The Best Dividend Stocks to Buy and Hold Forever

With the S&P 500 continuing to rise this year after a strong 2025, investors may be focused on growth stocks right now. But while the overall trajectory of the market has always been higher, that's been mixed with periods of pressure and decline.

You want to make sure your portfolio is well-protected by diversifying it to include some value stocks and dividend stocks, because no one knows at any time where the market will be headed. These stocks tend to be far less volatile when the market dives.

If you need some excellent dividend stocks, Coca-Cola (NYSE: KO), Realty Income (NYSE: O), and Walmart (NASDAQ: WMT) are all great ones you can hold forever. Here's why.

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1. Coca-Cola

Coca-Cola is the classic Dividend King. It has raised its dividend annually for 63 years, never missing a year despite periods of hyperinflation, wars, pandemics, and other such business-sapping phenomena. That's rock-solid reliability. On top of that, Coca-Cola's dividend yields 2.9% at the current price.

The dividend is underpinned by the excellent business. Coca-Cola makes beverages its customers love, and these are products that can't easily be replaced, especially considering the strength of these global brands, including the namesake Coca-Cola brand and other labels like Minute Maid and Fresca.

The company has a portfolio that includes 26 billion-dollar brands, and these names have strong pricing power that keeps the business flowing even in challenging operating environments.

Coca-Cola stock often outperforms when the market is in rough waters, making it an excellent protective hedge to have in your portfolio.

2. Realty Income

Realty Income is a real estate investment trust (REIT), a business structure where the company pays at least 90% of its taxable income as dividends. Realty Income is one of the largest REITs in the world, with 15,500 global properties.

Although it's a retail REIT, and 80% of its properties are leased to large, essential retail chains, it has branched out into other industries, including gaming and industrials. However, more than 20% of its holdings are in grocery and convenience stores, providing stability in any environment.

Realty Income pays a monthly dividend, and it has done so without missing a month for more than 55 years. Its dividend yields 5.3% at the current price.

3. Walmart

Walmart is the largest retailer in the world, and it continues to report steady growth despite having almost 11,000 stores worldwide and more than $700 billion in trailing 12-month sales. It's highly profitable, and it continues to see opportunities to open new stores both in the U.S. and globally.

Walmart is also a Dividend King, and it's raised its dividend annually for the past 52 years. Its dividend only yields 0.8% at the current price, but that's partially because the stock price has appreciated more than 155% over the past three years. The dividend is growing annually and is dependable under all kinds of circumstances.

Jennifer Saibil has positions in Walmart. The Motley Fool has positions in and recommends Realty Income and Walmart. The Motley Fool has a disclosure policy.