The regular income that dividend stocks provide can be used to reinvest in the business, quietly and slowly build a retirement nest egg, or for other purposes. However, not every company that pays dividends will do so consistently for a long time without interruption. Those that are likely to do that are the ones dividend investors should consider adding to their portfolios.
Let's consider two options today: Coca-Cola (KO 0.03%) and Costco Wholesale (COST +1.10%).
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1. Coca-Cola
Coca-Cola, one of the largest beverage makers in the world, is trading near its 52-week high, having performed well over the past few months. The company is showing its resilience in the face of challenges such as tariffs that affected retail activity. Coca-Cola, though, makes most of the beverages it sells to American consumers locally, so the impact of tariffs on its business is somewhat limited, though not nonexistent.
This highlights the company's resilience, and that's one reason it is a great forever stock. It shouldn't come as a surprise. Coca-Cola is one of the leading consumer staples corporations, an industry that tends to be relatively stable even when the economy tanks.
NYSE: KO
Key Data Points
Another reason is that Coca-Cola is an innovative company. It has made it a habit of launching new products in a market where it's hard to keep customers' attention for very long. Coca-Cola can stay ahead of evolving consumer preferences thanks to this factor. And given the company's vast portfolio of beverages and brands that span nearly every category in its niche, it has something for everyone. Lastly, there is Coca-Cola's dividend record.
With 63 consecutive years of payout increases, the company is a Dividend King, meaning it has increased its payouts for at least 50 years straight. Coca-Cola's rare dividend streak provides solid evidence that it can continue paying its shareholders for life.
2. Costco
Costco did not perform well in 2025. The company's business model, which relies on selling products in bulk and comes with thin margins, was not well-suited to thrive amid the threat of tariffs. However, Costco has been on a bit of a run since its latest quarterly update, which was stronger than the market anticipated. Will the company maintain that momentum in the near term? It's hard to say. However, the company's long-term prospects remain intact, in my view.
There are two reasons why. First, Costco's model also includes a membership fee that comes in multiple tiers -- a recurring, high-margin source of revenue. Customers are happy to pay this fee since Costco's prices are highly competitive in the retail market -- for regular shoppers, it's still a win. Membership fees represent a small portion of total revenue but help retain customers in its ecosystem. They may reduce spending when the economy is tough, but in the long run, things will bounce back eventually, and retail spending will stabilize.
NASDAQ: COST
Key Data Points
Second, Costco's e-commerce business has been growing faster than brick-and-mortar sales in recent years -- obviously, this is a much higher margin opportunity too. It still represents a small portion of revenue (7% in 2025), but over time it could become a much stronger contributor as it helps the company increase profits and margins.
Finally, though it is not a Dividend King, Costco also has an impressive track record. It has increased its payouts every year since first initiating a dividend in 2004. That, combined with its robust business, makes it a top pick for long-term income seekers.
