2 Dividend Stocks to Hold for the Next 20 Years

Thousands of stocks pay dividends, but not all dividend stocks are created equal. Yes, a stock may pay a dividend, but that doesn't mean its business is built to keep rewarding shareholders through thick and thin. The latter can be the difference between a good and a bad investment.

The two companies featured here may not be high-flying tech stocks soaking up the headlines, but their businesses are as strong as they come, with the longevity to prove it. Both are Dividend Kings, which are companies with at least 50 consecutive years of annual dividend increases.

If you're going to invest in a company for at least 20 years, you want a reliable, time-tested business. These two check that box.

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1. Coca-Cola

No matter where you are in the world, there's a good chance you can find Coca-Cola (NYSE: KO). This didn't happen overnight, either. It took decades of diligently building a worldwide network of bottling partners that get its products to even some of the most remote parts of the world.

Coca-Cola is considered a "recession-proof" stock because its products sell no matter the state of the economy. Whether it's a recession or a boom, people are buying one of the hundreds of product brands that Coca-Cola oversees. Coca-Cola's broad portfolio includes beverages of all types and price points. The ability to adjust its portfolio to consumer preferences is why it's been able to dominate for so long.

Coca-Cola's current quarterly per-share dividend is $0.51, with an average yield of around 2.9% over the past 12 months. This latest payout completed Coca-Cola's $2.04 annual dividend for 2025, so investors can expect an announcement of 2026's increased dividend amount soon. The next increase in the dividend will be its 64th consecutive annual bump.

I wouldn't invest in Coca-Cola expecting consistent double-digit annual total return growth (it has happened 5 out of the past 10 years when including dividends), but it's as reliable an income source as you'll find on the market.

2. Walmart

Walmart's (NASDAQ: WMT) quarterly per-share dividend is $0.235, with an average yield of just around 0.9% in the past 12 months. Like Coca-Cola, Walmart just completed its 2025 dividend, so investors can also expect an announcement of an increase soon. Again, assuming it increases, it'll be its 53rd consecutive yearly increase.

Like Coca-Cola, Walmart sells products that tend to be purchased regardless of the economy's conditions. When the economy is flourishing, there's still a market for less expensive products. When the economy is struggling, there's really a market for less expensive products. And less expensive products are something Walmart has built its brand on.

Although Walmart was a step behind in the e-commerce race, it has done a great job of expanding its business beyond its brick-and-mortar stores into areas such as advertising, an online marketplace, and subscriptions. These are areas with much higher margins than retail sales.

Its sheer number of stores and distribution network position it to remain one of the world's dominant retailers for quite some time. You should feel comfortable holding on to it for the long run.

Stefon Walters has positions in Coca-Cola and Walmart. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.