2 Dividend Stocks to Buy and Hold for the Next 5 Years

The appeal of dividend stocks is pretty simple: They pay you while you sleep, and the better ones tend to offer a little more stability than the broader market, especially in consumer goods. If you're looking to build a part of your portfolio that you can mostly leave alone for the next five years, these stocks are a good place to look.

Two names stand out to me right now. Each is taking steps today that could help it continue returning cash to shareholders while still growing its business.

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1. Church & Dwight is boring, but consistent

Church & Dwight (NYSE: CHD) looks boring at first glance, but that is part of the appeal. The company owns a portfolio of practical brands across household, personal care, and specialty products, and its recent updates show a business leaning into volume‑driven growth rather than just price hikes. In the first quarter of 2026, organic sales grew 5%, with volume up more than 5% across all divisions, even though reported net sales were basically flat thanks to earlier portfolio clean‑up moves. Management expects organic sales growth of 4% to 5% for the full year and roughly $1.175 billion of cash from operations, which is a solid base for ongoing dividends and bolt‑on acquisitions.

The second quarter continued that pattern, with organic sales up 5.8% and growth in both domestic and international segments, supported by brands like Therabreath, Hero, and Batiste, and newer additions such as Touchland. A company that can maintain mid‑single‑digit organic growth while expanding gross margins has room to raise its dividend and invest in additional niche brands.

This is where Church & Dwight gets valuable. It steadily grows sales and keeps acquiring smaller businesses that can add to that growth over time. This combination of consistent growth and acquisitions gives Church & Dwight the kind of steady compounder profile that can make sense as a buy-and-hold dividend stock over the next five years.

2. Costco is a membership beast

Costco Wholesale (NASDAQ: COST) sits at the middle of retail and membership economics, which is a powerful place to be for dividend investors. Membership and subscription-based models are the best businesses, in my opinion, and it seems to me that Costco isn't slowing down at all.

In April 2026, the company's board approved a quarterly dividend increase from $1.30 to $1.47 per share, or $5.88 on an annualized basis, payable in mid‑May to shareholders of record at the start of the month. That kind of step‑up is possible because Costco continues to post strong sales and cash generation.

The company now operates more than 930 warehouses worldwide, and its membership business has continued to churn well. But be wary; the company will soon report earnings, and Bank of America expects higher transportation costs and investments in low prices to put some pressure on margins, according to reporting from The Street.

The bigger questions heading into earnings, according to Bank of America, are whether membership growth can remain around 4% to 5% and whether Costco will use its growing cash balance for another special dividend.

Five‑year logic

None of these names is risk‑free. Church & Dwight still has to integrate its acquisitions and keep its brands relevant, and Costco depends on maintaining high membership renewal rates, and managing labor and logistics costs.

But if I zoom out over five years, this duo checks the boxes I care about for buy‑and‑hold dividend stocks: There is always demand for their everyday products, and the companies are making clear, current moves or acquisitions to strengthen margins. Owning these two gives you a blend of staples and retail that can work through a range of interest‑rate and economic scenarios while sending a growing stream of income back to your account.

Bank of America is an advertising partner of Motley Fool Money. Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.