2 Dividend Kings to Buy for a Lifetime of Passive Income

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Dividend Kings are among the best income stocks on the market. Any corporation capable of raising its payouts for 50 consecutive years — the requirement to become a Dividend King — has an incredibly strong business capable of navigating company-specific challenges and economic peaks and troughs.

So, looking at the list of Dividend Kings is an excellent start for investors trying to find stocks that can continuously raise their payouts for a lifetime. Let’s consider two companies in this elite group with the exact qualities long-term income investors want: Coca-Cola (NYSE: KO) and Abbott Laboratories (NYSE: ABT).

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Few businesses are better known worldwide than Coca-Cola. The company owns a portfolio of beverage brands across multiple categories: soft drinks, alcoholic beverages, tea, coffee, sports drinks, juices, and more.

The company also has an extensive geographical footprint. It’s hard to find a single country where it doesn’t operate and where children won’t get excited at the sight of its famous logo. Having a recognizable brand is a powerful competitive advantage that has helped generate steady financial results and continuous dividend raises.

The company’s streak as a Dividend King stands at 62 years, and there doesn’t seem to be any end in sight. True, it isn’t a particularly attractive growth company (it hasn’t been for a while). In the third quarter, revenue decreased by 1% year over year to $11.9 billion. Adjusted earnings per share (EPS) were up 5% year over year to $0.77. Investors weren’t impressed with the performance for the period, which caused the stock price to dip.

However, Coca-Cola continues to prove its resilience. Even in the past few years, when consumers have had to deal with inflation, the company’s unit volume has remained respectable. It fell slightly by 1% year over year in the third quarter. In other words, people continue to buy the company’s products at nearly the same volume — despite widely available alternatives — even when its prices rise.

Coca-Cola has also evolved with the times, adapting to worries over potential health concerns by offering low-sugar options for some of its drinks. It should remain a well-established leader in its niche for a long time while still rewarding shareholders with dividend hikes.

It currently offers a forward yield of 3.10%, compared to the S&P 500‘s average of 1.32%. This is one dividend stock investors can safely keep in their portfolios for good.

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