the long term.

Coca-Cola

Coca-Cola has one of the best dividend track records in the market. It has raised its payout for 64 straight years, supported by a highly profitable beverage empire spanning dozens of brands.

Image source: Getty Images.

The stock offers an above-average forward (12-month) yield of 2.3%. Coca-Cola has grown its dividend at a 5% annualized rate over the past three years, backed by free cash flow. Over the past year, it returned 77% of that cash generation to shareholders through dividends.

The business has also proved resilient through high inflation and softer consumer spending. In the second quarter, global unit case volume rose 5% year over year, helping lift adjusted (non-GAAP) revenue by 6%, including a modest benefit from higher pricing. Being able to raise prices without sacrificing volume is a meaningful competitive advantage.

Coca-Cola's global distribution is another strength. Selling in more than 200 countries helps keep demand steady even when certain regions hit economic turbulence.

Management is also working to improve efficiency and strengthen margins, which matters for the long-term durability of the dividend. The company is expanding its use of digital tools, including artificial intelligence (AI), to sharpen execution and support revenue growth. Operating margin has climbed from the low 20s a decade ago to the low 30s today, with continued focus on higher-margin offerings like Fairlife's Core Power protein shakes.

One headwind to watch: Coca-Cola is in a dispute with the IRS over financial reporting from its foreign operations, which could force the company to pay higher taxes. Still, management remains focused on reducing debt, supporting dividend growth, and reinvesting in the business.

Over the long run, Coca-Cola's brands, global scale, and margin expansion make it a high-quality consumer staple that should continue to reward income investors.

Mondelez

Mondelez owns dozens of snack and candy brands, including Oreo, Cadbury, and Chips Ahoy. It has paid a dividend since 2001 and has continued to raise it. The stock currently offers a forward (12-month) yield of 3.2%, supported by free cash flow.

Earlier this year, the company increased its quarterly dividend by 4% to $0.52 per share. Over the past three years, the dividend has grown at nearly a 10% compound annual rate.

Even with consumers watching their spending, Mondelez has continued to invest to support growth. Last quarter, revenue rose 2% year over year, and other than a few weak quarters, the company has mostly delivered steady top-line growth over the past three years.

Management sees a tremendous opportunity in emerging markets. It's expanding distribution to support over a million stores selling its products across India and Brazil. As CEO Dirk Van de Put said on the Q2 earnings call, "We still have a long runway of more consumers consuming more every day."

The biggest near-term headwind has been elevated cocoa prices, which have weighed on margins and free cash flow. Mondelez paid out 82% of trailing-12-month free cash flow as dividends -- above its typical level of around 60%. That ratio should normalize as costs ease and profitability improves.

There are signs that it's already starting. Operating margin reached 27% in the second quarter, and cocoa prices -- while still above historical norms -- have begun falling from their peak. With pricing discipline and a push to run more efficient operations, lower input costs could lift near-term margins and free cash flow.

Mondelez offers an appealing setup: emerging-market expansion and margin improvement help make the high yield look sustainable -- and attractive -- for long-term dividend investors.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.