by Ian Cooper

Some of the best stocks to buy and hold forever are Dividend Kings.

These are the reputable giants of the market that’ll pay you to hold their stocks. So, not only do you get safety, but you can collect some extra income along the way. Even better, the Kings have a 50+ year history of raising their payouts.

Look at American States Water (AWR), for example. 

American States is a reliable water and electrical utility company that’s been around since 1929. Better, for the last 69 years, it has increased its dividend. Last checked, it recently announced a quarterly dividend of 43 cents, payable on December 1, 2023, to shareholders of record on November 15, 2023. With this one King, you get solid growth, solid dividends, and a strong stock, which is actually oversold at the moment.

So, what other Kings should you buy and hold forever? Here are three to consider.

Genuine Parts (GPC)

Look at Genuine Parts (GPC), for example.

With a current yield of 2.84%, GPC recently raised its dividend to 95 cents in August. We expect to hear about a new dividend payout in November 2023. It also has a long history of navigating economic issues, and has a strong 67-year record of dividend payouts.

Granted, earnings were nothing to write home about in the third quarter, but it’s still one of the top stocks to buy and hold forever.

Plus, as noted by Seeking Alpha, “GPC is a boring, conservative dividend stock that is perfect for investors looking for dividend growth and potential capital appreciation. Automotive stocks like GPC are often overlooked but I believe they can be hedges against downturns. People will always need their automobiles and the parts associated with them.”

Procter & Gamble (PG)

Another boring, but very safe dividend stock to buy and hold forever is Procter & Gamble (PG). With a yield of about 2.5%, the company recently announced a quarterly dividend of $0.9407 per share. P&G has been paying a dividend for 133 consecutive years since the company’s incorporation in 1890 and has increased the dividend for 67 consecutive years.

Earnings are still solid here, too. Its Q1 EPS of $1.83 beat by 11 cents. Revenue – up 6.1% year over year beat by $290 million.

“We delivered very strong results in the first quarter of fiscal year 2024, putting us on track to deliver towards the higher end of our fiscal year guidance ranges for organic sales and core EPS growth,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer.

Coca-Cola (KO)

No list of Dividend Kings is complete without Coca-Cola, one of Warren Buffett’s favorite stocks. With a yield of 3.22%, the company just announced a quarterly dividend of 46 cents per common share, payable Dec. 15 to shareowners of record of the company as of the close of business Dec. 1. It’s now been paying out dividends for 61 years.

Better, the company just posted Q3 EPS of 74 cents, which beat estimates by five cents. Revenue of $12 billion – up 8.1% year over year – beat by $580 million. It also just raised its outlook again, noting profits could rise again at a faster pace of between 7% and 8%. Eventually, that could also lead to a higher dividend increase in 2024, as well.