Best Long-Term Dividend Stocks To Buy and Hold
Written by
John Csiszar
Edited by
Joe Evans
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If you’re looking for investments that can pay you consistently while you stay invested for the long haul, dividend stocks deserve a close look. The right dividend stocks can provide steady income, help smooth out market volatility and grow your payouts over time through dividend increases.
In early 2026, the strongest long-term dividend stocks tend to share a few traits: durable business models, reliable cash flow and a history of returning money to shareholders across multiple market cycles.
Below, you’ll find a curated list of dividend stocks that stand out for patient, income-focused investors — plus how to think about building a long-term dividend strategy.
Best Long-Term Dividend Stocks — At a Glance
Company Ticker Sector Dividend Yield* Risk Profile Why It Stands Out Johnson & Johnson JNJ Healthcare about 3% Low Long dividend history supported by diversified healthcare revenue Procter & Gamble PG Consumer Staples about 2.5% to 3% Low Everyday brands with consistent cash flow and pricing power Coca-Cola KO Beverages about 3% Low-Medium Global brand with strong distribution and steady dividend growth PepsiCo PEP Food & Beverages about 2.5% to 3% Low-Medium Diversified snacks and drinks support resilient earnings Duke Energy DUK Utilities about 4% Medium Regulated utility model supports higher income payouts Realty Income O Real Estate about 5% Medium Monthly dividends backed by long-term commercial leases *Dividend yields are approximate and can change. Always verify current payouts and company policies.
Why Dividend Stocks Matter for Long-Term Investors
Dividend stocks can play multiple roles in a portfolio. For retirees or near-retirees, they offer income without selling shares. For younger investors, reinvesting dividends can compound returns over decades.
Historically, dividends have made up a meaningful share of total stock market returns, especially during periods of slower growth or higher volatility. Companies that consistently pay and raise dividends often do so because their businesses generate dependable cash flow and operate in industries with steady demand.
Best Long-Term Dividend Stocks for January 2026
Johnson & Johnson (JNJ)
Johnson & Johnson is often viewed as a cornerstone dividend stock for conservative investors. Its business spans pharmaceuticals, medical devices and consumer health products, helping smooth revenue across economic cycles.
That diversification has supported decades of uninterrupted dividends and regular increases.
Trend Support: Aging populations and ongoing healthcare demand continue to underpin long-term cash flow.
Procter & Gamble (PG)
Procter & Gamble benefits from selling everyday household essentials that people buy regardless of economic conditions. Brands like Tide, Pampers and Gillette give the company pricing power, which helps protect margins and dividends during inflationary periods. Its long track record of dividend growth makes it attractive for investors focused on stability.
Trend Support: Consistent consumer demand for staples supports predictable earnings.
Coca-Cola (KO)
Coca-Cola combines global scale with one of the most recognizable brand portfolios in the world. Its asset-light bottling and distribution model generates strong free cash flow, supporting regular dividends. While growth may be modest, Coca-Cola’s reliability is a key draw for income investors.
Trend Support: Global beverage consumption and brand loyalty remain resilient over time.
PepsiCo (PEP)
PepsiCo offers diversification within a single stock through its mix of beverages and snack foods. This balance can help offset weakness in one category with strength in another, supporting steady earnings. Its history of dividend increases reflects management’s commitment to shareholder returns.
Trend Support: Packaged food and snack demand tends to hold up even when consumer spending tightens.
Duke Energy (DUK)
Duke Energy is a classic income-oriented utility stock. As a regulated electric utility, it benefits from predictable revenue tied to essential services, which supports higher dividend payouts. Utilities may not grow quickly, but they often provide dependable income.
Trend Support: Ongoing electricity demand and grid investment support long-term stability.
Realty Income (O)
Realty Income is known for paying monthly dividends, which appeals to income-focused investors. Its portfolio of long-term commercial leases helps create reliable rental income. While real estate can be sensitive to interest rates, diversified tenants help reduce risk.
Trend Support: Long-term leases and contractual rent increases support recurring cash flow.
How Dividend Stocks Compare to Other Income Options
Dividend stocks sit between bonds and growth stocks on the risk spectrum. They typically offer higher income potential than savings accounts and inflation protection through dividend growth, but with more price volatility than fixed-income investments.
Compared with bonds, dividend stocks can grow payouts over time. Compared with high-growth stocks, they often trade some upside for stability and income. Many long-term investors combine dividend stocks with bonds and cash to balance income and risk.
How To Build a Long-Term Dividend Strategy
If you’re considering dividend stocks, a simple framework can help:
- Focus on quality first. Look for companies with strong balance sheets and consistent cash flow.
- Diversify across sectors. Mix healthcare, consumer staples, utilities and real estate to reduce risk.
- Watch payout ratios. Sustainable dividends are usually backed by earnings, not debt.
- Reinvest early. Reinvesting dividends can significantly boost long-term returns.
- Review annually. Check that dividends remain covered and aligned with your goals.
Final Take to GO: Are Long-Term Dividend Stocks Worth It?
Long-term dividend stocks can be a powerful tool if you want income without constantly trading in and out of the market. While they may not deliver explosive growth, their ability to generate steady cash flow and grow payouts over time makes them especially valuable for patient investors.
If you’re just starting out, consider a few high-quality dividend stocks or a diversified dividend ETF. Over time, consistent dividends — especially when reinvested — can help turn market volatility into a long-term advantage.
Best Long-Term Dividend Stocks FAQ
- What makes a dividend stock good for the long term?
- Strong cash flow, a sustainable payout ratio and a history of maintaining or raising dividends.
- Are dividend stocks safer than growth stocks?
- They are often less volatile, but they still carry market risk and can decline in value.
- Should I reinvest dividends or take the cash?
- Reinvesting can boost long-term returns, while taking cash can support income needs.
- Do dividend stocks protect against inflation?
- Dividend growth can help offset inflation, but protection is not guaranteed.
- How many dividend stocks should I own?
- Many investors hold several across different sectors to spread risk.
Data is accurate as of Jan. 15, 2026, and is subject to change.
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