If you’re looking for a less overheated, more diversified and low-key group of blue-chip stocks than the usual “Magnificent Seven” mega-cap tech names, consider the Dividend Kings.
[Sign up for stock news with our Invested newsletter.]
These stocks are selected from the S&P 1500 Composite Index based on their ability to increase dividends for at least 50 consecutive years — a rare feat that signals resilience and financial strength.
Compared to the broader market, Dividend Kings tend to have much higher representation from defensive industries such as consumer staples, health care and utilities, along with a strong presence of industrial conglomerates that have stood the test of time.
Maintaining a dividend growth streak for half a century requires shareholder-friendly management, prudent capital allocation, and consistently strong profit margins and returns on equity.
“On average, the Dividend Monarchs have increased their dividends for 56 straight years,” says Dave Mazza, CEO at Roundhill Investments. “As a group, they exhibit higher return on equity than the broader market, coupled with lower earnings variability. Characteristics of this nature have historically translated to lower share price volatility and improved drawdowns.”
However, investing in Dividend Kings isn’t a guaranteed formula for market-beating returns. These stocks can sometimes underperform the S&P 500, particularly during bull markets when high-growth companies lead.
“The focus on dividends sometimes means that these companies reinvest less profit back into the business for future expansion, potentially limiting stock price appreciation,” says Michael Ashley Schulman, chief investment officer at Running Point Capital. “Also, keep tax implications in mind because dividends are generally taxable, which can affect your overall total return.”
Additionally, investors should be aware of survivorship bias — just because these companies have succeeded so far doesn’t mean all will continue to do so.
A cautionary tale is 3M Co. (ticker: MMM), a long-time Dividend King that ended its 65-year dividend growth streak in May 2024. The company was forced to reset its dividend to conserve cash after costly legal settlements related to lawsuits over defective military earplugs and chemical contamination.
Here are seven of the best Dividend King stocks to buy and hold forever:
| Stock | Yield | Dividend Growth Streak (Years) |
| Abbott Laboratories (ABT) | 1.7% | 53 |
| Johnson & Johnson (JNJ) | 3.0% | 63 |
| Coca-Cola Co. (KO) | 2.9% | 63 |
| PepsiCo Inc. (PEP) | 3.5% | 53 |
| Walmart Inc. (WMT) | 1.0% | 51 |
| Procter & Gamble Co. (PG) | 2.3% | 69 |
| S&P Global Inc. (SPGI) | 0.7% | 52 |
Abbott Laboratories (ABT)
“Health care companies tend to dominate the list because they possess predictable earnings growth, with profits that are not overly economically sensitive,” says James Lewis, portfolio manager and senior equity research analyst at Bartlett Wealth Management. “Thus, with a stable earnings stream, these companies are willing to allocate capital through dividends and grow the rate of that payment.”
For long-term health care investments, diversification across pharmaceuticals, medical devices and consumer health products is key, as it provides multiple revenue streams that help mitigate risks from patent expirations, regulatory changes and economic downturns. Abbott Laboratories fits this profile as a Dividend King, and it currently pays a 1.7% yield backed by 53 years of growth.
Johnson & Johnson (JNJ)
“In addition to being a Dividend King, Johnson & Johnson also holds the distinction of being one of the remaining few AAA-credit-rated companies,” says Craig Giventer, managing director of portfolio strategies at Focus Partners Wealth. “The company’s strong position in both pharmaceuticals and med tech allow the company to generate attractive rates of revenues, earnings and free-cash-flow growth.”
In August 2023, Johnson & Johnson shed its riskier consumer health segment through the spinoff of Kenvue Inc. (KVUE). This removed a major source of legal and regulatory uncertainty tied to past talc baby powder lawsuits and the infamous 1982 Tylenol poisoning case. Now a pure-play pharmaceutical and med tech giant, it offers a 3% yield and a 63-year streak of dividend growth.
