Investors looking to build their passive income are choosing the right time to do so. While the average yield on the S&P 500 has sunk to a measly 1.18%, top consumer brands with a long history of dividend increases are paying yields that are double the market average.
The following companies have churned out consistent sales and profits for decades and can help you secure growing cash deposits in your account for a lifetime.
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1. Coca-Cola
Coca-Cola (KO -0.13%) is one of the most solid dividend payers to hold for the long term. It makes an affordable product that people consume every day throughout the world. It earns high margins and turns that into growing dividends. At its current quarterly dividend payment of $0.51, the stock offers an attractive 2.97% forward dividend yield.
Earlier this year, Coca-Cola raised its quarterly dividend, marking 63 consecutive years of dividend increases. Over the last two years, the full-year dividend has increased from $1.84 in 2023 to $2.04 in 2025. Since Coca-Cola doesn't require a lot of capital to keep the business going, it pays out about three-quarters of its earnings in dividends.
The only problem for Coca-Cola in recent years is that consumers are increasingly looking for beverages made with healthy ingredients. But Coke is prepared for this. It owns many brands across teas, energy, and soda, which captures demand for different consumer preferences. It owns more than 30 individual brands that generate at least $1 billion in annual sales.
Coca-Cola reported a 1% year-over-year decline in unit case volume for Q2, which followed a 2% increase in Q1. The brands that saw the strongest demand were Coca-Cola Zero Sugar, Diet Coke, Fanta, Fairlife, BodyArmor, and Powerade, which shows the company's diversified brand strategy is working.
With $12 billion in annual profit, Coke has the resources to invest in growth opportunities. It sees a lot of opportunity in meeting growing demand for protein through its Fairlife brand and expanding in international markets. The company has a vast global distribution system that gives it a competitive advantage in offering affordable products that are trending in different markets.
Coca-Cola's brands can produce consistent sales volumes and earnings to support growing dividends. Analysts expect adjusted earnings to grow about 6% on a compound annual basis, which is consistent with management's long-term target. This is about the rate of increase investors can expect the dividend to grow over time.
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2. McDonald's
Shares of McDonald's (MCD 0.04%) have been a consistent performer for investors over the last 45 years. Its franchise model generates sky-high margins, which has fueled 49 consecutive years of dividend increases. The company raised its dividend 6% to $1.77 within the past year, bringing its forward yield to 2.39%.
McDonald's has navigated the macroeconomic headwinds well. Higher inflation has pushed more consumers to seek out value, which has pressured sales from lower-income customers across the fast-food industry. However, McDonald's is demonstrating solid results in this environment with global comparable sales down just 1% year over year in the first quarter.
It's not immune to macroeconomic weakness, but McDonald's benefits from tremendous scale with more than 43,000 locations in over 100 countries. About 95% of these locations are owned and operated by local business owners. This allows McDonald's to convert a high percentage of its sales into profits. It earned a 31% profit margin over the last year, funding an average annual dividend payout ratio of 60%.
The company's profit margin has been expanding for a long time, which means management is focused on investing in opportunities that continue to grow the value of the business for shareholders. Its attempt to launch a new beverage chain called CosMc's failed, but management is taking lessons learned from that venture to integrate new beverage offerings at McDonald's locations, which could be fruitful considering the growing demand for specialty beverages.
Overall, investors can't go wrong adding McDonald's to their dividend portfolio. It's got a durable brand, excellent geographic diversity, and impressive margins. The consistent financial performance over its 70-year history is remarkable for a restaurant business and should serve dividend investors well for years to come.
