I’ve always been a fan of dividend stocks, and whether you buy them for an income stream or the upside, they do not disappoint. The right dividend stocks often carry an ideal balance of income and price appreciation. It isn’t too difficult to find dividend stocks to buy, but it is a different story if you want to hold them forever. Then you need to understand the business and ensure it has stable fundamentals to keep going in different market conditions.
There are a few dividend payers that have the potential to keep going for years, and they can become “forever” stocks in your portfolio. Chevron Corp. (NYSE: CVX | CVX Price Prediction), Procter & Gamble Co. (NYSE: PG), and Coca-Cola Co. (NYSE: KO) are strong dividend stocks that can offer an ideal blend of income and growth.
Chevron Corporation
Big energy company Chevron Corporation has been in the news after the Venezuela raid. I think Chevron’s long-term picture looks attractive and is worth considering. The shares jumped 5% on the news and outperformed broader indices as investors factored in the possibility that the company could benefit from any eventual reopening of the oil industry in Venezuela.
The multinational energy company is Berkshire Hathaway Inc.’s (NYSE: BRK-B) favorite stock and forms 5.8% of the portfolio. Chevron operates integrated energy businesses across the world and is a safe option for investors who want a bite of the energy sector. CVX stock has a yield of 4.27% and has raised dividends for 38 years. It has a payout ratio of 86.01% and an annual payout of $6.84. Its dividend yield is above the industry average of 3.2%.
In the third quarter, the company reported earnings of $3.5 billion, a 21% year-over-year jump in production per day, and cash flow from operations of $9.4 billion. It expects to grow the free cash flow at over a 10% annual rate through 2030 at an average oil price of $70 a barrel.
Currently exchanging hands for $156.54, the stock gained 4.6% in the past year and pays a quarterly dividend of $1.71. The demand for energy continues to rise, and Chevron’s acquisition of Hess will boost the revenue. The management expects to spend $18 billion to $19 billion in capital expenditures in 2026. It has managed to reduce costs, fund operating expenses, and make capital investments. This will pave the way for higher margins in the coming years.
Procter & Gamble
Procter & Gamble has increased the dividend for 69 years and is considered a Dividend Aristocrat. The company has a yield of 3.01%, and its 5-year dividend growth rate is 6.02%.
The company is committed to rewarding shareholders and has built a strong brand in the industry. Procter & Gamble owns some of the most popular brands in America, including Pampers, Head & Shoulders, Gillette, and Crest.
In the recent quarter, revenue was $22.39 billion, up 3% year over year, and the EPS came in at $1.99. Its organic sales in the year grew 2%, and the management is expecting sales growth between 1% and 5% in 2026.
The company ended fiscal 2025 with $17.8 billion in operating cash flow. It is set to report second-quarter earnings on January 22. The resilience in organic sales growth shows that the company is able to raise prices and continue to grow sales in its premium product range.
PG has a payout ratio of 59.89% and pays an annual dividend of $4.23. Exchanging hands for $139.91, PG stock deserves a spot in every portfolio. The company has been in existence for over a hundred years, and its strength can be seen in its global presence, diversified portfolio, and steady growth. PG stock looks undervalued right now, and it is a solid chance to buy it while it is on sale.
There’s nothing not to like about the stock.
Coca-Cola
Another Warren Buffett favorite, Coca-Cola is a dividend aristocrat that hasn’t disappointed investors for a long time now. The company is doing really well and has remained resilient despite market pressure. The consumer staples company hiked prices but still managed to report a 6% jump in organic sales in the third quarter. Its net revenue grew 5%, while the EPS jumped 30% to $0.86.
This shows that the consumers are willing to pay a premium for the beverages Coca-Cola sells. It enjoys brand loyalty and has a global presence. Besides sodas, the company has a diversified portfolio of bottled water, coffee, fruit juices, energy drinks, tea, sports drinks, and alcoholic beverages.
The stock has a yield of 3.01% and a payout ratio of 67.85%. It pays an annual dividend of $2.04 and has a 5-year dividend growth rate of 4.46%. Coca-Cola has raised dividends for 63 years. Berkshire owns 400 million shares of the company, forming 8.6% of its portfolio. Coca-Cola is an asset-light model that has managed to generate stable profits to support its dividends.
Exchanging hands for $67.84, the stock gained 11.51% in the past year and is worth holding on to forever. While there might be limited upside, the company will not falter on its dividends.
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