2 Dividend Stocks to Buy in November and 1 to Leave on the Shelf

With 2026 soon to be in the rearview mirror, some investors may be getting a head start on their portfolio reviews. Sometimes, such an analysis will reveal the need for just a little bit of rebalancing. Other times, a more comprehensive overhaul may be called for if, for example, an investor finds that a single sector now accounts for too large a slice of their portfolio, or if their investing goals have changed.

No matter what the case may be, it's never too early to ask yourself if there are enough dividend-paying stocks in your portfolio. Younger investors can consider taking advantage of dividend reinvestment plans (DRIPs), which seamlessly route dividend payouts into the purchase of additional shares of stock -- a strategy that gradually builds you a larger position in that company. Those added shares mean you collect even more in dividends to buy still more shares in a compound growth cycle.

And eventually, when you need to make use of the income from your portfolio, you can simply turn off the DRIP and start collecting those larger dividend payouts. For older investors, dividends can be a reliable monthly or quarterly source of income, depending on how frequently the company distributes them.

Whether or not we have income sources like that will eventually become an important issue for most of us, as research from The Motley Fool shows a worrying trend of retirees overrelying on Social Security. It found that, among retirees over 65, the most common source of income is Social Security, with 91% listing it as a source of income, based on data collected by the Federal Reserve in 2025. In comparison, only 54% of retirees over 65 listed interest, dividends, or rental income as a source of cash generation. Moreover, among all retirees, 58% described Social Security as a "major" source of their retirement income. The percentages describing any stock-based assets as major sources of retirement income were much lower than that.

"Social Security is not designed to be the sole source of income in retirement, which makes it worrisome that more retirees aren't tapping into other sources of money," The Motley Fool research report says.

That's why today, we'll look at two stocks that can be strong picks for income generation: Coca-Cola (NYSE: KO) and WD-40 (NASDAQ: WDFC). And while a stock with a high yield is always tempting, we'll also look at one high-yield name to avoid: Nike (NYSE: NKE).

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Finding businesses that can stand the test of time

The broader markets have wobbled at several points this year for reasons ranging from fears of an artificial intelligence bubble to concerns over stubborn inflation to uncertainty about where the Federal Reserve was leaning on interest rates. That said, despite all the uncertainty, both Coca-Cola and WD-40 have held up well this year. While the S&P 500 index is up 7.8% thus far in 2026, WD-40 stock has climbed 16.4%, and Coca-Cola shares have fared even better, rising 37%.

There are many reasons someone would want to own each stock individually. Still, generally speaking, it appears the market is giving a broad nod of approval to two companies with businesses built to last and business models that can withstand periods of uncertainty.

While neither business makes things that people can't live without, they make products that people need or want and will keep buying, even when budgets get tighter. Whether it's locked mechanisms in lawn tools or jammed Lego blocks, most people don't think twice about picking up a classic can of WD-40 spray lubricant.

A similar argument applies to Coca-Cola. Its offerings are not necessities. Still, a favorite soda, workout drink, or other Coca-Cola beverage can keep finding its way into shopping carts during weekly grocery runs, as these are the sorts of smaller indulgences that many people won't give up.

Granted, spray lubricants and sodas aren't the most exciting of products, but what's important is that they generate substantial profits for each company, which they can then use to pay dividends to shareholders. In its fiscal 2026 (which ended Aug. 31), WD-40 generated $82.1 million in net income, while Coca-Cola generated $4 billion in net income in the third quarter alone. Their reliable businesses have allowed WD-40 to pay dividends uninterrupted for over 40 years, and helped Coca-Cola earn the title of Dividend King. The beverage giant has increased its payouts annually for 64 consecutive years, well beyond the 50-year streak required to earn entry into that exclusive club.

WD-40's dividend yield is 1.8%, and Coca-Cola's is 2.2% -- not the highest in the consumer stock space by any stretch. But the benefit is that their payouts have been proven reliable, and those two reliable companies have also delivered recent stock price outperformance, boosting their total returns.

Leave Nike sitting on the shelf

And that point brings us to the dividend stock it would be better to watch from afar: Nike.

Nike is quietly on the path to becoming known for being more of an income stock, having increased its dividend payouts for 24 consecutive years. Another attractive aspect of Nike as an investment is its dividend yield, which at the current share price is 4.2%.

That said, I'd put it on a watch list rather than buy it outright in November. Nike forecasts its revenue will fall by a high-single-digit percentage in 2027, and it's still struggling to revitalize its iconic brands even as it experiences a sales slump in the Greater China market. All of that contributed to its stock price woes over the last 12 months, with shares falling 38%.

I'd want to see positive sales momentum before investing in the athletic apparel giant, as that could help stabilize its stock price and increase Nike's reliability as a dividend payer. But if the stock price keeps falling, that's going to cut into your total returns or even result in losses, regardless of those dividend payouts. That's why, even if their yields are lower, I'd still rather own Coca-Cola and WD-40 because of the stability and reliability they offer.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool recommends WD-40. The Motley Fool has a disclosure policy.