2 Ultra-Safe Dividend Growth Stocks to Buy and Hold Forever

While tech giants dominate the headlines, dividend stocks have quietly driven a substantial share of long-term market returns. Their strength lies in compounding -- a force Albert Einstein famously dubbed "the eighth wonder of the world." When dividends are reinvested over decades, even modest yields can snowball into remarkable wealth as gains build upon gains.

In today's backdrop of persistent inflation and economic uncertainty, dividend growth stocks offer more than upside -- they deliver resilience. Companies with long histories of raising dividends often have stronger balance sheets, durable business models, and greater pricing power than non-dividend payers. These traits help reduce volatility during market downturns, when consistent cash flows matter most.

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Two companies exemplify the best of this category. Procter & Gamble (NYSE: PG) has raised its dividend for 69 consecutive years, backed by a recession-resistant portfolio of household brands. Meanwhile, Parker-Hannifin (NYSE: PH), a diversified industrial leader, also sports a 69-year dividend growth streak while capitalizing on long-term trends in automation, aerospace, and clean energy.

Read on to find out more about these two top dividend growth stocks.

A household name with steady dividend growth

Procter & Gamble (NYSE: PG) remains a cornerstone in the consumer goods sector, sporting a diverse portfolio of iconic brands across beauty, healthcare, fabric care, and baby products. The stock currently offers a dividend yield of approximately 2.55%, which is nearly double the S&P 500 (SNPINDEX: ^GSPC) average of 1.27%. The company's dividend payout ratio stands at around 64%, indicating a balanced approach between rewarding shareholders and reinvesting in future growth. Notably, P&G has achieved 69 consecutive years of dividend increases, underscoring its commitment to delivering consistent returns to shareholders.

From a valuation standpoint, P&G's forward price-to-earnings (P/E) ratio is approximately 23.6, slightly above the S&P 500's forward P/E of 21.4. This premium reflects the company's robust brand equity and defensive business model. Despite recent challenges, including softened sales growth and market pressures in China, P&G continues to invest in product innovation and marketing, allocating about 13% of its sales to these areas to maintain brand relevance.

Looking ahead, P&G anticipates additional costs ranging from $1 billion to $1.5 billion in fiscal 2026 due to tariffs, representing approximately 3% of its cost of goods sold. To mitigate these impacts, the company is streamlining its stock-keeping units (SKUs), aiming to enhance operational efficiency and improve the consumer experience.

With its unparalleled brand portfolio, strategic investments in innovation, and disciplined capital allocation, P&G stock offers an attractive blend of reliability, modest growth, and resilience, making it a compelling choice for income-focused portfolios.

An aerospace and industrial dividend powerhouse

Parker-Hannifin (NYSE: PH) has solidified its position as an exceptional dividend compounder within the industrial sector, sporting an impressive 69-year streak of consecutive annual dividend increases. While its current 1.06% yield might appear modest, the company's conservative 25.3% payout ratio provides substantial room for continued distribution growth. This disciplined approach to shareholder returns has enabled Parker-Hannifin to deliver a remarkable 10.9% annualized dividend growth rate over the past 10 years -- more than double the rate of many blue chip dividend payers.

The company's recent performance highlights its aerospace-driven growth strategy, with this segment delivering standout 11.7% organic growth and record 28.7% operating margins on an adjusted basis in fiscal Q3 2025. While Parker-Hannifin's diversified industrial segments have faced recent headwinds, with North American and international operations experiencing organic sales declines of 3.5% and 2.8% in the most recent quarter, respectively, the company has maintained exceptional operational efficiency, with record adjusted operating margins above 25% across both regions. This resilience during industrial softness demonstrates the effectiveness of Parker's "Win Strategy,™" focused on lean operations, product simplification, and supply chain optimization.

Looking ahead, Parker-Hannifin is exceptionally positioned to benefit from structural growth in commercial aerospace, where robust aftermarket demand provides recurring revenue streams and pricing power. The company's strategic focus on high-margin fluid power and motion control systems places it at the center of automation, electrification, and aerospace trends, with decades of runway ahead.

For income-focused investors, Parker-Hannifin stock offers a compelling combination of defensive industrial characteristics, aerospace growth exposure, double-digit dividend growth potential, and a management team with proven capital allocation expertise, making it an ideal cornerstone for building long-term wealth.

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George Budwell has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.