Coca-Cola Co. (KO)
“Coca-Cola benefits from a category where consumers are brand aware — that is, over the years, they have developed products that resonate with preferences,” Lewis says. “It also operates in categories where store brands have not been able to gain market share due to poor quality. This has made its products less discretionary, which leads to stable profit growth and a strong commitment to dividends.”
Coca-Cola has maintained a 63-year streak of dividend growth thanks to a 24.8% operating margin. This efficiency is rooted in an asset-light business model, where the company produces syrup at a low cost, sells it to bottlers holding exclusive, oligopoly-like territorial contracts, and focuses on supporting them through marketing and capital investment. The company currently pays a 2.9% dividend yield.
PepsiCo Inc. (PEP)
PepsiCo, Coca-Cola’s biggest rival, is also a Dividend King, with a 3.5% yield and a 53-year streak of dividend growth. Unlike Coca-Cola, PepsiCo isn’t solely focused on beverages — it has extensively diversified into snack foods, owning major brands like Frito-Lay, Quaker, Doritos and Cheetos. It also holds a major stake in up-and-coming beverage maker Celsius Holdings Inc. (CELH).
Right now, PepsiCo is also the more undervalued of the two, trading at 18.8 times forward earnings, compared to Coca-Cola, at 24.2 times forward earnings. That’s even cheaper than the broad consumer staples sector, which trades at 23.2 times earnings, as represented by the Consumer Staples Select Sector SPDR Fund (XLP), where PepsiCo is the sixth-largest holding at 4.9% weight.
[Read: 5 Dividend Aristocrat ETFs to Buy Now]
Walmart Inc. (WMT)
“Walmart is the poster child of an old-economy company who has pivoted, and it is showing up in its margins, profitability and growth,” says Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments. “I continue to like the company as a serious omni-channel tech-driven retailer.” The company currently pays a 1% dividend yield and increased its dividend for the 51st consecutive year.
Shares of Walmart recently fell sharply following a poor growth forecast from management amid tariff concerns. However, long-term investors shouldn’t be rattled. The Walton family, which owns around 45% of Walmart, has seen the company withstand the 2008 financial crisis and countless economic hiccups since its 1972 listing on the New York Stock Exchange — delivering an 18.5% annualized return.
Procter & Gamble Co. (PG)
“P&G’s competitive strengths lie in its diverse portfolio, which provides stability and caters to a wide range of needs, its massive scale, which translates to better deals with suppliers and retailers, and its strong brand recognition with consumers, retailers and investors,” Schulman says. Investors who own P&G currently enjoy a decent 2.3% dividend yield backed by an incredible 69 years of growth.
“P&G boasts a diversified operating model across five product segments, 10 product categories, operations in 70 nations, and sales in over 180 countries and territories,” Schulman explains. In August 2014, management cut over 100 underperforming brands to focus on the 65 that drove most of its profits. The strategy paid off, delivering a 10.5% annualized return for shareholders since then.
S&P Global Inc. (SPGI)
The Dividend Kings list has few financial sector stocks, as most banks either paused or cut their dividends during the 2008 financial crisis. One notable exception is S&P Global, a financial data and analytics powerhouse. The company currently pays a 0.7% yield and hiked its quarterly dividend again in February from $0.91 per share to $0.96 per share, a 5.5% increase.
What sets S&P Global apart is its asset-light business model, which generates high free cash flow with minimal capital investment. The company’s revenue primarily comes from selling credit ratings, licensing indices like the S&P 500, and providing financial data — products and services that require little ongoing cost to maintain but command premium pricing, ensuring strong margins and return on equity.
More from U.S. News
8 Highest Dividend-Paying Stocks in the S&P 500
What ETF Has the Highest Dividend Yield?
7 Dividend Stocks Paying 5% And Above
7 Dividend Kings to Buy and Hold Forever originally appeared on usnews.com
Update 02/26/25: This story was published at an earlier date and has been updated with new information.
