10 Dividend Stocks That Will Pay You for Life

In investing, there are few things that are better than a lifelong income stream. While most investors looking for a sure thing will turn to bonds, you’ll generally get better returns with stocks, and with the right ones you can also get a reliable income stream.

These kinds of stocks tend to be Dividend Aristocrats -- meaning companies that have increased their dividends for at least 25 consecutive years -- or companies that offer dividend growth with a strong set of competitive advantages. Keep reading to see 10 stocks that will pay you for the rest of your life.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Few dividend stocks are as reliable as Procter & Gamble (NYSE: PG). The diversified household goods company has more than 20 billion-dollar brands, including Gillette, Crest, and Tide, and its products span several categories like cleaning, grooming, baby care, and fabric care.

As a consumer staples company that sells products that shoppers depend on in good times and bad, Procter & Gamble is recession-proof, which is a great quality in a dividend stock.

Having raised its quarterly payout every year for 64 years, P&G is not only a Dividend Aristocrat but also an even more elite Dividend King (which requires increasing dividends for at least 50 years straight). And thanks to its diversification, marketing prowess, and ability to innovate and make acquisitions, the company should continue paying a dividend and raising it each year.

ALSO READ: The Smartest Dividend Aristocrats to Buy With $500 Right Now

Starbucks (NASDAQ: SBUX) is a much newer dividend stock than Procter & Gamble, having paid its first dividend in 2010. However, there are a number of reasons to believe its dividend is as rock-solid as any other.

The cafe chain is the world's No. 2 restaurant business in systemwide sales behind McDonald's, and the company has a number of competitive advantages that should ensure its continued cash flow. Those include its dominant position in coffee, its huge brand, prime real estate, and wide distribution for its grocery store and convenience store business.

Starbucks has aggressively raised its dividend over the last decade, and it should be able to continue to do so as the company grows.

If you’re looking for dividend security, it’s hard to beat a diversified healthcare company that is one of only two publicly traded companies in the U.S. that have a AAA credit rating. (Microsoft is the other one.)

Johnson & Johnson (NYSE: JNJ) is diversified across three businesses. It sells medical devices, pharmaceuticals, and consumer products like Tylenol and Band-Aid adhesive bandages. That range helps protect the company from recessions and other risks.

Given the strength of the business and the recession-proof nature of healthcare, it’s not surprising that Johnson & Johnson is a Dividend King, having raised its payout for 59 years in a row.

Coca-Cola (NYSE: KO) is one of Warren Buffett’s favorite stocks, and it’s easy to see why the value and income investor is such a big fan. Coke offers many of the things that Buffett believes make up an economic moat, including a well-known global brand, a vast distribution network and marketing machine, and entrenched relationships with customers like restaurants and supermarkets.

While soda consumption is declining in some parts of the world, Coca-Cola is diversifying away from soda with acquisitions such as Costa Coffee and Topo Chico, and releasing new flavors of existing brands.

Another Dividend King, Coca-Cola has raised its dividend every year for 59 years in a row, a testament to its strong history.

ALSO READ: 5 High-Yield Dividend Stocks to Buy Right Now That'll Help You Crush Inflation

Costco (NASDAQ: COST) is an unconventional dividend stock. Most dividend payers reward investors at regular intervals like every quarter. Costco, on other hand, is best known for paying investors a special dividend every few years, and over the last decade, shareholders have made more money from the special dividends than the quarterly payout. Last November it announced a $10-per-share special dividend, its biggest ever.

As a business, Costco is about as bulletproof as a retailer can be these days. The company’s membership model helps lock in customers, and its combination of low prices and quality is virtually impossible to beat. Costco also continues to open new stores and build out its e-commerce business, fueling its long-term growth.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Apple (NASDAQ: AAPL) may be the most powerful company in the world. The iPhone maker is the world’s most valuable business, worth $2.5 trillion, and in addition to its trademark smartphone, the company has several valuable business lines in devices like iPads, Macs, wearables like AirPods and Apple Watch, and high-margin services including its App Store, AppleCare, and Apple Pay.

The company also has a base of more than 1 billion installed devices in the world, meaning its products are well entrenched, and that seems unlikely to change anytime soon, especially as Gen Z and millennials have an overwhelming preference for Apple products.

Though the tech giant is only a modest dividend payer with a yield under 1%, investors can expect the company to continue raising its quarterly payout.

Real estate investment trusts (REITs) are great places to look for dividend income. After all, these companies are required by their business structure to pay out at least 90% of their taxable income as dividends.

Public Storage (NYSE: PSA) has been a longtime winner in the self-storage sector, and it’s the biggest storage REIT with an ownership stake in more than 2,500 properties.

Self-storage has thrived during the pandemic, and it’s the kind of business that people need in good economic times and bad, unlike most of the commercial real estate sector.

Public Storage stock has also nearly doubled over the last year and pays a dividend yield of 2.6%, making it a great choice for income investors.

ALSO READ: This 8.6%-Yielding Dividend Stock Keeps Getting Stronger

The housing market is one of the biggest parts of the U.S. economy, and that’s not going to change. Owning a home is a goal for many Americans, and homeownership and home improvement are parts of American culture.

Home Depot (NYSE: HD) has thrived over the years in a duopoly with Lowe's as it pioneered big-box retail in the home-improvement sector, opening cavernous stores that dwarfed the typical hardware store.

Today, the company is a well-oiled, disciplined machine, investing in store improvements, omnichannel infrastructure, and e-commerce, and it has essentially stopped opening new stores, giving it ample cash to return to investors through share buybacks and dividends.

That model will enable Home Depot to continue being a reliable dividend payer.

The world’s most valuable apparel brand, Nike (NYSE: NKE), has been paying an increasing dividend since 2004, making it a good candidate to be a Dividend Aristocrat in the next decade.

Its brand is known around the world, and the company has an unmatched roster of icons, including LeBron James, Serena Williams, and Cristiano Ronaldo, and a marketing reach that keeps it head and shoulders above rivals like Adidas and Under Armour.

The company has also invested heavily in the direct-to-consumer channel, with apps like SNKRS, its own specialized local stores, and programs like the Nike Training Club helping to increase its value proposition and strengthen its relationship with consumers. Recent growth has been strong, and that should continue coming out of the pandemic.

Innovative Industrial Properties (NYSE: IIPR) isn’t your typical dividend stock. This is a REIT that owns and leases marijuana growhouses. As a result, it offers a unique combination of growth and income in an industry that is primed to take off if marijuana is legalized at the federal level, which seems likely in the coming years.

Like alcohol and tobacco, the marijuana sector also offers the benefit of being recession-proof.

Innovative Industrial Properties today offers a dividend payout of 2.6%, and its revenue doubled in its most recent quarter.

While the company may not be a household name the way other stocks on this list are, with its unique position in a growing sector, it looks like a promising candidate for lifelong dividend payments.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Dividend investing doesn’t have to be difficult. The companies on this list all have a history of strong cash flows, a network of competitive advantages, and a solid track record of paying and raising their dividends.

If you’re looking for more dividend ideas, this list of Dividend Aristocrats is always a good place to start, but keep in mind the performance of the underlying business. Not every Dividend Aristocrat lasts forever.

Jeremy Bowman owns shares of Nike and Starbucks. The Motley Fool owns shares of and recommends Apple, Costco Wholesale, Home Depot, Innovative Industrial Properties, Nike, Starbucks, Under Armour (A Shares), and Under Armour (C Shares). The Motley Fool recommends Johnson & Johnson and Lowes and recommends the following options: long March 2023 $120 calls on Apple, short July 2021 $120 calls on Starbucks, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.