3 Dividend Growth Stocks to Buy and Never Sell

If you want to find winning stocks for your portfolio, it's generally a good idea to look for companies that pay and continually raise dividends.

Not only do dividend growth stocks have consistent financial success to afford higher dividends, but the dividend itself encourages responsible management, as a company must balance investing capital for growth with sending money out the door to shareholders.

Consumer-facing businesses are great for finding dividend growers because consumer spending is the largest contributor to the U.S. economy.

These three companies have proven they have what it takes, with timeless business models and entrenched competitive moats that make them stocks you can buy and hold forever.

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1. A beverage behemoth with a timeless growth model

Coca-Cola (NYSE: KO) began in the late 1800s and has since evolved into a global empire of soda, tea, juice, coffee, water, and other beverage brands. Coca-Cola has worldwide name recognition, a stout supply chain, and commands premium shelf space virtually everywhere it sells its products. Consumers drink 2.2 billion servings of Coca-Cola products every day.

As a result, Coca-Cola has become a legendary dividend stock with 62 consecutive annual dividend increases. The dividend yields roughly 3% and the company offers steady mid-single-digit growth year in and year out. That won't make you rich overnight, but it can over decades, especially as you reinvest the dividends to compound your dividend income over time.

The global beverage market is highly fragmented. Coca-Cola has an estimated 14% market share in developed countries, but just 7% in emerging markets, where 80% of the global population lives. That gives the company a virtually endless runway for slow-and-steady growth, making Coca-Cola a bona fide portfolio cornerstone you can buy and hold forever.

2. The emerging leader of the new nicotine industry

Philip Morris International (NYSE: PM) has long sold Marlboro cigarettes outside the United States. That business isn't going away overnight, but the industry's future is currently up for grabs as nicotine users shift from traditional cigarettes to smoke-free alternatives, such as vaping devices, heated tobacco, and oral nicotine pouches.

Thus far, Philip Morris is emerging as a clear winner in these new, rapidly growing product categories. The company has had immense success with its IQOS (heated tobacco) and Zyn (oral nicotine pouch) brands. Smoke-free products accounted for a whopping 41% of total net sales in the third quarter and 42% of gross profit.

Successful smoke-free products pave the way for years of growth ahead, enabling Philip Morris to build on its legacy as a dividend rock star. The company has raised its dividend every year since its 2008 spinoff from Dividend King Altria Group, and offers a juicy starting yield of 4% alongside its recent 8.9% dividend hike.

3. This super retailer is the heartbeat of consumer spending

Walmart (NYSE: WMT) is the go-to retailer for millions of Americans, with 90% of the U.S. population living within a short drive of a store. Walmart leverages its massive scale to source and sell goods at the lowest prices, which, in turn, attracts more price-conscious shoppers. Its size and store footprint give it instant leadership in various retail categories. For instance, it's the largest grocery store and second-leading online retailer in the United States.

As the retailer consumers depend on most, Walmart generates steady sales and profits that have funded 51 consecutive annual dividend increases. The dividend payout ratio is still only 36% of 2025 earnings estimates, leaving plenty of room to continue raising the dividend. Moving forward, Wall Street anticipates high-single-digit earnings growth, suggesting Walmart could continue increasing its dividend without affecting the payout ratio.

Walmart can utilize its store footprint and foot traffic to expand into more consumer-facing opportunities. For instance, it can place healthcare or other services in its stores. It has also launched a subscription membership to compete with Amazon's Prime. It's hard to envision Walmart's size-driven competitive moat crumbling anytime soon. As long as consumers spend money and choose to do so at Walmart, the business is likely to continue chugging along.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.