3 Dividend Stocks to Buy in November and Hold Forever

Most investors save their holiday thinking for the dinner table, not their portfolio. This month, I'd mix the two. Three dividend stocks I'd happily own forever make products that fill out a holiday day, from the morning latte to the dinner rolls to the nightcap.

The timing is what makes them November buys. The Marzetti Company (NASDAQ: MZTI), Starbucks (NASDAQ: SBUX), and Brown-Forman (NYSE: BFA) (NYSE: BFB) each have a dividend event on the calendar right now, and two of them are coming off a rough stretch.

Image source: Getty Images.

1. Marzetti: The dinner roll king is about to go for 64

You may not know the name, but you've probably eaten its food. The former Lancaster Colony makes Sister Schubert's rolls and New York Bakery breads, plus licensed sauces and rolls for brands like Chick-fil-A and Texas Roadhouse. It's one of only 12 U.S. companies with 63 straight years of dividend raises, which puts it among the elite Dividend Kings.

The stock has had a rough fall. A cyclospora outbreak hurt demand for its dressings, dips, and croutons last quarter, though management says the impact moderated in recent weeks. Shares sit about 38% below their 52-week high and yield about 3.7%.

Here's the part I like. On Nov. 16, Chick-fil-A rolls out a spicy version of its signature sauce nationwide, made by Marzetti, and it's the first new sauce the partners have launched together in about 10 years. It also bought Bachan's, a Japanese barbecue sauce brand that keeps gaining share in its aisle, and a Tajín-branded dressing line is on the way. Last year, the board announced its raise on the day of the annual meeting, and this year's meeting is Wednesday, Nov. 11. Meanwhile, Sister Schubert's is heading into the stretch its CEO says the brand has to "own" -- Thanksgiving and Christmas.

2. Starbucks: Get in before the red cups do

Starbucks' streak is shorter, but it just raised its quarterly dividend for a 16th consecutive year, to $0.63 a share, payable Nov. 27 to shareholders of record on Nov. 13. That makes Thursday, Nov. 12, the last day to buy before the ex-dividend date and still collect the bigger check.

What I keep coming back to is what the company is fixing. U.S. comparable sales rose 7.7% last quarter, and the company closed about 250 underperforming North American cafes in September. It also finished more than 1,700 cafe "uplifts" with more seating and softer lighting, which it says lead to more visits. Management also plans to restart share buybacks in fiscal 2027.

The holiday menu arrived Nov. 5, and Red Cup Day follows on Nov. 17. If you've never been caught in one, Red Cup Day is Starbucks' yearly holiday giveaway: Order a qualifying handcrafted holiday drink, and you walk out with a free, limited-edition reusable cup. It sounds small, but it's the kind of event that pulls people back who haven't been in for months, and lines tend to wrap out the door. With the uplifted cafes ready for that holiday crowd, I think this season could give sales a real boost, which is why I see Starbucks as the growth engine of this trio.

3. Brown-Forman: Raise season, meet gift season

Last month, I argued that Brown-Forman's bottom may be near. What's new is the calendar. The Jack Daniel's maker announced its 42nd straight raise on Nov. 19 last year, and it has paid a dividend for 82 years. It reports second-quarter results Dec. 3.

The company also finished what it calls its biggest U.S. distribution overhaul in more than six decades. This year, it also took over the sales, marketing, and distribution of Jack Daniel's Country Cocktails from Pabst Brewing. Shares rose after the Nov. 3 midterms on hopes of a thaw with Canada, where provinces pulled American spirits off shelves, per Bloomberg. The catch here is leadership, since CEO Lawson Whiting plans to retire once a successor is named.

Why hold these three forever?

So why forever? Because people don't stop buying dinner rolls, morning coffee, or a bottle of Jack to give as a gift, and these three companies have spent decades turning those small habits into dividends that keep growing.

Bad quarters come and go, but if you buy brands like these while they're out of favor and just hold on, the raises keep coming while everyone else is busy chasing the next hot stock.

Marzetti is cleaning up after a food scare, Starbucks is mid-turnaround, and Brown-Forman is shopping for a CEO. But each sells something people reach for during the holidays without thinking twice. If I'm buying for forever, I'd rather buy the month the dividend news lands than wait for everyone else to notice.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks and Texas Roadhouse. The Motley Fool has a disclosure policy.