Want to Retire on Dividends? Here Are 4 Stocks to Buy Now and Never Sell.

Source The Motley Fool

Key Points

  • P&G, Coca-Cola, Colgate-Palmolive, and Hershey offer long dividend payment records and high yields.

  • Each company generates more than enough free cash flow to cover the dividend.

  • Durable brands make all four stocks worth holding for decades.

  • 10 stocks we like better than Procter & Gamble ›

The best dividend stocks for retirement -- the kind you can potentially hold for decades -- aren't about chasing yield. They're about investing in businesses with a durable competitive advantage. Leading consumer staples that sell everyday brands are a good place to look.

Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), Colgate-Palmolive (NYSE: CL), and Hershey (NYSE: HSY) have all paid dividends for decades. These are time-tested businesses with strong brand power that can pay dividends for years to come. In fact, three of these stocks are Dividend Kings -- companies that have raised their payouts for 50 years or more.

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Here's why these stocks are still great investments today.

A roll of cash sitting next to a notepad that has dividends written on it.

Image source: Getty Images.

1. Procter & Gamble

Procter & Gamble owns a stable of strong brands like Tide, Pampers, Gillette, and Dawn. The company leverages deep consumer insights and invests in superior product performance and packaging to drive sales. Ultimately, that has led to 70 consecutive years of dividend increases.

As of Oct. 6, the stock offers a forward dividend yield of 2.92%, based on its current quarterly payment of $1.0885. The company paid out 65% of its $15.2 billion in trailing free cash flow to fund the dividend, leaving plenty of wiggle room to manage the payout even in a recession.

The company posted adjusted sales and earnings growth of 1% year over year in fiscal 2026, demonstrating the kind of resiliency you want in a weak consumer spending environment, making it a buy-and-never-sell investment.

2. Coca-Cola

Coca-Cola owns 32 brands that each generate at least $1 billion in annual sales. In addition to its core Coca-Cola brand, it owns Sprite, Minute Maid, and Costa Coffee, among many others. Its broad beverage portfolio and worldwide bottling network are very difficult for competitors to replicate.

The beverage giant has paid dividends for 64 consecutive years. Its forward yield is 2.46%, as of Oct. 6. The dividend has consumed about 77% of the trailing-12-month free cash flow of $14.3 billion, supporting sustainable payouts even during a soft year for sales.

Coca-Cola posted its strongest volume increase in 17 years last quarter (excluding the pandemic). That's a testament to the enduring value of this iconic brand and why the stock is a top dividend payer to hold for the long term.

3. Colgate-Palmolive

Colgate's toothpaste portfolio, Hill's Pet Nutrition, and Irish Spring soap support steady financials that fund growing dividends for shareholders. The company has paid a dividend every year since 1895 and raised it annually for 63 years.

Over the past year, it distributed 43% of its trailing free cash flow of $3.9 billion in dividends, bringing the forward yield to 2.42%. Solid execution in global markets, with particular strength in Latin America, is contributing to a strong year. Trailing-12-month free cash flow grew 14% year over year through the second quarter of 2026.

Colgate is not without challenges. Its North American business posted a 3% year-over-year decline in sales in Q2 2026, although management is making adjustments to improve performance. Over the long term, people's need to brush their teeth and feed their pets will continue to provide high visibility for sales, which should support a solid dividend investment.

3. Hershey

Hershey is another time-tested consumer goods business with several top brands in its arsenal, including Reese's, Skinny Pop, and Dot's Pretzels. The stock offers a high forward yield of 3.61%, more than supported by free cash flow. The company paid out 52% of its $2.2 billion in trailing free cash flow.

Higher costs from the spike in cocoa prices forced the company to pause dividend increases in 2025. Still, it resumed dividend increases in February 2026, hiking the quarterly dividend by 6% to $1.452 per share. The company has navigated multiple recessions and market cycles, paying a dividend for 96 consecutive years.

Hershey sees a long runway of growth for its core brands, but it isn't dependent on chocolate alone. It has assembled a strong snack portfolio, anchored by the Dot's brand, which is the main growth engine in snacks. If cocoa prices continue to ease in 2027, as management expects, the stock could rebound, making now a good opportunity to lock in a high yield on this top chocolate stock.

Should you buy stock in Procter & Gamble right now?

Before you buy stock in Procter & Gamble, consider this:

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*Stock Advisor returns as of October 10, 2026.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colgate-Palmolive and Hershey. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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