The S&P 500 is generally flat in this first month of 2026, coming off the heels of three years of double-digit growth. The next 11 months could bring any number of unanticipated news and market drivers, but the short-term movement is likely to be dictated by the numerous important earnings reports in the coming weeks.
Since there will always be periods of volatility mixed into periods of market growth, it's important to have some excellent dividend stocks in your portfolio. Some investors, especially retirees, might want to be highly dividend focused, but even growth-focused investors should keep a store of great dividend picks to protect their funds under any conditions.
If you need some inspiration, here are 10 top dividend stocks that you can hold forever.
Image source: Getty Images.
1. Coca-Cola
Coca-Cola (KO 0.67%) is a Dividend King that's raised its dividend annually for the past 63 years. That's one of the best track records on the market. The dividend is supported by the company's robust business model, featuring beverages consumers love to buy and acquisitions that bring even more growth. Coke's dividend yields 2.8% at the current price.
2. Realty Income
Realty Income (O 1.40%) is a real estate investment trust (REIT) that owns 15,500 properties worldwide, making it one of the largest REITs in the world. Its tenants are largely giant retail chains that are solid and reliable rent payers, and it has a large pipeline of new properties to buy, as well as capital.
The company pays a monthly dividend and has done that 667 times without missing a month. The dividend yields 5.3% at the current price, the highest on this list.
NYSE: O
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3. Walmart
Walmart (WMT 0.23%) is still the largest company in the world by sales, with more than $700 billion in trailing-12-month revenue. It operates more than 10,800 stores worldwide.
The company is always finding new ways to grow, including opening new stores and expanding in new ways, like e-commerce and premium products. Walmart is also a Dividend King and has raised its dividend annually for the past 52 years. The dividend yields a lower 0.8% at the current price because Walmart stock has performed so well recently.
4. Bank of America
Bank of America (BAC 0.66%) is the second-largest bank in the U.S. and continues to add millions of new accounts and grow its business in multiple ways. It's often reflects the U.S. economy and grows along with it, giving it a long runway. Bank of America's dividend yields 2.1% at the current price.
NYSE: BAC
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5. Home Depot
Home Depot (HD 1.33%) is the largest home-improvement chain in the world, giving it a dominant position in an industry that everyone needs. It happens to be under pressure right now in the poor real-estate environment, but even under these conditions, it's reporting higher sales.
Home Depot stock is down 7% over the past year. At the lower price, the dividend is yielding 2.4%.
6. American Express
American Express (AXP 0.74%) has been around for 150 years providing financial services and has succeeded in changing along with the times. It has developed a robust, fee-based model that targets an affluent clientele, and its dual credit card network and bank businesses create resilience under most circumstances.
Despite its age, it's still relevant, and American Express stock has outperformed the market by a wide margin over the past three years. The dividend yields 0.9% at the current price.
7. Costco Wholesale
Costco Wholesale (COST 0.89%) also has a fee-based membership that generates loyalty and volume. Costco does well in any economy but has some of its best performance when there's financial pressure and customers want to get the best prices.
It has under 1,000 stores worldwide and continues to expand at a deliberate pace, leaving plenty of room to keep growing. Costco's dividend only yields 0.5% at the current price, but the company has paid a large special dividend every few years, as well.
NASDAQ: COST
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8. Moody's
Moody's (MCO 0.43%) is one of a small group of premier rating agencies that dominate a sector with high barriers to entry, giving it an edge in a market with long-term tailwinds. It's also increasingly moving into data and insights, using an artificial intelligence (AI) platform that offers real value for clients. And, business has been booming. Moody's dividend yields 0.7% at the current price.
9. Prologis
Prologis (PLD 1.20%) is also a REIT with properties that are concentrated in e-commerce logistics, a growing industry. It's also stepping into data centers, which are exploding today. In other words, there's a long-term growth runway in its existing industries, as well as new technology horizons. The company's dividend yields 3.2% at the current price.
10. NextEraEnergy
NextEra Energy (NEE +0.48%) is a utility and energy company that owns the largest electric utility in the U.S. It's focused on renewable energy and is one of the world's largest wind and solar energy producers, as well as a leader in energy storage. NextEra Energy's dividend yields 2.7%, and the company is targeting annual dividend growth of 10%.
